First time buyer, just need advice quick question

ste2121

I am aware that house price are going to fall but im not sure how much. I'm 20 yrs old and really want to move out of home. I'm not going to go and buy anything if i know house prices are dropping rapidly though. I live in the Norht East of England and wondering how affected this area is in compariosn to others and how long would it be do you think before the market will rise or steady itself again? I'm happy enough to wait if it means saving alot of money but i really want my own flat. Any advice would be great thx

Doozergirl

No one knows is the answer. The market is moving here - I saved nineteen houses on my rightmove at the beginning of January and 6 are already under offer

Why don't you save some properties that you like the look of on rightmove and watch to see what happens to them over the next few months?

subjecttocontract

I am aware that house price are going to fall but im not sure how much.

Oh. Right. Its official then.........I didn't think anyone could see into the future ? How do you know for sure ?

But......haven't they been saying that for the last 6 years......maybe they won't fall.......maybe they just won't rise so quickly ?

beingjdc

subjecttocontract wrote: »

I am aware that house price are going to fall but im not sure how much.

Oh. Right. Its official then.........I didn't think anyone could see into the future ? How do you know for sure ?

But......haven't they been saying that for the last 6 years......maybe they won't fall.......maybe they just won't rise so quickly ?

Well, we can either keep arguing here, or we can look at what the derivatives market on the Halifax House Price Index is saying, as that's people putting their money where their mouth is.

The average UK house price is currently around £190k. The spreads for the index are currently at

December '08: 178 to 182
December '09: 160 to 174
December '10: 168 to 170

OP - 20 years old is a great time to rent a room in a houseshare somewhere, make some new friends, learn some life lessons, get some experience in being responsible for a house without the financial commitment and risk of a mortgage... might that be a compromise in your situation?

ste2121

possibly, but i have a £13,000 loan so i dont want to be wasting money on rent. Despite the fact i live at home and really want to move out i'd rather save £300, 400 every month. I don't get paid enough to rent and pay off my loan. Least my money would be goin sumwhere if i were to save up pay off my loan then buy somthing when or if house prices drop in a year or two.

Some of you dont think house prices will drop then? If that's the case i'd be out of here in a shot but the fact that i've got a £13,000 loan sux.

I don't know what to do, that's why i'm here. Yes id prefer to rent but i cant afford it. At the same time i don't want to lose money renting if my money would be goin further for a little extra on a mortgage

I guess i should pay off my loan first which means a !!!! load of overtime, yay!

firesidemaid

i don't mean to assume anything, but if you are living at home and can't afford to pay your loan off quickly, are you sure you would be able to pay a mortgage plus all the bills?

for a 100k mortgage you would need approx £550-£600 a month for mortgage plus £200 for bills plus food and transport.

throw as much a month at the loan as you would need to pay out each month if you bought a house - that way you will see if you can afford it? x

btw, after looking at your other posts are you 19 or 20?

ste2121

ill change the question... i have a £13,000 loan, i earn £14,000 a year and enjoy my job n i live in north east. I want more money and would move if it meant getting a job that pays more. I really want to move out of home but at the moment i 'could' afford rent but then id have no money. If i'm going to have no money then id rather have somthing to show for it like a flat / mortgage. (Does that sound stupid cos i'm an idiot). What would you do?

Would the sensible thing be to save n see wot happens if prices drop. Then i can pay of my loan too? I just want to move out though i dont want to save

ste2121

sazza im 20 i could afford it but it would mean doin overtime too n then am thinkin its not a good idea if house prices drop. i dont know just want someone to think for me lol. i dont know enough about it to make any sort of decision.

The only thing thats got me goin is that i want to move out of home

PasturesNew

So much is so wrong with your posts ste2121. I will try to go through some bits.

1] You are 20. You need to enjoy yourself, not worry about buying houses
2] You have a loan. It is never good advice to take on a mortgage when you have outstanding loans
3] If you can't afford to pay rent + loan, a mortgage will most likely be higher - and you have all the up front costs of buying a house (solicitors, 10% deposit, searches, survey, mortgage application fee) - £000s. Then you will want to paint it, buy stuff to go in it.
4] Bills on a whole house of your own are large. Say £200/month if you're watching what you're using/spending

I really don't think you are financially placed to be able to raise a mortgage. I also don't think you'd be able to keep up the payments.

20 is no age at all to buy a house. Spend your money on paying off your loan and dating h0rny women. Look again when you are about 26, possibly having met Miss Right.

mandalay_2

My advice would be to:

Get your loan paid off as quickly as possible as it will always be deducted from the amount you are able to borrow on a mortgage. I would do this before you think about a mortgage so your disposable income is at its maximum.

How much are you wanting to spend on a house ? You say you are on £14k and are prepared to move for a better job (if I read that right) but you need to work out what you want to spend and more importantly, what salary you need to secure to achieve the mortgage amount you want. Other things you need to think about are changes in cost of living if you do move somewhere for a better salary as usually the better salaries are in these high cost of living places.

What do you do for a living, could you make any more money or take a 2nd job to increase your income ? Can you do overtime or get bonuses ?

Based on your salary now, less your loan deduction, most lenders would probably look at max of around £60k and I'm not sure you could get a house anywhere for that without a hefty deposit ?

Do you have a deposit ? If not, you will straight away only have the more 'expensive' products to choose from on a 100% mortgage

Trollfever

My understanding is that unemployment will be increasing in Newcastle as there has been a Northern Wreck.