Headlines today:If your not on Property ladder now, you have no chance in next decade

puddy

your correct

pararct

fruityfairy wrote: »

Hi, we are saving around £800 a month. We are looking for an house as we wish to start a family, however we are looking at the lower end houses in areas that are less desirable like this one below:
http://www.rightmove.co.uk/property-for-sale/property-17198436.html?premiumA=true

In the region of £60k, meaning if we put down 10% depost we would need to borrow 1.6x our annual income. I think I am being realistic in chossing something like this in a first property. The idea would then be to move in more desirable place 5-7 years down the line. I am still training in accounting so expect my salary to increase as I complete qualifications.

We are not affraid of having to put some work into an house and have found that houses which are similar but one needs a kitchen or bathroom replacing are on the market for about 10K less that the ones where the bathroom is fine.

Try and future proof your eventual purchase. With the sums you are saving I would wait a little longer and go for a larger house? This will decrease any living problems you have further down the line if the patter of tiny feet begin to appear.

fruityfairy

puddy wrote: »

sounds great, i dont know why you're getting despondant

6k / 800 = 7.5 months?

is that right, it will take you only 8 months to save for your deposit, so whats the worry?

We already have 3K (had 4k until a few weeks ago when it took a dip due to paying for car repairs )

We are looking to save about £10K so we have enough for fees and a bit for decorating. The bit that worried me the most was them saying lenders are reluctant to lend. Ugh I think the whole think just scares me to be honest :eek:

evoke

Methinks you are severely underestimating the cost of buying a house. £10K is not nearly enough.

fruityfairy

pararct wrote: »

Try and future proof your eventual purchase. With the sums you are saving I would wait a little longer and go for a larger house? This will decrease any living problems you have further down the line if the patter of tiny feet begin to appear.

Well I am quite keen to start as soon as possible lol, even if we do go for an house like this it will still be about 2 years down the line before any patter. I have been married almost 5 years and we have always put of having children for this or that, but now the only thing we are waiting for is our own home.........Anyway it will only be the one child lol

puddy

evoke wrote: »

Methinks you are severely underestimating the cost of buying a house. £10K is not nearly enough.

i bought my first flat 14 years ago. it cost 58k. i had saved 12k, 6 went on the deposit and 6 was for 'sundries'

he can get away with 10k, its always best to have more but then once they're in, their mortgage will probably be less than their current rent (im guessing) which means that the mortgage is already covered and they still have excess every month

fruityfairy

evoke wrote: »

Methinks you are severely underestimating the cost of buying a house. £10K is not nearly enough.

Really? How so? I thought if 6k went to the deposit, 2k in fees that would leave 2k for other costs.

I have possibly overlooked something..... happy for advice.

fruityfairy

puddy wrote: »

i bought my first flat 14 years ago. it cost 58k. i had saved 12k, 6 went on the deposit and 6 was for 'sundries'

he can get away with 10k, its always best to have more but then once they're in, their mortgage will probably be less than their current rent (im guessing) which means that the mortgage is already covered and they still have excess every month

That is true, our repayments will be about £125 less a month than our rent. My aim was to save £10K before applying for an agreement in principle and then start viewing properties. Obviously while we are looking we will still be putting some cash away.

J_i_m

fruityfairy wrote: »

we are looking at the lower end houses in areas that are less desirable.

It depends on what you consider as less desirable, i.e do you mean smaller houses, less parking etc... or are you referring to the perception of kind of people who already live there?

For instance, I have always decided that I'd rather pay more rent or save longer for a better deposit so that I can afford not to have to consider living in an area where crime-rates are reportedly higher and with perceptibly more unsavoury types hanging around.

However you seem to have a pretty good saving plan put together, so why not simply aim to save for the nicer house and skip the less desirable house altogether?

With regards to the over topic of the thread... well pffffft everyday there's a article written by some hack with a vested interest, a scaremongering story on the news and a thousand internet threads with a billion opposing views on the matter.

Basically... ignore all that, and focus on saving as much money as you can.

puddy

it sounds fine

in theory once you move, you will still have 800 spare per month (ish) although that money will then have to be put aside for things breaking like the boiler, roof, windows or whatever, things that now your current landlord is responsible for.

presumably you pay council tax now, so that wont change much, you will have to get buildings insurance, but presumably you already have contents? so the day to day costs of owning wont be too much more than you have already and they can be absorbed by your current excess of 800, leaving you with the ability to save still

however, are you happy to have no parking space or are you looking at all types of property in that area?