5 Mar 2008 21:49
Over 25 years property will generally rise in price and make a good return - you may find you cannot afford to pay your mtg with inflation on cost of living and interest rate rises though! You cant say wether its a good time to buy unless you know the persons current situation.
If you live at home or can rent cheaply stay as you are and save as much as possible - you will get a better interest rate on any home loan in future and will be in position to take advantage of any 'crash'.
6 Mar 2008 10:10
I've been renting a room from friends for the past 2 years, paying less than average rent for the area. I'm just sick of living in this area and want to move closer to work and where most of my friends live. Rather than pissing money down the drain in rent again i guess i see it as a good time to buy, even though not many others are at the moment.
Im looking for a 3 bedroom place so i will let 2 of the rooms, with this i'll be able to afford the repayments, however im not banking on letting the rooms immediately as work might need doing and they might take a while to let.
This might sound like a dumb question, but if interest rates explode along with the cost of living, will the cost of renting rise also?
6 Mar 2008 20:49
People charge rent to pay their mortgage, if the mortgage costs more then the rent has to go up to cover it. In general renting costs less than a mortgage, either due to the owner putting more deposit down on a new buy, or the property being old and the mortgage was of a smaller value than the actual value now.
10 May 2008 14:45
Saw quite a nice house today, and spoke to a mortgage advisor (estate agent). He wasn't the first mortgage advisor i have spoke to, but i was quite curious on the advise that he had given me.
He was aware of the houses that i was going to be looking at, and i asked him what sort of offers could i make on todays market. He replied saying that a lot of sellers are willing to take offers of 10% lower than the price that they are selling at.
Surely its things like this that can cause slow downs in the market? A few of the houses that i viewed today had been up for about 3 months, it doesn't seem surprising if estate agencies are telling people that they can get 10% off.
10 May 2008 15:00
thats the norm mate, always has been…its very very rare that you ever pay the full asking
11 May 2008 11:14
Always knew that people made offers, i just thought it was off that i was advised to make ridiculous offers like that.
11 May 2008 11:18
nothings selling mate, its the worst time in the housing market since you have been alive.
he was doing you a favour by trying to save you money, cos most people selling now will have been selling for ages and would more than likely take a 10% hit on any sale (from a one bed flat for 150k to a mansion at 1.5mill), and he fully knows that and shared that knowledge with a young and inexperienced buyer cos his firm needs the sale as bad as the vendor.
11 May 2008 11:20
yeah what noble says is spot on. Id say 10% lower offers were pretty common place in a normal situation, but in the current market you could easily offer lower and have it accepted if you find the right house / people.
11 May 2008 12:03
Might as well start low, nowt to lose
11 May 2008 12:55
Looked at a new place yesterday as well, which was well over my budget. Told the representative there my budget and he basically cut 20% off the asking price without me even offering a holding fee.
11 May 2008 13:02
With 20k savings and a wage of 25K a year what sort of mortgage could you get?
16 May 2008 11:45
What is the best way to get a mortgage? Using a financial advisor or going straight to a bank?
Reason i ask is that a financial advisor some friends and collegues use has got back to me with a mortgage with Lloyds, its 6.69% interest only for 2 years, with fees of £1995. They claim they search the whole market, and that they don't charge a fee.
I walked into Natwest the other day and told them my circumstances, and the best deal they could find me was 5.99% interest only for two years with fees of £999.
I would have thought the financial advisor would have found this mortgage product. Has anyone on here got a mortgage with Natwest or Lloyds? Natwest is looking the most attractive at the moment as the repayments are about £150 less.
16 May 2008 12:00
Thats what i thought, immediately when i saw the high fees for the mortgage with Lloyds, i imagined that is the reason why they recommended it.
Its funny looking at the Lloyds site, that their highest fee is £895.