Impulse purchase??

PandaPants_2

I've just seen a lovely flat, its been cut from £120k to £105k. Im not actively flat-hunting but this is perfect for me, great location and well decorated - ready to move right in.

I can just about afford it, BUT, i have no savings or disposable money to speak of. How do-able is it to buy a property on an extreme budget??

Debt_Free_Chick

You will find it very difficult to get a mortgage for the full price in the current climate. If you do get one, expect to pay a higher interest rate.

Presumably you currently pay rent - what is this per month and what does it include? If we know that, we can compare your current rent with the cost of a mortgage. But we'd have to assume that all your other expenses are unchanged - and there will be gaps. For example, you'll have certain maintenance costs to budget for in your own flat which, if you currently rent, are your LL's costs.

PandaPants_2

Im living with my parents at the moment, so im not paying any rent. Apart from the odd £100 here and there....

BettiePage

So you live at home rent free yet have no savings or disposable income?

I think you need to step away from the flat.

How will you afford the mortgage, rates, maintenance, insurance etc....?

PandaPants_2

BettiePage wrote: »

So you live at home rent free yet have no savings or disposable income?

I think you need to step away from the flat.

How will you afford the mortgage, rates, maintenance, insurance etc....?

I am TERRIBLE with money, if it's there i HAVE to spend it... :rotfl: I just really like this place and since it's so cheap it seems silly not to consider it.

Spamreported

you are the reason everyone is in this !!!!!!.

PandaPants_2

I mean, i do have disposable income (a decent amount) but i don't have any large sums of money readily to hand to pay fees, etc...

Sorry, didn't explain that properly. I earn about £1200 a month after tax (sometimes more, depending on shifts and over-time).

epsilondraconis

BettiePage wrote: »

So you live at home rent free yet have no savings or disposable income?

I think you need to step away from the flat.

How will you afford the mortgage, rates, maintenance, insurance etc....?

I have to say that I'm with BettiePage on this one.

You could use this situation as a positive by promising yourself that you will now focus on putting money aside each month for a deposit to go toward a flat / house at some point in the future.

It could be argued (and has been on many threads) that this isn't the right time to buy anyway and so perhaps its a blessing that you don't have the savings.

If you become more disciplined with your money as a result of this you could have some savings in future and when that happens, you may find that the house prices have dropped anyway - which will be great as you are a first time buyer.

The key is, don't think of this as a negative - otherwise you could go out on a sprending spree to cheer yourself up. Think to yourself, I could have that flat (or something similar) if I work hard enough saving money.

Good luck and stay focused!

PandaPants_2

Spamreported wrote: »

you are the reason everyone is in this !!!!!!.

Sorry? I don't understand.... :rotfl:
What !!!!!!?

KiKi

If you're taking home £1200 a month and still have no savings, despite paying almost no rent or bills, then you need to get your finances in order before you even think about purchasing a flat.

You could easily save £800 a month. That would be £9600 in a year for a deposit.

Learn to manage your money, don't buy a flat on impulse. It's not just the mortgage, it's the bills, the upkeep, the process of purchasing - what happens if damp shows up on the survey? What if there are major works planned? How much is the service charge and maintenance, and what if the lease is too short?? What if you realise you hate it, sell it a year later for less and end up in negative equity? You need to realise how big a commitment this is!!

If you need to make an impulse buy, go purchase a pair of shoes or a Wii.

KiKi

meanmachine_2

I believe Abbey are doing a rather competitive 100% mortgage at, ooh, just over 8%.

:rolleyes:

House prices are flat or falling. Take this rare opportunity to SAVE a deposit.

I'm afraid you need to develop a more, ahem, grown up attitude to money.