When to buy? & Certain houses on 100%?

leannie_2

Hello,
My partner and I have just looked into getting a mortgage and buying a property. We are in no rush, we have rented for 8 years, and our current rental contract ends in April, but can be renewed, although we can move out at any point as long as we provide 1 month notice.
We don't want to stretch ourselves too far, and want a repayment mortgage (100%) so are looking in the region of £130k, which in Cornwall does not go far!
We want, like everyone, as much for our money as possible, as we plan to live in the property for at least 3 years, and by that point may be looking to start a family.
I know this maybe the million dollar question, but does anyone think there will be a fall in house prices in the near future? Should we wait until Spring?

(As an aside, the mortgage broker we saw advised us with a 100% mortgage to buy certain types of houses - band new pref. 1st phase of a development, a house built in the last 25 years or a house built between 1900 and 1935. This is because of Mundic in houses built after WW2, the granite construction of old cottages and also the listings on old cottages...has anyone else heard of this?)

Thanks,
Leanne

Angela_D_3

Wait until this time next year in my opinion 2007 will be very interesting, you've waited this long another year won't hurt, don't be the one left holding the bomb.

Also newbuilds have a 20% premium just for being new, do you actually like them ? If not I wouldn't buy one, too pokey.

leannie_2

Well, I do like new builds, I never thought I would! But we rent a listed 18th century cottage with original sash windows and granite rubble walls and it is a nightmare. We can't have a water meter, have to have lights on all year round, the heating system is very ineffective but can't be changed and we are not allowed to have a sky dish! We have lived there for 2.5 years and I want a house that doesn't come with all of that!
My best friends Dad is a property developer and the ones he does are lovely, he doesn't build very often in the area I want to live in!

whambamboo

leannie wrote:

Well, I do like new builds, I never thought I would! But we rent a listed 18th century cottage with original sash windows and granite rubble walls and it is a nightmare. We can't have a water meter, have to have lights on all year round, the heating system is very ineffective but can't be changed and we are not allowed to have a sky dish! We have lived there for 2.5 years and I want a house that doesn't come with all of that!
My best friends Dad is a property developer and the ones he does are lovely, he doesn't build very often in the area I want to live in!

just because it's not new, doesn't mean it has to be 18th century listed!!!!

1960s property is very practical, and usually has a bigger garden than the modern stuff.

Angela_D_3

leannie wrote:

Well, I do like new builds, I never thought I would! But we rent a listed 18th century cottage with original sash windows and granite rubble walls and it is a nightmare. We can't have a water meter, have to have lights on all year round, the heating system is very ineffective but can't be changed and we are not allowed to have a sky dish! We have lived there for 2.5 years and I want a house that doesn't come with all of that!
My best friends Dad is a property developer and the ones he does are lovely, he doesn't build very often in the area I want to live in!

Well then I would go and ask him for a 20% discount. I know what you mean about listed buildings i wouldn't buy one of those either but new builds are very small and the walls are like paper, maybe you should rent one of those too to see if you like them ? I would buy a detached new build, if i built it

leannie_2

whambamboo wrote:

just because it's not new, doesn't mean it has to be 18th century listed!!!!

1960s property is very practical, and usually has a bigger garden than the modern stuff.

Oh I know, but we do have a really big problem with mundic block down here and lots of houses built after the war are affected and therefore cash only purchases. Additionally, there are problems with mining down here and some of the houses built as part of the slum clearances and post war building boom, were built on unmapped shafts. We have fairly regular reports of gardens, roads and houses sliding away over night! :rotfl:

SammyD_2

Angela_D wrote:

Wait until this time next year in my opinion 2007 will be very interesting, you've waited this long another year won't hurt, don't be the one left holding the bomb.

You might be right...on the other hand you might be very very wrong. We bought our house in Spring 2002. The week we completed seemed to see the start of doom and gloom stories about property prices, and our house price probably increased a little bit but not much in the next couple of years. However in the last year it has increased substantially. I do feel qualified to say this as we have just sold our house, got six offers, four at the asking price and one above, and in the four year period we have seen our house value increase by 45%.

It is true if you bought tomorrow you might not be able to sell in six months time for the price you paid (noone knows, it could be the other way round as well). But you also have to factor in that you are not paying rent anymore, but are paying off a mortgage. I think the only concern I would have about buying now is that if you really do only have a three year time frame and will definately want to sell at that point you do need to make sure your price is greater than the value of your mortgage otherwise you have a problem. Noone can guarantee that, so I would be suggest that you try to get a house that can deal with any new arrivals in the family over the next few years.

I dont see any point trying to time the market, just try to ensure you are buying in a good location and in a property that you would be happy to live in for a good few years if you needed to.

dwsjarcmcd

No-one can tell you whats going to happen to prices. When they give you opinions about this crash or this boom, you know they are talking nonsence. Similarly the comment about the 20% premium on new builds is also nonsence. Are builders expected to build houses for people out of the goodness of their hearts!! New builds have many, many advantages over older houses and the profit margin referred to can sometimes take longer to recoup, but by no means is this always the case.

As you said, try to get the best deal you can, on a property you want and think of it as a home that you will enjoy and you can't go far wrong. The market will do what the market will do and there is little you can do about it.

Good luck

meanmachine_2

I love how homeowners suddenly think they're "qualified" to give advice on the market.

Is that a BSc or a BTEC in property speculation?

The fact is, 100% mortgages are bad news in general because, should the worst happen, as it has in the States, you're in neg equity.

Not that the worst ever happens or that you should ever plan for that, because all these "qualified experts" (homeowners) will tell you that prices only ever go up.

Do what feels right for you. You'll get no answers on here, from either the "qualified experts", or the more sceptical amongst us.

And no, 130K won't buy you much in Cornwall. Blame the second homeowners for that.

whambamboo

dwsjarcmcd wrote:

Similarly the comment about the 20% premium on new builds is also nonsence. Are builders expected to build houses for people out of the goodness of their hearts!! New builds have many, many advantages over older houses and the profit margin referred to can sometimes take longer to recoup, but by no means is this always the case.

The problem is they are charged at more than 5-year old properties, which are for most people just as good as new ones. New-build flats are no longer new when you move on, and yes, the premium is typically 20%.

dwsjarcmcd

whambamboo wrote:

The problem is they are charged at more than 5-year old properties, which are for most people just as good as new ones. New-build flats are no longer new when you move on, and yes, the premium is typically 20%.

Massive generalisation me thinks and certainly not true in my experience. You may have a point regarding the price of flats but that has nothing to do with 'premiums' and everything to do with the laws of economics i.e supply and demand. There are just far too many of them.