First time buyer

[metalmonkey]

Just wondered if anyone of you out there are first time buyers like me, or have just bought?

I need to find somewhere, at a rough caluaution I reckon I could afford a place of 200k, but thats really pushing it. You know what that doesn't seem to buy much at all does it?

I was thinking how has everyone else got with a buying place? I know that in about 5 years, my student loan will be paid which will mean I will be over £100/month better off.

I want to find something in north west london and heading furter out in the that direction if price is better for what you get.

I also get the key workers grant thing, but at the current prices it really doesn't seem to make that much difference! The other worry I have is if that I buy a place and the market crashes or mortages go through the roof what then? I know that woud be very heavily in debt which be honest is a little scary., if it goes wrong what would happen then?

[rigor]

TBH I wouldn't go for a place where I was "pushing it" at all. Even if you are on a fixed rate mortgage from the start, at some stage that deal will end. If interest rates have gone up, and/or the housing market has dipped (or crashed) then you could find yourself in a situation where you can't re-mortgage, and get stuck on a very high rate.

I know you don't get a lot for 200k atm, but I'd seriously look at other options. Are you living with your folks atm, or renting with mates or alone.

Guy I work with is looking for his first place, and was adamant that he wanted to buy, so I sat him down and showed him what it would leave him with a month, even on a best case scenario. He's now looking at renting with a mate to save up more of a deposit than the big fat 0 he has atm.

[kwak zzr]

Its been all over the press at the mo about prices dropping, as rigor say's its not really a good time to buy i personally would wait as see what the next few months bring.

[CoolGirl]

Quite. We could do with moving now as we need more space, but I'm going to wait. Why buy a property now, at the top of the market and get stuck with a huger mortgage, when I might get a more affordable property in as little as a year's time. Seems like ages when you're getting on the ladder, but believe me, you'll be glad you waited in the long run

[Biker Biggles]

I think we are on the verge of a considerable "readjustment"in house prices.
Credit is tight,banks are reporting multi billion dollar losses and no one can afford the prices.Something has to give and by quite a margin.

[metalmonkey]

Well I'm renting at the moment, its not too much but I really thinking off going to my parents to save some serious money up next year, but thats such a step backwards, its miles from work. Which could make it hard when I'm doing overtime ect.

Its a nightmare but what to do eh? Everyone says get on the market asap. But when you can't afford to live where you work, and work doesn't care about the fact you live miles just to find a place you can't afford to live in anyway and its effects in in terms of having to travel it has you. What are we supposed to do?

Perhaps I should go back to living on a beach in mexico?

[kwak zzr]

Perhaps I should go back to living on a beach in mexico?

that doesnt sound like a bad idea.

[rigor]

Perhaps I should go back to living on a beach in mexico?

Throw a towel down for me mate ;)

[Ed]

Why do you have to buy in London. You could buy a BTL place somewhere else that's not so expensive and sell it again in a few years' time.

[kwak zzr]

i dont know how anyone can afford to buy in the city, move out and commute.

[StreetHawk]

People have said over the last 5 years that it's not the right time to buy, that prices are coming down etc.. But year on year the prices rise. I would buy now, every month you rent is another £XXX pounds that could have been paying off your mortgage. There is always the risk they will come down but if I were you I would still buy.

My 2p worth! :-)

[kwak zzr]

very true but no one could have predicted the rise in prices 5 years ago, your just very lucky if you did buy 5 years ago.

[Warthog]

aaaaarrgh I have the same problem. Its less of a decision whether to buy or not, its just impossible to buy where my work is. And my line of work is only found in Oxford Cambridge and London really, where all the expensive houses are. I was thinking about Ed's idea though, buy to let in somewhere completely different. I could get up to Birmingham quite easily, but aren't BTL mortgages harder to get and worse interest or something?

[Alpinestarhero]

200k is quite alot for a first time buyer, at least it is to me...I was talking with maria about this, and I think we set our limit on about 130k

Maybe a bit more if its a perfect perfect house? I dunno.

Buying is very stressful, I get tied up in knots just thinking about it

Matt

[gettin2dizzy]

Perhaps I should go back to living on a beach in mexico?
Courtesy of Sarahs link
http://www.xkcd.com/59/

[gettin2dizzy]

aaaaarrgh I have the same problem. Its less of a decision whether to buy or not, its just impossible to buy where my work is. And my line of work is only found in Oxford Cambridge and London really, where all the expensive houses are. I was thinking about Ed's idea though, buy to let in somewhere completely different. I could get up to Birmingham quite easily, but aren't BTL mortgages harder to get and worse interest or something?
Get the hell out of the hellhole that's london!

BTL is becoming a thing of the past.
CBLT is excellent however, like a BLT but with Chicken.

[kitkat]

i own at the moment and am planning on selling next april time . not interested in buying again. if you rent you know exactly what your expenses are. when you buy you have to budget for things like heating going capput, interest rates rising.

should make about ?50K profit which is not bad for 4 years.

why slave all your life paying for a house to pass onto your kids for them to sell and have a wild time. id rather have a wild time myself.

[Ed]

All this carp in the papers about the market collapsing - so why have we had more instructions on resi this week than at any time this year? Not all owner occupiers either, quite a few investment landlords too.

[metalmonkey]

I did think abiout the buy to let thing still may do that with someone, don't know yet.....

200k is probally a bit too much really for me, but its may be possiable, I think 185k might be more realestic, I haven't sat down to work it all out yet....

Lving close to work would be an advantage, good socially thats about it. I will be working London for a long time, if I was to move my job out of the city I would lose a lot in pay and also have to do more work and be paid less!

I would eventually want to get out of London anyway, its not an ideal place to live really. But where I am right now works out well, I would pay the same rent if I was further out anyways.

Warthog same problem for me really, the government expects us to work here, but provide sod all help thats of any use.

I really think us buying for the first time have a raw deal now, pay no where near matches what house prices or what morgtage payments are.

[Flamin_Squirrel]

Yep just bought my first house, this week in fact. I've done what Ed suggested, I live in Bromley but bought in Folkstone.

[metalmonkey]

Awesome when do you move in? To add to my ramble, I have decided that after Febuary, I don't need live where I do anyways, alot of training that I'm doing right now will be done by then, so can live further out.

[Flamin_Squirrel]

Nooo I mean I'm becoming an evil land lord. I can't afford to buy anything bigger than shoe box within the M25, so I've just got myself onto the ladder elsewhere.