How depressing - House hunting

carolt

Some thoughts on both sides of the fence -

I am in a very similar position to OP but a few years on - i have 3 kids aged 8 months to 7 years, and we rent a 3 bed house in a nice village in Home Counties close to excellent school (moved here so dd could get place at school). When we moved here we couldn't have afforded to buy - with promotions/deposit money from family, could now just about stretch to v cheapest, mankiest 3 beds in village (just been let down on one hoping to buy at 275K). But also v unsure if this is wise, as I do believe current high prices are unsustainable.

If planning to have kids soon, from experience I can say a 2 bed flat or better maisonnette with garden is fine for 1 child for first 2 or 3 years or so - but after that or if want more than 1 child, then a 3 bed house is a reasonable expectation.

My dh's salary (I haven't gone back to work yet, though hope to work part time soon) is about 45K - ie exactly what you were planning to live off. Our rent is 1100 a month and at that, money is v tight - travel for dh alone into London is about £2300 a year. From our experience, you can live off that one salary with that kind of rent, BUT buying property at full 5 times one salary - ie about £230K - would give you repayments on mortgage at about £1300 a month - so finances would be even tighter. You're right to be cautious.

On the other hand, if you could buy now, fix your mortgage at a low rate (much easier to get lower rate when have 85K as joint income and only require mortgage based on say 3 times that or less, rather than 5 or more if you waited to buy for a couple of years till you had stopped work) and overpay heavily while you can afford it, you might be in a good position to stop work and enjoy owning your own home once the baby comes (if it does - they don't always oblige on time)... Also, having lived in a succession of rented h0omes (4 over last 7 years) we have had little security of tenure, once being given 2 months notice to leave as landlord wanted to move sick parents into our own house - very very stressful as needed to find somewhere suitable in our small village which mercifully we just managed to do in time. Condition of some of these rented places has not always been up to scratch - eldest dd has asthma brought on largely by appalling damp in flat we lived in when she was small - landlord slow to fix. Obviously in your own home you avoid these problems.

So I am very sympathetic - agree that few homeowners appreciate stress caused by current property prices to non homeowners.

But on the bright side, don't think that you would necessarily have to live off the one income once baby arrived. With just one in particular, going back to work parttime is not too difficult and you sound like you could afford childcare to make it worthwhile on your salary. You might also want the stimulation/to keep in with your career to enable you to return when kids older. Though you're right to prepare for financial worst-case scenario.

And other than that - children are wonderful and I'd rather have them than a dozen buy-to-lets and a young, free and single lifestyle. Wish I'd been as organised as you and planned it all first with houses (I got pregnant working abroad and came back to UK at exact moment UK house prices went through the roof...) but whatever happens, blood is thicker than water (or mortar). Make the best choice you can - you're very lucky to be in a position to choose as few are these days - and then enjoy it. Rented house, bought house or bought flat - there are more important things.....

Phirefly

What an optimistic post

andrew8018

fatpigeon wrote: »

It seems that with 130% mortgages and IO mortgages the lending industry is desperate to lure everyone into massive debt without thinking twice about what could be around the corner.

This may all be about to change however. HBOS lost almost 6% of it's share value today, along with big losses for the other big banks due to huge risk within US subprime mortgage maket. They'll now be forced to have a very serious think about the implications and potential for this occuring in the UK...

fatpigeon_2

andrew8018 wrote: »

This may all be about to change however. HBOS lost almost 6% of it's share value today, along with big losses for the other big banks due to huge risk within US subprime mortgage maket. They'll now be forced to have a very serious think about the implications and potential for this occuring in the UK...

Then maybbe that means the OP won't have quite such a large number of other buyers to contend with who have cash to flash around. If they lend less multiples of income then people won't be able to bid up prices with incredible offers. I also read on anotehr thread that UK has a big subprime market as well.

Amitoocautious

Melissa177 wrote: »

Amitoocautious originally asked:



Why do I think you were trying to find people who agree with you, rather than take on board most people's comments!

Don't know why do you think that?

fatpigeon_2

fatpigeon wrote: »

Then maybbe that means the OP won't have quite such a large number of other buyers to contend with who have cash to flash around. If they lend less multiples of income then people won't be able to bid up prices with incredible offers. I also read on anotehr thread that UK has a big subprime market as well.

sugarpants_2

Have you spot

Amitoocautious wrote: »

Thanks for the advice Moted any nice areas in Basingstoke? WEre looking in Reading.zette. What we are looking for are grotty places that are in need of doing up so that our money will strecth further. Also, my husband is very handy and wants a project like that but we are struggling to find anywhere like that really or a "developer" comes in and beats us to it.

