Potential FTB seriously confused. HELP!

weekend_warrior_2

Cheers ruggedtoast. As I'd mentioned before hand, the idea was still in it's early stages and I can see the difficulties you have mentioned. My intention had never been to make anything like a 30% profit, but rather for my monthly payments to actually mean something and for the house to be mine (even if it's only fifty percent) At the minute, I just feel I'm paying 'dead money' in rent as my dad keeps saying and I feel I'm not getting anywhere. I'm not sure if this would work, but could we draw up some legally binding contract stipulating that if one wants to buy out the other, we would get maybe three valuations and the amount we'd pay would be the average of those three? As for other agreements we'd have to make, what would they be?

Vaux-Hall

lypsey wrote: »

Take a look at housepricecrash.co.uk , on the forums ,I think you will definetly rent for the time being.

A site whose name was registered in 2003, since when property prices have risen 40%. So even if property prices fall 20% now, they were still wrong. Although I'm sure they'll tell us otherwise .

dannyboycey

weekend_warrior wrote: »

I just feel I'm paying 'dead money' in rent

...and vast amounts of money spent on mortgage interest is not 'dead money'?

You get a mortgage and kid yourself that you own a house, but you wont.... the mortgage lender will.

Phirefly

weekend_warrior wrote: »

At the minute, I just feel I'm paying 'dead money' in rent as my dad keeps saying and I feel I'm not getting anywhere

As much as I'm loathe to reel out another one-size-fits-all response, you've GOT to get your head around the fact that to all intents and purposes, an interest only mortgage really is NO different to renting, its just dead money going elsewhere.

That said, I do understand that there are other motivations for wanting to buy a house other than financial ones.

dannyboycey

Vaux-Hall wrote: »

A site whose name was registered in 2003, since when property prices have risen 40%. So even if property prices fall 20% now, they were still wrong. Although I'm sure they'll tell us otherwise .

And the point to this reply is............

Vaux-Hall

dannyboycey wrote: »

And the point to this reply is............

Go somewhere more informed for advice.

weekend_warrior_2

Sorry, I forgot to address this earlier!

I have no intention on getting an interest only mortgage, the previously stated quote was for a capital and interest mortgage from Ulster Bank Professional (or something?) and was a tracker!

dannyboycey

Vaux-Hall wrote: »

Go somewhere more informed for advice.

There are many on that particular forum who would wipe the floor with so called 'economic experts'. So much so that economic journalists are often seen printing comments that match posters responses on that forum a little 'too' closely to be a coincidence.

So where are you suggesting we go for this informed advice?

ruggedtoast

weekend_warrior wrote: »

Cheers ruggedtoast. As I'd mentioned before hand, the idea was still in it's early stages and I can see the difficulties you have mentioned. My intention had never been to make anything like a 30% profit, but rather for my monthly payments to actually mean something and for the house to be mine (even if it's only fifty percent) At the minute, I just feel I'm paying 'dead money' in rent as my dad keeps saying and I feel I'm not getting anywhere. I'm not sure if this would work, but could we draw up some legally binding contract stipulating that if one wants to buy out the other, we would get maybe three valuations and the amount we'd pay would be the average of those three? As for other agreements we'd have to make, what would they be?

Renting isnt dead money, you're paying for a service. In your case youre much better off renting cheap, saving a deposit and then buying on your own a few years down the line (possibly at prices less than todays), than taking on a mortgage so large that you cant afford it unless you split it with a friend.

Friends make notoriously bad business partners and if the investment youre talking ahout happens to be the place you live then it can only be bad news in my opinion.

Gillibobs

ruggedtoast wrote: »

Buying property with a friend is a horrible idea. I know a girl that did it and it was fine for a while until her friend got engaged and informed her that she was going to buy her out and her fiancee was moving in.

They had a number of different valuations, unsurprisingly her friend wanted to pay the lowest one. None of this took into any account the material investment she'd made in the place either.

From a personal point of view, I've always found the idea of buying with a friend horrendous, as like the scenario above it's likely that not too far down the line said friends are likely to want to settle down and make a home with a partner and usually it doesn't happen for both parties at the same time leaving a lot of confusion and probably resentment on one or both sides. I guess I'm lucky that I've never had to see this as the only option of getting on the ladder but personally if I couldn't afford a house on my own (which I can't and I guess neither can most people) I would definitely wait until I was with a committed partner before doing so.