Buying a house (and renting)

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Curls
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PostRe: Buying a house (and renting)
by Curls » Thu Aug 02, 2018 9:41 pm

So I'm pondering buying a house.

I've found a reasonable house 3 beds (2 double one with one spare room). 2 bathrooms(1 ensuite). Largish kitchen, a decent back yard, and all very easy to maintain.

So it costs £164,000 (after negotiating down from £170,000) and I have £30,000.

I figure if I put a deposit of £25,000 that's 15 % deposit, and then I have 5 K back for solicitor fees and stuff like that.

Now my first query is.....is 5K a sensible amount to hold back? Or should i be holding back more/less?

Now here comes another spanner in the works....the house has a chain, but I'm a first time buyer. Has anyone has experience with a family moving out of a home and can give me an idea of how long it would take? November would be ideal for me, if my offer is accepted tomorrow, is that a reasonable turn around?

Another spanner:- I'm moving away next year for 6 months for work. Ideally I'd like to get a tennant in the spare room with me, this would cover some costs. The other option is to not buy now and wait until returning next year, by that point I'd probably have a 45 K deposit.

But the way I see it is I may as well begin paying off the mortgage sooner rather than later?

A final HUGE spanner in the works, I may apply for a three year posting overseas where my house is sorted....the house I am considering buying would then be a rental property completely....it's still a good idea to invest rather than just let my money sit there right?

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Oblomov Boblomov
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PostRe: Buying a house (and renting)
by Oblomov Boblomov » Thu Aug 02, 2018 9:49 pm

1. £5k is sensible and you should get change from it

2. Three months is reasonable if nothing goes majorly wrong and the family don't want to delay moving out; the kicker will be whether or not the family have already identified where they want to move and have at least had an offer accepted

3. Wait until you have a £45k deposit (is that excluding the spare money for fees?) as you're unlikely to pay off £15,000 of the mortgage in 12 months, especially when you take interest accrual into account

4. You would have to convert to a buy-to-let mortgage, pay more interest and more tax, not to mention figuring out how to manage and maintain the property while overseas

Oblomov Boblomov's verdict = DON'T DO IT

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Dual
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PostRe: Buying a house (and renting)
by Dual » Fri Aug 03, 2018 5:52 am

Think of the value you will gain after 3 years away. You've got to get into property early.

In my experience of chains you'll be very lucky to complete in 3 months. This shouldn't be a deal breaker though?

Duals Verdict = Do it

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Hime
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PostRe: Buying a house (and renting)
by Hime » Fri Aug 03, 2018 7:20 am

Personally I would keep a bit more than £5k for solicitors and the rest as money just evaporates when buying a house. Also, you really need to decide if you're going to go for a buy to let mortgage now as it could end up costing you a lot of time and money to change down the line.

Being a first time buyer with no chain puts you in a very strong position and it's something not be wasted. Personally I'd try and find the best place to stick your money to earn a bit of interest, maybe your could get one of the first time buyer ISA's that gets you a bit of cash from the government?

Hime's verdict: Don't do it.

Last edited by Hime on Sat Aug 04, 2018 7:25 am, edited 1 time in total.
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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Fri Aug 03, 2018 8:22 am

You are going to be away for 6 months. And next year you would have a £45k deposit.

I would wait.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Fri Aug 03, 2018 10:13 am

Aren't the rules changing soon around renting out properties that makes it less lucrative than it used to be? We were looking at moving but keeping our current property and converting it to a buy-to-let but it didn't look like it would be as good an earner as we thought.

I agree with the majority here Curls, don't do it now as you will be in a better position in the future. Unless you are absolutely desperate for it as this is the perfect house then what's the harm in waiting - there will always be something else on the market when you come back to it - and by the sounds of things you will be in a much better position to either get something better or take out a lower mortgage and have extra cash in the bank each month.

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Preezy
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PostRe: Buying a house (and renting)
by Preezy » Fri Aug 03, 2018 10:23 am

Whilst I understand your burning desire to escape prole-dom (povvo-dom?), I have to agree with the majority. Don't do it.

Or do it, whatever, it's your life.

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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Mon Aug 06, 2018 7:16 pm

Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.

One man should not have this much power in this game. Luckily I'm not an ordinary man.
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Slayerx
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PostRe: Buying a house (and renting)
by Slayerx » Mon Aug 06, 2018 7:18 pm

Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


Come to Bradford mate you can probably afford Bradford with that kind of money :slol:

My two bed terrace cost 60k!

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Mon Aug 06, 2018 7:19 pm

Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


I’m assuming you are planning on moving a long way away, the South East is hugely expensive.

What sort of area are you looking for? Rural and quiet countryside or bustling city? Will you be getting new jobs or commuting to wherever you work now? What sort of distance from West Sussex?

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Errkal
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PostRe: Buying a house (and renting)
by Errkal » Mon Aug 06, 2018 7:28 pm

Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


Hastings will get you more for your money and you don't have to go mega far.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Mon Aug 06, 2018 7:33 pm

Errkal wrote:
Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


Hastings will get you more for your money and you don't have to go mega far.


Yeah but you have to live in Hastings.

