To Buy or Not To Buy

dorset_nurse

I wouldn't say you are too young to take the plunge- I am a few years older than you and have had my place a year.

I was very careful to make sure I had NO other debt when I bought, and I did plenty of research into interest rates and worst case scenarios in case the mortgage payments went up.

I looked at smaller places which I would recommend but actually settled with somewhere bigger to get a lodger in an help pay the mortgage. I was careful to make sure I could still afford this if I was on my own however.

I spent about £4000 in costs buying the house and £3000 getting furniture etc. (There are some very good sites where you can get cheap furniture and appliances to save ££).
I have had to put up with living with others which is very hard (my boyfriend tells me I have OCD!) but with second hand furniture I didn't have to worry too much!

Don't forget you will have to pay insurance (building and contents), TV licence, gas, electric,water, phone, internet, council tax (more if there is more than 1 of you!), etc- and thats all on top of the mortgage. It all costs me £8k a year now in a 3 bed.
Do plenty of research before you jump and have some savings in case things go wrong.

Cubbington

Shared equity/ownership is not a scam but there are some really bad deals around so you'd have to look into it carefully. And as pointed out you aren't owning the whole place - you either have someone else involved with a share or you have to find the extra money when the time comes.

It depends on what you really want as to what you do - if you don't mind a 1-bedroom place or you can stand waiting for a little while longer and buying a 2-bedroom. How long are you planning on living there? What kind of space do you need? (a 2nd bedroom can always be a study if you're single)

I'd probably look at how well 1-bed vs 2-bed places sell in whatever area you decide you want to buy in aswell.

Have you factored in living costs to what you'll be able to afford for a mortgage? Also if/when your mortgage rate goes up, will you be able to afford the extra? Don't over-stretch yourself as whilst having your own place is great, you need to be able to have some kind of life aswell

BitterAndTwisted

Buying a one-bed is ideal if you are not planning to move, ever. The re-sale market for them is much more restricted as there are far fewer buyers looking for them. Couples who are looking to start a family in the short to medium-term would be looking for a two-bed.

Quite honestly, in your position I would clear all debts with the inheritance and stash what's left on deposit somewhere. Once you're debt-free you should be able to add to that sum and save for a decent deposit on a two-bed. With an extra bedroom you could choose to take in a lodger and use that extra money every month to reduce your mortgage payments. Under the Revenue's Rent-A-Room scheme what you receive up to a certain amount per annum (I think in the region of about £4k) is tax-free.

I would never advise anyone to consider part-rent/part-buy, especially on a flat. I don't think they're a wise buy long-term. They can seem quite attractive, especially to those on a modest income but some of the issues only become apparent when you're trying to sell up and move.

PinkChampagne

Thank you so much....I am starting to see that I should put it on hold for a year, clear every debt I have and save as much as possible to add to it.

muskoka

When you do buy, get a 2 bed. The 2nd bedroom is like an insurance policy to cover your mortgage or pay towards it when times get hard.

Sorry - what I meant was if you get a 2 bed, you could rent out the 2nd bedroom if you chose to