Buying a house (and renting for the proles)

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kommissarboris
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PostRe: Buying a house
by kommissarboris » Tue Sep 19, 2017 9:50 pm

Pancake wrote:'mortgage payments under £300', 'fairly cheap on the housing front'.

:lol:

I need to move. :(


Yip, 20 years for 68K is £294 a month. I could have taken it 35 years for £130 IIRC a month.

I'm not greedy, nor a post code halion, I literally just wanted a house with a driveway, which funnily enough I don't have.

Honestly 2 years ago before I had my car crash I was looking to buy a 1 bed house way out about 30 miles outside Belfast for 30K and just be a hermit.

It's been hard, my Aunt wanted me to buy it with just the 4k 5% deposit, but I didn't want that, so it's been tight the last 8 months or so, saving everything to get the £12k I wanted, but long term it's financially smart.

Plan since meeting the GF is to keep the mortgage under £300, so if kids come along I can go part time and still afford it, or and if we get a second place I don't go part time and can afford 2 mortgages comfortably.

All about living within my means I guess, but I don't envy you lads in London, I watch that homes under the hammer show and the shite sold on there for 200K or more and it's smaller than mine with no garden or anything, strawberry float that. Plus paying water bills and nonsense, nah boys, I'll stay in God's country thanks :slol:

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Green Gecko
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PostRe: Buying a house
by Green Gecko » Wed Sep 20, 2017 1:39 am

Jesus Christ man the houses here approach 500k and mortgages are easily double that at least. In fact I've paid £375 just for half the rent on 1 bed plus tax and utilities including water.

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kommissarboris
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PostRe: Buying a house
by kommissarboris » Wed Sep 20, 2017 1:43 am

Grim.

Yeah I'd be strawberry floated if I lived where you live.

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Green Gecko
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PostRe: Buying a house
by Green Gecko » Wed Sep 20, 2017 1:45 am

Just never grow up in middle class coastal England where there are "good schools" that dress you like nazis. It's OK if you're willing to exile yourself but fam and stuff.

Having said that my brother is better off in Kyoto. In fact you're probably better off anywhere than here where they still speak English, or some mangled form of it.

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Partridge Iciclebubbles
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PostRe: Buying a house
by Partridge Iciclebubbles » Wed Sep 20, 2017 7:32 am

I can see myself being in a weird situation when I am finally ready to move. My flat should have increased massively in value since I bought it almost 7 years ago, other very similar flats in the area that have sold make me think I should be looking at making £80k or so in profit. I have £10k put away and so will (if I am guessing the sale price correctly!) have £90k to put down on a house.

Sounds wonderful, but everywhere else has also increased in value. :lol: Unless I move to a shitty area of Bristol (Southmead or Knowle West :dread: ), I am going to really struggle to find anywhere suitable within my budget. I am not even looking for anywhere too fancy, just a 3 bed with a nice little garden in a half decent area.

strawberry floating house prices. :x

It seems very odd to be moaning and feeling down about it though when I could easily end up with £90k cash in the bank. I only paid a total of £87k for the flat. :lol:

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Hime
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PostRe: Buying a house
by Hime » Wed Sep 20, 2017 7:54 am

Moggy wrote:I can see myself being in a weird situation when I am finally ready to move. My flat should have increased massively in value since I bought it almost 7 years ago, other very similar flats in the area that have sold make me think I should be looking at making £80k or so in profit. I have £10k put away and so will (if I am guessing the sale price correctly!) have £90k to put down on a house.

Sounds wonderful, but everywhere else has also increased in value. :lol: Unless I move to a shitty area of Bristol (Southmead or Knowle West :dread: ), I am going to really struggle to find anywhere suitable within my budget. I am not even looking for anywhere too fancy, just a 3 bed with a nice little garden in a half decent area.

strawberry floating house prices. :x

It seems very odd to be moaning and feeling down about it though when I could easily end up with £90k cash in the bank. I only paid a total of £87k for the flat. :lol:

I don't mean to patronise you Moggy but remember that stamp duty, legal fees and estate agent fees will eat into your funds.

