What would you do?

HalfPint

Scenario for you:

I own a 2 bed flat worth approx £120k Equity is about £20k (mortgage outstanding is about £100k)

Chance to buy a potential 3 bed house which needs a lot of work for £135K (rare in my area)

Max mortgage I would get £125k, no other savings. would need to borrow £15k from family to pay for work that needs done.

OR

Rent a property (same style & size as one available to buy) £750 pcm which I'd need to put about £1k into decorating & updating kitchen.

OR

Stay where I am.

what would you do?

Ozzuk

Not very clear what you mean - are you keeping the 2 bed flat? I'd never rent if I could buy so I'd rule that option out.

If you are keeping the flat, you'll need a larger deposit, prob 25k plus.

HalfPint

Thanks for your reply

The 2 bed flat will be on the market in the next week.

HP x

anselld

It would be madness to put £1k into updating someone else's kitchen.

AlexMac

My preference, by a long shot, would be to trade up, subject to being able to get (or 'port') the mortgage, even if it meant scrounging from the family, then scrimping while you did the improvement work as this would add value.

When we started out we hadn't a clue about DIY but learned to maintain and repair stuff that didn't need professionals (such as complete internal decorations, fitting kitchen units, lifting, relaying and sanding original Victorian suspended floorboards as these were trashed)...

But it all depends on the money, so ask about the finances, and don't forget to factor in fees and moving expenses. Lenders have got picky and might be iffy if you admit to the family loan, so you all might have to evidence funds and/or present this as a gift?

Staying put would be my second choice, but its a free country if you want to get off the housing escalator and hope you can jump back on in the future

HalfPint

Thank you for your input. Hubby and I are at loggerheads. I want to buy the 2 bed run down empty for 10 years house (might give you an idea of the work involved) hubby wants to sell and rent. Neither of us want to stay put lol.

I think we'd be mad to put money in rent and think we should at least try to get the property to buy. He thinks there is too much work on that and wants to live comfortably even if it means renting and paying money to put in a decent kitchen in the rented property.

Now neither of us have any idea what to do next!

HP x

anselld

HalfPint wrote: »

Thank you for your input. Hubby and I are at loggerheads. I want to buy the 2 bed run down empty for 10 years house (might give you an idea of the work involved) hubby wants to sell and rent. Neither of us want to stay put lol.

I think we'd be mad to put money in rent and think we should at least try to get the property to buy. He thinks there is too much work on that and wants to live comfortably even if it means renting and paying money to put in a decent kitchen in the rented property.

Now neither of us have any idea what to do next!

HP x

Ask him how he will feel if he puts in a new kitchen in a rental then gets evicted six months later.