Procrastinating no more!

Procrastinator333

So, after procrastinating for about 4-5 years we have decided it is time to buy. This is primarily driven by non financial considerations - we are hoping to start a family in the next year or 2 and don't want to be going through a move at the same time. The original plan would have seen us hit the 20% deposit requirement in about 12 months and then look to buy. Instead, we have spoken to our folks and they will give the rest (which we will likely pay back over the next year or 2).

I'm still of the opinion that prices will continue their gentle glide down. But I think the majority of falls will be in real terms, though nominal of maybe 5% per year for a couple of years. But the flipside, by having a 20% deposit, we will have access to a 3% interest rate (variable). Though I really don't see much scope for interest rate rises, this could of course move up.

Even though we are at the very beggining of this process, a couple of what I found interesting observations:

1) I called up to get an AIP with a bank. Went through quite a lengthy process, but my point of surprise was how strict they are on what can or can't count towards your income for lending purposes. Bonus - unless you have received it in every one of the last 3 years, it doesn't add a penny to your lending ability. Even if you have had it for 3 years, it is averaged and then halved. As I wasn't there 3 years ago, I only have 2 years of bonus history, so that was scratched off. Second, I also get shares. The only criteria on those is that I'm still employed at a certain date. Then they are mine to do with as I wish. No performance criteria attached. Yet, because shares go down and up, they don't count a penny of them. The end result is that about 35% of my income and about 10% of my better half's income is not taken in to consideration. Maybe this has always been the way, but just seemed overly strict to me.

2) I phoned up to book a few viewings yesterday. I called about 6 properties with 5 different agents. We are working during the week, so could only do saturday. Being "Spring time" and a long weekend, I was expecting to struggle with getting viewings. Maybe everyone is on hol rather than looking at houses, but of the 5 agents and 6 houses, 1 has now sold, but the other 5, no exageration, just said yep that is fine, what time do you want? They all agreed to the time I asked for on the dot. I thought they would be busy and struggle to find time to fit me in, but no.

Anyway, might post here with the odd update on how this search is going, will see how the thread goes.

Generali

Good luck with it all and keep us updated. It's probably not such a bad time to buy if you're buying a place to live in for a long time.

Procrastinator333

Generali wrote: »

Good luck with it all and keep us updated. It's probably not such a bad time to buy if you're buying a place to live in for a long time.

Cheers, yeah, the intent is to get a place that will see any kids we are lucky enough to have get in to primary school, so probably 6-10 years I would guess.

Having previoulsy posted about how many hundreds of properties there are out there for us to look at, I take it back. If you want to almost guarantee a good school, the area's you can purchase in are very small. 2 weeks ago before this revalation, we had about 200 properties on our watch list. It was rather upsetting to see that reduced to about 25 once catchment areas were taken in to account!

PasturesNew

Somebody should do a Google map of catchment areas, overlaid with houses for sale.

Edit: Had a quick google, there are quite a lot of school catchment google maps.... e.g. this one shows you all schools from a given postcode. http://www.schoolmap.org.uk/

Really2

Congratulations, (on looking to buy and the starting of a family in the future)

There is no doubt lending criteria is a lot stricter now and the amount banks are prepaired to lend is less.

On point 2 I think people may have looked to get away or do something but if you are looking to sell you don't pass up a viewing so have changed plans.
It's a tough market out there and sellers cant afford to be choosey.

Really2

Procrastinator333 wrote: »

we are hoping to start a family in the next year or 2

Just don't come back as Procreating333, that would be far too many.

Procrastinator333

PasturesNew wrote: »

Somebody should do a Google map of catchment areas, overlaid with houses for sale.

Edit: Had a quick google, there are quite a lot of school catchment google maps.... e.g. this one shows you all schools from a given postcode. http://www.schoolmap.org.uk/

In the end we used the good schools guide, it cost £35, but they have what I thought is a brilliant tool for looking at catchment ares. You can click on a school and it overlays where all of the children who attended this year live. Before people start worrying, it is only a blob on the map, narrows it down to a dozen houses on a street I suppose. We did that for a few schools and there was a clear area, where pretty much every child went to 1 of 3 very good schools. Stray out of that area and you may end up in some not so good schools. £35 subscription for 1 year seems steep, but in the end, deicded better £35 than finding we can't get in to a decent school and having to move again in a few years.

Procrastinator333

Really2 wrote: »

Just don't come back as Procreating333, that would be far too many.

:rotfl::rotfl::rotfl::rotfl:

lostinrates

How certain is it catchment area/method won't change? Its something that I'm really glad we didn't have to think about at all, I don't envy those who do have to.

HAMISH_MCTAVISH

Procrastinator333 wrote: »

Having previoulsy posted about how many hundreds of properties there are out there for us to look at, I take it back. If you want to almost guarantee a good school, the area's you can purchase in are very small. 2 weeks ago before this revalation, we had about 200 properties on our watch list. It was rather upsetting to see that reduced to about 25 once catchment areas were taken in to account!

Welcome to the real world.

And it's not just schools....

Most people find out after they seriously start looking that they have strong preferences for certain areas, types of property, condition/features, transport links, proximity to work or shops, etc.

The last time we looked I was quite complacent about how many houses were on the market..... Until I started viewing them, and realised only a tiny percentage would be suitable. .

I think we looked at the details of around 300 theoretically suitable houses online, which after applying our criteria reduced to a couple of dozen which we viewed, and ended up with only 3 or 4 that we seriously considered buying.

I'd hate to think how few houses that would be now that even less are available....

But well done, at least you're getting in before the crowd, so you'll have more choice than those next year and the years after.

Procrastinator333

lostinrates wrote: »

How certain is it catchment area/method won't change? Its something that I'm really glad we didn't have to think about at all, I don't envy those who do have to.

No idea, and no reason it can't change. But basically we are looking in an areas where the 4 closest schools via either direct line or safe route are all top schools. I would hope that with that in mind, any set of rules would result in a very high probability of one of those schools working out.

The other interesting thing about schools is the sibling rule. Get 1 child in and the others go by default. So once we have child 1 in, we can then move to a cheaper area with more choice, knowing that they will all attend that school. P.s Yes I am getting a little ahead of myself as we are not even due to have 1 yet!