FTB - just wondering - silly offer

ReadingTim

Given the price it's on for, I imagine the vendor is hoping for something around the £300k mark. That's not to say they won't end up settling for less, but not right now - as you say, it's only been on the market for just over a month, which isn't very long.

£250k is simply too low, too soon, imho - you just risk being thought of as a timewaster, and there are a few other things which might add to that general impression of being somewhat inexperienced FTBers:

1 - while you might be chain free, taking a 6 month lease on a flat means you can't move that fast, unless you can get out of the lease, or pay rent and a mortgage. Can you? You need to think about the answers to that, to give a realistic view of the timetable to any vendor, especially if you're putting in cheeky low offers and playing the chain free ftb card

2 - while the house does need some cosmetic updating, this is purely a personal choice for the buyer, and not something that the seller should necessarily foot the bill for - the photos (especially the garden) suggest it's been well cared for, and the particulars mention double glazing and a fitted kitchen - it's hardly a wreck or timewarp. The only real work would probably be the conversion of the shower room back to a bathroom - presumably the bath was removed when the previous residents were too old/infirm to use the bath safely....

Best of luck...

Blue_Monkey

Neither of us have owned a property in the past, so we'd qualift for the SD exemption.

What worries me about waiting until next year to sort all this is that we'll be stuck renting for ages. Rental prices are high around here, and whilst we've found a lovely flat, it's bloody expensive and we'd rather be paying off our own mortgage than someone elses - plus after moving half way across the world, in with parents, into rented - I'll be just glad to get in our own place where we can decorate and just be there for a good few years.

I appreciate that the mortgage application would be based on my (full-time) salary only, but the repayments would be affordable when taking OH's income (approx £35k), our savings, my mat pay then PT pay into consideration. I've got spreadsheets going into 2013 to plan this

Chances are we wouldn't go for this house, as it is a tad too soon - and I had wondered if being tied into a lease for 6 months until April 2012 will negate the "no chain" element.

It's all just so frustrating - it feels like house-buying has forever been 'just out of reach'. Saving for a 10% deposit 5-6 years ago felt impossible, now we're looking at 15-20% sat there in savings and it still feels like it's going to be tough We both earn ok, have got good savings and it's still difficult. Grr.

GAH

Op, just to bear in mind, the stamp duty exemption for first time buyers upto £250k only runs until April 2012.

Blue_Monkey

GAH wrote: »

Op, just to bear in mind, the stamp duty exemption for first time buyers upto £250k only runs until April 2012.

Thanks, I didn't know that! Surely even more reason to get in quick! Any idea what happens after that, or what the impact will be on the market?

ReadingTim

Blue_Monkey wrote: »

I appreciate that the mortgage application would be based on my (full-time) salary only, but the repayments would be affordable when taking OH's income (approx £35k), our savings, my mat pay then PT pay into consideration. I've got spreadsheets going into 2013 to plan this

Err....isn't this fraud? - the application is be based on information which you've stated won't be true after December. Is this really a wise idea?

hazyjo

It's not up to you to say what's 'affordable', it's the bank's decision. People were getting 6x salary a few years ago! Now it's far nearer 3-4x. There are reasons for that. It's their risk and money too, so they get to set the lending criteria. If you're going to be on a part time wage, and know that, you really ought to be telling them...

You're not paying 'dead money' to rent, it's paying for a roof over your head. Think of it as luxury hotel accommodation! Prices are still not exactly jumping through the roof, so I don't see the harm in waiting and staying in rented. Chances are, it'll be cheaper than paying a mortgage and interest, and allowing for any price drops over the next 6 months/year, anyway!

You'll get there eventually. Nightmare, isn't it.

Jx

Blue_Monkey

This is why I think the other house is overpriced...

http://www.rightmove.co.uk/property-for-sale/property-18712641.html this house is just down the road, but in the #2 school catchment, and whilst its not on as big a plot and is terraced, it looks like it would need less work (except the kitchen maybe) and it's £40k cheaper already! Do you reckon this one would be priced at £280k in the hope of getting £250k and including FTBs in their potential market? (I know you can't tell for sure, but I'm just trying to understand some of the strategies/games)

GAH

Well unless anything changes it will mean First time buyers will revert back to paying 1% upto £250k like others do.

I don't think it will really make any difference to the market, it has hardly sparked a feenzy of buyers in the last 1 year and a bit.

What government need to do is review the % system and the bandings for properties.

Blue_Monkey

Well in an ideal world I'd like to go back 3 days a week, but this isn't guaranteed and it's difficult to say at this point in time what we want to do in Jan 2013 work-wise. It could be that OH will stop working to look after the baby. It might be that I'll be happy to go back full time after 6 months - who knows...

Any idea what kind of mortgage we'd be able to get on my reduced wage + OH's self-employed income after next year once he's got some accounts to show - ie £27k (me) + £35k (him self-employed)?

Just dug out my spreadsheet - by March 2012, we should have £90k in savings. I'd like to keep £25k of that aside for a rainy day/refurbs/fees, so we'd have about £65k for a deposit.

pinkteapot

http://www.rightmove.co.uk/house-prices/detail.html?outcode=SS9&incode=1N&streetName=Lord+Roberts+Avenue&locality=Leigh-On-Sea&country=england&buildType=1&propertyType=0&yearSelection=2&columnToSort=DEED_DATE&sortOrder=ascending&summaryIndex=0&originalIncode=1N

No. 93 and No. 27 sold last summer for £297,500 and £295,000 respectively. They are listed as semi-detached and terraced. Any idea how they compare size-wise (from what you can tell from the outside)?

Prices haven't moved much in the last year so if these properties are similar to the one one at £320k it would suggest that £250k is too low for it (unless the sellers are seriously desperate).