First Flat?

JJ-07

Hi All.

Me and my girlfriend are looking to stop renting and move into our own flat, but im a bit confused.

Im due to start a job as a Web Developer, salarys are high, about 35-40k a year, ive not seen any under 30k. Im confident i will get a job because ive got the experience and im qualified.

Anyway, with an estimated wage of say 30k minimum and my girlfriends wage which is about 12k that would make a total of give and take ill say 40k a year before tax. We are looking to buy our first flat, and plan to stay there for at least 5 years, and hopefully after that get a house and keep the flat for renting.

I'm kind of confused on were to start and dont want to end up trapped.My uncle bought his first house at 25 and got stung, and ended up nearly loosing the house because of hidden charges.

I understand i need a deposit, and my credit score isnt to good, there only minor debts, i dont think that i owe over 1k, just bank charges i refused to pay and a bt bill that i refused to pay because of reasons. Im 23 this year and my girlfriend is 20 this year.

Any advice would be great, i dont want to walk into this blind and end up getting stuck.

Were looking for a 2 bed flat, need office space, in a nice area in the west midlands.

phlash

When you've found the job paying what you think you will earn and feel that the job is safe, then start looking.

Most lenders like proof of income over a set period, although I did manage to get mortgage offers on sight of a graduate contract, but I was just doing that out of interest!

I wouldn't worry about a flat just yet, just get the job first. One step at a time.

Out of interest where do you live? Is the flat market where you are looking healthy? Because flats where I am are taking a beating, and I can negotiate harder on them now than I could 12 months ago, putting me in a better position.

Guy_Montag

I'm with Phlash - job first, then flat. You might end up moving if there's a really good job somewhere.

I also agree with Phlash, depending on where you are flats are not always good value. You can often get a bigger terrace for the same price as a flat.

JJ-07

Yeah the job will come first

I have seen a flat in Birmingham City Center, they have build some new apartments that arn't yet for sale, but im guessing they would be way to expensive, we have also seen a few for £110k, 2 bedroom, not long built, but like you said ive seen a small 2 bed for £120k.

This is my first time, ever so confused, im going to have to speak to a professional to give me some advice i think.

Guy_Montag

JJ-07 wrote: »

Yeah the job will come first

I have seen a flat in Birmingham City Center, they have build some new apartments that arn't yet for sale, but im guessing they would be way to expensive, we have also seen a few for £110k, 2 bedroom, not long built, but like you said ive seen a small 2 bed for £120k.

This is my first time, ever so confused, im going to have to speak to a professional to give me some advice i think.

Spend a lot of time researching. I don't own a house or flat(yet), but I would be very twitchy about buying a new-build, city-centre flat. They don't seem to hold their value well, at least for the first few years. If you do go down this route, you should try to get at least 15% off, not 5% + fees paid. Really drive a hard bargain.

A two bed terrace or similar in the best area you can afford is probably a better bet as a first foot on the ladder, in my local area you can pick up about three of these for the same price as a city centre new-build.

phlash

Just be careful who that "professional" is. Often, I think you can make a well informed decision by sitting at home and looking at the market yourself from your PC. The internet has revolusionised a person's ability to gain information, from which you can make an informed decision. Any "professional" could be of a bearish or bullish persuasion, and therefore will point you to information of that nature, and giving you a false conclusion.

If you stayed even just on this forum for long enough, you would pick up so much information, ajoin that to your own research in your market by watching whats going on and keeping your ear to the ground, and you'll find yourself in a much better position to make a decision than by going to any "professional" whoever that may be!

A two up two down, is probably a better bet than a flat, it is more likely to hold its value in any downturn. I live not far from you in Nottingham, and to be honest we are washed out with apartments. I know that 15% surrounding the city lay vacant because so many have been built, I also know there's plans to build 4000 more. Even if the rest of the UK market boomed, the Nottingham flat market simply won't because of over supply issues. Therefore by not buying and letting my savings grow, I am saving money, since there is no equity growth in these flats. I look at it with the mindset that I am renting from my LL, and not the bank. Besides, it would cost me more to rent from the ban, since the interest on the mortgage would be more than the rent I pay.

phlash.

BubblingCletus

I've got a friend who brought a 1 bedroom flat in the Jewellery Quarter in Brum (v nice, spacious, top floor, large balcony) and really struggled to shift it a few years later. (I think it has been sold now) The amount of flats being built in that area means competition is really high, so if you are going to buy there definitely strike a hard bargain!

JJ-07

BubblingCletus wrote: »

I've got a friend who brought a 1 bedroom flat in the Jewellery Quarter in Brum (v nice, spacious, top floor, large balcony) and really struggled to shift it a few years later. (I think it has been sold now) The amount of flats being built in that area means competition is really high, so if you are going to buy there definitely strike a hard bargain!

City Center would suit me because the jobs im looking at are more or less very close to the city center, but all depends where i get the job, could be out of brum. I like living close to the city, but i like the countryside, highly doubt you can pick up anything but a run down house in the country with my budget.

I think me and my girlfriend need to sit down and talk it out, work out budget and find that job first.

I always thought the higher the income the better the house, im not expecting a £300k house for my first house, and i wouldnt want to, but even with my high paid job, i doubt i could afford it anyway.

How do these people afford 4 bedroom houses in nice areas? I noticed most of them are old, probably got them for next to nothing during or after the war.

I want to enjoy life, not worry about money issues and cant afford to pay the morgage. I didn't expect life to be this tough, i imagine i have alot more to learn as life goes on, im young .

Thanks for all the help and advice, i will stick around, you people are so helpful and 99% of you are not tight with sharing knowledge.