Thinking of buying a second property

CB1979_2

RHemmings wrote:

Did you buy another house when you sold the house? I'm asking because when you sold your house, you benefitted from the boom, but if you then had to buy another house, that may have wiped out your "benefit", or even worse.

just bought one now with my new girlfriend.

down in South Croydon, so basically gave me a nice deposit. (my flat just cost £167k!)

but even when we bought the house in stoke, the equivalent in HORRIBLE thornton heath (otherside of Croydon) was £180k, so there was obvious location variables though.

my main point was that we didn't waste £3k each per year renting, so instead paid £22k for a house we owned rather than £18k on nothing.

ShaunT_2

Thanks to all the replies.

I had suggested halls and house share.....I did it when I was at poly in stoke all those years ago....but he likes the idea of having his own space which planted the seed.

I agree that there will be a correction in price in the southwest.....the house I live in has quadrupled in price over the last 6 years.....one of reasons why I don't want to buy an expensive property.....I could take a capital loss on a property worth 55k.....hopefully it wouldn't be too great......mind you i'm looking at it as a long term investment and hopefully the house prices will still rise at sometime in the future.

There are properties already being rented in the block for £400/month exactly like the one were looking at.....if we rent it out we should have no problem getting the going rate.

As for financing I see the pros and cons for both suggestions......we have enough savings and 'free' cash for the deposit and the likelyhood we'll look at a buy-to-let mortgage.....but will crunch some numbers.

Off to look at it over the weekend.....you never know could be a second home owner soon.....bit hypocritical really......have always slagged off the non-cornish second homeowners who use there houses for a few weeks a year and have helped to inflate prices down here......sa la vie :rotfl:

BT_man

CB1979 wrote:

just bought one now with my new girlfriend.

down in South Croydon, so basically gave me a nice deposit. (my flat just cost £167k!)

but even when we bought the house in stoke, the equivalent in HORRIBLE thornton heath (otherside of Croydon) was £180k, so there was obvious location variables though.

my main point was that we didn't waste £3k each per year renting, so instead paid £22k for a house we owned rather than £18k on nothing.

I would like to ask how much u "wasted" on interest payments to your mortgage company.:D