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Buying advice in Scotland/Tayside
LilacPixie
Posts: 8,052 Forumite
I need an impartial opinion. I am currently looking for a bigger home.I have a 2 bed flat mortgage outstanding is between 50-51k but with an ERP of 3k until June 2010. Flat is worth ???? Last sale in this street was me buying this in March 2003 and before that November 2002 nothing before or since. I did have a valuation done in June 2007 when I was remortgaging for modernisations (double glazing new kitchen and bathroom) that said worth 80k before works so I am hoping its worth at least 70k now. We have around 8k saved already and are saving at a rate of around £600 a month without pulling belts in at all so that could easilly be upped to £800-£900 if we make cutbacks on outings and takeaways along with economising.
Right now for the difficult bit. We have an agreement in principle for a mortgage os 230K based of a 10% deposit from RBS. 5.99% over 5 years. RBS are classing us as FTB because DH has never bought before.
DH is keen to get flat up for sale ASAP with a view to buying a newbuild and being moved in as soon as humanly possible.
I on the other hand want to wait until early 2010 to put flat on market and then buy an older house. House prices are really flat in this area it seems so I don't visualise any huge falls or gains in the next 2-3 years
For example he likes new builds about 3 miles from where we are now. a 4 bed rabbit hutch with garage thats too small for a car is 250k but price is negotiable but we would be pretty much maxed out where as is we look literally accross the road at homes built in the late 80's we can get a 3 bed house with a larger floor area for 150k in move in condition with a car port thing and in some cases when upgrading is required as little as 128k fixed price. the cheaper houses also have larger gardens which I feel is important as we have a one year old and a two year old who really need a garden to run off some energy.
DH feels i'm being silly wanting to take on a 'project' house with the two little ones but I feel that we would be getting more house for our money still in a similar area and really ripping out a kitchen and bathroom plus redecoration is not a 'big project' anyway as we would have to decorate any place we buy anyway.
If we sold up after june 2010 for 72k then equity plus savings minusing of selling and moving costs means we could essentially have a 100k mortgage is we decided to buy the 128k house. thats a mortgage of £650 ish a month 25 years at 5.99% but I think we could so better as we would have a 20% deposit not a 10% one. We have a joint take home pay of £2900, not including child benefit etc as IMO that is for the kids treats and clubs so even after bills and expenses would still have enough surplus income to save and make the improvments asap. The houses is habitable just think coloured blush pink bathroom suite, no shower, MFI 80's kitchen and woodchip in most rooms etc etc Functional just not my taste.
So honest answer am I being a bit dumb and looking mainly to price and looking at waht we could make of the place. Does DH have the right idea with buying shiney and new so everything is done??
Advice needed.
Right now for the difficult bit. We have an agreement in principle for a mortgage os 230K based of a 10% deposit from RBS. 5.99% over 5 years. RBS are classing us as FTB because DH has never bought before.
DH is keen to get flat up for sale ASAP with a view to buying a newbuild and being moved in as soon as humanly possible.
I on the other hand want to wait until early 2010 to put flat on market and then buy an older house. House prices are really flat in this area it seems so I don't visualise any huge falls or gains in the next 2-3 years
For example he likes new builds about 3 miles from where we are now. a 4 bed rabbit hutch with garage thats too small for a car is 250k but price is negotiable but we would be pretty much maxed out where as is we look literally accross the road at homes built in the late 80's we can get a 3 bed house with a larger floor area for 150k in move in condition with a car port thing and in some cases when upgrading is required as little as 128k fixed price. the cheaper houses also have larger gardens which I feel is important as we have a one year old and a two year old who really need a garden to run off some energy.
DH feels i'm being silly wanting to take on a 'project' house with the two little ones but I feel that we would be getting more house for our money still in a similar area and really ripping out a kitchen and bathroom plus redecoration is not a 'big project' anyway as we would have to decorate any place we buy anyway.
If we sold up after june 2010 for 72k then equity plus savings minusing of selling and moving costs means we could essentially have a 100k mortgage is we decided to buy the 128k house. thats a mortgage of £650 ish a month 25 years at 5.99% but I think we could so better as we would have a 20% deposit not a 10% one. We have a joint take home pay of £2900, not including child benefit etc as IMO that is for the kids treats and clubs so even after bills and expenses would still have enough surplus income to save and make the improvments asap. The houses is habitable just think coloured blush pink bathroom suite, no shower, MFI 80's kitchen and woodchip in most rooms etc etc Functional just not my taste.
So honest answer am I being a bit dumb and looking mainly to price and looking at waht we could make of the place. Does DH have the right idea with buying shiney and new so everything is done??
Advice needed.
MF aim 10th December 2020 :j:eek:
MFW 2012 no86 OP 0/2000 
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Comments
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Maybe split the difference?
Somewhere that needs a bit less work, up to the £175k stamp duty threshold, perhaps...(that will presumably be re-introduced by the time you buy).
Totally agree with rabbit-hutch rooms and postage-stamp garden issues with new builds. You might find smaller developers are a bit more generous, but they'll be more expensive...
It may take months to sell, so putting the flat on the market is not "surrendering" your viewpoint...it may also affect the maths/£s you have planned on.
To me, a £230K mortgage is massive. Something like 5x salary, roughly? Personally, I wouldn't take on that much.
Its really down to whether you want to please him, or he wants to please you - this weeks Locationx3 had a classic where he said "if she's happy, I'm happy"...
If you find a lovely old house with character that you "love", can you wrap him round your little finger...?Hi, we've noticed that you don't have a signature to remove. If you're not sure why please read the forum rules or email the forum team if you are feeling left out.0 -
I can Cannon. You are right maxed out is pretty much 5 x salary which terrifies me as I hate debt. I don't have such a problem with a mortgage of around 2/2.5x joint income as I feel thats enough to give us a decent sized home but still enough surplus to have a life and some luxuries or to overpay by a decent amount and get free of the mortgage all together.MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
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It's a personal decision. You and your other half realy need to discuss your points and see if either is swayed to the others thinking.
In my opnion, I would be more inclined to go with the older project house with more square footage and larger garden.
Especially when it would be cheaper.
One other thing to consider, you mention ERP, but most mortgage lenders would allow you to port accross to the new property. Is that an option:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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