Buying a flat, is it stupid?

PasturesNew

bobby-boy wrote: »

"If you work from home running your own business then you would be in breach of your rental agreement and liable to eviction for this. just something to consider.

This is one of those blanket clauses that can also apply to buying your own place.

It all depends what the business is.

If you wanted to run a taxi firm and had drivers coming/going all night, that's one thing, but there are plenty of businesses run from home that don't involve visitors coming/going at times/volumes that would upset any neighbours (e.g. web design, accountant) so it's not a clause to worry about.

I work from home. I work online and I do digital transcription. My LL doesn't know and doesn't need to know. I never ever have any visitors here whatsoever. My working from home does not affect anything materially or environmentally to the building or area.

bobby-boy_2

"So it's not a clause to worry about.

I work from home. I work online and I do digital transcription. My LL doesn't know and doesn't need to know. I never ever have any visitors here whatsoever. My working from home does not affect anything materially or environmentally to the building or area."

How can any one say its it's not a clause to worry about???? Breach of contract is breach of contract expect your eviction notice in the post!

Just because your landlord does not Know about your business does not make it right. Tenants are always demanding their right yet are willing to break the conditions of their lease at will. So much for balanced Legal view points.

alanobrien

flatmate wrote: »

Hi

I'm in the middle of buying my first flat which is a one bedroom GFF with garden and parking in Southend. I managed to get 5k off the asking price so 120k and had a 10% deposit saved up got a half decent job in the city so not in a bad position.

However all I keep seeing on the news is house price crises and friend telling me they are holding off buying until prices bottom out (god knows how they think they will predict when it will or has bottomed). SO am I making a bit of a mistake?

People have also told me that they think I should have tried getting more off the asking price (although I did try 118 which was rejected) or I should try getting somewhere bigger with more bedrooms etc.

I'm not getting cold feet just wondering if I'm making a potential boo boo, I can't really pull out in any case at home there are 5 of us in a two bed house so I need to get out lol.

Go with your instinct, no one can tell you for sure where the market is going.
The doom mongers and those that want to keep talking prices up all have their own perspective. At the end of the day you have to live with the decision so whatever you decide to do, don't regret it afterwards

The_Prince_3

Toots wrote: »

I'm surprised the OP is being advised to rent as I've read several times about upward pressure on rents and that significant increases in rents are to be expected if people pick that over purchasing.

Just supply and demand I guess. If you can't afford the deposit to buy then I think renting has to be the option.

I think that the media stir up the markets by reducing confidence and it isn't necessarily that house prices will fall significantly in value. Houses around my way are still selling quickly and I haven't noticed that they ar getting less for them either. Maybe the areas that had the biggest increases to very unrealistic levels such as the South East are those that are falling quickly?

The price of rented accommodation in the UK property market has experienced a sharp downward correction of 9%.

http://www.aboutproperty.co.uk/news/property-investment/tenants/arla-average-rent-down-9--$1226103.htm

beingjdc

Toots wrote: »

I'm surprised the OP is being advised to rent as I've read several times about upward pressure on rents and that significant increases in rents are to be expected if people pick that over purchasing.

Others have pointed out the ARLA figures showing rents down 9%, but in addition if you rent for £500 a month and rent goes up even 20%, you're losing £100 a month.

If you buy for £120,000 and prices fall by 1% a month, you're losing £1,200 a month.

only_one

flatmate wrote: »

Cheers for all the opinions and advice so far.

I looked at rentals before I put the offer in and they have gone sky high in the area, not just because of the current climate but also a new uni in the town. The flat above the one I'm in the process of buying is currently up for rent (and they wont negotiate) but has no garden or off street parking and is up for £20 less than what its going to cost me a month in repayments.....

I think I need to sit down and look at the economics of it all and see what position I'd be left in if I was to live there 5 years and prices drop 10, 20, 30% and compare it to renting etc. Why can't everything be easy lol

Very sensible. As long as you do your research thoroughly, do lots of sums, work out various different scenarios - both personal and financial you'll be ok.

By the way, I'm a 'doom-monger' because I think prices are falling. Well, actually they are. I'm a doom-monger because I think it makes sense and is only fair that young families on average wages can afford to buy an average house in an average area without having to borrow huge sums of money they will struggle to ever repay in order for somebody further up the chain to sell-up and take the profits. Somebody has to pay for those profits -the money doesn't grow on trees. And it's first-time buyers who do the paying. Think about it.

1 bed flats are at the very bottom of the housing pyramid. The people who buy these are paying for retirees selling up for the last time and taking the profits.

7 years ago (and I'm talking about the North here so this won't relate exactly) you could buy a 3-bed semi on a very good street in a very good area for £60k. These same houses are now on the market for £250k.

And people really think that prices will not fall.

Regardless of whether interest rates are 25% or 0%. Who is in the market for a 3-bed semi who can afford the CAPITAL COST of £250k.

I wish you well, but please think hard about it and do your research.

Good luck.

pinkshoes

Could you not stretch to a 2 bed flat, and put in a cheeky offer say 20% below the asking price?

At least that way, if prices drop and you end up in negative equity and can't sell, then a 2 bed flat is big enough to start a family in, so you won't feel like you HAVE to move.

I don't really understand why anyone would buy a 1 bed flat other than to let it out, as it's for such a limited market.

If you can't afford a 2 bed, rent for 6 months, save some more money.

fc123

bobby-boy wrote: »

"This one is 1 up 1 down (Victorian) and has really big rooms (which I need for working from home), 70ft garden, off street parking and walking distance to train station"

Hi flatmate I picked this sentence out because it changes your decision a little in my mind. Renting is fineBUT I am pretty sure most rental agrements prevent you from running a business from them. If you work from home running your own business then you would be in breach of your rental agreement and liable to eviction for this. just something to consider.

Oh perleeze.....those rules are out the ark....but though still vaLid today as rules .......Many work from home...errr...they have a PC on a small desk. Work from home 2 decades back meant 'No scrap iron yard to be run from domestic premises' or 'No blacksmiths furnace to be built in the garage/shed + constant stream of horses queueing to be re-shod along St.'.

And my eyes must be wearing out, I swear I read Scotland in last nights post............so don't worry about iveseenthelight.

bluejake

Some people will not listen, they need to feel the pain of their mistakes to learn and I think the o/p is probably one of them. He has made up his mind and his money is burning a hole in his pocket.

A one bedroom flat.. you think he would have least negotiated a decent discount but 5k..they said no to £118...Oh my it will probably drop 5k in value in the next two months, nevermind what will happen in the next couple of years.

fc123

bluejake wrote: »

Some people will not listen, they need to feel the pain of their mistakes to learn and I think the o/p is probably one of them. He has made up his mind and his money is burning a hole in his pocket.

A one bedroom flat.. you think he would have least negotiated a decent discount but 5k..they said no to £118...Oh my it will probably drop 5k in value in the next two months, nevermind what will happen in the next couple of years.

The OP didn't read that way to me...wants to leave overcrowded family home, has deposit and salary to buy own place....sounds like a normal bloke / girl 20 something.
God for them they posted on here just to check first....