cpjitservices Posted July 24, 2012 Posted July 24, 2012 cpjitservices really wants to own his own home and so does his wife!!! 10% deposits and 3 year working history! - not easy in this day in age.... especially when I've only been working about a year! ARRRGGH! I want to do it mainly for my 9 month old daughter! Some where safe she can call home! no ones got any houses they dont want have they !
Millgate Posted July 24, 2012 Posted July 24, 2012 I take it you've already considered this but what about renting? Like yourself, i'm reasonably young so getting on the ladder is a pain so i've been renting for the past two years and i love it. Nice house and if anything goes wrong, i make a phone call and it gets fixed. Then while you're renting, you can stick £x into a bank account and save that 10% deposit That's my plan anyway
glennda Posted July 24, 2012 Posted July 24, 2012 cpjitservices really wants to own his own home and so does his wife!!! 10% deposits and 3 year working history! - not easy in this day in age.... especially when I've only been working about a year! ARRRGGH! I want to do it mainly for my 9 month old daughter! Some where safe she can call home! no ones got any houses they dont want have they ! Same Situation mate. My hometown is on the London to Brighton mainline. The cheapest a 1 bed flat is around £160k+ and a 2 bed (which i would rather) is a minimum of 200k. So i've gotta get myself 20k before I can even think about anything! Renting a 2 Bed flat here is around 8/900 a month
Millgate Posted July 24, 2012 Posted July 24, 2012 Renting a 2 Bed flat here is around 8/900 a month HOW MUCH?!?!?!?!?! You need to move "up north"
glennda Posted July 24, 2012 Posted July 24, 2012 HOW MUCH?!?!?!?!?! You need to move "up north" Well you can get a cheapo one for about 740/750 but they tend to be a hole!
tmcd35 Posted July 24, 2012 Posted July 24, 2012 I have the cheapest 2bed flat around (£50k when I bought it (worth about £80k now)). Now I wish I had done whatever it took to get a council/housing association rent. Home ownership is too much hassle IMHO. I'm only just in positive equity and need to spend £££'s on windows, heating, kitchen, etc, etc, etc. Can't sell/move even If I wanted to. Too much work needs doing, I'll defo be at a loss if I tried selling anytime soon. What we need is (a hell of a lot more) more social housing not more affordable (sic) housing!
cpjitservices Posted July 24, 2012 Author Posted July 24, 2012 (edited) I'm renting at the moment, house isn't bad at all BUT the rent seems to be on the increase since it's gone up again! and there's things what we'd like to do to the house that the landlord will never agree to.... the kitchen is only about 8foot by 8 foot, would be great extended. We don't even have any drawers to put cutlery, cant really afford to move into another rented house. The deposit on this house was nearly £700 and that was without a months rent on top of that. My rent was £330 which is cheap but its now gone up to £350 which is getting a bit high now. I could pay a mortgage off for less than that a month! I know that if anything goes wrong we just call the landlord and all will be fixed but I can do alot of building work that needs doing and a few other things and what ever I don't know how to do I have very good friends that do - I know builders, plumbers, sparkys etc that are very good friends! I don't mind places that are a "hole" It's fun doing them up and achieving something! Edited July 24, 2012 by cpjitservices
AMLinington Posted July 24, 2012 Posted July 24, 2012 I know that pain! Even a pokey little turd of a place in the worst part of town is still £130,000 down here! To buy an older property in a place that isn't necessarily the best area but not the worst you're probably looking at £150,000. How do you manage to save £15,000 when you have cars and kids and rent to cover! It's impossible. You could look at those shared ownership schemes but personally I think they shaft you and you get tied into community charges and things. When we bought our place both sets of parents gave us half the deposit - that was the only way we could afford it. If we start saving now we might just about have enough money to help one of our children buy a house. The whole system is ludicrous! Renting is a joke when the rents are MORE than a mortgage with bills and council tax on top! It's like a punishment! You also can't redecorate :-( Unfortunately the only way you are going to get your own home is to look at the shared ownership and 'affordable housing' schemes. Talk to your local housing authority as 'housing association' doesn't have to mean 'Council house' - when LeBoyfriend and I were looking for a house there were a lot of schemes run by Housing Associations and local authority housing in association with building companies like Taylor Wimpey and Bovis - it is law that a part of any new build estate must be reserved for 'Housing association' use. The problem we had was that we earned TOO MUCH to qualify. It was ridiculous. Either way, they can help you and it is really worth going to a local 'home buyer' event (if for no other reason than free lollipops and jute bags) 1
localzuk Posted July 24, 2012 Posted July 24, 2012 We were building more houses as a nation back in the 1800's, when the population was half the size... There are something like 1.8m people waiting to get property that's suitable for them (be it rented or puchased), and we're building less than 100k houses a year. Basically, if you want to buy and you're not rich, you've got no chance at the moment.
