Buying my first place! Adivce needing on everything!

rictus123

Ok so im in the position now that i think im earning enough that this will be a serious thought in the near future! My savings are not amazing so i think we will have a pretty shocking intrest rate to begin with but overpaying what we can(if we can, without penaltys) then we will soon manage fine 2 years down the line...

I will be buying with my gf. We are looking at getting on at the bottom end of the ladder....houses around about £130k priced online, i think we will pay no more than £120k for our first place.

My questions to you guys is what do i need to consider?

£120k house

£12k deposit
£2k soliciter and mortgage arrangement fees
£4k for Furniture etc - have basics like beds tvs etc but need suite,dining table etc etc.

Thats all i can think of for up front costs. Cost of moving will be free as gfs dad has a big van and trailer and will do all he can to help.

So £18k upfront costs between the 2 of us....

Then monthly costs -

£750 for mortgage? Maybe take out a 30 year to start with...but allows overpayments? Whats the best way to start off?

Any idea for the cost of building and contents insurance?

Council tax -??

Electric - £50 a month?

Water - ???

Food - £400 a month for 2?
Tv license - £12 a month?
Internet/phone/sky - £50 a month

£1,300 or so regular outgoings a month? Does this seem about right for 2 people?


Since im time served next summer we would look at maybe next xmas to move in, maybe start of 2012. Need to get planning now though to ensure we get there without any problems. Any advice? I know alot of you might say save as much deposit as we can while we are at home but with the amount of work i have coming up next year aswel as some over paying i think we could also manage a lump sum of £15k or so a year after moving in?

Thanks in advance for all useful and sensible advice.

PasturesNew

I'm old enough to be your mother and never owned a dining table yet.
£4k for initial setting up sounds to me like you'd be going well mad, out of control ... and buying !!!!!! you'll never need/use.

Food - £400.... if you're eating well/a lot and without reining yourselves in because you're all young and excited and that table needs using.... otherwise £200.

Insurances: £200/year
Water: £250-350/year, depends how much you wash etc and where you are and if it's on a meter.

rictus123

So £20 a month insurance and £30 a month water...that seems ok to be honest! Well Inital set up would be litterally everything i need in a house?....Didnt think it through to be honest, just thought that would be plenty? That would be suite, wardrobes, Bathroom cabinet, Living room table, lamps etc just your average things in a house. Dont want to just move into a bedroom. However having said that the less there is in a room the easier it would be to decorate it later on.

Thanks for the reply PasturesNew. Dont have much faith that we would get a mortgage like that....

linz

A good idea I think would be not to go mad buying stuff you think you need as soon as you move in. Give it time, decorate as you see fit and build each room slowly, adding things as and when you can afford them. That was you have more time to look around and choose stuff you like instead of impulse buying.

Brb

You don't need to spend that 4k on furniture but good to aim to save that much. Rainy day fund has saved my butt on more than one occasion. Good if car goes kaput just after you buy your dream home or boiler goes also.

If you don't use it - then you can use it to over-pay just as you wanted to

Freecycle is good for new home movers and as linz said, decorate and furnish each room as you go.

Person_one

4K is a lot, I fully re-decorated and furnished my first home very nicely for 2.5K. It was a 2 bed flat rather than a house, but the costs wouldn't be that much different. All I had going in was a TV and a mirror!

Save the 4k, spend 2.5 and hold onto the rest in case of emergency.

You may have slightly underestimated your fees. Mortgage arrangement fees can be around £1000, valuation or survey will be £150 or more depending on what type you get, and solicitors fees are unpredictable, disbursements can really make it add up. I'd budget 3K and expect to have some change to put back in the savings pot.

Lindi-Lou

Shop around for a good price for everything that you will need from a Solicitor to insurances to furniture. Use Martin's money saving comparison sites. Try and keep a reserve fund for the unexpected. House buying is expensive, but exciting first time round, good luck with it all.

jodami84

The general consensus seems to be that you wont need such a large amount put by for furniture. I am in a similar position to ureself, saving with partner for first property, and working out our average outgoings.

For me, my main focus is on getting a larger deposit together. I understand where your coming from regarding paying extra per month, but the difference between a 10% deposit and 15% for a house in your price range is in excess of £100 month. I cant speak for u, but im much happier thinking that 100 quid can go towards buying things for our home, as opposed to lining the pockets of the banks.

benjaminwootton

There aren't many 10% deposit deals around at the minute too - they will attract high fees and high interest rates if there are.

Plus, take a look at todays news. I would give it a few more months if I were you:

http://www.telegraph.co.uk/finance/economics/houseprices/8047664/UK-house-prices-fall-by-record-3.6pc-in-a-month.html

poppysarah

Look up what band property it is "voa by postcode" into google and then look up on local authority site how much it costs,

Heating details should be on energy certicate?

hazyjo

Don't forget ebay for furniture and don't be too proud for 2nd hand! I recently sold a mahogany dining suite - pretty faultless - for just over £100! That was with 6 chairs and I daren't think of how much it would have cost new (I didn't buy it). Only got rid cos my mum gave us her old one which was better/more modern than the one we had. You can get some massive bargains if you buy 2nd hand - even if it's just to start off with. You'll really need to live with the decor and layout for a while before knowing what you'll want to change.

I think my mortgage is around £500-600 a month. I pay £950 into a separate account to cover everything except food. Everything comes out in direct debit each month. That's on a 2 bed house.

Jx