buying first house last minute nerves

Debt_Free_Chick

coolblonde wrote:

I'm looking forward to the thought of having my own place and can just about afford the payments on the mortgage and just about having a life but am petrified of loosing money.

You may not have meant exactly what you wrote, but I wonder if you realise exactly how much you'll have to pay out every month? You need have a robust budget for ALL your bills - before you "have a life". You need to know the amounts of all your bills ...

Mortgage Repayments
Council Tax
Gas
Electricity
Oil
Water
TV License
Sky/NTL/Telewest
Buildings Ins
Contents Ins
Life Ins
Phone Line
Internet/Broadband
Food/Groceries
... more?

And if you have a car, you'll need to budget for that too. Have you filled in Martin's budget sheet?

It just struck me that things sounded tight with the mortgage on its own - but you will have other bills as well. You also need a budget for any renovation/redecoration and furnishing you want to do.

Regards

richgirl

coolblonde wrote:

Hi
Im planning to do the house up as quick as possible and planning to put the house up on the market before the end of next year as im worried that once the capital of culture ends so will the rise in prices in Liverpool.

it need to rise about 5-10% for you to break even when you take into account ALL costs.

lynzpower

Im not too sure why you only want to live there a year

Bearing in mind there are lots of costs to be swallowed in buying & selling
Stamp duty
2 lots of sol fees
estate agents fees
furniture & furnishing
PLus all the interest and the insurances etc along with the running costs.

If you want to live in that area and want to move out of home, why are you choosing not to rent? I presume to save a deposit? I dont get why youd want to sell up in a year though???

realwildone

You need to start somewhere. Who is to say that house prices won't rise and you won't be able to get on the ladder at a later date? Remember, if your house goes down in price, so does the next one you are buying....

Thats no comfort when your sitting on a commodity worth less than you paid. My view is you should wait.

dougk_2

take realwideone's advice.... then in three years time when the "big crash" hasn't come then you can pay an extra £20k to buy the house!

coolblonde

:T :beer: WOW i never thought id get such a good responseTHANK YOU;) :j EVERYBODY. Most people are asking why i want to sell up in a year. I hope that i can use the house as a springboard to move up the property ladder. By moving in a year i'm predicting im moving before the prices may drop in the area after the culture 08. Im planning on spending a couple of grand to improve the house and bring it up in line with the rest of the houses in the street which are going for on average 20 grand more. After selling the house im going to move into the area i like just outside Liverpool i hope. Although i want a home i have been brought up to be very careful with my money and am looking at the property as an investment too. When i do come round to selling the house i plan to do this myself as im allways up for a challenge when it comes to saving money. Also one of my family owns an estate agency in the area so im sure they will help me out if it comes to the worse. Im not looking to be put off from buying the house but i just want advice that is positive and negative so that i can consider every angle. Thanks debt free chick i have done Martins budget sheet and i have a couple of hundred pound left over each month providing i don't go sick from work. I have also set up an insurance to cover me in the event of illness. Thank you again i have looked at everybodys advice individually and thought things through carefully from each angle. I think i will probably end up buying the house as it is at a good price and i dont think prices wil drop too much within the next year hopefully go up even slightly. also i think that hving my own place is quite important i feel fed up at times when ive worked a long hard day and i have to sleep on the sofa. Thanks for your advice you are all invited to the house warming lol:rotfl:

lynzpower

What are the costs involved in buying - do you have a figure
Do you know what you will have to spend to bring it up to scratch in order to sell
Do you have a figure re: selling as dont forget in a years time HIPS will be in and you are more than likely going to have to pay for a number of searches and so forth in order to create your sellers info pack

If the totals of these run less ( and i say significantly less) than what you plan to "make" ( albeit taking into account potential fluctuations in the local market, plus a probable interest rise ( at least one) you will see whether the figures stack up.

clairehi

You're only 21! Why dont you spend your money on clothes and vodka and having fun! Im 33 and have 2 kids and a mortgage - dont be boring like me!

Seriously have you sat down and done a realistic monthly budget of money coming in and money going out. if not, do one now before you thin kabout sending off the cheque for the mortgage fee. And dont forget to allow for a reasonable amount of spending money. You cant live like a nun for the rest of your life it aint gonna happen!

I know this may be stating the obvious but a mortgage is a long term commitment and not quick to get out of if you find you cant find the money to pay it.

You seem to be in a real hurry to buy. now because you are worried about house prices. Well, none of us have a crystal ball but Im not sure the Capital of Culture thing will have a long term effect. So calm down and dont panic, and please dont buy a house just because you think you will make money out of a rising market. the only way you make money then is if you are trading down, not trading up.

have you sat down and worked out the costs of buying and selling. Moving again in a years time is almost certainly going to leave you out of pocket.

There's nothing wrong with saving for a deposit and being sensible but at 21 I would be thinking of moving into a rented place, probably shared with friends to cut costs, as a first step to leaving home.

If you are this worried about it, please dont do anything hasty. there will always other houses out there!