Cash to buy a small house, Advice please.

cbr600f

Thanks SG27, only problem with that is i risk the housing market increasing putting the detached dream out of the window more than it is now. Dont I? and loose any interest gained by means of paying rent in the mean time.

BitterAndTwisted

Buy affordable house good location 70% of capital

Until you know whether you are going to stay in the area longer-term than a year or two it makes no sense whatsoever to tie your money up in property.

Even if you could buy a shared-ownership/shared equity place outright with that £100k I'd say avoid like the plague.

How about using £80k as a deposit on a property and acquiring a small mortgage of £20k-£30k? You'd be able to get a really decent mortgage deal with pretty low repayments with that much equity and you'd still have funds set aside for the unforeseeable.

What sort of property could you buy where you are for £100k to £110k?

cbr600f

Ive seen a 3 bed detached but rrpossed that needs updating for 100k
thanks for the advice about the shared ownership.

There are properties but id need to use all the money. I have toyed with shared equity... But mortgage may be an idea.despite.not wanting any debt. Something has to give somewhere.

I think buying.for 70k would be a good option or.rent this suitable place in durham and see what comes up in the future. I.think im begining to narrow down the options.

BitterAndTwisted

Buy affordable house good location 70% of capital

Have you checked what the monthly repayments might be on a £30k mortgage on a 25 year term?. With two salaries coming in, even quite low ones, it could be very affordable. Probably substantially less than the rent you're paying now. As you're both quite young it's not unreasonable to expect your future earnings to increase while the repayments would remain the same. Well, until interest-rates rise, that is but you could opt for a five-year fixed-rate if that would give you some comfort.

I've no idea what this "container home" thingy might be. Care to explain?

SG27

Wait and gain interest on capital +10% of capital p/a (over 5 years)

cbr600f wrote: »

Thanks SG27, only problem with that is i risk the housing market increasing putting the detached dream out of the window more than it is now. Dont I? and loose any interest gained by means of paying rent in the mean time.

Thats true about the rent it all depends how much a month you can save. But don't think prices will go anywhere for a good few years. To be mortgage free is a bit of dream of mine we have been saving for years and are looking to buy but want as small mortgage as possible. I hate the idea of paying all that money in interest to the bank!

dimbo61

Most lenders will only lend £25/30K as its not worth setting up a mortgage for less.
The best way to clear the mortgage is overpay it each month and pay as little interest as possible.
With a big deposit and a few £thousand in the bank ( in cash ISA,s ) you can do up a house to the way you like it and not worry about Landlords, letting agents, rent increases ETC as your home is yours ( and the bank)

cbr600f

Container home, use around 4 shipment contaiers referidgerated type for insulation and create a house from them 100 meter sqaure bungalow, maybe one dug into the ground for a garage. cover with soil and turf. problems time and planning. If i wasnt to study it may be an option. the build costs are about 800per sqaure meter finished. opposed to 1000p sm for average house in north east.

Ive got to think mortgage would be paying back interest, yes the extra money i save would cancel it out maybe. Mortgage interest rates are for definate, high return on investments is not. so if i had the amount id.save more in the long run buying outright. yes id have little capital but if it wasnt touched it could slowly grow...

Is my logic right there?

cbr600f

Ive looked again there limited choice of housing under 100k in and around durham.

Any ideas on how to find housing via not normal means, i.e asking neighbours of empty houses, or finding repossed houses?

Errata

A container home will be yours for the rest of your natural life, nobody will want to buy it from you.

cbr600f

Haha, yeah you could be right there... THE WIFE AGREE'S

It would all be in the design, not knowing that the structure is made of containers. Semi sunk into the ground i was thinking.

So moving on... did everyone who bought their house know it was 'the one for them' when they came across it?