Would you buy this house in my position?

lookstraightahead

Trouble is Geoff, no one knows whether they're in it for the long game. I think buying that young is as huge a risk as mainstream gambling. I know it's slightly different but in 10 years three of my nieces have married, bought houses, had kids, divorced. They are all broke. I don't mean to put a dampener on this but at 22 your life is just starting.

Yes it can all work out great, but I would say mostly it doesn't (although don't have any stats)

Mutton_Geoff

lookstraightahead wrote: »

Trouble is Geoff, no one knows whether they're in it for the long game. I think buying that young is as huge a risk as mainstream gambling. I know it's slightly different but in 10 years three of my nieces have married, bought houses, had kids, divorced. They are all broke. I don't mean to put a dampener on this but at 22 your life is just starting.

Yes it can all work out great, but I would say mostly it doesn't (although don't have any stats)

Divorce and kids are very expensive (I've experience neither). The OP was only talking about house buying. I don't agree the risk is as bad as gambling because the downside has a stop, gambling doesn't.


Even if house prices fell 50% the day after purchase, the long view, just like the stock market, it that recovery will come. You can stare at a fruit machine as long as you want but it won't bounce back and give your stake (and some) back after it's just taken from you.

MaiseMeal

Hello everyone. Ive been reading every message. For people concerned about getting a mortgage, it's not a problem. I have nearly bought 3 houses ranging from 255K-450K. In all cases the mortgage broker/direct bank didnt have a problem with my earnings.

They all fell through due to various reasons on the vendors end.

I wont be having kids which is a fact. Neither will I get married.

I would like to stay in Coventry or surrounding areas. I don't see what any other city can offer me.

I'm close to a university, if I ever wanted to go back.

And if i did want to travel, well I could still do that after purchasing a house?

I don't know if this changes anything, but I've started a LTD company and all my future earnings are going there to save my self about £10k-30k a year in reduced tax. Will be paying myself dividends/minimum slalary.

With this knowledge, I will end up having a surplus of cash in my company account. I have thought about a company pension. Or I could take an active approach by private investments or property.

I understand I will need an expert financial advisor. But I still appreciate everyone's opinions.

Skiddaw1

Doesn't look very dog-friendly MaiseMeal. Would it not be better to look for a house with a garden?

Rosieandjim

A property with a garden is a must with dogs. If they are ill or have upset tums at least you can let them out quickly.
We had to bring our dog to a property without a garden and it was really hard having to go out many times a day in all weathers winter being the worst.


At least with a garden if you are ill you can let the dog out and not have to get dressed yourself and brave adverse weather when you are feeling yuk.

benbay001

What if you were to buy a 3 story townhouse, live on the top floor and rent out the other rooms?

You could even put a door on the top flight of stairs, effectively making it an annex.

You would have to share a kitchen, but it would diversify/ increase your income and the lodgers would effectively pay the mortgage.

steampowered

Personally, I would probably rent in your situation.

You are young, single and working in an industry that moves quickly. Home ownership does reduce your mobility. There is a
£ cost to that as it makes it more difficult to pursue opportunities which might require relocation.

If you did want to buy, I would buy a house that is adequate for your current needs. There is a high chance that you might want want to relocate in a few years time so there is no need to buy something bigger than you need.

MaiseMeal wrote: »

I don't know if this changes anything, but I've started a LTD company and all my future earnings are going there to save my self about £10k-30k a year in reduced tax. Will be paying myself dividends/minimum slalary.!

If your company buys the property, it will need to pay a 3% stamp duty surcharge.

If you buy the property yourself, you will need to declare a dividend equal to your deposit, which will trigger a big income tax charge.

You might be off declaring a bigger dividend for the next few tax years to use up your basic rate income tax band at the rate of 7.5%, and buying in a few years, rather than doing a £100k dividend now and paying higher rate tax at 32.5%.

Skiddaw1

One problem with renting is that the OP would need somewhere dog-friendly. It's not that easy to find a LL who accepts tenants with pets.

Mutton_Geoff

MaiseMeal wrote: »

I wont be having kids which is a fact. Neither will I get married

I'm not sure you can say this at "just" 22. On the first point, unless you are female or a male that never has sex, then you don't really have as much control over this as you may think. I have many friends who said the same but their life was changed by "accidents" or persuasive females.


On the second point, do be prepared for changing moods. Again, I'm not convinced a 22 year old could be this certain.

MaiseMeal

Mutton_Geoff wrote: »

I'm not sure you can say this at "just" 22. On the first point, unless you are female or a male that never has sex, then you don't really have as much control over this as you may think. I have many friends who said the same but their life was changed by "accidents" or persuasive females.


On the second point, do be prepared for changing moods. Again, I'm not convinced a 22 year old could be this certain.

I’m Gay :rotfl: so unless I’m adopting - no kids
I will be looking at some 3 bed detached for about 250k. At leAst a separate diner and garden for some space