tmcd35 Posted July 24, 2012 Posted July 24, 2012 Personally, in your situation, I'd make myself homeless. Not as bad as it seems as most councils have pretty decent emergency accommodation and in 6 months you could have a decent 2-3bed council/HA property at half the rent that you could get permission to knock about a bit and do it up. Then in a couple of years time, if you really want to buy, you could buy it from the council at a bargain price and then sell and move up the ladder as you wish. Paying private rent is a joke and getting a mortgage is quiet tough at the moment for first time buyers on low incomes. It's a risk, but I think it's worth it. It's essentially what my brother and his other half and sprog have just done. After 6 months in emergency accommodation they have a very nice 2 bed semi-detached bungalow with council rent. Puts my flat to shame
cpjitservices Posted July 24, 2012 Author Posted July 24, 2012 ok.... sounds good AMLightfoot I'll have a look at some of the housing assocs - The thing is in the street where I rent at the moment there is a derelict house (been empty for years) but it's nothing me and a few mates couldn't sort! It's actually owned by someone - I have the land registry for the house and know the owners name (address is for the house itself for the owner) but I cant seem to find him anywhere. I know the police have his number as someone broke into the house a few months ago and they called him to come and secure the property but me being at work didn't get chance to speak to him or whoever arrived. The council wont put a Compulsory Purchase Order on the property because it's not in the right area for them to do so! Apparently the guy lives in London and no one in my street has his number. The front of the house is boarded up as someone took the front windows out but apart form that it'd be a good project! Shame I cant find him and try to do a deal.. it would be good for the street also to get this sorted would make the street look less of an eyesore!
cpjitservices Posted July 24, 2012 Author Posted July 24, 2012 Personally, in your situation, I'd make myself homeless. Not as bad as it seems as most councils have pretty decent emergency accommodation and in 6 months you could have a decent 2-3bed council/HA property at half the rent that you could get permission to knock about a bit and do it up. Then in a couple of years time, if you really want to buy, you could buy it from the council at a bargain price and then sell and move up the ladder as you wish. Paying private rent is a joke and getting a mortgage is quiet tough at the moment for first time buyers on low incomes. It's a risk, but I think it's worth it. It's essentially what my brother and his other half and sprog have just done. After 6 months in emergency accommodation they have a very nice 2 bed semi-detached bungalow with council rent. Puts my flat to shame thought about that... but here they wont help you if you can afford to carry on paying rent for a property and you gave up the property, i thought iof this also a few years back when my landlord disappeared and left us with no heating and a house that was no good to live in. T mentioned this to the council and they said if you do that you will be put in a bedsit for upto a year, basically we'd be bottom of the pile because to put it simply we have a home to live in and can afford to pay private rent. Damn you council!
Andrew_C Posted July 24, 2012 Posted July 24, 2012 Yep, I've got one for sale, but it'd be a bggr of a commute for you! In Southampton, it looks like £140k gets you an ex-LA 3 bed, If you want to move out of town, it jumps to £190-200, and for another bedroom (and we need 4), you start at £1/4M. PS, 1% of estate agents are good, hard-working guys, it's just the rest of them that give them a bad name!
glennda Posted July 24, 2012 Posted July 24, 2012 Personally, in your situation, I'd make myself homeless. Not as bad as it seems as most councils have pretty decent emergency accommodation and in 6 months you could have a decent 2-3bed council/HA property at half the rent that you could get permission to knock about a bit and do it up. Then in a couple of years time, if you really want to buy, you could buy it from the council at a bargain price and then sell and move up the ladder as you wish. Paying private rent is a joke and getting a mortgage is quiet tough at the moment for first time buyers on low incomes. It's a risk, but I think it's worth it. It's essentially what my brother and his other half and sprog have just done. After 6 months in emergency accommodation they have a very nice 2 bed semi-detached bungalow with council rent. Puts my flat to shame Not really the right way to go about things personally people that do this kind of thing do my nut...
