First time buyer - guarantor advice/info

Parisien

My son whose going back to Uni for another 3 years has asked me about the above, he works part time, doesn't earn much and we wondered if anyone had done this, pitfalls, points to consider and pros?

Plus given the 11% drop in prices on average throughout NI last year, what should we be offering for properties currently on sale, just what is the market like in Belfast?

Thanks, P

Gillyx

I thought even with a guarantor you had to prove you could afford the mortgage.

Cons with buying rather than renting is the upkeep, anything goes wrong you'l have to fork out yourself, burst pipes in the winter, cooker breaking down, which if already on a low income, could be difficult if just making ends meet. Pros are obviously it's your own space, can decorate how you like, not wasting money on renting and buying at the moment, could make a tidy profit in the future.

Is there no way of him private renting in Belfast? We've chosen to do that this year and we've had great service from the letting agency, also most rents when advertised are rates included, so not too bad.

Parisien

Hi Gillyx, he is already renting, just thought, as another 3 yrs in belfast...get him on the downwards sliding ladder of property ownership!!!

Its no probs for us....just a means by which we can get him started.


P

Gillyx

Parisien wrote: »

Hi Gillyx, he is already renting, just thought, as another 3 yrs in belfast...get him on the downwards sliding ladder of property ownership!!!

Its no probs for us....just a means by which we can get him started.


P

I know the feeling, I really hate renting because I feel like it's wasted money but we're just not in the position at the moment to buy. Now we've got bubs coming along, I hate renting ever more!

Only upside is our flat has been completely renovated, everything is brand new and fresh.

tara747

Gillyx - think of the pros of renting though, of which there are many.

I am so so glad that we didn't buy in the last few years, we have many friends in negative equity, which is a terrible curse for those who want to move (which is most of them). Imagine if you had bought a house which is now worth half what you paid (or less!) and needing to move for whatever reason - growing family, relocation for work, hate the area etc. How would you feel then?

Rent is NOT dead money if house prices are falling by more than your rent (minus rates).

NAR

P market prices are weak here same as everywhere else, though how you are going to judge the price of a property from a distance I don't know. (do you live far away?)

I'm sure there are bargains to be had, but it would be a matter of comparing prices, how long on market, how much already reduced etc

Gillyx

I know when you put it like that. I'm just in abit of a rut because we signed a years lease on this place, and a week later I found I was pregnant! We thought we'd be in this place a few years, being so close to the city centre etc it's perfect, but now with only one bedroom it's not and the thought of moving all our stuff out less than a year :eek:

tara747

Gillyx wrote: »

I know when you put it like that. I'm just in abit of a rut because we signed a years lease on this place, and a week later I found I was pregnant! We thought we'd be in this place a few years, being so close to the city centre etc it's perfect, but now with only one bedroom it's not and the thought of moving all our stuff out less than a year :eek:

Could you speak to the LL/agent and explain your changed circumstances? They may let you out of the lease early. Good luck. If it helps, you're even more lucky that you rent... you would have a nightmare trying to sell it! At least the longest you will be stuck there for is till the end of the lease.

I hadn't realised that it was a 1-bed... I have too much stuff ever to live in a 1-bed place! :rotfl:

tight_arze

Parisien wrote: »

My son whose going back to Uni for another 3 years has asked me about the above, he works part time, doesn't earn much and we wondered if anyone had done this, pitfalls, points to consider and pros?

Plus given the 11% drop in prices on average throughout NI last year, what should we be offering for properties currently on sale, just what is the market like in Belfast?

Thanks, P

The market is still very slow moving at the minute. Properties that are priced realistically are selling. If you can wait until later in the year/early next year to buy you are likely to get more for your money. The prices are still on a downward trend as they are still fairly over priced considering the economic conditions and salaries in Northern Ireland.

Like Tara said, renting is not dead money provided the price of the property falls more than your annual rent.

Parisien

Ok...was in with Northern Bank...they are lending, his name on deeds, my name as guarantor on mortgage ....just a question of what and where.!?

Anyone bought recently in the Belfast area....prices down 11% on average since last year, do I take this as an indicator to offer....10-15% less now?

Thanks for replies and insights so far.

P

trebor21

Would suggest
http://lpsni.gov.uk/vListDCV/search.asp?submit=form

Will give you rough guide 2005 prices give or take 10% for value now depending on condition