Shall I move out?

HeMan_3

Some advice please;


I have been working for over 2 years and earn about £29,500 a year (increasing by about £1000 a year). It works out after everything that I bring home about £1,600 a month after all deductions (tax, NI, pension, STUDENT LOAN etc)

My girlfriend earns about £900 a month however she is planning to jack it in to become a runner (not the sports kind, but instead, the media kind) so I can not rely on her income.

I have saved about £20,000 and my brother owes me 8K of which he is paying back 2K a month.

I save about £1,300 a month as I live my parents however feel it MAY be the right time to move out.

Currently I live and work in NEWHAM however am fed up of see crime so in my face. I still want to buy a place in London that will allow me to commute to Newham and thus am looking at about £170,000 for what I want (3 bed house).

I am however unsure weather the time is right to buy a property as I fear property prices may fall by as much as 10K by this time next year.

My questions are;

A) Should I buy a cheaper property say £90K flat and pay it off quickly before getting a bigger mortgage or should I just jump in?

b) Should I wait for a year?

c) Are there any other areas worth considering which would match my needs?

d) what size mortgage would you take out with my income?

e) finally, would you recommend anywhere to get a mortgage as my local broker wants 1% commission on a rubbish rate.

Any help would be appreciated, Thanks.

chugalug

Why would you be worried if house prices drop? Surely if you're going to stay in the property long term (and why not if it's 3 beds) they price you paid shouldnt matter. The question you should be asking yourself is would you be able to afford the mortgage on such a property when interest rates rise.

deemy2004

Stay put where you are - You are on a nice little earner saving 1300 a month !

Once you get your own flat and have to pay all the bills, you will wish you were back at your parents

Yeh so stayed put for at least a year and preferbly 10...

nelly_2

chugalug wrote:

Why would you be worried if house prices drop? Surely if you're going to stay in the property long term (and why not if it's 3 beds) they price you paid shouldnt matter. The question you should be asking yourself is would you be able to afford the mortgage on such a property when interest rates rise.

Cos if it does drop 10% thats £17000 wasted just for the sake of waiting a year.
Add to that the £1300 a month hes saving up thats £15600.
Add to that the 20 grand he has in the bank,
thats over £50 000,
thats nearly a third of the 170 000 price of the house allready paid. :j

I know what I'd do mate.

mrcow

If you are in no rush to move out and are reasonably happy at your parents, then I would say give it some more time (maybe a year if you can stick it out), that way:

1. You'll have more idea of what is happening with property prices in your desired areas (keep your eyes on what's happening with the local property market).
2. Your girlfriend may have settled with her new position and you'll be able to make a decision as to whether you'd be looking at a joint property.
3. You'll save shed loads more money for a much larger deposit, plus you'll have the rest of the money from your brother.
4. Personally I wouldn't invest in a flat if I could avoid it, especially short term.

HeMan_3

Thanks, I am going to wait for a year (maybe 10;-))

gallygirl

HeMan wrote:

Some advice please;



I have saved about £20,000 and my brother owes me 8K of which he is paying back 2K a month.

Gulp........ don't suppose he's single is he.......