FTB she'll shock: compromise vs future plans

catoutthebag

£1000pcm rent/food/bills and saving only half or less what I currently am by living at home?

I've been self employed for 7 years. My last 2 years profit were 32k ish. No debt. Good credit history. My available funds for a deposit 16-17k. I want to borrow as little as possible.
Ideally looking at properties up to 150 and purchasing for 135. I have small extra fund for furniture and all the fees/costs.

It'll come to

1) 1 bed flat in desirable location for 100-110k ...no work
2) 2 bed flat in desirable location for 140-150k...no work
3) 2 bed house in a better part of one of the areas today 150-170k...pretty ready to move in...not doable unless knock off nearly 10% off upper end
4) 2 bed house in a not great area or not great part of an area for 135-145k...work will need doing to varying degrees

Will have to check payments calculator

Of course I could compromise by having a lodger for option3.
Option1 is easy life financially and generally lifestyle wise
Option 2 feels more higher risk makes me ask flat vs house at this price.
Option 4 doesn't feel appealing after today.. but keeping an open mind.

catoutthebag

Just seen a dead cheap 1 bed in one of my choice areas for only 90k.
Says 45% discount due to planning agreement for low cost units. Purchasers must have pay under 35k and joint pay under 45k and must be their sole residence.

Unfortunately no pictures t but I'd move in at that price tomorrow.

Would these type of stipulations apply to future purchasers after me?

is there a name for the scheme?

FYI the 2 bed equivalent of these start at 175k

amii1989

I think every FTB goes through this OP.

When I first decided to buy a house last year, I was under the impression that I could get a terraced property, in a good area, with two bedrooms, for my budget of £135,000. It's simply not possible.

Just think about the features of the property you really need. If you really want to set up home on your own, it may mean compromising.

In the past twelve months, I've had to alter my expectations and I'm now in the process of buying a gorgeous one bedroom flat in a listed building within a pristine and safe area. Just think carefully about what you NEED and what you WANT.

Davesnave

catoutthebag wrote: »

Just seen a dead cheap 1 bed in one of my choice areas for only 90k.
Says 45% discount due to planning agreement for low cost units.
Would these type of stipulations apply to future purchasers after me?

The answer is in your own post. Planning agreements like that cannot be rescinded easily. It's affordable housing of some kind, and the devil will be in the detail.

I live in a house that had another kind of planning restriction imposed in 1974. It's still there. It makes the property worth at least £100k less than one without that encumbrance, but it also made it a good proposition for me.

For what it's worth, I think you need to do much more research in your area and clue yourself up to all the alternatives. Sometimes, thinking out of the box is called-for, as few of us can buy what we want where we want, at all price levels and ages.

For the record, I'm 66. My first house was a classic, 'in the right place but under-invested' property. I had to install a basic hot water system as a condition of the mortgage! You can guess what the rest was like.

moneyistooshorttomention

dirty_magic wrote: »

I thought about this but the OP doesn't seem sure of what she wants. She said she's hoping to find a partner and buy together in a few years, but there's no guarantee this will happen.

I think it would be mistake to buy something now that she doesn't really like on the basis of it being temporary if it doesn't turn out to be that way.

Cautionary note = I was hoping to find a partner and buy together, but it never happened.

Back in my era it was the case that for women who were reasonable-looking and met a reasonable number of men then marriage would happen IF you were prepared to marry Mr Okay (or Mr Disaster!), rather than waiting for Mr Right. Personally, I was waiting for Mr Right and turned down a couple of Mr Disasters and a couple of Mr Okays. Mr Right never did turn up:(.

Moral of story (and fast forward to an era where I suspect it might be rather harder to find a Permanent Partner) and my advice is very much to make your own arrangements and don't rely on a suitable partner turning up. Obviously, I hope you do meet The One...but do be prepared for the fact that you may never do so, so get on with making your housing arrangements yourself.

It does mean a lower standard of housing to have to do it on your own. In my own case it meant having to wait a whole decade longer for the starter house than I would have had to if I had been married. Then, more recently, it has meant that that detached house/with garden/in reasonable area was something I still didn't have - at my age! (early 60s and recently retired), so I've had to move to a cheaper area in Britain to get it. If I'd been married, then we would have bought that detached house a couple of decades back and I'd have stayed in my home area.

Sooner you get started with making your own arrangements, then the better your chances your housing situation wont turn out to be worsened by being single. If Mr Right turns up later then its a bonus.

EDIT: Be prepared in case you have to keep the starter place for longer than anticipated. I was only going to keep my starter house for 3-5 years, 7 at the absolute most. In the event, I had to stay there for over 20 years and would be there still if I hadn't Done A Crosscountry Move to move up the ladder.

