Help - time to buy???

miss_kitty_5

Thanks for the advice, i'm just trying to find out in the long run what would be more beneificial for me. Grrr...why is everything so complicated..!

LilacPixie

miss_kitty wrote: »

One bedroom flat is Scotland - Yes this post is genuine. And i'm a first time buyer, so i'm unaware of the rates etc but I am aware of what I would need to pay out and this would be my priority. I'm just needing advise to whether getting on the property ladder now to buy a one bedroom flat would be the best time to due credit crunches (I have good credit ratings) or wait until I save (but 1) - woudl this be more difficult to get a flat and 2) would you need more than a 10% deposit??

Well we don't have crystal balls. You seem to think you are getting a good deal yet you don't know what rates you would be offered therefore can't know how much the flat will actually cost. A 70k 25 year repayment mortgage comes in at around £400.

You borrow a deposit so at least 4k then you have monthly commitments such as council tax (80 ish) utilities (50 ish) B&C insurance (25ish) etc. You also have to pay back your familly loan. They there is the question of what about legal fees?? who pays the solicitor?? the surveyor?? what about furniture??

In short no it is not a good idea. No one knows for sure what's gonna happen over the next 2-3 years but really at best we are looking at a slowdown or freeze in house price growth. Save save save. Flats will still be there in 2 years time and possibly for around the same price as now.

Not being nasty but i own a flat in scotland myself, bought a few years back before prices went mad but still i'm staying put until early 2009 at the very least.

IveSeenTheLight

miss_kitty wrote: »

One bedroom flat is Scotland - Yes this post is genuine. And i'm a first time buyer, so i'm unaware of the rates etc but I am aware of what I would need to pay out and this would be my priority. I'm just needing advise to whether getting on the property ladder now to buy a one bedroom flat would be the best time to due credit crunches (I have good credit ratings) or wait until I save (but 1) - woudl this be more difficult to get a flat and 2) would you need more than a 10% deposit??

Welcome to how it should be.
It was always the case in the past that you needed a deposit and you had to save before you could afford to buy.
The ease of credit meant it was easier to buy and it was not necessary to have a deposit.
Now it is back to normal in that you need to save a deposit (minimum 10% is a good start)

Go speak to an IFA (Independant Financial Adviser)
I'm sure if they are good, they will look at your income, savings etc and tell you that you cannot afford this at this time.

Remember, you have not got any real understanding of the costs of running a property (gas, electric, council tax, food etc etc etc etc etc)

miss_kitty_5

I think the interest rate is 6.8% (something like that) for 35 years, its looking to pay £400 a month. I've spoke to my Financial Advisor and he advised this would be the best option to get on the property ladder.......!?

IveSeenTheLight

miss_kitty wrote: »

I think the interest rate is 6.8% (something like that) for 35 years, its looking to pay £400 a month. I've spoke to my Financial Advisor and he advised this would be the best option to get on the property ladder.......!?

Well then you go for it........:rolleyes2
Let us know when you complete.:doh:

I am not an IFA, but I would never recommend anyone take out a mortgage over 35 years.
Do you realise how much extra interest you will be paying.:laugh:

P.S. I still think this is a spoof post

miss_kitty_5

Sorry, still not a spoof Mmm...I know, I'm only 24 at the moment, so I do have time to reduce the number of years once I'm on my feet? IF I buy this flat, I don't need any money for costs of decorating, utilities etc as it will all be provided for me. The only cost will be elec, council tax, gas, insurance etc etc.

miss_kitty_5

Plus the majority of people are saying go for it as I might not get the opportunity again. GGGRRRR

MissEyre

So have you calculated the costs of all the legal fees, electricity, council tax, gas, water, contents insurance, savings for an emergency fund, phone bills, transport, food, and worked out that you can still afford your £400 a month on top of that?

It's expensive...

miss_kitty_5

Well i've worked out I have £150 per month, until the next 10 months to pay off loan etc then it will be £400 p/m.

miss_kitty_5

But if I dont go through with it, can save £10k from now until Dec next year but I would need to apply for a mortgage (might not get it) then decorate etc.