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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Mon Aug 06, 2018 7:33 pm

Slayerx wrote:Come to Bradford mate you can probably afford Bradford with that kind of money :slol:

My two bed terrace cost 60k!

That's crazy!

Moggy wrote:I’m assuming you are planning on moving a long way away, the South East is hugely expensive.

What sort of area are you looking for? Rural and quiet countryside or bustling city? Will you be getting new jobs or commuting to wherever you work now? What sort of distance from West Sussex?

-I'm open to moving absolutely anywhere
-I would be leaving my existing position and looking for a new job, probably in a similar field (analysis)
-I'd like somewhere that has a nice town/city but I'd prefer to live 10-15 minutes outside as I like quiet.

Errkal wrote:Hastings will get you more for your money and you don't have to go mega far.

I am specifically looking to move away from the South East.

One man should not have this much power in this game. Luckily I'm not an ordinary man.
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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Mon Aug 06, 2018 7:35 pm

Drumstick wrote:
Slayerx wrote:Come to Bradford mate you can probably afford Bradford with that kind of money :slol:

My two bed terrace cost 60k!

That's crazy!

Moggy wrote:I’m assuming you are planning on moving a long way away, the South East is hugely expensive.

What sort of area are you looking for? Rural and quiet countryside or bustling city? Will you be getting new jobs or commuting to wherever you work now? What sort of distance from West Sussex?

-I'm open to moving absolutely anywhere
-I would be leaving my existing position and looking for a new job, probably in a similar field (analysis)
-I'd like somewhere that has a nice town/city but I'd prefer to live 10-15 minutes outside as I like quiet.


Bristol is crazy for prices so we will be (hopefully!) moving at some point.

We’re looking at South Wales. The prices are far more reasonable and there are great train and road links for Cardiff and Bristol (30 minutes ish travel time) and for Swansea/Swindon/Reading/London if you don’t mind a long commute.

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Errkal
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PostRe: Buying a house (and renting)
by Errkal » Mon Aug 06, 2018 7:54 pm

Moggy wrote:
Errkal wrote:
Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


Hastings will get you more for your money and you don't have to go mega far.


Yeah but you have to live in Hastings.


Boo! Hastings is awesome.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Mon Aug 06, 2018 8:00 pm

Errkal wrote:
Moggy wrote:
Errkal wrote:
Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.


Hastings will get you more for your money and you don't have to go mega far.


Yeah but you have to live in Hastings.


Boo! Hastings is awesome.


Even William the Bastard took one look and thought “strawberry float that, we’ll have the fight in Battle!”.

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Lotus
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PostRe: Buying a house (and renting)
by Lotus » Mon Aug 06, 2018 8:03 pm

Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.

Anything guiding you other than house prices? Career, friends/family, etc? You're casting your net pretty wide if it's just the house you're looking at.

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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Mon Aug 06, 2018 8:14 pm

Lotus wrote:
Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.

Anything guiding you other than house prices? Career, friends/family, etc? You're casting your net pretty wide if it's just the house you're looking at.

We are looking for a fresh start somewhere. I just don't know how to go about identifying areas that we would like.

One man should not have this much power in this game. Luckily I'm not an ordinary man.
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pjbetman
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PostRe: Buying a house (and renting)
by pjbetman » Mon Aug 06, 2018 8:20 pm

Jenuall wrote:Aren't the rules changing soon around renting out properties that makes it less lucrative than it used to be? We were looking at moving but keeping our current property and converting it to a buy-to-let but it didn't look like it would be as good an earner as we thought.

I agree with the majority here Curls, don't do it now as you will be in a better position in the future. Unless you are absolutely desperate for it as this is the perfect house then what's the harm in waiting - there will always be something else on the market when you come back to it - and by the sounds of things you will be in a much better position to either get something better or take out a lower mortgage and have extra cash in the bank each month.


I wouldn't bother telling your mortgage company you want to let it out.

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Lotus
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PostRe: Buying a house (and renting)
by Lotus » Tue Aug 07, 2018 8:32 am

Drumstick wrote:
Lotus wrote:
Drumstick wrote:Some time in the future, probably in around two years time, the wife and I will be looking to move elsewhere. We're currently in West Sussex, we would be looking to move somewhere where you get more for your money with houses, looking at around £200k for a 3-bedroom house.

Which areas should I be looking at? I've never relocated before, at all, so I don't have much idea on where to start.

Anything guiding you other than house prices? Career, friends/family, etc? You're casting your net pretty wide if it's just the house you're looking at.

We are looking for a fresh start somewhere. I just don't know how to go about identifying areas that we would like.

I'd say it's worth trying to identify some factors that will help narrow your search, otherwise you'll just be looking all over and doing endless research on what different places are like and the pros and cons of each potential place/move. If you have a few criteria that can even narrow your search down a bit, it'll help massively. I've been in a similar position before where my job meant that I didn't have to be tied to a particular location, and so technically I could've moved anywhere (I was looking to buy my first place) but I looked at a few things; proximity to friends, proximity to family, road/rail/airport links, potential long-term plans in my personal life, potential long-term housing market activity (will the place retain its value, increase, etc), do I want to live in the country/a town/a city, what kind of amenities do I want or need, etc. You've plenty of time from the sounds of it, but worth thinking about for sure.

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