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First time buyer looking for some advice
Emilyrosedowning
Posts: 3 Newbie
rightmove:o.co.uk/property-for-sale/property-81868631.html I am really interested in the above property I have been to view it and it seems perfect for a first house. I’m planning on staying there for around two years and moving to somewhere bigger. I’m a bit worried about the price of the house lowering and ending up in negative equity and being stuck there but I don’t really know how any of this works. A house a few doors down sold in 2017 for £50,000 I’m not sure why the estate agent said it may have needed complete renovation or have been auctioned any advice would be greatly appreciated 
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It won’t let me share the link but this is 57 Moor Street in burton on Trent you can find it on rightmove the house is for sale for £89,0000
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Come on people, it's not difficult: lose means to be unable to find, loose means not being fixed in place. So if you have a hole in your pocket you might lose your loose change.0
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Thank you
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You probably want to be comparing the one you are interested in (57) with No. 65. For some reason Rightmove does not seem to know that it sold in March 2018 for £69,000. Zoopla has the figures plus an archived listing here: https://www.zoopla.co.uk/property/65-moor-street/burton-on-trent/de14-3sz/6461173
It is worth noting that 65 is a repossession and also sold in Nov 2007 for £88,000 which is in the same ballpark as 57 which sold for £80,000 in Sep 2006. All things being equal (which they never are with a repo) you would expect their values today to be similar especially as the market in Burton-on-Trent seems to have been virtually static for the last 12 months. 57 looks in better order than 65 does in its listing but only you can really say whether it looks £20,950 better to you or not.
One thing you have to always keep in mind is that the Estate Agent is not your friend. (Unless you know him socially. that is.) He works for the vendor and the more he can get for the house the more he gets paid. It appears to be a new listing so if he can get a sale quickly that is all the better as he can get paid without having to do much work. If he so wished he could easily find out why the other one sold at £50k but it really isn't in his best interests to do so, so I'd take his advice regarding the valuation of that property with a pinch of salt.
As far as negative equity goes: no one can foretell the future. There are some here who will tell you that the market is about to crash but have been saying that for years in the hope that eventually they will be right. Others will tell you that the market will keep on soaring forever. The truth is probably somewhere in the middle. Brexit is certainly causing some problems, but the bottom line in my opinion is that you should buy a house primarily as a place to live and not as an investment. Only spend what you can really afford, don't rely on making a profit at sale time and make sure that if prices do drop slightly in the short term you are not caught out.
SPCome on people, it's not difficult: lose means to be unable to find, loose means not being fixed in place. So if you have a hole in your pocket you might lose your loose change.0 -
I haven't time to look at comparable 2 bedders, but you have!
This one's on a remnant outlier of an old street in what's now a predominantly commercial area, so it's not typical of the type. Yes it's a 'cottage,' which means no cavity walls, slightly higher heating bills and possible problems with damp/condensation, compared with a more modern build. I don't think it has any cottage charm, but there's a good north facing garden, better than you'd get on most modern property at the price.
So, how does it compare with other 2 bedders in more conventional locations? It should be cheaper.0 -
Just a comment about your wider plan - 2 years isn't very long to live in a house and absorb 2 lots of buying/selling costs. The short term property market is quite unpredicatable too.
Are you sure that saving a bit longer and getting the bigger house is not an option? This is quite a cheap property area so presumably the next property up is not a huge leap in terms of extra deposit compared to other areas.
Just something to think about.0 -
Just a comment about your wider plan - 2 years isn't very long to live in a house and absorb 2 lots of buying/selling costs. The short term property market is quite unpredicatable too.
Are you sure that saving a bit longer and getting the bigger house is not an option? This is quite a cheap property area so presumably the next property up is not a huge leap in terms of extra deposit compared to other areas.
Just something to think about.
I would echo this. It's v hard to predict how much property will be worth in two years, and if it will outweigh EA fees, Removal fees, Stamp Duty, Solicitor on sale+purchase, and that's without the inevitable redecorating, etc ... It took me almost two years just to unpack my boxes
and at the end of the two years you could easily be on the market for another year trying to make the cash you want for the onward purchase. 0 -
Another vote for not worth it for two years. Have done it myself (unplanned!) and was lucky enough to just about break even as prices had risen, but you'd prob be better off saving for another 18-24 months if that's all it'll take to buy bigger (prob much less if you won't have this house to pay for).
Not sure if auction sold prices are listed - might want to check (depending on how you got that info) - so it might just be that it sold cheap.
Negative equity = when you owe more than your property will sell for. If you pay down your mortgage, you have less chance of being in negative equity. It does not just mean 'the property sells for less than I paid'.
That house looks pretty loved already and the layout is fine, so it's not like you can add much in the way of value.2024 wins: *must start comping again!*0 -
Could see that one losing value TBH.0
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I would be concerned re the 2 year plan, can you either buy the 2 bed and stay for at least 5 years ideally more like 10 or if possible really cut down on expenses and save for a 3 bed that you can keep
Selling is expensive and buying incurs stamp duty0
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