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Would you pay slightly over the odds...
TheLostGirl
Posts: 10 Forumite
For a house you really really wanted?
My situation is that I am trying to buy the house I currently rent. I feel that I am probably paying maybe £5k over the odds for it. I will be paying c £150k for it.
The pros are that I know the house, neighbours, area well having lived here for nearly a year and we will not have to physically move. The house is in a v good position on a sought after estate. We have a 16 month old and she is settled here aswell. We intend to stay here at least 10 years the house is big enough to be able to do this.
The cons are that whilst the house is perfectly livable and serviceable it could ideally do with a new kitchen and bathroom and spruce up. The house is 17 years old and very much in its original condition. 17 year old boiler, windows etc.
I would have felt happier if we could get it a bit cheaper but our landlord is digging his heels in and has the attitude that he doesn't really have to sell if he doesn't want to.
Opinions please.... Thanks.
My situation is that I am trying to buy the house I currently rent. I feel that I am probably paying maybe £5k over the odds for it. I will be paying c £150k for it.
The pros are that I know the house, neighbours, area well having lived here for nearly a year and we will not have to physically move. The house is in a v good position on a sought after estate. We have a 16 month old and she is settled here aswell. We intend to stay here at least 10 years the house is big enough to be able to do this.
The cons are that whilst the house is perfectly livable and serviceable it could ideally do with a new kitchen and bathroom and spruce up. The house is 17 years old and very much in its original condition. 17 year old boiler, windows etc.
I would have felt happier if we could get it a bit cheaper but our landlord is digging his heels in and has the attitude that he doesn't really have to sell if he doesn't want to.
Opinions please.... Thanks.
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Comments
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In your situation, I'd go for it - the pluses outweigh the minuses from what you've said, and you can always do it up bit by bit."Save £12k in 2019" #120 - £100,699.57/£100,0000
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I would. Moving expenses could easily cost you a couple of grand. In the grand scheme of things £5k isn't a massive amount of money to buy a known quantity in an area you're settled in and know well.0
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In your situation, yes I probably would. Especially if you are looking at this as a long term family home rather than an investment.0
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I'd go for it too. There is a great deal to be said for knowing you like the area. The first house we bought was one we were renting, and it wasn't until we moved the next time that I realised how lucky we had been
No hassle of changing address, removals, changing utilities, uncertainty about neighbours. We knew exactly what we were getting with the house, no surprises.
If you plan to stay 10 years, then £5k is worth it for the lack of hassle and uncertainty.It is a good idea to be alone in a garden at dawn or dark so that all its shy presences may haunt you and possess you in a reverie of suspended thought.
James Douglas0 -
Who raised the idea of you buying the place? If it was you and the LL really doesn't need to sell, then you will probably have to pay slightly over the odds.
If the LL approached you, then you are in a much better bargaining position and I would be inclined to offer no more than what you think is its true value. Point out to the LL that they will be saving money by not having EA commission to pay.0 -
Hi Paul. Yes it was us that initiated the purchase. Apparently they do have to pay the letting agent a fee if they sell to us.
The landlord has owned the property since it was built and has no mortgage on the property so the rent we pay is pure income to him. The landlord will have to pay capital gains tax on the sale.0 -
TheLostGirl wrote: »
The landlord has owned the property since it was built and has no mortgage on the property so the rent we pay is pure income to him. The landlord will have to pay capital gains tax on the sale.
My bold. Well no, the LL will have to pay LA fees, repairs and maintenance of the property, probably also LL insurance, membership of a LL association, tax on rental income etc. Plus the hassle of being a LL. (If LL did have a mortgage he would only be able to claim for the interest and not the capital.)
As long as there is nothing drastically wrong you can renovate gradually, we have done it a couple of times and in the meantime lived quite happily with an orange bathroom suite and very elderly kitchens!!It is a good idea to be alone in a garden at dawn or dark so that all its shy presences may haunt you and possess you in a reverie of suspended thought.
James Douglas0 -
When you get your valuation/survey it could prove interesting if the valuation comes in lower. If it does attempt to politely renegotiate on the bases your mortgage company have reduced any associated offer. If's and but's!
I am currently working through a similar situation to you.
Oh and yes I would pay slightly over the odds.“Nobody ever defended anything successfully, there is only attack and attack and attack some more.”
SAF...ok G. Patton
"If a man does his best, what else is there?"
G. Patton0 -
Knowing the house and area is such a bonus I'd pay over the odds.0
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Presumably you will be having a mortgage on it and as such it will be valued for the mortgage company. Therefore if they value it lower, then This will affect the amount they will lend you.0
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