Is it the right time to buy??

lynzpower

ClareDC, I completely agree with you and if your figures stack up as it looks like they do then that is excellent. Sadly many people dont do the figures first ( Im meaning me of course, along with plenty of others) and thus end up in the mire.

I dont mean to get personal with anyone at the end of the day it doesnt overly bother me what other people get up to. However, I do think its irresponsible to be of the opinion that its black and white. What works for you probably wont work for others, If Id come here with my choices 2 years ago, I would have expected plenty of people to point out the flaws in my plan. And they would have been right to, as quite frankly Ive made some cr*p decisions.

If only eh...?

deefadog

I totally agree with ClareDC as well, as you say as long as you can afford it, then get the best you can, it's always going to be an investment (long term)and more importantly (as we are not on this planet that long) is the quality of life while we are here.

if everything does go wrong, then at least you can say you give it your best shot!

We are currently in negotiantions on a 4 bed, 4 reception room 3 story house, this is mainly for our children sake as there will be plenty of room etc, but in 20 years time, we will down size (or move abroad) and hopefully have a nice chunk of cash to carry on to the end of days . Well that's the plan anyway!

Careful_girl

Well done Claire!! :T
It isn't healthy that we all agree and you can all have a good laugh about me and my magnolia because I certainly did! :rotfl:
CG:rolleyes:

missk_ensington

sparkle84 wrote:

First thing I have to say is interest are going without a single doubt go up over the next year no question.

Secondly your figures don't add up you minus the renovation costs your IO morgtage your legal fees you EA fees your moving costs = what will you make £10,000 max over 2 years big deal

Yes no doubt interest rates will go up, but fortunately my rate is fixed, and many other can get fixed rates too.

My figures: Buy £92,500, Sell £110,000+ difference: £17,500
- renovation costs £6,000
- Estate agents/conveyancing/ all fees to buy and sell £2,500
= £17,500 - £6,000 - £2,500 = £9,000 purely profit in 12 months.

I dont think £9,000 in 12 months is a bad return, when many people only earn 11k salary! And this is presuming the house only sells for £110,000, its far more likely to go for nearer £120,000 but I'm staging my sums at the lower end of the scale to be safer.

And I still need somewhere to live, so its not all about the money. After two house moved I'm hoping to have house value £130,000 or more, mortgage only £82,000 still cos IO- at this point I'll downsize and throw £30,000 off the mortgage, if not more as I'm hopinh to have some savings too by then.

Arch-Angel

missk_ensington wrote:

Yes no doubt interest rates will go up, but fortunately my rate is fixed, and many other can get fixed rates too.

My figures: Buy £92,500, Sell £110,000+ difference: £17,500
- renovation costs £6,000
- Estate agents/conveyancing/ all fees to buy and sell £2,500
= £17,500 - £6,000 - £2,500 = £9,000 purely profit in 12 months.

I dont think £9,000 in 12 months is a bad return, when many people only earn 11k salary! And this is presuming the house only sells for £110,000, its far more likely to go for nearer £120,000 but I'm staging my sums at the lower end of the scale to be safer.

Add to that the mortgage payments you've had to make - 12 months @£380 (your numbers from a previous post) equals £4500 (aprrox). So you're now "earning" just £4500 per year! :eek:

If you sell for higher - or sell earlier - great, more profit! But, if you don't sell straight away, refurbishment takes longer etc. then all your money is tied up in one property. As I posted earlier, the buy-renovate-sell model does work, but IMHO you need to buy at auction perhaps (at £80000?) to make the risk (not to mention the effort) worthwhile.

missk_ensington

Yeah but I have to live!! I would be paying £500 a month in rent anyway for my son and I, if I don't sell easily that's no problem, as I said its nesting as well as investing. If I rent I'm "earning" nothing, it'd cpst me at least £500 a month to pay my Landlords mortgage off!

chris83_2

There is no point trying to pick holes in Miss_k's argument. If she is making money then that is fine. Stop being jealous people.

missk_ensington

Thanks Chris- I'm not sure that its people being jealous, but people hear/read something about interes rates/market crash and they all follow like sheep. In my area we're predicted a 7% increase this year, but maybe thats wrong. It's a bit like in the war, people would see a queue and stand in it; no idea what they're queuing for but if others are doing it that must be correct!

nmiah786

missk_ensington wrote:

Thanks Chris- I'm not sure that its people being jealous, but people hear/read something about interes rates/market crash and they all follow like sheep. In my area we're predicted a 7% increase this year, but maybe thats wrong. It's a bit like in the war, people would see a queue and stand in it; no idea what they're queuing for but if others are doing it that must be correct!

I've lost count of the sheeps, it must mean I've fallen asleep and now dreaming!!!

gallygirl

I'm probably the wrong person to comment as all my money is tied up in property. However, my reasoning for buying a house in the 1st place, in addition to hoping to have a valuable asset at the end, was to give me some control over my life. I wanted to decide where I live and when I want to move - I did not want to be dependant on a landlord, hoping he wouldn't sell up, hoping he'd replace the kitchen etc.