What would be reasonable?

SpendCurber

My thread seems to have been taken over by people just wanting to abuse each other so forget it. Thank you to everyone else for your time. x

jamtart6

how long are you planning to stay in this property?

SpendCurber

I'd definitely live in it for the next 5 yrs and would like to keep it as a rental after that. The next property (more bedrooms for a family etc) I'd plan to buy with my partner.

borntobefree

3 words - Don't do it.:o

jamtart6

2 words - do it! ...no seriously if you'd said 10 years Id say go for it, but you know you want to move on, there are going to be so many surplus flats to let in the future it may be hard to rent (and im a FTB who is umming and ahhing about buying too )..

edit: i'll appreciate my post didnt sound finished... so for hostmans benefit.. if you are planning on moving as you say, I would give it a miss.

teabelly

What would the rent be for that flat? If the rent doesn't cover the mortgage properly at around 6% (optimistic rate) at 125% rental cover then in the future you will have trouble getting all your money out when you want to use any capital gain/repayments made as a deposit. If the flat was built within the last 4 years then stay away as it will probably be over priced.

How much would a 2 bed terrace in the same area be?

PasturesNew

Where is it?
What's different about it?

hostman

Don't listen to jamtart6, from reading his or her posts (I'll assume her from the pink sig), she seems inept at making sound financial decisions.

Any reductions are only relevant when comparing them to two things:

1) The peak average price (largely accepted to be August 2007)
2) Previous sold price of the property you're buying

You can easily find out the previous sold price, various sites offer this for free:

http://www.ourproperty.co.uk

IMO, a 1 bed flat for 150k is grossly overpriced and it says everything about the market and how overvalued everything is. But of course this depends where you live, in London that's a bargain, free stab vest I hope though ...

But then again, we all need somewhere to live. Can you not rent for six months? The market is tanking and it will not return to peak levels any time soon. If you buy now, even with a perceived discount, you could end up in negative equity, it all depends on what I said above and how good the discount really is when compared against other sold prices.

SpendCurber

as above...thanks for the help though. x

hostman

SpendCurber wrote: »

The property is a little over 10 yrs old and is a converted building (I dont know whether this works for or against it but its what I like about it). Its just outside of London.

Could you tell us which town?

jamtart6

hostman wrote: »

Don't listen to jamtart6, from reading his or her posts (I'll assume her from the pink sig), she seems inept at making sound financial decisions.

Any reductions are only relevant when comparing them to two things:

1) The peak average price (largely accepted to be August 2007)
2) Previous sold price of the property you're buying

You can easily find out the previous sold price, various sites offer this for free:

http://www.ourproperty.co.uk

IMO, a 1 bed flat for 150k is grossly overpriced and it says everything about the market and how overvalued everything is. But of course this depends where you live, in London that's a bargain, free stab vest I hope though ...

But then again, we all need somewhere to live. Can you not rent for six months? The market is tanking and it will not return to peak levels any time soon. If you buy now, even with a perceived discount, you could end up in negative equity, it all depends on what I said above and how good the discount really is when compared against other sold prices.

Thank you for that wonderful judgement of my character hostman. I feel I have no option but to :rotfl::rotfl::rotfl:

I am not 'inept at making financial decisions', I am in a very similar situation to SpendCurber, and if you read the rest of my post, its as good advice as anyone else's.......lets face it, none of us have got a crystal ball!

As for your negative equity - does it matter if you arent ever going to move house?? NO! the market only matters to the price of your house if you buy and sell

..and on that note Dr Jamtart will just skulk off to the financially inept corner now!