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  • FIRST POST
    • AsgardsPrincess
    • By AsgardsPrincess 15th Jan 20, 2:21 PM
    • 6Posts
    • 1Thanks
    AsgardsPrincess
    How much is too much to pay?
    • #1
    • 15th Jan 20, 2:21 PM
    How much is too much to pay? 15th Jan 20 at 2:21 PM
    Hello
    We are first time buyers, and we have put an offer on a house of 218,000 which has been accepted. The house needs nothing doing to it except a lick of paint here and there, its been beautifully kept and will only need to change some decor to our tastes. It is slightly on the cosy side, but it is still 3 bedrooms and the sellers said they brought up two girls there.

    The thing is, I can't get it out of my head that I read the average price of a home for a first time buyer is 180,000.

    We can put a deposit down of £35,000 which enables us to have a monthly payment rate of £680 with nationwide on a 2 year fixed term. Is that a lot?

    Currently we earn per month, after tax £1300 and £1780 but will pay the mortgage equally. Other regular outgoings (water, internet, electricity, food, council tax etc) add up to about £700 by my prediction

    This leaves us with around £980 and £420 each disposable income (after other personal bills like car insurance), but this is subject to change. I am on a well paid but contracted job which could end at the end of 2020, or it could be extended or I could be offered a permanent position. If not, I will have to go back to a job that pays less (I am working for a multinational corporation that pays well) My partner is paid less but there is more scope for progression and earning more in the future, and it is a permanent role.

    So my question is, we love the house and its location, but are we paying too much? Should we look for something cheaper? Our offer is accepted but nothings happened yet.

    I am asking here because I've no one to ask as none of our friends have bought houses and most people I know are renting, or older people like my parents have already paid their mortgage off.

    Please, no abusive answers like last time I posted on here.
    Thanks
    Last edited by AsgardsPrincess; 15-01-2020 at 2:25 PM.
Page 1
    • zx81
    • By zx81 15th Jan 20, 2:30 PM
    • 24,829 Posts
    • 27,727 Thanks
    zx81
    • #2
    • 15th Jan 20, 2:30 PM
    • #2
    • 15th Jan 20, 2:30 PM
    There's two questions really -

    1. Can you afford it?
    2. Is the house worth it?

    Looking at what an average FTB pays doesn't tell you anything.

    The mortgage payment doesn't look high on your income.
    • bobski_111
    • By bobski_111 15th Jan 20, 2:33 PM
    • 3 Posts
    • 0 Thanks
    bobski_111
    • #3
    • 15th Jan 20, 2:33 PM
    • #3
    • 15th Jan 20, 2:33 PM
    Don't forget that the 'average' is across the whole of the UK, and all kinds of properties - many people will not be getting a 3-bed house as their first property. So don't worry about comparing yourself to the average.

    If you're sure the property's right for what you need, and you can afford it, then go for it (how much would you pay in rent for a similar property? I'm guessing more than £700 a month)
    • Thrugelmir
    • By Thrugelmir 15th Jan 20, 3:18 PM
    • 66,353 Posts
    • 58,410 Thanks
    Thrugelmir
    • #4
    • 15th Jan 20, 3:18 PM
    • #4
    • 15th Jan 20, 3:18 PM
    So my question is, we love the house and its location, but are we paying too much? Should we look for something cheaper? Our offer is accepted but nothings happened yet.
    Originally posted by AsgardsPrincess
    From a personal perspective I would primarily be concerned about my contract role coming to an end. Would the mortgage still be affordable if you were forced to opt for a lower paid perment role?

    There's no need to rush. Get a foot on the property ladder. The dream house can follow if that's what you aspire to owning.
    “Risk comes from not knowing what you are doing. – Warren Buffett”
    • oldernonethewiser
    • By oldernonethewiser 15th Jan 20, 3:21 PM
    • 514 Posts
    • 569 Thanks
    oldernonethewiser
    • #5
    • 15th Jan 20, 3:21 PM
    • #5
    • 15th Jan 20, 3:21 PM
    Never be suckered into basing anything on an average.
    • getmore4less
    • By getmore4less 15th Jan 20, 4:47 PM
    • 38,449 Posts
    • 23,886 Thanks
    getmore4less
    • #6
    • 15th Jan 20, 4:47 PM
    • #6
    • 15th Jan 20, 4:47 PM
    Average only works if you live in an average area.

    Median can be useful guide as 1/2 pay more 1/2 pay less.
    Still has the problem depend where you live.
    • Moneyminded
    • By Moneyminded 15th Jan 20, 8:21 PM
    • 86 Posts
    • 114 Thanks
    Moneyminded
    • #7
    • 15th Jan 20, 8:21 PM
    • #7
    • 15th Jan 20, 8:21 PM
    This sounds like first time buyer nerves to me. If you have seen a number of properties in your local area and have agreed that this is the one for you then what other people spend on their first home is irrelevant.

    If you have done the maths and feel that this is an affordable mortgage for you and you would be happy to pay that to live in that particular house that is what counts. Maybe ask to go for a second viewing or visit the area and drive/ walk past. If you still get the same sense of excitement then it is probably just nerves. If you feel scared/ daunted the second time round you probably need to seriously think about why.
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    • Radka s
    • By Radka s 15th Jan 20, 8:26 PM
    • 4 Posts
    • 3 Thanks
    Radka s
    • #8
    • 15th Jan 20, 8:26 PM
    • #8
    • 15th Jan 20, 8:26 PM
    I live in surrey and i can tell u now that there isnt a 3 bed house for £220 000 around me. So if u compare surrey and let say sheffield( nothing against sheffield btw) the avarage price probably would be around £180 000
    • Delius
    • By Delius 17th Jan 20, 10:41 AM
    • 5 Posts
    • 1 Thanks
    Delius
    • #9
    • 17th Jan 20, 10:41 AM
    • #9
    • 17th Jan 20, 10:41 AM
    The first house we bought cost £430k; the thoughts uppermost in my mind were not about how this compared to average property prices (in general or for FTBs) but whether we could afford it - and specifically in the case that interest rates went up to 5% and one of us were to lose our job.
    Since then, this kind of sanity-checking is done by the banks when you are applying for a mortgage, so I would have to assume you can afford it.
    Perhaps you would feel more comfortable about the nominal £218k if you thought, rather - before buying, if you had an opportunity to rent a house as nice as that for £680pm would you have thought that was a good deal? It sounds from what you've written that you will be very happy there.
    Last edited by Delius; 17-01-2020 at 10:44 AM. Reason: typo
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