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Partridge Iciclebubbles
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PostRe: Buying a house
by Partridge Iciclebubbles » Wed Sep 20, 2017 7:56 am

Hime wrote:
Moggy wrote:I can see myself being in a weird situation when I am finally ready to move. My flat should have increased massively in value since I bought it almost 7 years ago, other very similar flats in the area that have sold make me think I should be looking at making £80k or so in profit. I have £10k put away and so will (if I am guessing the sale price correctly!) have £90k to put down on a house.

Sounds wonderful, but everywhere else has also increased in value. :lol: Unless I move to a shitty area of Bristol (Southmead or Knowle West :dread: ), I am going to really struggle to find anywhere suitable within my budget. I am not even looking for anywhere too fancy, just a 3 bed with a nice little garden in a half decent area.

strawberry floating house prices. :x

It seems very odd to be moaning and feeling down about it though when I could easily end up with £90k cash in the bank. I only paid a total of £87k for the flat. :lol:

I don't mean to patronise you Moggy but remember that stamp duty, legal fees and estate agent fees will eat into your funds.


Yeah I am aware of that. That’s why I have the £10k stashed away so I can hopefully keep the vast majority of what I make out of the flat.

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jawafour
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PostRe: Buying a house
by jawafour » Wed Sep 20, 2017 8:16 am

That is a nice profit, Moggy!

The prices in London / south east are just ridiculous; I genuinely have no idea how people on a “normal” wage can afford to buy here. As I’ve mentioned before, I live in a cheaper borough but a basic two-bed flat is now around £275k+ and a three-bed semi about £420k+; and those prices are for properties where you’d probably want to update throughout.

I have a flat but to get a house I will probably be looking at moving far outside of the area. I’d like to stay here as I have family / friends nearby and I don’t drive, but I think I’ll have to explore elsewhere. On the positive side I think I’d like to live somewhere a bit quieter - London is so busy and noisy.

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Partridge Iciclebubbles
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PostRe: Buying a house
by Partridge Iciclebubbles » Wed Sep 20, 2017 8:31 am

jawafour wrote:That is a nice profit, Moggy!


It should be, I am fully expecting a massive housing crash just before I put the place up for sale though. ;) Actually that wouldn’t be so bad, I have a fair bit of equity now and a drop in house prices would suit me. ;)

I haven’t had the place valued though so I am only guessing at its value. A place nearby sold recently (it was on for £145k but I don’t know the final sale price yet) and that was a much smaller 1 bed place. Mine is a 2 bed with much more space inside and 2 bathrooms. The whole area is gentrifying at the moment so I am hoping that continues to add lots of value while I play out the last year or so of my mortgage fix.

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Harry Ellis
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PostRe: Buying a house
by Harry Ellis » Wed Sep 20, 2017 9:44 am

Our rent alone on our 1 bed-plus-GG-style-box-room was £765. My mortgage on my house is just under £700. It's stupid.

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Pancake
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PostRe: Buying a house
by Pancake » Wed Sep 20, 2017 10:41 am

My mortgage is £1350 per month. :datass: :cry:

To be fair I could increase the mortgage term to bring that down a bit.

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Christmas CrackErrkal
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PostRe: Buying a house
by Christmas CrackErrkal » Wed Sep 20, 2017 10:43 am

fuuuuck!

Mine is £370 a month :P

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Hime
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PostRe: Buying a house
by Hime » Wed Sep 20, 2017 10:54 am

Pancake wrote:My mortgage is £1350 per month. :datass: :cry:

To be fair I could increase the mortgage term to bring that down a bit.

The mortgage on our new place is a bit more than that. It is a lot of money but renting would be so much more expensive for somewhere nowhere nearly as nice.

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Pancake
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PostRe: Buying a house
by Pancake » Wed Sep 20, 2017 11:13 am

Hime wrote:
Pancake wrote:My mortgage is £1350 per month. :datass: :cry:

To be fair I could increase the mortgage term to bring that down a bit.

