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Buying A House

Discussion in 'General Discussion' started by Jon Mack, Jan 4, 2005.

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  1. Jon Mack

    Jon Mack Registered User

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    Buying A House

    I'm looking into buying a house, I fancy a two bedroom flat in a nice area, not too old in Newcastle.

    I have about £15 000 worth of debt and I'm told I can add this onto my mortgage?

    Any of you home owners offer me any advice before I end up paying for it.

    Cheers
    Jon Mack, Jan 4, 2005
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  3. fiddla

    fiddla Retired

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    yeah u can add it on m8 but the interest on it will be worse than wot it is now !!


    id recomend saving up a decent deposit these days for a decent house / flat , im hopeing to put 20 / 25k down on my next one !!
    fiddla, Jan 4, 2005
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  4. BRID

    BRID Has name in red. Staff

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    Ill give you some advice that you may not want to hear.

    For the love of god, dont buy a house right now - the market has stalled at the top of 8 years of booming prices, and buying now is a terrible terrible idea.... The only direction that house prices are going in the next few years is down, and who wants to buy something for 100k that they can buy for 50k - If anything its paying 350 quid a month for a mortgage instead of 700 quid.

    Imagine taking out a mortgage for 100 grand, then in 4-5 years having your house only worth 50k .... negative equity nightmare.

    Also, taking out 100%+ loans (to cover debts on top of mortgages) are an even WORSE thing you can possibly do on top of buying at the top of a boom. Remember that stamp duty, solicitors fees, surveyors and the like will add another 5 grand perhaps on top of your purchase price, which you'll have to pay for out of debt or save up for.

    Seriously, wait a few years and get yourself solvent - pay off your outstanding debts and get together at least a small deposit or cash to pay fee's with - in 10 years time its better to sit on some profit from buying at the right time, than it is to be sitting on a mountain of debt?

    My take anyhow.
    BRID, Jan 4, 2005
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  5. Jon Mack

    Jon Mack Registered User

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    cheers Brid, sounds about right to me.

    Still don't think I can handle living at home for much longer :(
    Jon Mack, Jan 4, 2005
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  6. B.O.B.

    B.O.B. Registered User

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    I would wait for a few months to see what happens with the market. The north east is one of the only areas still making reasonable increases, but it might not stay like this for very long. If you are desperate to buy now, look at brand new build as it tends to increase in value fairly quickly once all the properties in the development have been sold.
    B.O.B., Jan 4, 2005
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  7. Jon Mack

    Jon Mack Registered User

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    Thanks for the advice Helen.
    Jon Mack, Jan 4, 2005
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  8. BRID

    BRID Has name in red. Staff

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    The north east market has stalled, and then its only going one way .... dowwwwwwwwwn. If that happens in 6 months, or in 1 year its the same effect - a house you bought will not be worth what you paid for it in the short to medium term.

    New builds are actually a very bad idea for first time buyers, since the developers cream a much higher margin off on the real value of the house so they can sell to people wanting the convenience of a house that is ready to move into right away.

    For investors that can take advantage of the price rises that come with newly completed properties (assuming they bought 'off plan' before the house was built) this might be an option, and indeed the people who put money down on the flats next to the baltic made a ton of money if they sold as soon as they were completed - but for first time buyers its irrelevant and most seasoned people tend to advice first timers to buy undervalued properties that need a bit of work.
    BRID, Jan 4, 2005
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  9. Jon Mack

    Jon Mack Registered User

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    So I'm best off waiting 6 - 12 months ?
    Jon Mack, Jan 4, 2005
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  10. BRID

    BRID Has name in red. Staff

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    Im in the same position as you more or less (and about the same debt ;) ) and although its tempting to walk into a building society and have the keys to a nice new place within a few weeks or months... i know it will be 100 times wiser to hold my guns till its a sensible time to buy and not just impulses making decisions for me.

    I nearly bought 200 grands worth of new build apartments in surrey down here about 7 months ago with my lass, who i broke up with a month later - With houses not selling hardly and people desparate, i shudder to think what kind of nightmare that might have been with a nice 1000 quid a month mortgage to pay.

