FTB she'll shock: compromise vs future plans

catoutthebag

Today I've visited areas of the houses I'd seen on right move and done further research on property available at my budget of around 135-140 k with view of 10-12.5% deposit.

Wow what an eye opener and nearly brought me to tears!

No house is ready to move in. I can get passed bad decor ...but some look like a dive.

Some houses in a particular area, one that is pretty decent ....were in the worst part of the area. One that would depress me driving to everyday.

In the other area, area isn't so bad. ..just like nothing nearby to venture out to. The road is characterless. There are no tress or grass verges. It's clean and well kept. The more bustling part is just over a mile way, maybe 2.

This has just lead me to confusion. Lesson learnt: take a drive out to see these places.

I've been saving and plan was to move half way through thr year. But the process and these areas depress me. It's hard enough moving out solo but then if it's not a super area it's worse.

Perhaps I might see things different if I didn't visit today late on with light fading.

I think it also raises the whole long term plans things.

I only intend to stay in the property for 2-3 years. I'd hope to find a partner, and eventually, live together a bit, and then buy together (or one of us sell our property if they had their own).

So its only a short term stepping stone to building up equity til moving into a better area.

Which today lead me to thinking of buying a maybe cheaper 1 bed apartment, putting in slightly bigger deposit, but being in a sought after area and modern and ready to move in.

Obviously the issue then is...harder to sell and all the extra chargers which would neutralise the initial cheaper mortgage payments anyway.

Any advice appreciated. Maybe I'm just having a 'wrong frame of mind day'!

dirty_magic

I noticed the same thing when we were looking. I saw some really nice houses but only realised what the area was like when we drove around. I'd say go for the best area even if the house needs more work, especially if you want to sell in the not too distant future.

Where about are you roughly? When you look at what you can get up north for the same amount it is eye opening! I started off thinking we could buy something for £140k, but we ended up saving more and buying a house for £165k. £140k just wasn't enough for what we wanted.

If there's no rush for you, maybe think about saving a bit more first and buying something you really like. There's no point buying something you don't really like; the future doesn't always go as planned and it would be horrible living somewhere that doesn't feel like home.

catoutthebag

Quizzical_Squirrel wrote: »

In your circumstances I would be renting not buying.

I'm living with parents

So you think waste 1k on rent and expenses
Or live with my parents when I should be out at my age and want to be out....and do what at home? Continue to get older and save very slowly til another year passes while I'm looking for a future partner? Won't appeal to me or them. Too old for that.

catoutthebag

dirty_magic wrote: »

I noticed the same thing when we were looking. I saw some really nice houses but only realised what the area was like when we drove around. I'd say go for the best area even if the house needs more work, especially if you want to sell in the not too distant future.

Where about are you roughly? When you look at what you can get up north for the same amount it is eye opening! I started off thinking we could buy something for £140k, but we ended up saving more and buying a house for £165k. £140k just wasn't enough for what we wanted.

If there's no rush for you, maybe think about saving a bit more first and buying something you really like. There's no point buying something you don't really like; the future doesn't always go as planned and it would be horrible living somewhere that doesn't feel like home.

In West mids.

A nice house requires my purchase price to be 160-170 not 135-140.

I could put 10% on 160-170 and see what repayments are. Will they be much higher?

It's not really the work required in a more expensive area. I find houses in those area already have the work done. ..it's thst my deposit reduces to 10% from 12.5-15 and thr associated repayments are higher. ..maybe too high since I'm self employed without a steady income all year round.

Don't really want a lodger unless I'm desperate

ognum

catoutthebag wrote: »

In West mids.

A nice house requires my purchase price to be 160-170 not 135-140.

I could put 10% on 160-170 and see what repayments are. Will they be much higher?

It's not really the work required in a more expensive area. I find houses in those area already have the work done. ..it's thst my deposit reduces to 10% from 12.5-15 and thr associated repayments are higher. ..maybe too high since I'm self employed without a steady income all year round.

Don't really want a lodger unless I'm desperate

OP, house buying is about comprimise, many what ever our circumstance would prefer something slightly bigger, slightly better etc etc.

It seems to me you haven't decided what your comprimises could be? Could they be a lodger, could they be something that needs work, could it be a worse location, could it be a flat not a house. Only you know but it is what you need to think about.

dirty_magic

I'm in the Midlands too so I know what you mean! On a basic variable rate mortgage repayments would be around £75 more, but it depends what sort of mortgage you're looking for really and if your income fluctuates it might be more difficult to find a lender.

