First time buyer, what house prices should I really be looking at?

Corbula

I'm a first time buyer, not particularly in a rush, maybe in the next 12-24 months but I do keep looking to get ideas on properties.

One thing I'm not sure about though is how much in house prices I should be looking at. I'm on a salary of £24840 so is it simply a case of what an online calculator will tell me plus whatever I can gather for a deposit, ie not very much or is there more to it with being a first time buyer. I have a HTB ISA and and I'm on my own.

I tried calling nationwide last year to speak with someone to give me an idea but they just said use the online calculator. They would only really see me when I'm trying to get a mortgage in principle.

I have no debts, just a loan but that will be paid off in January. Excellent credit score and so far deposit savings of £14000 but could add another £10k with other savings I have.

So what house prices should I be looking at with the incentives around for first time buyers?

Socajam

I would look at houses, to give me an idea of what is out there and what I like and don't like.
Between the next 12-24 months whilst looking, I would throw every money I have towards my deposit, in order to have a bigger deposit.
Use the online calculator to ascertain what mortgage you could get now; what mortgage you would get if you saved X more money and Y more money.
When the loan is paid off, save that money as either an emergency fund or life happens fund and stay away from running up credit cards whilst you are saving all you can.

Corbula

So based on that, realistically I'm look at around £124k-£134k? That's what I thought, not great really with house prices today. I know you can get a help to buy equity loan but they are only on new houses which are generally £200k and up so as far as I'm aware makes that unrealistic for me as well.

chunkytfg

Biggest factor will be where do you live? 125k in the north of England will buy half a Street but in London you'll be lucky to get a single garage!

https://www.rightmove.co.uk

Decide where you want to live, set a realistic budget and then see what's available.

If you want something bigger than available either look to earn more or lower your expectations.

Use the next 12-24 months to save save save and constantly watch right move once you've decided on an area. it'll give you an idea as to what you will be likely to get once you do decided to take the plunge.

Corbula

Thanks, sorry I didn't mention the area did I. Its in the northwest, Cheshire area. I work for a family business which eventually I will get higher up in so I'm not planning on or seeking to change jobs anytime soon.

I do look on right move to see what's about close to whee I am but never really know how much I should be looking at. What's actually affordable. I just wanted to make sure I wasn't missing anything or £125k is my actual budget, I'm which case I'm going to be staying put for quite a while yet. It's not so much the size of houses it's where those £125k houses are that isn't appealing.

DCFC79

Decide on what area you want to live in, maybe list 3 so most desireable then the next 1 then the next 1. Your deposit can be as high as you want it to be.

Other things to think about
Do you want a large garden ?
Do you want a drive to park a car ?
How many bedrooms do you want ?

bhughes1986

Do you absolutely have to have your own house right now?

I'd look to invest it, either in property with view to renting, or in myself through some sort of training.

Corbula

DCFC79 wrote: »

Decide on what area you want to live in, maybe list 3 so most desireable then the next 1 then the next 1. Your deposit can be as high as you want it to be.

Other things to think about
Do you want a large garden ?
Do you want a drive to park a car ?
How many bedrooms do you want ?

As for area I'm only really looking at the moment my home town, it's the only place I've ever lived so don't know much about other areas to live in. I'm open about the idea though.
I'm not fussed about a large garden but do want a drive, I'm on my own so two or three beds would do.

I saw a house earlier for £135k which was nice inside but the area, I would let a cat roam around. I saw another for £125k which looked OK but it was in a very small and tight culde sac. So you would park on the front door and always be fighting for space with everyone else they've squeezed into the corner haha.

Corbula

bhughes1986 wrote: »

Do you absolutely have to have your own house right now?

I'd look to invest it, either in property with view to renting, or in myself through some sort of training.

No I don't absolutely need it right now, but would like it in the next 24 months (I'm already 29). I'm saving everything I can in that time. So you would look at getting somewhere to rent out? What do you mean about investing in some sort of training?

Cakeguts

You are always going to be thinking if only you had ex much money more you could by a better house but if you did have that much more you would be still thinking the same. So forget about the ones that you would like but can't afford and concentrate on what you can afford.



Don't worry about what they are like inside. You can change everything between the brick of the walls.



Do you really "need" 2 or 3 beds or do you just want them. If there was ample onstreet parking do you need a drive? You can't live in a drive.



If you drive to work you don't need to be in your home town?


No house is going to be perfect. You are going to have to compromise. What you need to do is to think about what you would be prepared to not have to get a house in your budget.

scholesfan88

Cheshire's a big area, what town are you looking at?

Study the market, you'll find that either something comes up that meets your criteria or you need to compromise.