The mortgage on our new place is a bit more than that. It is a lot of money but renting would be so much more expensive for somewhere nowhere nearly as nice.

We paid the same in rent for a worse place (much more central though) and went for a reduced mortgage term to keep our mortgage payments the same as the rent since we knew could afford it.

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Green Gecko
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PostRe: Buying a house
by Green Gecko » Wed Sep 20, 2017 4:18 pm

We now have two independent valuators coming to the house, one of which is a sales executive for a generally expensive estate agents and the other a senior sales advisor. My pseudo landlord is probably selling his newly inherited house right? It may even be in the will to sell it. Or is this just a normal part of probate.

There's basically the same house for rent a mile away for £25 more per month we're viewing on Saturday. It's on a very nice central street with no traffic noise (which is horrendous here) because it's a dead end. The lower deposit means we can actually repay money we borrow for the cost of a moving van and there are no banana spliting fees (which normally run into £400+ quid, once it was over £700).

Knowing the basic facts would people say it's smart to get ahead of this and secure a proper tenancy term rather than face eviction at any point in the next forever or until they get around giving us a reasonable tenancy term?

That's largely the opinion I'm getting apart from my mother who would rather we didn't up roots unnecessarily. But I'm really not comfortable with this situation.

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Hexx
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PostRe: Buying a house (and renting for the proles)
by Hexx » Wed Sep 20, 2017 4:48 pm

They'll need the value at the date of death for the IHT process (open market value)

They can get a range of values if they want, and take an average.

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PostRe: Buying a house (and renting for the proles)
by Green Gecko » Wed Sep 20, 2017 4:52 pm

I see, so they get taxed based on the what the property is worth, even if they have no intention of selling it?

That's some food for thought. I guess if they can't execute a longer agreement it defaults to rolling until the property is in their name or someone else's but I'm still uneasy about it. Maybe I worry too much.

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Hexx
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PostRe: Buying a house (and renting for the proles)
by Hexx » Wed Sep 20, 2017 4:59 pm

Green Gecko wrote:I see, so they get taxed based on the what the property is worth, even if they have no intention of selling it?

That's some food for thought. I guess if they can't execute a longer agreement it defaults to rolling until the property is in their name or someone else's but I'm still uneasy about it. Maybe I worry too much.


The estate might get taxed.

IHT would be due to be paid by the estate which holds the asset pre-transfer, not benefactors who receive the transfer (kinda doesn't matter what they intend to do with for IHT purposes)


My parents have inherited houses (they weren't rented at the time - but had been grandparents house). My viewpoint was sell it. Who wants to hassle of renting, upkeep, dodgy tennents. Sell it (even at reduced value) and get a clean slate.

Might be different (especially if it's a rental property) - but I don't think it's wrong to worry. You're not panicing, you're being considered.

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Green Gecko
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PostRe: Buying a house (and renting for the proles)
by Green Gecko » Wed Sep 20, 2017 5:09 pm

Thanks for the latter balancing check.. It's hard to know. Like Pablo Escobar said on Netlix :p, "It's not paranoid if you're actually being chased, it's just smart."

It's been a rental property for a very long time indeed but after I caught a copypasta an email where the son used the phrase "considerable inconvenience and expense" regarding re-plastering a rotten wall before we moved in, I don't have a great deal of confidence that as a new landlord he would actually want to bother with it.

I think elderly landladies rent their old homes as a means to live and keep the rent reasonable because they have no incentive like family to rinse the tenants, and some of them even do it altruistically (the rent is reasonable for the area and more in line with private lets than agencies). When you come into property and knowing the value of said property, I think a younger landlord is going to think very differently about this. He may well be sick to the teeth of dealing with it for his mother for however long. I know I probably would be.

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PostRe: Buying a house (and renting for the proles)
by Preezy » Wed Sep 20, 2017 5:12 pm

My mortgage is £826 p/m, the house next door (identical to ours) is £1,500p/m to rent.

This makes me feel smug :D

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