a 1st time buyers complicated dilemma

RichardDJ

OK folks here goes, I've recently taken a new job in the east midlands area which included a relocation package of 4K. This relocation scheme is for going from rented to owned. In order to get any of it i must 'complete' my house purchase within 12 months of starting the new job = March 2009.

I have an option to take a rented to rented scheme which is only 1.5K, but i'll get it now and i can bank it.

I earn approx 40k a year, i'm debt free but don't have a great credit record at the moment (this will improve dramatically in the next year as a default goes away) and mine would be the only salary against which to mortgage. By the end of the year i anticipate having 7k of savings which will be topped up by a family relative with a loan of 4k.

I'm concious of turning 31 this year and not being on the housing ladder, advice is wanted on whether i should pursue the house purchase early next year and accept the potential slide of 10-20% on prices or to sit back and wait , take the 1.5K, and see what happens with a view to purchasing back end of next year. I really have no idea what to do! Any comments or advice gratefully received..

Thanks

R

PasturesNew

If I were you I'd take the £1.5k
Any house, especially in the Midlands, is likely to drop more than the £4k relocation package.

Take the £1.5k and rent for the foreseeable 2-4 years. Acquaint yourself with the area, go to your new job without the extra stress buying a house would bring. Just move to the area, rent and enjoy your new job.

You'll save a lot more in the medium term by "losing" what is cash on paper only.

The housing ladder has had a leg fall off it. So you won't miss anything by waiting. You will gain.

You're also freeing yourself up if you decide you don't like the new job, or they decide they don't like you. Or if they decide to close that office/the company.

Stay liquid and mobile.

SquatNow

Take the 1.5k. The housing Pyramid is collapsing.

PasturesNew wrote: »

The housing ladder has had a leg fall off it. So you won't miss anything by waiting. You will gain.

Please don't call it the ladder. It's a pyramid. It's just like every other pyramid scheme. The more people call it a ladder, the more people think it's something they can "move up". Well you CAN'T "move up", you can only get more people to join below you.

Even the bank have now admitted prices are dropping. If prices drop 10% this year (Have dropped 6% since august 2007) then that's 20k off the average hosue price. 4k would be about 2-3months price falls.

4k < 20k... thus take the 1.5k.

In a few years prices will have dropped substantially and you will be in a far better position to buy.

Basically: Buy now, be in negative equity tommorrow.

RichardDJ

The new job is actually a transfer, very happy with the new job and i know they're very happy with me.

I think taking the 1.5k is the right thing to do, just needed some impartial advice

Thanks folks