First time buyer- scared and need some help!

n0sferatu

Hi guys-

Sorry if this is a bit of a stupid message:

I'm a first time buyer, and have just had my offer accepted on a property.

It's a 2 bed flat in London- The list price was 260k, and the vendor has accepted my offer of 235k.

I know that interest rates are low at the moment, so I can fix my repayments for 3 years and they will be at a good rate-

However, it is gonna be a real struggle getting my deposit together in time over the next few months. I think it's possible... But there's always a chance something will mess up and I can't do it.

I have a great Financial Advisor that is helping me through this, but I'm worried about it all. It's a big step.

The thing is, whilst it would be really great to have my own place, and get on the property ladder- I'm quite happy in the place I am renting at the moment.

I know it sounds crazy, but with all this stuff on the news about the recession etc at the moment I'm just really nervous.

I can see myself living in this new place. It's lovely. And I can rent out the second bedroom to a friend to help with repayments-

But should I be moving just because I think this is a good time? Am I rushing into things? I've only really been looking a few months...

I'm just confused...

As a last resort I can pull out in a month if it's not going to plan... I'd hate to do that to the vendor, but it's an option...

Has anyone got any wise words of encouragement for me?

p00hsticks

How secure is your job ?

Zelie

That seems quite a lot of money for a 2-bed flat. I'm also in London and looking at places more to the edge of town. Nicer area, good transport links and 3-bed semis currently with asking prices of 180-ish. Wouldn't that be a much more manageable price-range to be paying? I understand that you will probably want to be living somewhere near to social life/work/uni but bear in mind how much the more popular areas cost. Look slightly outside your preferred area and you could find a much cheaper place.

Georgie4

When you say it will be tough you have factored in everything like stamp duty and I presume the council tax on this will be hefty as well due to the price. Is it in a building that has management fees ? If you are any doubt then pull out now before you have paid out on surveys and mortgage arragement fees

patch3228

n0sferatu wrote: »

But should I be moving just because I think this is a good time? Am I rushing into things? I've only really been looking a few months...

Has anyone got any wise words of encouragement for me?

What LTV are you looking at and have you got a mortgage agreement in principle to back up your offer - as you state you have already been looking for a few months now...

Are you struggling to get your deposit in time over the next few months --> due to locked in investments or you are waiting to earn it...?

pizzagirl

n0sferatu wrote: »

But should I be moving just because I think this is a good time? ?

Why is it a good time? We're in the middle of a recession. Do you believe all the media talk about green shoots?

kunekune

A certain degree of nervousness is normal. If you are still terrified that you're doing the wrong thing by the middle of next week, PULL OUT.

n0sferatu

Thanks so much everyone, for the replies, I will try to answer as much as possible:

1- I run my own company, and most of my clients seem secure enough for this not to be a massive worry. At the moment there seems to be MORE work coming, just lesser paid jobs. If I can carry on this way I should be good.

2- I live in Hackney and am only interested in period conversions in this area. My whole life is here and I'm not interested in ex-local's or new-builds.

3- This is the thing. I'm worried because including stamp duty etc I'm pushing myself a few grand over the edge. If all the jobs I have pending come off good then I'm okay... But there's always a chance it won't happen...

4- I think this is a good time as the place I have an offer on is a good amount under list price, and I don't know if this will stay on the market much longer. I really haven't seen anything on the market recently anywhere near as good for the same price and location...
Also if I buy at a point where interest rates are so low, I can fix them for three years at a really good rate. This is appealing to me.

Thanks again, everyone. I'm greatful for your thoughts...

mark5

In response to pizzagirl a recession can be a very good time to make purchases if the buyer is in a strong enough financial position themselves.

BritRael

n0sferatu wrote: »

...Also if I buy at a point where interest rates are so low, I can fix them for three years at a really good rate. This is appealing to me....

Very true. However, the mortgage will probably run for a few more years than that As the rates can't get much lower, the only way is up. When I bought my first property the rate was 15%! :eek:

I understand your fears; we've all been there, and in the end only you can make the decision. However, I tend to agree with the comments above though; take your time and certainly pull out if you have any doubts. In this current climate there's no need to hurry as it looks like (in my humble opinion) prices will go even lower. Of course, you're also in the good position of being happy where you are, so there's no real pressure (apart from your desire to 'get on the housing ladder') to rush such a big commitment.
Good luck

Gwhiz

IMF reported today they believe we'll be in recession until well into 2010 and that house prices still have a long way to go.

Personally - unless you can get a great discount (20% plus), and you know you will stay for a log time and your job is safe (and no one does) I'd say right now is a terrible time to buy.

http://www.guardian.co.uk/business/2009/apr/26/housing-slump-imf