Taking the biggest mortgage i can out

mrluke

addyboy1982 wrote: »

Nothing wrong with doing a lot of work. I bought my place on 85% LTV knowing it needed loads doing. 2 years down the line now and when I've finished doing it up it should be worth £35k more than I paid. Not bad when I'll have spent £21k on it:

All depends on what the market does of course, but I've been overpaying the mortgage so regardless of what happens I'll have a lot more equity than when I bought it.

Oh don't get me wrong , im all for doing work , But Sellers are still living in dream land down here .
This normally means that houses that require a lot of work are still very over priced and not normally worth the hassle .

A cheap 180k house that needs new carpet,kitchen,bathrooms and sometimes rewiring and re-plumbing will bring the total cost up quite a bit !

Xiderpunk

My advice would be, the mortgage will kill you. I am quite a bit older than you and have a 220k mortgage but on a property worth £600,000. Our income is about 8-9K per month joint and basic mortgage is around 1,250 per month (although we overpay by £500). When we moved we were able to borrow a great deal more than we did, however life is too short to be stretching yourself.

My advice, get something comfortable to afford and live life whilst reasonably young. Have a nice holiday every year. When you reach middle age like me you will have plenty of time to worry about financial investments and which is the right course of action.

sammyjammy

EvilJaz wrote: »

Decided probably wrongfully i am going to go for it.

If i rent i will kick myself i didn't buy. And if i buy a cheaper flat i will kick myself in a few years line when i have to sell it and payout £10k+ to buy a house of that standard.

Any issues like car, i got the bank of mum and dad. Car issues can easily be solved as my dad use to be a mechanic. I get a 10% discount on gas and electricity.

Worse case scenario if in the first year or so i start struggling i can rent out the spare room cheaply. I'll switch my expensive nights out with BBQ's in my own garden hehe.

I'm surprising myself here but I think you're right, you've considered most options and seem a lot more clued up than the average FTB we see here. looking at the prices in your area and what you get for your money I can see why you're tempted.

The one thing that concerns me is how does your partner feel about all of this, are they onboard? Do they have the same financial savvy as yourself? Most importantly do they feel the same way about the future babies

Best of luck

Sam

motch

mrluke wrote: »

Jesus there's a lot of haters on this forum !

I'm in a similar position to you

We also have a 50k joint income and a 10% deposit

All the houses round here which are sub 200k need a *lot* of work .

We are looking to spend 230k inc deposit

Go for it , remember buy cheap you buy twice .

haters of what/who ?

EvilJaz

mrluke its the same in my area too. Even the run down houses seem to be far too expensive for what needs to be done to them.

Xiderpunk that's a valid point. However when you have two options. 1) Rent a place costing £1,000 a month or 2) have your own place costing £1,000 a month what would you choose then?

Haha sammyjammy. It was my partner who 'converted' me when it comes to money. I use to be happy to spend all my money going out having a great time. I look back at those days and wonder where did my money go?. She is very financially aware and better than me with money. Hehe i'm trying to get her to take up CIMA but she doesn't see the point (thinks she's too old). Probably in the future she will want kids.

Though people tell me i can not say this, i am. I am highly ambitious my salary WILL go up. And go up quick so that will help a lot.

No ones hating, just giving me there honest opinion which is why i have come here. I guess what most people should remember is (apart from student loan) we are completely debt free

mrluke

EvilJaz wrote: »

mrluke its the same in my area too. Even the run down houses seem to be far too expensive for what needs to be done to them.

Xiderpunk that's a valid point. However when you have two options. 1) Rent a place costing £1,000 a month or 2) have your own place costing £1,000 a month what would you choose then?

Haha sammyjammy. It was my partner who 'converted' me when it comes to money. I use to be happy to spend all my money going out having a great time. I look back at those days and wonder where did my money go?. She is very financially aware and better than me with money. Hehe i'm trying to get her to take up CIMA but she doesn't see the point (thinks she's too old). Probably in the future she will want kids.

Though people tell me i can not say this, i am. I am highly ambitious my salary WILL go up. And go up quick so that will help a lot.

No ones hating, just giving me there honest opinion which is why i have come here. I guess what most people should remember is (apart from student loan) we are completely debt free

I think you have just hit the nail right on the head there

Renting is £1000 min ( Same here if you want a house) .

I myself would also rather own a house for the same amount per month and not live in fear that its not your own house and you cant do diddly squat with it ! .

motch

mrluke wrote: »

I think you have just hit the nail right on the head there

Renting is £1000 min ( Same here if you want a house) .

I myself would also rather own a house for the same amount per month and not live in fear that its not your own house and you cant do diddly squat with it ! .

The key with stretching yourself to the absolute limit is that you need to be 100% certain it's the right house for the next decade or so. Possibly with another room to rent out to a lodger perhaps if struggling in the future.

EvilJaz

Yup motch, i think thats the key.