to buy or not to buy?

dizzyhead_2

Have opportunity to buy 'showhome' on housing estate near motorway links and train roots etc for less than market value if very quick. Will then want to rent it out as can use buy to let loop hole as in armed forces but not sure wether it is a good time to buy now or not. In a way don't need to buy for 3 more years but wonder if should be in the property game? Hve some savings to put down on the property and will be able to keep up the mortgage payments. If rent it the rent will not pay the whole mortgage each month but should we buy any way or wait? Will mortgage payments ever get cheaper again? Will house prices continue to go up or stagnate?
Should I just put my savings somewhere good and continue to save instead of paying a mortgage? Help!!!!

canny_yorkshireman_2

read this site first https://www.housepricecrash.com then its up to you

Property_Magnate

Buy the house - you know it makes sense.

I'm sure you have run the numbers. What is the yield? Voids and maintenance- I'm sure you have checked the rental income allows for these?

Yes, I'm sure you have researched the market ... do it. Besides, us sellers are running out of fools!

F_T_Buyer

Dizzy, why don't you run the finances past us?

brasso

I'd be a bit suspicious if someone is telling you you have a bargain if you're very quick.

I'm not particularly cautious by nature but even I wouldn't rush into a property purchase, particularly at the moment when there is a lot of uncertainty in the market.

You say you can afford the mortgage, but can you afford the mortgage if there's a hike in interest rates? You also have to be certain you can get some reliable, ideally long-term tenants in. If the property is empty for 3 months a year, you could be in severe trouble.

Personally I wouldn't take out a 100% mortgage or an interest-only mortgage at the moment. If you have a sizeable deposit and are going for a repayment mortgage then fair enough.

dizzyhead_2

give me some good advice and help instead of being critical and I might stop posting it!

lynzpower

Dizzyhead

I think the sums are the most important part of the equation. No one can really give you much guidance until the sums are posted, hence that will help us give advice

dizzyhead_2

house building company has it's end of year at the end of June and wants to get rid of the show home so that is why have to do it quick. On the market at £169,950 offered it us at first for £159,950 and pay stamp duty, we offered less than this. Mortgage gonna be about £700 a month, can rent for £550 maybe £600 so not covering mortgage but should we buy to be in the mortgage game or is it not worth it knowing we don't need a house to live in ourselves for 3 years?

dizzyhead_2

Have looked at the website you advised, but what if they are just scare mongering and it never happens?

natwill_3

Hi

I'm no expert but that doesn't sound good...what about repairs etc and vacant periods..when you say mortgage is 700 pcm, is that repayment over 20 years? if its inetrest only I would forget it

If you are not around you may also have to pay a manageing agent to rent if for you..

Also whaqt are service charges?

natwill_3

sorry quick reply and bad spelling