We are in Basingstoke btw

sugarpants_2

Were looking in Reading. Any nice areas in Basingstoke? We are considering renting forever..WE also cant find anything decent for under 200k here too..Its ridiculous.

sugarpants_2

Im like Carol and I have 2 children. Gor pregnant before bought our first house and got caught up renting. Have been renting for 7 years. Kids are happy in a 3 bed. All we can afford is a 2 bed flat round our area. WE live in the home counties too.
But Id chose being a parent to my kids renting, than have a luxury 1 bed flat and signle lifestlyle. I believe we are all dealt different cards in life..Cus lets face it, if we were all the same life would be so dull!!?

carolt wrote: »

Some thoughts on both sides of the fence -

I am in a very similar position to OP but a few years on - i have 3 kids aged 8 months to 7 years, and we rent a 3 bed house in a nice village in Home Counties close to excellent school (moved here so dd could get place at school). When we moved here we couldn't have afforded to buy - with promotions/deposit money from family, could now just about stretch to v cheapest, mankiest 3 beds in village (just been let down on one hoping to buy at 275K). But also v unsure if this is wise, as I do believe current high prices are unsustainable.

If planning to have kids soon, from experience I can say a 2 bed flat or better maisonnette with garden is fine for 1 child for first 2 or 3 years or so - but after that or if want more than 1 child, then a 3 bed house is a reasonable expectation.

My dh's salary (I haven't gone back to work yet, though hope to work part time soon) is about 45K - ie exactly what you were planning to live off. Our rent is 1100 a month and at that, money is v tight - travel for dh alone into London is about £2300 a year. From our experience, you can live off that one salary with that kind of rent, BUT buying property at full 5 times one salary - ie about £230K - would give you repayments on mortgage at about £1300 a month - so finances would be even tighter. You're right to be cautious.

On the other hand, if you could buy now, fix your mortgage at a low rate (much easier to get lower rate when have 85K as joint income and only require mortgage based on say 3 times that or less, rather than 5 or more if you waited to buy for a couple of years till you had stopped work) and overpay heavily while you can afford it, you might be in a good position to stop work and enjoy owning your own home once the baby comes (if it does - they don't always oblige on time)... Also, having lived in a succession of rented h0omes (4 over last 7 years) we have had little security of tenure, once being given 2 months notice to leave as landlord wanted to move sick parents into our own house - very very stressful as needed to find somewhere suitable in our small village which mercifully we just managed to do in time. Condition of some of these rented places has not always been up to scratch - eldest dd has asthma brought on largely by appalling damp in flat we lived in when she was small - landlord slow to fix. Obviously in your own home you avoid these problems.

So I am very sympathetic - agree that few homeowners appreciate stress caused by current property prices to non homeowners.

But on the bright side, don't think that you would necessarily have to live off the one income once baby arrived. With just one in particular, going back to work parttime is not too difficult and you sound like you could afford childcare to make it worthwhile on your salary. You might also want the stimulation/to keep in with your career to enable you to return when kids older. Though you're right to prepare for financial worst-case scenario.

And other than that - children are wonderful and I'd rather have them than a dozen buy-to-lets and a young, free and single lifestyle. Wish I'd been as organised as you and planned it all first with houses (I got pregnant working abroad and came back to UK at exact moment UK house prices went through the roof...) but whatever happens, blood is thicker than water (or mortar). Make the best choice you can - you're very lucky to be in a position to choose as few are these days - and then enjoy it. Rented house, bought house or bought flat - there are more important things.....

fatpigeon_2

sugarpants wrote: »

Im like Carol and I have 2 children. Gor pregnant before bought our first house and got caught up renting. Have been renting for 7 years. Kids are happy in a 3 bed. All we can afford is a 2 bed flat round our area. WE live in the home counties too.
But Id chose being a parent to my kids renting, than have a luxury 1 bed flat and signle lifestlyle. I believe we are all dealt different cards in life..Cus lets face it, if we were all the same life would be so dull!!?

kids can be as happy in a rented house as in one with a mortgage. it's how you raise 'em that make the diff! :j i think people are starting to see now that having a mortgage doesn't = wealth and happiness 4eva. i just find it bizarre and so interesting reading these old posts from a cople of years ago.