    So aye, give it 12 months at least i reckon.
    BRID, Jan 4, 2005
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  11. Jon Mack

    Jon Mack Registered User

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    might just decorate my room in the mean time :lol:
    Jon Mack, Jan 4, 2005
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  12. Danny_Habit

    Danny_Habit Registered User

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    :lol:

    26 at home is bad crack like Jon mate. Is there no one you can move in with or could you not rent somewhere?

    Thing is with buying, people have been saying its the wrong time to buy for the last 2/3 years.

    I reckon if you really want a property then just go for it. Get on the ladder.
    Danny_Habit, Jan 4, 2005
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  13. BRID

    BRID Has name in red. Staff

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    ..... precisely the reason why so many people are going to be royally f*cked in the future with financial advice like that. A ladder isnt a ladder if the rungs are rotten and the ladder has been placed against a bouncy castle with a hole in the side.

    Maybe if people knew about the house price crash and recession in the early nineties, they would be less eager to make financial decisions based on old sayings, and more likely to do a bit of thinking.

    If someone needs to move out ... RENT.

    Might be a bit harsh with what ive said there, nothing personal.
    BRID, Jan 4, 2005
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  14. ManofScience

    ManofScience Guest

    it's a tough call - while the market has cooled, there's no signs of significant drops just yet - it's could take years for house prices to half ... it's been rising for 7-8 years now... will there be a crash? who knows... it just means u could be waiting years.

    like drums says, people have been saying that for years - the south is dropping but the north is well behind.

    personal debt has topped 1 trillion or something recently - very worrying.

    look for somewhere in a not so good area, but could be up and coming - a fixer-upper - do the work yourself bit by bit - look for new planned developments that will bring the area up in a few years - thats the best bet... but saying all that - it's the worst time to be buying - everything is SOOOOO over-inflated
    ManofScience, Jan 4, 2005
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  15. Natalie

    Natalie Registered User

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    I've been back from Uni for just over 2 weeks and my parents are doing my head in, I hate living in Manchetser but think I'm making an early return!!!

    Don't know why they insist I HAVE to pick my clothes up off the floor and put the rubbish in the bin :lol:
    Natalie, Jan 4, 2005
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  16. Jon Mack

    Jon Mack Registered User

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    I never see the rents from one day to the next, it's just the location it's miles away from everything and it's costing me a mint.

    Renting is a waste of money :( just dunno what to do :confused:
    Jon Mack, Jan 4, 2005
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  17. Ness

    Ness Registered User

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    As Brid says Jon dont buy yet ffs!!! prices will come down and i'm expectin to be able to buy another house, similiar to one i just sold, at just over the original price i paid 6 years ago.
    Ness, Jan 4, 2005
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  18. rachel

    rachel Registered User

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    happy happy!! :)
    i'm gonna start saving for a house once i've got a car sorted, it makes me so cross thinkin my hard earned pennies are goin into a stupid landlords back pocket!! :mad: xxx
    rachel, Jan 4, 2005
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  19. David Lee

    David Lee Dexter's Apprentice

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    Agreed ... ;) at the end of the day its an investment .... :D
    If you want something just go for it ... at the end of the day if its what you want then thats ok.

    Whats the point of renting somewhere if you can afford a mortgage .. some rents are more than actual mortgages .. you might aswell be paying to keep/or sell it rather than just paying the £££ just to rent it.

    At the end of the day "ITS YOURS" .. :D ;)
    David Lee, Jan 4, 2005
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  20. Jess C

    Jess C Tookie

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    I can help you decorate...we can paint ur room pink :) :love:
    Jess C, Jan 4, 2005
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  21. Jason Bourne

    Jason Bourne Registered User

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    :lol:
    I can foresee the answer to that.. :D

    I'm in pretty much the same situation but with about a 1 tenth of ya debt.. but still in my crummy 14 grand a year job I find it hard to have any form of meaningful exsistence..

    I nearly bought a place about a year ago for 50 grand.. had a decent deposit too but was put off by the location.. its now worth 80 grand but has been vandalised to fook.. :D

    This situation is driving me mad.. but I'm personally gonna wait for a bit and see what happens.. brid's advice gets :up: :up: from me! :D
    Jason Bourne, Jan 4, 2005
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