Need to start thinking about this malarky!

southernscouser

I'm finding myself reading this board more and more (about once a month now ) as the time is getting near. I hope. I think. :undecided

Basically I hope to be debt free in July after which I'm looking at becoming a property mogul. Well getting a mortgage for a 1 bedroom flat anyway. I'm a crack ain't I? :rotfl:

So anyway, where was I? Oh yeah, so I understand it's pretty good to have a 5% deposit but I need to be realistic about what I can afford. Without dragging my sorry @rse out into the cold to see a broker, are there any rough guides about who will lend you what? I understand things are gettingggggggggggg (something just crawled in my ear) tighter, or something.

Also what are the other 'hidden' costs? Solicitors fees etc. I know most of you won't look at them as hidden but for a complete newbie to this malarky things like that are!

Any help will be geatly received. I even promise to read it.

PasturesNew

There's no rush. Poo is hitting fans all over the UK and prices in most areas have already taken a tumble.

Best opinion is: save HARD for 3 years, THEN look/buy.

The bigger the deposit you have, the better the deal (cheaper) you can obtain. So win:win.

Hidden costs will depend on where you are and how much you're likely to be spending. e.g. there are coal mining surveys required in some areas, mining surveys in others; stamp duty changes at £125k, £250k and £500k.

southernscouser

PasturesNew wrote: »

There's no rush. Poo is hitting fans all over the UK and prices in most areas have already taken a tumble.

Best opinion is: save HARD for 3 years, THEN look/buy.

I should have posted this first off! :doh:

For me there is a kind of 'rush'. I'm 27 and still at home with the folks (which has many benefits :T ) but I've come to the stage where I need my own space. I understand people will say you don't need to move out, but for me I do. I appreciate I have a roof over my head, and a cheap one at that, but it's not all about the money for me! :undecided

PasturesNew

southernscouser wrote: »

I should have posted this first off! :doh:

For me there is a kind of 'rush'. I'm 27 and still at home with the folks (which has many benefits :T ) but I've come to the stage where I need my own space. I understand people will say you don't need to move out, but for me I do. I appreciate I have a roof over my head, and a cheap one at that, but it's not all about the money for me! :undecided

Rent then.
You don't have to buy.
Renting might be cheaper (it is in most areas)
Or you can rent something a bit nicer/nearer than you'd be able to buy.

If/as prices fall you'd be trapped if you'd bought now.

kingkano

IS renting cheaper in your area? thats the first thing you should investigate. Also flats (esp 1 bed ones) arent the best purchase to be making, especially in the current climate I guess.

southernscouser

PasturesNew wrote: »

Rent then.
You don't have to buy.
Renting might be cheaper (it is in most areas)
Or you can rent something a bit nicer/nearer than you'd be able to buy.

If/as prices fall you'd be trapped if you'd bought now.

But I'm just stuck in the mindset of it being 'dead money'. :undecided

To be honest having had a bit of a look on rightmove, the prices aren't that different.

I appreciate there are costs involved with buying that you don't need to worry about with renting (trying to think what they might be :rotfl: ) but buying just seems a more sensible option if I can afford to?

southernscouser

kingkano wrote: »

IS renting cheaper in your area? thats the first thing you should investigate. Also flats (esp 1 bed ones) arent the best purchase to be making, especially in the current climate I guess.

Well I don't think it is overly cheaper (but see above) but it's difficult to gage without really knowing what I can borrow and how much it will cost. I know what you're gonna say. Drag my @rse up and go see a broker! :rotfl:

Also yeah ideally I'd like a 2 bedroom flat but beggars can't be chosers.

Lend us a tenner!

pinkshoes

You need to compare the price of a mortgage (particularly the interest) against the cost of renting.

1 bed flats aren't a good buy - very limited market as they're only suitable for singles or childless couples. Something with 2 bedrooms would be much better, and you can rent the 2nd bedroom out.

In terms of borrowing, you ought to look at about 3x your salary, and a 10% deposit is preferred to a 5% one...

I know living at home aged 27 must suck, but given that you had a £38k debt (how??!?!?!?), then i suggest you hold tight, take advantage of the fact that your parents still let you live at home, pay off the debt, save up a 10% deposit, and THEN buy.

Some areas are dropping, some are stagnant, some are still rising. Do some research and find out what your area is doing.

boinging_2

Please don't think I'm being harsh, but you asked for advice etc and to be honest you won't get better than what's already been posted.

As a rough guide you'll get 3.5 times your salary, though this assumes a good credit history and some sort of deposit.

The question I have is why when you've been in debt for so long do you want to rush into getting yourself into more debt with a mortgage, especially when the chances are prices will drop further after you've bought?

southernscouser

pinkshoes wrote: »

You need to compare the price of a mortgage (particularly the interest) against the cost of renting.

1 bed flats aren't a good buy - very limited market as they're only suitable for singles or childless couples. Something with 2 bedrooms would be much better, and you can rent the 2nd bedroom out.

In terms of borrowing, you ought to look at about 3x your salary, and a 10% deposit is preferred to a 5% one...

I know living at home aged 27 must suck, but given that you had a £38k debt (how??!?!?!?), then i suggest you hold tight, take advantage of the fact that your parents still let you live at home, pay off the debt, save up a 10% deposit, and THEN buy.

Some areas are dropping, some are stagnant, some are still rising. Do some research and find out what your area is doing.

OK 2 bed it is!

Only 3 times my salary? :eek: Bloody hell, I've got no chance. I don't think I could get a garage for that! :rotfl: Seriously, there is nothing, and I mean nothing for that sort of money around here or either further afield! I live in Greater London/Essex! :undecided

How did I get £38k of debt? It was well easy! Paying it off is much harder! :rolleyes:

southernscouser

boinging wrote: »

Please don't think I'm being harsh, but you asked for advice etc and to be honest you won't get better than what's already been posted.

As a rough guide you'll get 3.5 times your salary, though this assumes a good credit history and some sort of deposit.

The question I have is why when you've been in debt for so long do you want to rush into getting yourself into more debt with a mortgage, especially when the chances are prices will drop further after you've bought?

Don't worry you don't sound harsh at all.

Why do I want to do it all again? :think: Coz it's a blast!:rotfl:

A couple of reasons really. I want my own place. The only way I can afford it like most people is a mortgage. I don't see it as the same type of debt I'm in/was in. I wasted that £38k on crap with the exception of my car. With a mortgage, I'll have something I can call my home. Might sound corny or like a cliche but thats how it is for me.

And I'd ideally prefer to pay off my own mortgage than someone elses. Admitttedly I'd be gutted if prices dropped sharply but I'm not in this for a quick buck or investment. I'm in it to get my own roof over my head.