Haptic Posted July 24, 2012 Posted July 24, 2012 I rent as well - 10% deposit is okay but the repayments are normally a killer. It is more like 20% around where I live just to make the repayments more manageable. At the moment I am happy to rent. I think in our country we have a fascination with owning property whereas a lot of others do just rent. I think this is why a lot of people (including some of my closest friends) end up in negative equity due to the misguided pressure to own said property. Personally although the rent is a killer sometimes I do not have to worry about the house price being at a certain level in order sell the property at a profit or potentially defaulting on my mortgage and with a months notice I am free to move. Too many jump in and over exert themselves and all the end up doing is getting in a mess financially which then takes years to get out of. There will come the time when I am ready to buy and when I do it will be somewhere small, affordable and after 2 years (to avoid paying charges) I will sell it for a profit and try and get a larger place. During those two years I will save more and then and then make the leap to a larger property that I plan to stay in for a while. Well, that is the master plan anyway. The shared ownership schemes are okay but you are still paying your rent plus the payments for the mortgaged share also. I have heard of people getting themselves into financial difficulty with this kind of scheme also so you need to be sure. Gone are the days when your parents paid next to nothing as a deposit and the repayments were easy to manage. We may as well face it and not hold owning a property as some sort of mark to whether you have achieved or not. When I tell people I rent they look at me gone out, like I am stupid. If you don't want to live at home with the parents and you don't want to use their money for a deposit, then other than saving constantly for the next 10 years you aren't left with many options these days. Having said that.............good luck in your endeavors @cpjitservices Chris
chazzy2501 Posted July 24, 2012 Posted July 24, 2012 You'll not get a Mortgage for a property that needs renovation (short version). To get a mortgage go to a broker he'll tell you what else you need to achive one. Really it's down to credit history, they like to see money borrowed and paid back. Get some credit cards, and a personal loan and pay them back.
tmcd35 Posted July 24, 2012 Posted July 24, 2012 Not really the right way to go about things personally people that do this kind of thing do my nut... While in principle I agree, unfortunately this is the post-Thatcher world we live in. Unless the government make amends on social housing and puts in a properly funding building plan we have no choice but to play these silly games. Personally I'd love a council house to rent, but wouldn't want to buy if I ever got one.
Robz Posted July 24, 2012 Posted July 24, 2012 I feel your pain so much so I'm thinking of joining the forces just to get my own place! 0.o
cpjitservices Posted July 24, 2012 Author Posted July 24, 2012 Hmmmmmmm - to be honest if I could find the owner of the house opposite me I'd see what he wanted for it and make him an offer... I wouldn't get a mortgage but if it was below (30k) which the last time it sold in 05 it was 28,000 and that was in good condition - now it's derelict it'll be less! I'd get a loan and pay that back!
Andrew_C Posted July 24, 2012 Posted July 24, 2012 You'll not get a Mortgage for a property that needs renovation (short version). Depends a lot on the level of borrowing, the current value, the work that needs doing, and the final value. Payments may also be staged.
glennda Posted July 24, 2012 Posted July 24, 2012 Hmmmmmmm - to be honest if I could find the owner of the house opposite me I'd see what he wanted for it and make him an offer... I wouldn't get a mortgage but if it was below (30k) which the last time it sold in 05 it was 28,000 and that was in good condition - now it's derelict it'll be less! I'd get a loan and pay that back! I would love for a house to cost 30k! An Allotment down here costs about that much (ok maybe not but similar!) 1
glennda Posted July 24, 2012 Posted July 24, 2012 While in principle I agree, unfortunately this is the post-Thatcher world we live in. Unless the government make amends on social housing and puts in a properly funding building plan we have no choice but to play these silly games. Personally I'd love a council house to rent, but wouldn't want to buy if I ever got one. Why should the government build the houses? What we need is for the government to scrap half the rubbish that goes along with building lots of houses. If the building companies consentrated on building houses and not having to do the 107 money etc then houses would be a lot cheaper.
tom_newton Posted July 24, 2012 Posted July 24, 2012 You'll not get a Mortgage for a property that needs renovation (short version). Yes - according to my sources the key thing is a serviceable kitchen...
