to buy or not to buy?

dizzyhead_2

Quick sums, house was on market at £169950 but offered it to us for £159950 and stamp duty paid. We have offered less and they are happy to accept as want it gone by their end of year which is the end of June.
Mortgage will be about £700 but won't make that much if rented, probably £550 or £600 so will have to cover rest.
Do we buy or save elsewhere instead as don't need to buy at present?

Property_Magnate

Dizzyhead,

You are obviously not for real ... no-one could be that stupid ... could they?

dizzyhead_2

Mortgage is over 25 years and is repayment, interest only is less per month but very unsure about them. Will certainly have to pay manageing agent up to 10%. Not sure about service charges. Must look into this. Just not sure whether to buy so in the housing game while we are awayor whether putting the mortgage money away somewhere else would be a better bet.

natwill_3

You may want to buy...but I don't think this one is a very good deal for you at all...not only are you not covering the mortgage every month if you have tenants but you will have many extra costs to pay...don't do it

Try a speadsheet and set out likely costs not just mortgage, and likely income

Even 10% to a managing agent and service charge costs are going to mean you paying £250 a month probably even if you have tenants

Bearing in mind over supply of rented at the moment I would forget it!!!!!!

Find something else that covers mort and costs

F_T_Buyer

dizzyhead wrote:

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

Scare mongering? Like Kirsty and Phil saying prices will double over ten years pricing out every FTB forever?

Why don't you look at the arguments, understand them, and research them for yourself? But most people never research it, or maybe say they asked an EA - like they're going to be impartial!


Got to go, I need to ring a window salesman and ask if it's a good time to get my windows replaced :rotfl:

lynzpower

You say mortgage is 700, is that interest only or repayment? SOunds like IO to me, although you may have got a better deal than me

Spendless

When I first joined this site in August 2004 many members were saying "don't buy now, prices are about to crash" but it really depends on what is happening in the area where you are thining of buying. In 2004 prices were lower here than they are today but prices have been decreasing for about the last 6-12 months. I can tell by the amount of properties up for sale including ones I know are buy-to-let properties u Bungalow in my street up for sale ,they took it off market last year after no interest and has gone back up again this year different EA for £20k less.

In your case, is it a home you would want to live in after 3 years, or would you be looking to sell? How much would have been paid off the bottom line of the mortgage in the 3 years? How likely are you to find tenants?

Do your research, good luck

FaTB

dizzyhead wrote:

Will mortgage payments ever get cheaper again?

Will house prices continue to go up or stagnate?

IMHO will not be getting cheaper, in fact I think its very likely that if interest rates do move it will be upwards !! and this may also give you a clue as to the answer to your second question.