First time buyer advice please!

Supreme_2

I'm currently saving to buy my first house, and it's getting hard now! What i would like to know though (before i go to a financial advisor, as i just need ideas at the moment), is what the max value of property i should be looking at is.

I earn approx £26k, and have roughly £35k as a deposit. The only debts i have are my huge student loan. The deposit will wipe out the majority of my savings, though i will have enough left for purchase costs and some renovation/purchases.

I know exactly what all my monthly expenses are as i track all of this So i know that for a property in the area i'm thinking about, my expenses each month (inc student loan repayments, and food) are ~£565, which gives me approx £1k for mortgage and everything else.

Given these details, what would be your thoughts on the value of properties that i should be looking at?


Thanks

poppysarah

Cheap. Ideally 80k worth. Depends where you live whether this is a posh cardboard box though. Oop North these days prices of terraces are getting slightly more reasonable.

Get a house. big enough for a lodger. Big enough so you don't have to move if you buy a large book or umbrella stand.

Just cos you have 1k spare doesn't mean you should budget for spending it.

Supreme_2

£80k?? that seems somewhat low given my circumstances, and £80k doesn't even buy a room in Cardiff!

I know having £1k spare means i don't have to spend it all If i didn't know that i wouldn't have gotten £35k for a deposit would i

marlasinger

Yikes, 80K? I'm in the same boat as you, pretty much. Same salary and £30K deposit, but with no debt. We are 'looking' at places up to £125K. Maybe I am dreaming?

Satyris

I urge you to go see a financial advisor, it's in their best intrests to find you a good deal on mortgages and they do a really good job at putting your mind to rest about some of the finer points of buying a house; with a 20% deposit (30k on a 150k house) i'm sure a it shouldn't be too tricky to find a good rate.

Another thing to mention is to check your local council's website for homebuying schemes, I was lucky enough to get an equity loan for 45% of my property's value that is only paid back when I sell the house and with no charges. I've just exchanged contracts and I will move into my first home on the 7th April (avoiding stamp duty!!)

best of luck

VIGILANT22

Supreme wrote: »

£80k?? that seems somewhat low given my circumstances, and £80k doesn't even buy a room in Cardiff!

I know having £1k spare means i don't have to spend it all If i didn't know that i wouldn't have gotten £35k for a deposit would i

where did the 35k come from?

seraphin_2

You say you have a huge student debt, how much is huge, the reason i ask is that this will impact on how much any lender will lend you, you dont want to overstretch yourself, remember the rates are really low and will only go up, so a large morgage can easily go up to more than you can afford, the banks etc will also look at this fact.

Dont overstretch yourself or you will end up miserable with no money at all !!

sarah

Supreme_2

Student loan is approx £15k, which is £85/month on my current wage. Just for comparison, my current rent is £580, and below are mortgage costs based on 25yrs and £105k.

4.4% - ~£580/month
7% - ~£740/month

So from looking at that, if interest rates went up to 7%, and i was still being paid the same, it would be a bit tighter, but not a massive problem. If it gets worse, that's when i get a lodger

Supreme_2

Satyris wrote: »

I urge you to go see a financial advisor

I will do, but i'm just trying to get as much info as i can before i do

tiggerjj

I am buying a 3 bed terrace in cardiff for 129950, so you should be able to find something in cardiff. mind you I am crossing the newport road boundary durdurduuuuurrrrrrrr I dont give a hoot about which side of the road i live on, there is quite abit of affordable property in cardiff

Fire_Fox

Supreme wrote: »

I know exactly what all my monthly expenses are as i track all of this So i know that for a property in the area i'm thinking about, my expenses each month (inc student loan repayments, and food) are ~£565, which gives me approx £1k for mortgage and everything else.

Given these details, what would be your thoughts on the value of properties that i should be looking at?

Given that you haven't specified what you consider to be 'expenses' and what is included in 'everything else' you may as well ask how long is a piece of string!! :huh: