House Purchase Dilemna

yasmin2

ali007 wrote:

Sorry hon, you've left it too late. No way you could find and be in by Sept - plus all students will have accomm by now - those that ahven't are likely to be so disortganised you'd probably struggle to get rent off them anyway.

Assume you're giving up job as you'll be full time student? You must have handed in notice, or be about to - your employer would presumably have to put this on earnings confirmation to lender so they wouldn't lend to you anyway.

Have I left it too late to be in by September? Don't start until the end. And I was thinking that there will always be mature students who realise that halls are not for them and seek alternative accomodation. Part of the reason that I am looking to purchase now is so that I can use my current earnings as the multiple that the mortgage company go by. Cash flow will be reduced to half with my new job. I wasn't planning to hand my notice in until after the mortgage had been confirmed.. I was planning to top up with rent and my student loan.

I have spoken to another mature student, who is doing the same course in a different city and she seemed to think that there will be no shortage of students. She bought her own place and it seems that there is always someone waiting to move in...

Am I just being very naive???

frannyscho

I would say follow your nose and your instincts if you are a financially savvy sort, BUT not if you're not. As long as when you take your mortgage out you do your sums, including the cost of a 6 months to a years mortgage payments. It won't really matter if it's a buy to let mortgage as long as the rental covers it, then if the rental doesn't work out well at first, you have a little time to find the right people to share with (also be aware of the new HMO laws on multiple occupancy before you start). The percentage increase likely if you bought wisely will more than pay you back if you are intending it to be a longer term investment - property investment isn't much good short term unless you strike a lucky zone, because it can eat up most of your profit with the costs involved if it is a smaller property. Also better to buy smaller in a good area than bigger in a bad one for resale factor. Do you know your zones here, check this out with the estate agents there.

Never mind what people say about sharing, we shared our house with four tenants for 8 years whilst having three kids, admittedly with separate facilities, but it is a way to jump the wagon a few stages faster.
Just do your maths really well, it doesn't hurt to work it all out in theory first and get quotes from all concerned.

As with all things, fantastic preparation, loads of research, and good homework will give you the keys. If all this leads to a no or even a maybe - then rent and have the freedom instead. You can always do it later.

yasmin2

I am quite a financially savvy person but guess the reason I am so hesitant about buying is that the degree I am doing is quite a heavy-going "professional" one (sorry, as I don't want to say which degree it is). I wouldn't want anything to distract me from it as I have struggled and studied hard at this fairly late stage in my life to get here. I have just placed my old home on the BTL market and no takers as yet. On top of this, I have about £5000 credit card debt which I am still paying off. My gut instinct is to go for it as I think it will all settle out in the end and I can work extra in the holidays but my head wonders if I am taking too much on at the moment...

Another issue spurring me on, is that currently I can afford a 2/3 bedroom house but I won't be able to, once I resign and take up the part-time position. Guess I could always go for a one bedroom place next year.

I think night shifts are rubbish as there is just too much time to think about this stuff

:rolleyes:

Kaminari_2

Bap, i bought a property that was split into 4 one bed flats for £85k last Oct, it needed £4k worth of work and yeilds 10.6%, If you look hard enough you can find it.

gallygirl

bap98189 wrote:

Can you please tell me where you can get a three bedroom house for £120,000. I've not seen any other than in the Outer Hebrides.

http://www.sequencehome.co.uk/properties.asp?br=-1&cs=27&type=0&b=COR&prop=-1&min=-1&max=100000&bed=3&Go.x=20&Go.y=12

Try here......

Yasmin I still think you'd be lucky to get in by end of Sept, also once signed up for halls you have to pay for the year, can't just move out that easily.

Also, didn't realise you owned home already - and as you've found letting out may not be that easy. You really need a good cash buffer to cover voids etc - as you have debts already you need to be v v careful. What if you buy somewhere and can't get anyone to share with, then BTL becomes empty for 6 months? if you couldn't cope with this you really shouldn't consider it.