House buying advice...

[tigersaw]

Originally Posted by timwilky

I am one of those who subscribe to the belief that the housing market has to crash.

Not so sure - demand is still greater than supply, and that is predicted to be the norm unless a sustained program of housebuilding materializes.
I agree that 'first time buyers' are priced out of the market, but whilst parents are now paying deposits, (mine bought me a breadbin I seem to remember), and lenders are encouraging longer term loans, interest only loans and shared mortgages, there continues to be a means to sustain the market.
The 'crash' in the late 80's, as I remember it, was more a glut in housing supply due to the enormous number of repossessions, with interest rates at an all time high. I saw my then house rise from approx 60k to 80k value in the space of just 18 months, but then 'crash' back down to 60k once again. I don't see similar comparisons with todays continuing, but steady rises.

I remember about 7-8 years ago, looking at houses I would be able to afford (yes, mature beyond my years, I couldn't wait to get my own house!). Rummaging through the local property papers and reading about them, I looked forward to the day I started my career and saved for a deposit on a semi-decent house.

These days I can't even afford a friggin' 'holiday home' let alone a house made of bricks and mortar. 2 years work experience and I'm buggering off abroad in the hope of finding somewhere cheaper to live.

[Stu]

Originally Posted by tigersaw

(mine bought me a breadbin I seem to remember)

Yeah, why do we always hear of parents helping out so much except our own


Actually that whole post was the best I've read in a while, thanks

[timwilky]

Originally Posted by Stu

Yeah, why do we always hear of parents helping out so much except our own


Actually that whole post was the best I've read in a while, thanks

Mine bought me a set of wardrobes and let me borrow a bed until I got one delivered.

I do despair for kids today. My eldest has 12 grand of Student loan, 18 grand of professional development loan and is only 23 years old. I am currently paying £400 a month for her rented room in Leeds, the insurance on her car and dropping the occasional night out into her bank account. OK when she is qualified proper in a few years time assuming she gets a pupilage etc. She should be earning a decent wodge, but until such time she is just another parasite. I left home at age 20 and never went back. I can forsee my son still being he when he is 40 etc. no wonder my hair has gone grey and started to fall out

[Red ones]

Originally Posted by rubberduckofdeath

Apparently this house has been on the market on and off since some time around the beginning of the year. It was originally up for between £320k and £330k. It came off the market and was redecorated then went back on for £330k. It came off the market and has quite recently come back on at £315k.

Hey - asking price - market value? Sounds like the owner doesn't know.

Check the local SELLING prices with http://www.findaproperty.com/

Good post, Mr Wilky.

I'd like a house. Currently we've got a flat in London. I've paid some of the mortgage off and reckon that I should be able to pay off the rest by Feb 2008. I've no desire to mortgage myself to the hilt and reckon that 2x salary is the most the I'm prepared to borrow when we move. We've been seriously talking about moving to Canada where £210,000 gets you a luxury seven bedroom home with four bathrooms.

Friends of ours rushed to buy their own property and took the first mortgage that was offered to them. £170k interest only, repayments £1k per month.

I gave my advice bit which fell on deaf ears, as far as I'm concerned they are effectively just renting the property and hoping it increases in value.

Plus they stuck a loan on top so they already have a mortgage for more than the properties worth,
I couldn't sleep at night.

As someone who has just bought their first house. If you're serious enough that you would buy it at asking price anyway (so 'losing' the survey money if it doesn't work isn't an issue), wait a few days, if they still haven't got back to you, accept their price and go ahead with getting the survey done (insist this is done before you rack up any legal fees). There will invariably be at least a few minor things wrong with the place that need doing that you couldn't of been expected to notice/know about that will be detailed by the surveyor (almost all houses have something wrong with them, even if it's something as minor as cracked rendering or vegetation in the gutters). Cite the cost (and inconvenience) of getting these fixed as a real reason for the lower offer.

That's what I did and ended up getting it for the offer price, even though they initally refused to negotiate.

As others have said, it's a buyer's market and you're the one in the position of power.

very few people move at this time of the year, so I doubt the seller is that bothered if you wait. If there's not a chain, perhaps they're not that bothered if you stall.

Have you had a survey done? does it match the asking price? I almost moved into a house once, until the survey came in £30,000 less than the asking price (on a £210k house).

interesting what people say about a crash coming, my view is if the market crashes it will be good for all, except those at the top of the housing market. Afterall, a 40% drop means my existing £300k house is only worth £180k but that 600k house I want will only cost £360k, saving me £120k! providing my original house doesn't drop into negative equity (worth less than my mortgage) I'd be laughing.

I'm looking for a 2nd property. My boy is off to Uni next year and I reckon it will be cheaper for me to buy locally, and then rent the other 2 rooms until he finishes his degree. Then, 4 years later, I can either keep it, or flog it. Any extra money I make will help pay off my Mortgage (which isn't that big anyway).


Lee, best of luck BTW.

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