Ohmygod we're gonna get a house

Princess_Jane

Well...my partner's mam is.

And we're going to live in it.

My fella's parents are moving to France, selling up their pad and buying a smaller house.

We will live in it and pay the mortgage.

We have a maximum of £120/£130k to play with, and this obvs isn't a lot, as we live in Newcastle upon Tyne and want to remain within about ten miles-ish of the city due to work commitments.

I am charged with tracking down said dream home and could do with pointing in the direction of helpful websites in a Moneysaving spirit.

Trouble is we have always rented quite nice places which didn't work out too dear when a few of us were sharing.

So I have grown shamefully attached to riverside views, real wood floors and slick modern architecture, shallow minx that I am.

Some of the houses I have looked at make me want to cry - washing line IN the front room anyone? Mysterious stains on ceiling/floor?

arthur_dent_2

Sorry but if you are living in it and paying the mortgage why will it not be your house?

rosysparkle

Put the city centre postcode into rightmove (will this be NE1?) and set your search to this postcode + 5 or 10 miles around, limit the search to properties near your price bracket and you'll find lots of property, which will give you a good idea of what your budget will buy.

If you are paying the mortgage, the house will be yours surely?

themaccas

I have to agree with AD, why don't you and your OH buy it? You're going to be paying the mortgage for them so why shouldn't you benefit from the increase in value when you want move on. If I were you I'd stay put in your nice rented pad you're just moving your rent elsewhere. I can't see any benefit for you in this move.

CB1979_2

hahahaha someone hasn't thought about this too well!

unless of course they'll be putting in £150k equity therefore you living in a nicer house for the same amount of money, that's the only benefit i can see from it.

what happens if you & your b/f split up? very messy!

Phirefly

As other posters have said, this seems a bit cockeyed to me. However, I'm trying to look at it from thr OPs point of view.

Rather than saying that her and her partner are 'paying the mortgage' if it were viewed as 'paying his parents a sum of rent' then it starts to make sense. In effect she gets to choose her rental pad and will have sympathetic landlords. Its ideal if she and her partner are not currently in a position to buy. And without wanting to dig up the argument raised in that most controversial post a few months ago about inheritance, his parents might be seeing the investment as bolstering their estate which would inevitably be passed on to him. It also gives her and her partner a chance to try building a home together without any real financial commitment to eachother in the way a mortgage commits you.

Or maybe it is complete madness *brain strained*

Princess_Jane

Okey dokey...

We can't get a mortgage because my partner has the credit file from hell and don't earn a great deal of money.

It won't be our house because our names will not be on the mortgage or the deeds.

Instead we will have a letting agreement, standard sort as available in W H Smiths etc.

My partner's parents want to sell the property on in five years and split the profits with us.

I've asked if we could also have this drawn up legally.

Obviously if we split then could be problematic as chances are my partner would remain in the house I would have to find a new place.

But if everything works out we could have a decent deposit for a new place, and it does give my partner time to pay off his debts - which he is making in-roads to -and for me to climb the career ladder.

arthur_dent_2

Fair enough. From the second lot of information it sounds like an excellent idea, however I am not sure if you could draw up any sort of legal document. It would probably have to be you and your OH relying on the goodwill and good nature of mil/fil.

Good luck and I hope all works out well for you.

saunaboy

two points

1) look at the coast, it's cheaper there if you avoid places like Monkseaton and Tynemouth and pretty nice. There's good Metro links. Anywhere within a couple of miles of NCL city centre means an expensive apartment or student flat.

2) you say you'll split any profit with the folks who are buying. What happens if prices drop ????

Princess_Jane

saunaboy wrote: »

two points

1) look at the coast, it's cheaper there if you avoid places like Monkseaton and Tynemouth and pretty nice. There's good Metro links. Anywhere within a couple of miles of NCL city centre means an expensive apartment or student flat.

2) you say you'll split any profit with the folks who are buying. What happens if prices drop ????

We are looking around North Tyneside, barring a few areas!

Our budget is quite prohibitive, as we are discovering. Already had one offer refused and the second place we looked at was pretty nasty.

House prices go down? I guess it is a risk everyone takes when buying a place. Worse case scenario we don't get as much as we thought back, or we can't sell at the time we'd/they'd like to.

All will be revealed I suppose..

Fulham_Mark

Princess Jane,

When I moved to London i saw a few little 1-beds for £80 - £100k just by St Pauls. As soon as I suggested buying one everyone criticised me and said i didn't know what I was doing...you had to buy a 2 bed place, never buy on a busy road etc etc etc.

So I decided to start saving my cash for a 2 bed place instead - a few years would do it. As soon as these flats were selling for £250k the same people were criticising me for renting and not buying a place.

When I could buy (2004) the same people said i was stupid and that prices would crash...I considered this but decided that i'd still be happy if my place was worth less because I was going to learn DIY, be closer to the river and good parks for running and my life would be better.

Now that minor tv celebs fight to buy flats downstairs all the people who criticised me tell me how responsible I was buying in 2004. I'd be much more reponsible ignoring them in the first place! Nice 1bed flat in the city with a £60k mortgage...

I'd forget any talk of crashes or making money. You should buy a home for the pleasure and happiness it will bring not to make a quick buck, and don't do it if you'll be v unhappy if it's worth a bit less in a few years time.

I could have "made" more money if i bought in an "up and coming" area but what use is a few grand if you're scared of being mugged and your friends won't visit you?

It's all about lifestyle and happiness. if you want an investment get a stockbroker!