Potential first time buyer - what to do?

sleepy

drinky wrote:

What do people generally think these days is a reasonable % of take home pay to be paying in mortgage payments. My daughter wants to buy a place at the moment but she is looking at interest only mortgage with monthly payments of about 50% of her after tax income. She isn't on a great wage - about average earnings. This feels too much to me for her to cope with on her own, especially as she has a young baby to bring up, car to run, etc. We both filled in Martins budgeting tool but with very different view on inputs and of course subsequent answers.

I'd suggest that seems really high. My partner and I brought our first home in March and our morgag is 29% of our combined take home salary. We bring home £2100 between us after tax and our mortgage (repayment, not interest only) is £600 a month. We don't have any children, just us two to look after and we couldn't really afford to pay much more than that out each month.

sleepy

With regards to th OP, what's wrong with looking just outside belfast? I don't know what the situation is like there, but as a first time buyer in Leeds we bought just outside the city. We're in a really nice countrysidey village, but just 10 mins on the train (from our tiny village station 4 mins walk from our house), or 20 minutes by bus, or 15 mins in the car from central Leeds.
I know some people prefer city living, but I love our little village and we got a 4 bedroom house for the same cost as a 1 or 2 bed city centre flat.

talksalot81

lynzpower,

As noted by another post, you REALLY have to be careful where you live. Believe it or not, my voice/accent would be plenty enough to give me away and I do not wish to live in an area where the kids are free to vandalise and pester me until i ask assistance from the local paramilitaries!! Scary!

kingmongo2k,

I am a postgrad student so with any luck will be moving into a job with a PhD, which does help the financial side! All the same, it just isnt enough to make things in anyway comfortable! You are right that there are just too many buying and compounded by there being many who are buying not just for themselves (developers/investors). Rightly someone else said that it is just bricks and mortar, but it isnt anymore. A house should be a place to live, the problem is that too many use it as a licence to print money.

Unfortunately buying just outside of town isnt any better (in an acceptable area). The outskirts type towns are even worse! It takes you to be quite a distance out (read an hour drive on typical travel time roads) before you are into less money, plus they dont appreciate as rapidly....

I may have to work on slightly further up the ladder with parental help (of course making the situation worse because effectively my parents are then compounding the 'more buyers than sellers' issue).

From my scientific viewpoint, it seems like we have a self sufficient cycle. Everyone needs a home, so we have to buy and in so doing we make things worse. Id love to be able to see when the end was due....

ginger_nuts

House prices in Northern Ireland have always been behind the rest of the UK . In the 1970s you couldnt give away houses in Belfast .They are now starting to catch up .House prices in Northern Ireland have increased 25% in the past year .House's under 100K often sell £7,000 over the asking price .I bought a BTL last year .In one year it has increased 50% .The reason given for such big price increases is the influx of foreign workers . If you can buy at the right price in the right area then go for it .Another option is to get a lodger ,or rent the property out for a year or 2 while still living with parents .
Edit ...it has been said people from Belfast think they need a passport to get out of the city ..maybe you should try it any buy elsewhere .

suki1964

Its not just the influx of foriegn workers, the ban on planning in rural areas is pushing prices skywards. Plots that have ouline planning permission have gone up by 30% already in this area and prices are going well over asking