Buying a house (and renting)

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Jun 10, 2021 2:32 pm

Victor Mildew wrote:
Moggy wrote:
Victor Mildew wrote:They won't give a gooseberry fool if they're buying to let, as they can just pass this on to future tenants can't they?


I'm not selling to a buy to let. It's a first time buyer.


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Seriously though, if she has a breakdown of the fees, then you can always point to this being a temporary thing.


Hopefully, I could always agree to fund a years worth of this bollocks, but I fear it'll really put her off.

Sick of this gooseberry fool, I cannot wait to get out of here.

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That's not a growth
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PostRe: Buying a house (and renting)
by That's not a growth » Sun Jun 13, 2021 5:08 pm

I've been looking online at some apartments, and there's a few that I'm a bit interested in and within my budget. There all a similar style, as they're in the same building, just with minor differences.

Then on Friday another flat in the same building got discounted to the top level of my budget. It's a bit bigger, and a nicer layout (more square, than long and thin, kitchen and living room more separated).

I was telling my Dad about this, saying to him I'll have to go for a 20% deposit if I go for that one, due to the amount of mortgage I can get (which I can afford, as the level I can borrow has always been my concern I've been saving like a madman for years for a situation like this).

His viewpoint is I should aim to spend the lowest deposit possible, so I have as much money in the bank as possible. He also seems to think I can ask to borrow more, but I made it clear to him I've already told the company about all my overtime/bonuses when I got my Decision In Principle and it's not going to increase.

It's not like a 20% deposit will wipe me out, I'll still have about 6 months of outgoings left over. I just find it an odd stance, I would figure getting the best rate possible to be desirable, especially since I've saved this money specifically with the aim to spend it on a home. He did suggest to me I should buy somewhere to rent out to make some money the other week, so I do worry if his financial advice is 20 years out of date, and is used to thinking having savings is desirable because he's used to interest rates being better than they are now? I dunno.

I think I'm going to book a viewing anyway, just see if there's any flaws that are obvious before I get too invested.

Need to look more into this whole process, there's so much to think about. Thankfully MSE seem to have some good guides.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Sun Jun 13, 2021 5:12 pm

One thing to take account of is the ground rent/service charges. Make sure you ask how much they are before putting offers in as some places have ridiculously high charges. And that's without excess service charges from cowboy landlords.

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PostRe: Buying a house (and renting)
by That's not a growth » Sun Jun 13, 2021 5:17 pm

Yeah indeed! And I'd want to know how long is left on the lease as well. My understanding is I'd want more than 100 years to be remaining?

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Sun Jun 13, 2021 5:20 pm

That's not a growth wrote:Yeah indeed! And I'd want to know how long is left on the lease as well. My understanding is I'd want more than 100 years to be remaining?


Yeah, I think you need to have 80/90 years plus remaining to get the best prices when you sell, so having 100 years would protect you for a good few years.

You can extend the lease, but that can be very expensive. I think the government are talking about doing away with things like this, but who knows if it'll ever happen.

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PostRe: Buying a house (and renting)
by That's not a growth » Sun Jun 13, 2021 5:23 pm

Cool, yeah I'd want to have enough that I don't need to worry about extension costs - and I'd probably aim to be there less than 10 years.

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Grumpy David
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PostRe: Buying a house (and renting)
by Grumpy David » Sun Jun 13, 2021 5:54 pm

That's not a growth wrote:I was telling my Dad about this, saying to him I'll have to go for a 20% deposit if I go for that one, due to the amount of mortgage I can get (which I can afford, as the level I can borrow has always been my concern I've been saving like a madman for years for a situation like this).

His viewpoint is I should aim to spend the lowest deposit possible, so I have as much money in the bank as possible. He also seems to think I can ask to borrow more, but I made it clear to him I've already told the company about all my overtime/bonuses when I got my Decision In Principle and it's not going to increase.

It's not like a 20% deposit will wipe me out, I'll still have about 6 months of outgoings left over. I just find it an odd stance, I would figure getting the best rate possible to be desirable, especially since I've saved this money specifically with the aim to spend it on a home. He did suggest to me I should buy somewhere to rent out to make some money the other week, so I do worry if his financial advice is 20 years out of date, and is used to thinking having savings is desirable because he's used to interest rates being better than they are now? I dunno.


If you're at your max borrowing then not much you can do about that but mortgage interest rates are higher than cash savings interest rates so your Dad's idea would only make sense if doing something like 15% deposit instead of 20% (if it was affordable!) if you were prepared to invest that 5% deposit rather than putting it in a savings account.

Or if buying a place that needed a lot of upfront expenditure to modernise etc and doing 15% instead of 20% meant not needing to take out personal loans with higher interest rates etc.

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PostRe: Buying a house (and renting)
by That's not a growth » Sun Jun 13, 2021 6:02 pm

Yeah, that was basically my thought pattern on interest rates - and while I'd want to decorate and add furniture there wouldn't be any structural or modernising needed (I think, going by photos). Even if a new boiler was needed I could cover that, but then I'd imagine that'd help me haggle for a slightly lower price anyway.


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