First time buyer - alone, confused, overwhelmed

misskismet

Hi everyone. I've been renting for 20 years and am so ready to have my own place. Currently a lodger on a rolling contract. Sale of my late father's property is going through and should be done some time earlyish next year. I'm also due to start a new job for a 7 month contract in the new year. Planning to use the money from my father's property to buy a place in cash in full, as I doubt I will be able to get a mortgage due to my employment status.

I just don't know where to begin. I even find searching on Right Move overwhelming. 

I've not been living in the UK for 12 years and only moved back in the summer. I don't know the city where I'm living, apart from the area I am in now. I ended up in this city randomly, as I came to work here in the summer, and honestly just didn't have anywhere to move on to after that contract ended. After the new job ends in July, I have no idea what I will do next. I don't know whether to buy a flat or a house, or how to even begin. How do house viewings work? I don't drive, so am guessing I just have to get to the properties on my own? Is it too early for me to look now - should I wait until the sale has gone through as a cash buyer? I don't even know what my budget is (I know how much I have in savings, and an approximate amount I am likely to get once the sale goes through). Is it sensible to use all my money? (I'm guessing not). How much does it cost to buy a home? What do I need to budget for that I don't know about?

I think what makes this harder is that the person I would go to for advice is my father, who isn't here anymore. I have nobody to ask and will be doing all of this completely alone. I would really appreciate some straight talking advice. 

Mnoee

I had a whole big reply that the forum ate! Ah well.

Start here for the money side: https://www.moneysavingexpert.com/first-time-mortgage/
Lots to read, not all will be relevant, but the pdf as a minimum should answer a lot.

Don't feel pressurised to buy something RIGHT NOW. If you could afford to rent before your inheritance, you can afford to after. Think carefully about the area and type of property you're going to want to live in for the next 5ish years as a minimum. I bought my first house intending to stay here forever! How much you'll want to save depends on how much work the property will need. No point going all out for a huge property that needs a rewire and a new kitchen with no funds to do that. Assuming you can cover your basic living costs. 

A lot of estate agents aren't doing viewings right now for people who aren't proceedable (have a mortgage in principle or cash) because of covid. You usually meet at the property, often the owner shows you round. 

xylophone

Take a deep breath - there is no hurry.

Wait for the sale of your inherited property to complete. The money may be safely held in your account as a temporary high balance while you consider your options.

https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

Presumably your  rented property is convenient for your place of work - better to stay there while you see how the new job goes and while the Covid situation starts to settle?

During the winter evenings, you can think about the type of property you want.

You have lived in both a house and a flat - which do you prefer?


https://www.gov.uk/government/publications/how-to-buy-a-home/how-to-buy

And don't spend all your money on the property!  You need an emergency fund for your personal needs and for house maintenance.

misskismet

Thanks Mnoee. Yes I do feel a certain sense of pressure. Am considering finding a 6 month rent contract just so I can have my own space. It's quite hard to be a lodger after so many years of living alone. But maybe that will get better in the new year when I'll be out at work every day. 

I can't really imagine the next 5 years, but I can think of some features of a home I would like (small garden, attic, a spare room)

That's good to know about estate agents. It sounds like I shouldn't book any viewings just yet. 

FlashBuy

Flats have lease, with short lease it will be difficult to sell. Then, possibly maintenance charges. If it's a new build, and a defect is found that neither architect not builder agrees to pay for, it will come out of your pocket. But this happens very rare. If it was me, I would go for a house. If I was going for apartment, then I would be looking around city centre or in a very convenient place. 
But as others said, better take time to rest and think, and rent for now.
When you are ready to buy, mortgage brokers will help with mortgage, good solicitor will help with purchase. Estate agents, well, they are sales people, just like job recruiters.

Angela_D_3

I always believe if you can afford a house but one over a flat but you need  to set aside £500 a year for external maintenance 

pinkteapot

misskismet said:

Thanks Mnoee. Yes I do feel a certain sense of pressure. Am considering finding a 6 month rent contract just so I can have my own space. 

This is exactly what I was going to suggest after reading your first post. 

You don't know where you'll be working in 8 months' time. That's not the time to buy a house as it commits you to a particular area for work. It's clear you're not happy being a lodger. Rent by yourself - ideally somewhere both convenient for your next job and somewhere you think you may like to live. Use that time to explore the area, work out if it's right for you, explore other areas nearby, etc. Searching Rightmove is daunting if you don't know where you want to live. You need a definite search area, and until you've got a clearer idea of where you'll be working longer term that's hard. Once you've got a search area you set yourself a budget, look at the houses you can afford, and pick the best one. 

Some people don't like the idea of renting because it's 'dead money', but it's absolutely worth it if it stops you buying the wrong house, as the costs of buying and selling are huge. 

AdrianC

Another vote here for "Don't buy yet". Sure, rent your own place. But buying closes your options RIGHT down.

Do you want to be tied to THAT city?
Do you want to be tied to ANY city?
Do you even want to be in a city at all?

You have enough equity to buy a house in - I'm going to guess - a reasonable swathe of the country outright. That means you won't have the major expense that a large proportion of most people's income goes on. You can scale work back if you wish, work on things you enjoy - or work part of the year and travel - or...

But if you buy a place in the city you're in accidentally, just because you think you somehow ought to...

Racky_Roo

If you decide you do like the location you're in and want to buy , then I would suggest downloading a street map of your preferred locations and highlight areas you like and cross off ones you don't. Then when on Right Move, use the map and it'll show you what's available in the chosen areas. This now might also be a good time to learn to drive if you think that's something you'd like to do too

Slinky

Racky_Roo said:

If you decide you do like the location you're in and want to buy , then I would suggest downloading a street map of your preferred locations and highlight areas you like and cross off ones you don't. Then when on Right Move, use the map and it'll show you what's available in the chosen areas. This now might also be a good time to learn to drive if you think that's something you'd like to do too

Agree with this, particularly the learning to drive. Being able to drive also opens up a world of job opportunities that pass you by if you are reliant on pubic transport.

misskismet

Yes. I never got round to taking my test when I was a youngster, although I was almost ready. I'm not keen on the idea of driving lessons during covid but perhaps next year. 

I don't have any special reason to be in this city but then I don't have any special reason to be in any other now either. 

The money would allow me to buy a decent enough place in the north. 

Thank you so much for the replies so far, very sensible, good advice giving me plenty to consider.