Buying A House in Bad Repair

ChrissieS_2

I've got a small budget and have been reduced to looking at houses with issues.

People have said to me that these sort of places will continue to drain my money, even if I can get the immediate urgent works done, hopefully after having a lower offer accepted.

Next week I'm looking at somewhere which I think is a repo. I've got a deposit and a mortgage will pay for the rest.

Am I mad to consider it? The way I look at it is it's a roof over my head and my only real option. It's a nice little 2-bedroomed house and as I've just sold my 1-bedroom flat, a way to escape leasehold and have a place friends and family can stay.

Doozergirl

It depends on how bad it is!

Obviously, you don't want it costing more to buy and fix than a house with fewer issues.

All houses need money lavishing on them over time.

Carrot007

Indeed.

It depends on the state and what you are prepared to live in.

My previoud house was got for around half market value of a done up house.

It had 3 plug sockets in the house (the one upstairs was in the hall).
I had the windows done after exchange and moved in with my partner 9 months later after lot's of refurbing.

I did often stay over at the house after I got a phone line for internet. But I did not mind sleeping in a duvet on the floor with a laptop for company!

Everything had to be done!

But that was in the days of a 115% mortgage to help me start out doing things. Would be harder these days unless you have the savings to fund things.

[Deleted User]

If it's a repo why does that mean that it will be in a terrible state? Repossession can be as a result of divorce, someone losing their job, illness, etc.

Definitely view it and then get a second opinion if you're worried (and, of course, get a decent survey - not just the basic one).

Cakeguts

Depends on whether you can get a mortgage on it or not.

DigForVictory

As long as you get a full structural survey to negotiate with & the area is either OK or improving, go for it. (Unless the surveyor says no.)

Most repos are due to financial difficulties rather than irremediable house issues - unless it has just turned out to be in a flood &/or subsidence area.

Look hard, but be ready to leap, say I.

ChrissieS_2

Thank you lovely people. It feels like a positive response on here. Other people can be doom and gloom, but then they're not in my position and all sorted house-wise.

The property, from the pics, has peeling wallpaper and marks showing evidence of water ingress but it could be from pipes or anything. I'll see when I get in.

Cashflow is my problem. My savings will just about pay the fees - stamp duty, survey, agents, sols so I would need to offer under asking to conserve a few thousand for immediate works. I am right up to the mortgage potential for borrowing but I can be canny with money, so will be frugal once I'm in and do it up room by room as I get my monthly salary, putting away £100 per month for emergency in the first year. I have a second job which is shifts on a monthly rota. This is useful when I need to get some cash together.

I've already made enquiries re: a good, proper surveyor who gets down and dirty, not some suit who sashays around with a damp meter.

LandyAndy

The structure is the important thing. If the basic house is sound then all the cosmetics, no matter how bad, can be fixed in time and for a lot less money than you might imagine. Decorating is one thing that almost anyone can make a reasonable job of with a little application and a relaxed attitude to timescales.

Kitchens and bathrooms too only need to be clean and functional in the short to medium term. It took me 10 years to get to rip out the ghastly, but totally usable, kitchen here.

ACG

I bought a house for £84k and sold it for £155k 4 years later after spending £10k(ish) on it. When I bought it, it was probably worth about £115k had it been done up.
So long as it is structually sound, the rest is cosmetic, with possibly the biggest expense being a rewire/boiler if needed.

My mortgage was £350 a month on the £84k property, nearly half what it would have cost me to rent. So every other month, I was able to spend money on the next job more or less. If you plan on using it as a wa to boost your deposit for the next property, the trick is to spend wisely. You could put a £5k kitchen in there, but if you will be gone in 12-24 months, then you go should go cheap and cheerful, especially if looking at the lower end of the market.

ChrissieS_2

Thanks again folks. I should post on here more often. People on this site can relate to the squeeze and being forced to do things on a tight budget. I earn less than the national average, even with my 2-4 jobs so I'm always having to stretch and struggle as many on here must do.

I'm (a young) 53 so I think this will be the house I settle in, although would not be adverse to selling on at some point. Initially I will make it mine and see what happens after a few years. I like recycling/furniture and have joined Freelywheely etc for the purpose of free and cheap furniture and fittings. I'm also not a traditionalist when it comes to furnishings and layout so have plenty of flexibility. Thanks again!

Rosieandjim

I think it is far better to live in a property for some time to get a feel of the place before deciding on what look to go for. You can source kitchens from ebay very cheaply also bathrooms. Furniture from charity shops etc.


An old neighbour of mine was able to change her old widows to double glazing one at a time until she could afford the next one from a local firm who did a really good job and had no problem with this.


Other friends purchased an old house and everything was recycled except plastering and heating. It looks wonderful and would not be out of place in a glossy magazine.