How old are you? I wouldn't rent because it will really reduce your ability to save. If I were you I'd stay with your parents and save as much as you can for another year or so. I'm assuming you're still pretty young so you have lots of time! It is frustrating though.

When older people tell you how much they bought their houses for it makes you want to cry!

catoutthebag

ognum wrote: »

OP, house buying is about comprimise, many what ever our circumstance would prefer something slightly bigger, slightly better etc etc.

It seems to me you haven't decided what your comprimises could be? Could they be a lodger, could they be something that needs work, could it be a worse location, could it be a flat not a house. Only you know but it is what you need to think about.

Think you've hit it on the head.

ideal area I can afford a flat. But I'm in a safe area close to amenities. It'll be modern so no work required. However other charges on top and hard to sell esp if 1 bed...potential to withdraw equities from it to use on another house and rent it out in the future - how would that work?

Apart from the 2 supposedly ok areas where thr houses either need a bit of tlc (more cash/lower deposit), there's not much happening around. However being 2-3 bed houses I could sell easily and I think prices will rise slowly in these areas, especially one of them. I think I need to view location in a positive mind in the day. Ok not near anything but everything 8 quite accessible by car.

Other option was similar price to those 2 areas. ..but 2 less well regarded areas where more young professionals are moving. ...areas are a bit more rough around thr edges but houses look nicer in some and could be seen as up and coming.

It's tough

Just thinking aloud

catoutthebag

dirty_magic wrote: »

I'm in the Midlands too so I know what you mean! On a basic variable rate mortgage repayments would be around £75 more, but it depends what sort of mortgage you're looking for really and if your income fluctuates it might be more difficult to find a lender.

How old are you? I wouldn't rent because it will really reduce your ability to save. If I were you I'd stay with your parents and save as much as you can for another year or so. I'm assuming you're still pretty young so you have lots of time! It is frustrating though.

When older people tell you how much they bought their houses for it makes you want to cry!

Thank you!

I'm in my very early 30s. I'd stay at home for another 12 rather than 6 months. ..but while I'm dating and looking to meet someone new it's not really appealing.

Plus sure I'd get a slightly bigger deposit say 3k...but I'd still be looking in those areas as my income won't increase and the bigger deposit saving won't really dent things.

Wish my parents would just dish some cash too. My dad did offer 5k last year which my brother declined and I kinda said 'it's fine' but unfortunately no mention of it since and I don't like to ask! 5k would be another 3-4% deposit

nearlyrich

dirty_magic wrote: »

When older people tell you how much they bought their houses for it makes you want to cry!

Do they tell you how much (or little) they were earning though? Did they have 2 x £40 mobile phone contracts per month and did they buy everything new or get hand me downs from family and friends? It was just as hard to buy a house in the early 80's we had to save up for a deposit and we couldn't afford to go out much with the mortgage rate at 15% even if the house only cost £8500...

ognum

nearlyrich wrote: »

Do they tell you how much (or little) they were earning though? Did they have 2 x £40 mobile phone contracts per month and did they buy everything new or get hand me downs from family and friends? It was just as hard to buy a house in the early 80's we had to save up for a deposit and we couldn't afford to go out much with the mortgage rate at 15% even if the house only cost £8500...

I am from the boomer generation and while we had it tough our mortgage was 3 times one partners salary and once another, that was the restriction when we bought our first home in the late 70s so actually it wasnt as tough as it is now!

dirty_magic

nearlyrich wrote: »

Do they tell you how much (or little) they were earning though? Did they have 2 x £40 mobile phone contracts per month and did they buy everything new or get hand me downs from family and friends? It was just as hard to buy a house in the early 80's we had to save up for a deposit and we couldn't afford to go out much with the mortgage rate at 15% even if the house only cost £8500...

Not everyone has expensive phone contracts. Both mine and my OH's are less than £8 each. And if you look at buy and sell local sites plenty of people are still looking for hand me downs. Sorry if you didn't mean it that way but it irks me when people think that younger people just fritter their money away!

Obviously I haven't experienced it as I was born in the 80s but friends and family have all said it was easier back then.

OP I know exactly how you feel. I was desperate to get on the property ladder and it felt like everyone was managing to do it before me. We did rent first and I hated it; I hated not being able to make the house my own because I knew it was temporary and I hated lining someone else's pockets. A lot of people do have help from parents because it is difficult to save such a huge amount of money. The low rates are good for mortgages but they don't help when you're trying to get a deposit together!

You'll get there, you're on the right track.