First Property

[TheChipPrince]

Right, I still live at home with the folks having finished Uni 3 years ago. Next year I am moving out, preferably buying. I have around 22K in savings at the mo (thanks poker!), and hope to have 30K buy next summer, so have a good percentage for a deposit etc etc... I am looking to move to Chester, I work there and the girlfriend is starting Uni there next year all being well, yes Chester is an expensive place to move to (so people tell me), but I cant afford to buy AND commute...

Ive been looking at prices for around the last 6 months. I am happy with a flat, and dont want anything too fancy, hopefully 2 bedrooms... I'm just after some general advice as obviously this is my first purchase. Most of the flats ive found on various property websites are for a 75%/50% share etc. I assume you pay your mortgage on your half & you pay them a rent on their %...

I have no specific question, just any advice would be appreciated...

[kinboshi]

Do you want/have to live in Chester?  There are plenty of decent places on the outskirts that are a lot cheaper.  However, if the location is key, then expect to pay more for less.  Be thankful that Chester is a lot cheaper than London or many places daown sarf.

No idea about the share thing though. 

Having bought our place over 4 years ago, I don't really know the state of the market at the moment - but I'm sure there are some on here who can advise.  If the market is going to go into a slump in terms of prices, you might be better off renting for a while before you buy. 

Best of luck with it, whatever you decide to go for.

[Graham C]

Yeah the shared things you pay rent as well as the mortgage.  If you can afford it, I'd say 100% ownership is better.   Not only is the property yours, but when you come to sell it on, it will be easier to sell. 

Don't borrow more than you can afford.  I know it sounds obvious, but seriously, don't.   Some banks lend crazy amounts of money, make sure you can make the repayments and remember you have to live too.  Stuff like council tax, tv license, water, gas, electric, internet, sky, everything costs money, just bare it in mind.

Good luck mate   Expensive but worth it.

[TheChipPrince]

Do you want/have to live in Chester? 

I work in Chester & girlfriend is starting Uni next Sep there too... Its not vital I live right in the centre, but at the moment im favouring paying a little more so that I can live in the centre & walk/cycle to work...

If you can afford it, I'd say 100% ownership is better.  

Absolutely, if I can afford it!

[kinboshi]

Do you want/have to live in Chester? 

I work in Chester & girlfriend is starting Uni next Sep there too... Its not vital I live right in the centre, but at the moment im favouring paying a little more so that I can live in the centre & walk/cycle to work...

Makes sense then to buy in/near the centre.  If you can walk/cycle to work that'll save you money every month anyway.

[AndrewT]

House prices are about to tank, and the banks are going to cut right back on how much they lend to people - now is not the time to buy.

[b4matt]

If i was you i would take a Larger % mortgage ie 90-95% (though not 100% as the rates are too high) and then set aside a good lump of capital (£10-15k)l in a high interest account or somewhere safe and accesible.

You then have a good safety net if anything goes wrong

 

[TheChipPrince]

House prices are about to tank, and the banks are going to cut right back on how much they lend to people - now is not the time to buy.

This is it Andrew, i dont know enough about such matters... I suppose its about weighing up how much rent you waste while you wait for the drop (and how much it drops by) and going from there...

[Tonji]

If your brave, & fancy a calculated risk, check the local Property Auctions. Do plenty of research, DONT jump in & buy anything straight away. It helps if you've got family or friends in the building game. Just an idea to consider a different route to buying property, but there is loads of pitfalls, & be sure to take plenty of advice. Good Luck.

[AndrewT]

House prices are about to tank, and the banks are going to cut right back on how much they lend to people - now is not the time to buy.

This is it Andrew, i dont know enough about such matters... I suppose its about weighing up how much rent you waste while you wait for the drop (and how much it drops by) and going from there...

Are you buying with your girlfriend or on your own?

Work out how much your prospective flat will cost as a multiple of your/you and your girlfriend's joint salaries. This is what will be used by the bank to work out how big a mortgage they'll give you.

And if you are renting whilst house prices drop, then the money is not wasted.

[cia260895]

The wife is a mortgage broker so if you need help there ill give you her work no.but she wont be back til monday but with that sort of deposit you shouldnt have any probs,

[kinboshi]

House prices are about to tank, and the banks are going to cut right back on how much they lend to people - now is not the time to buy.

This is it Andrew, i dont know enough about such matters... I suppose its about weighing up how much rent you waste while you wait for the drop (and how much it drops by) and going from there...

Are you buying with your girlfriend or on your own?

Work out how much your prospective flat will cost as a multiple of your/you and your girlfriend's joint salaries. This is what will be used by the bank to work out how big a mortgage they'll give you.

I think he said she's going to Uni, so she won't have much of an income (I'd guess).

And if you are renting whilst house prices drop, then the money is not wasted.

That was my point.  If the prices are going to fall, you'll actually be saving money by renting to start with.

[Tonji]

If the prices are going to fall, you'll actually be saving money by renting to start with.

I think its assumed prices will continue to fall, but will it be a steady (slow) decline or a collaspe?

[kinboshi]

If the prices are going to fall, you'll actually be saving money by renting to start with.

I think its assumed prices will continue to fall, but will it be a steady (slow) decline or a collaspe?

Of course, I have no idea - which is why he should speak to an expert.   An expert who will also have no idea...

[totalise]

rent for 2 years, get the savings in a high interest bearing account... dont buy in the current market, especially over-valued properties in the north.