AMLinington Posted July 24, 2012 Posted July 24, 2012 You'll not get a Mortgage for a property that needs renovation (short version). To get a mortgage go to a broker he'll tell you what else you need to achive one. Really it's down to credit history, they like to see money borrowed and paid back. Get some credit cards, and a personal loan and pay them back. Funnily enough this is spot on - It sounds counterintuitive but it's true! I have always prided myself on never being in debt. Never had a loan, paid my credit card bill on time. LeBoyfriend has a long string of car and motorbike loans in his past and now another fresh one for his current car, plenty of overdraft action and credit cards and the mortgage broker said to us that he was concerned about my rating! Luckily I came in just inside the threshold (*Phew*). I rent as well - 10% deposit is okay but the repayments are normally a killer. It is more like 20% around where I live just to make the repayments more manageable. At the moment I am happy to rent. I think in our country we have a fascination with owning property whereas a lot of others do just rent. I think this is why a lot of people (including some of my closest friends) end up in negative equity due to the misguided pressure to own said property. Personally although the rent is a killer sometimes I do not have to worry about the house price being at a certain level in order sell the property at a profit or potentially defaulting on my mortgage and with a months notice I am free to move. Too many jump in and over exert themselves and all the end up doing is getting in a mess financially which then takes years to get out of. There will come the time when I am ready to buy and when I do it will be somewhere small, affordable and after 2 years (to avoid paying charges) I will sell it for a profit and try and get a larger place. During those two years I will save more and then and then make the leap to a larger property that I plan to stay in for a while. Well, that is the master plan anyway. The shared ownership schemes are okay but you are still paying your rent plus the payments for the mortgaged share also. I have heard of people getting themselves into financial difficulty with this kind of scheme also so you need to be sure. Gone are the days when your parents paid next to nothing as a deposit and the repayments were easy to manage. We may as well face it and not hold owning a property as some sort of mark to whether you have achieved or not. When I tell people I rent they look at me gone out, like I am stupid. If you don't want to live at home with the parents and you don't want to use their money for a deposit, then other than saving constantly for the next 10 years you aren't left with many options these days. Having said that.............good luck in your endeavors @cpjitservices I both agree and disagree here. Owning your own property isn't just about 'achievement' - it is also about security. When landlords encourage obnoxious neighbours to force their tennants to break contract (I read something shocking about a landlord that made a habit of doing this in order to make a profit) and where renting a property is so costly, owning is sometimes the CHEAPER option. It is also nice to know that you aren't going to get home and find an 'I'm selling the house, you have 3 weeks to move' letter on the door mat (I've lost count of the number of friends that have had this done to them). I don't need that sort of uncertainty and stress in my life. I also want to be able to do what I like, how I like in my own home. If I accidently put a hole in the wall LeBoyfriend and I giggle about it, sort out a fix and get on with it. Or live with it. In the case of our house: Old 1950's houses have a tendancy to have rubbish upstairs interior walls and a previous owner decided it was easier to dot-and-dab stick thin plasterboard everywhere than to fix or level them off but the 'dot-and-dab' is too thick creating 'danger zones' in the walls where an accidental impact can leave a large hole that needs filling and plastering over... That being said, home ownership is not for the fiscally irresponsible. My grandfather always says that a roof over your head is more important than anything else. You can live without Sky, you can live without the internet and you can get a pay-as-you-go SIM card - but to have your own roof over your head is a security like no other. But if you are frivilous with money renting is the best option as owning a home is a huge responsibility and commitment on your finances. You also cannot move as easily if you hate your neighbours - at least if you rent and your neighbours are a nightmare you can report them to the landlord and then start looking. It's just a lot of upheaval. Also, why SHOULDN'T we own our own homes? Why should we work hard to line the pockets of some greedy grasping property-hogging landlord? We work hard for our money and why shouldn't we reach the end of 30 years of paying £800 a month with something to show for it? When you rent you have nothing to show for it. No equity to fall back on in your twilight years. Lets look at this in a mercenary way. When I get to the end of my 30 year mortgage term, I will have a 3 bedroom semi-detached house (or better, depending on if we move, but for the purposes of this illustration let us assume I don't). I will OWN this house outright, so whatever it is worth (regardless of whether that is more or less than what I paid for it in relative terms) is MINE. If I need nursing care in my dottage or need to downsize to a smaller place, I can sell my big old family home and use that equity to support myself. When a renter has worked 30 years and paid out the same or MORE than I paid for my mortgage, what do they have to show for it? Do they have any savings? Investments? All things being equal, let us assume that me and renter are in the same situation. We don't earn enough to have sufficient disposable income to properly save and invest. But in my case, my payments ARE investments - I get to own a house. What does renter have? Nothing. Nothing to show for that big ol' chunk of money paid out every month. THAT is why there is so much 'drive' to own a house. Not because of 'achievement' or some other obnoxious reason, but because ultimately, mortgages and rents are more or less equal, except if you're paying a mortgage you at least get some of that back in equity. Renters get nothing but a cheeful F-off you old fart - can't pay the rent, can't live here. 2
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