Buying at SD Threshold

Amba_Gambla

Hi
I've offered on a house, and if (when) we come to an agreement, I'm guessing we'll be right about the £125k mark.
I'm just wondering how this might leave me in the future. If I buy now at £125k, will its value increase, or will I be stuck with a house that is worth right about the stamp duty value?

I'm asking because there is another house up the road. Not ready to move into like this one, but significantly cheaper (the 'extra' money can make it up like the first, and hopefully increase the value).

My ideal situation would be move into a 'ready made' house, rather than worry about new windows, building work etc, but am trying to think ahead to my next step on the ladder.

I hope this makes sense!

Cheers

Ambla

PS - I'm a FTB

arbrighton

Impossible to tell on that information alone what will happen to the value of a house of a particular type in the area you live (which we don't know)
If you would prefer a ready made less work house, and can afford one in the area, go for it, it's rare to make back the money you outlay on improvements.
And don't run before you can walk- why try to plan the 2nd rung on the ladder when you haven't got onto the first? Buy a house you WANT to live in and can afford even when rates rise.

Amba_Gambla

Thanks. My heart is telling me to go ready made, but I know that the price we might (will) agree will be about the top estimate of what it is worth.

The other is a repossession, so is listed at a good price, but I know that nothing is guaranteed.

InMyDreams

Pointless worrying about what the effect stamp duty might have in the future. Whatever the house is worth now, above or below a stamp duty threshold, it could go up or down by just that much to end up being frustratingly close when you try to sell. Or by the time you come to sell the thresholds might not even be the same anyway.

Your best bet, if you can afford £125K, is to look for houses that really should be worth slightly more if not for the £125 threshold. Few people are willing to pay £130K, say, so there might be bargains to be had at that level.