FURTHER EDIT; You don't want to know what a man I knew of did to his wife when he found out that she had married him for the sake of having a house....but it would be a very cautionary tale. If you do get married, do make sure its to the man himself iyswim and not the better housing you will have if you do.

Running_Horse

I can see three options.

1. Nice area but bad property.

2. Bad area but nice property.

3. Continue saving while living with parents.

We can't always have what we want in life. I would like a bigger detached house, but am perfectly happy in my little family home. If you get on with your parents then why not stay and keep saving for what you want. If you are desperate for independence then work out what you are willing to give up to get it.

Peronihull

As a former FTB and now second stepper, I thought I'd give my view.

7 years ago, I bought my first house aged 28. I'm not as resourceful as OP so bank of mum and dad helped with a 5 % deposit on an interest only loan. (Just before Northern Rock...) Whilst looking I had the same debate and eventually chose area over size of house which stretched me to the very top end of my budget. Because of this I picked a 2 bedroom maisonette with own garden for the reasons that if it got really bad I could easily get a lodger.. having been previously lodging myself for a few years privately. This was cheaper than renting my "own" flat and I couldn't live at home having moved 150 miles away for work.

Depending who you end up with maybe this is an option for OP to get a bit of independence but still able to save vs renting solo?

I was lucky and ended up with someone in a decent flat which was big enough for us both to have own bathrooms and living space. He also worked away on business a lot so was often away weekends to give me the "run of the house".

When I finally bought. As I had stretched to my limits...I was glad of the 2nd room as I took a lodger (a friend) to give my self some breathing room as house come with lots of extra costs (not just a mortgage) and I didn't want to feel exposed. Luckily for me my tracker interest only mortgage got cheaper and cheaper as rares tumbled from 6.5% to .5% evey single month till it got to the point my lodger was covering my commitment by 100% so I could focus on saving / clearing debts and student loans... very fortuitous!

My other plan was that with a 2 bed would've also had the option (with CTL) to rent it out completely and go back to lodging / move in with a partner if i found one which would have been better rental return over a 1 bed in a not so nice area...

In the end... I ended up meeting my now husband about 6 mths after completing on this house and after 12 mths my lodger moved out and he moved in... and we made this house our home and then got married... so it does happen!

We are now 2nd stepping into our first home jointly owned...although as you may have read from my other posts...that purchase didn't go so well...

catoutthebag

Thank you for your additional responses.

Absolutely I will and can only buy where I want and where I'm happy. That's always been my intention.

The 2 areas with houses I visited I've now ruled out. One has a heavy student population and i'm passed that. The other...I would need another 20k to get a house in the decent bit.

So that leaves me a house in 2 'rough around thr edges but up and coming areas' ....for around the same price as a 2 bed flat in an already leafy established area that I'm familiar with. Or a 1 bed flat in that area for 30-40k less.

Currently focusing on the flats. Later today I'll focus on the two other areas.

1 of the newer development appears to have an extortionate service charge of 130 pcm. ..so immediately ruled that out.

The other type of flat I've narrowed it down to are Victorian conversion types. ..1 appears to have a service charge of 70 pcm.

There are a lot of flats in this area...and looking at past history, they do sell. Popular with young professionals and urban types due to lots happening locally.

Will continue to research

catoutthebag

catoutthebag wrote: »

Your first paragraph has completely misrepresented me.
I don't care who I met what they earn or where they live if still with parents etx.
However when I meet someone and things eventually get serious and we decide to move in (because I will meet someone and at some point living arrangements will be talked about), it's that I also need to consider.

And whatever I've said, I do want to move out to move out and have my own space back. That's the primary. Meeting someone and incorporating changes that that can entail is secondary.

I don't feel forced out by myself or parents.

But living at home can lead to complacency and settling into a lazy life. Ok in your 20s. Not after. I want to strike while the iron is hot, this year.

Funny how 5 people liked duchy post despite it being untrue and me clarifying. Funny how they completely got the wrong end of the stick yet 5 people embarrassingly followed like sheep to 'like' their post. Weird. Ho hum.

catoutthebag

amii1989 wrote: »

I think every FTB goes through this OP.

When I first decided to buy a house last year, I was under the impression that I could get a terraced property, in a good area, with two bedrooms, for my budget of £135,000. It's simply not possible.

Just think about the features of the property you really need. If you really want to set up home on your own, it may mean compromising.

In the past twelve months, I've had to alter my expectations and I'm now in the process of buying a gorgeous one bedroom flat in a listed building within a pristine and safe area. Just think carefully about what you NEED and what you WANT.

How do you feel about service charges and the ability to resell when the time comes?