I don't know what/where to buy. Please advise

iuzarneim

thanks
I dont know... I`ll keep you updated but as I said.. its a real mess in my mind right now.

btw, commuting should not be a big fuss cuz I`m working in between rush hours. I might get some traffic in the morning but only in Bristol (M4/M32)
I`ve been 3 times in Newport to see properties and I never done more than 35-40mins @ 65-70mph

I`ve seen a flat close to Southmead Hospital (Bristol) and from my house to that place took me 25 mins at 3PM ....(less than 4 miles)

iuzarneim

Ok... I know people here don't judge and have pertinent opinions and beliefs !
Saying so...I will bring to life this thread and I`ll start my rant


I put an offer on that house, was accepted, removed from market, solicitor instructed, etc etc etc
Searches done, surveys done, almost everything done. We are very close to exchange. Everything went without problems.

NOW is getting difficult ! If I get the house, I wont have money anymore. I must save for emergencies/household essentials. Also I will be on a 2yr fixed (quite high TBO) and seeing what is happening in UK/EU it would be very hard to get a remortgage with negative equity. I will get stuck on a variable (5/6/7%) and hate my days commuting every day.
The biggest fear is I don't have settled status to "guarantee" my right to stay/work and know whatever will happen I can work to keep my mortgage. If I will be in anyway "forced" to leave I will lose a lot.

If I pull off, I will lose about 2 to 2.5k on MA fees/solicitor/survey/etc

I like the house, I want to stay there but man... with all the negativity and racism around me... I start to have doubts. Many.


I dont know what else to say..

RandomDan

Would you be able to get a lodger for the first couple of years to help with the bills? You might also want to look for a Monday to Friday lodger so that you can enjoy your new house by yourself at the weekends.

There is no way that after Brexit any government will kick out anyone from the EU who currently lives, owns and works here. There would be public outrage.

However, to put your mind at rest, if you had to rent the house out to someone and move elsewhere, would the rent cover most or all of the mortgage? If it would, then you can consider the house a "safe" investment.

Think of the positive things that buying this house will bring to your life instead of the negative.

Askalaba

Bristol centre is easily £400k - £500k so you'll have to wave goodbye to living in town unfortunately. Although if you work in Filton then you could easily get a £250k 3 bed semi-detached house or a £100-£125k one bed flat if you're willing to drive 20 mins to work every day

SunnyCat

As an EU national myself, I don't think you should worry about brexit. First of all, it might not happen at all. If it does, UK have already said they will guarantee the rights of people who move here within the set period (which is still continuing). They really can't start kicking people out, as other countries would start kicking Brits out - it's just not going to happen. You will get to your settled status in time and you'll be fine.

Now, on the purchase specifically, I don't know Bristol, but it sounds like you're buying in a commute area that is quite nice, not a new build. Therefore it's not very likely to lose value, as it will remain attractive in the future. Perhaps you're freaking out about negative equity or repossession unnecessarily?

I notice you're getting a 2 year fix. We are currently also in the process of buying a house and are getting a 5 year fix. I suggest you may consider fixing for longer? I know the rate is a bit higher, but you get a peace of mind for longer, which I find useful in the current time.

iuzarneim

Thanks for your quick replies.

My first though is to get a lodger when I move. Half of the idea of buying a house was by doing this. The other thing was leasehold, having a garden, etc. I also know the costs are more but I will live with that.
Unfortunately south wales (newport area) hasn't gone up in years. Many houses bough in 2008/2010 for 80k were sold 1-2 yrs ago for 100k. There was a "spike" when they removed the bridge tolls and made many people to consider moving there instead of paying double in Bristol. I can say if I would moved quickly last year i could buy a home for 110-120k. I knew about the tolls being removed, i knew the market will go up but I coudnt afford at that time. No enough savings and employment/address/etc.
Sadly, the rental market is quite low and if you have a rate higher than 2.5% it would be higher than renting. I got a 2.7%. This bothers me... and the MA insisted on 2 yrs to accomodate with the area/house and if I dont like it I can move/portability. This is an opposite of having the certainty of a long fixed rate and didnt care what would happen in future.
This place would be a home not an investment. I applied on idea of paying for a house for 10yrs instead of renting for 10yrs. So I would be happy with "my money back" or my kids will be on a fortunate position of having a place to live without paying rent/mortgage as their father had to do.
Bristol is very expensive, 1 bed flat is no lower than 135-140k and a 1 bed house starts from 180k. In many cases there will be improvements to be done so you need to have money for new kitchen/bathroom/whatever. If I could find anything good I would stay here.
SunnyCat. Yes! My biggest issue is the fear of negative equity and not be able to remortgage plus the uncertainty of brexit/what will happen.

gwynlas

Most people have similar fears when buying first property and of course yours are enhanced by brexit. Where you are buying is close to good transport links, road and rail so unless we are due a major recession in the next ten years I believe your fears are unfounded. We all have to live somewhere and buying a property gives you far more security than renting in this country.

salimali00

Hi,I just thought I would offer some support as I am in a similar situation.

I was considering buying a place in Newport until recently. We have changed our minds due to a job offer in a different part of the country. If I was still going to be working in Bristol I would probably buy in Newport. It has had a lot of regeneration money put into it recently and there is a lot of investment in the city to make it better. I think this will continue. More and more people are moving from Cardiff and Bristol as these cities are becoming more expensive, which will mean Newport becoming more attractive as a place to live.

The places that are most affected by Brexit / current market appear to be London and the South East where prices rose like crazy until recent years. Other areas haven't been hit as badly. They still seem to be steadily rising in South East Wales. It seems unlikely that you will have negative equity. Besides, your mortgage will likely be cheaper than renting. You could also take in a lodger to help in the short term.

Regarding Brexit, like others have said, current EU citizens have the right to settled status meaning you will be able to stay in the UK whether we leave the EU or not.

If it's any consolation, I have just put in an offer on a house and have the same worries! It's an uncertain time for everyone but at least buying is more secure than renting.