General Discussion: Property thread


illwill
illwill avatar

3440 posts since 17/5/04

posted 28 Aug 2018 10:34, edited 28 Aug 2018 10:34
Some decent knowledge on here so thought we needed a dedicated thread.

Need to value a property with a view to buying it off-market.

Do I get an average of 3 valuations from estate agents or pay a couple of hundred for a RICS surveyor valuation?
Seventyfour
Seventyfour avatar

8692 posts since 6/10/05

28 Aug 2018 13:04
Get a surveyors valuation, estate agents value them higher to gain the custom of owner. That said surveyors sometimes undervalue them, buying my house was a nightmare, due to poor valuations
swede
swede avatar

7757 posts since 21/3/09

28 Aug 2018 14:25
surely you should get both? a couple of hundred quid could save your 10s of thousands surely?
MrW
MrW avatar

2481 posts since 1/8/11

28 Aug 2018 14:45
If you’re only after a rough price, check sold prices of comparable neighbouring properties (nethouseprices, rightmove, zoopla) and adjust accordingly based.

If you really want to buy the property, you’ll want to get a survey done on it so pay an extra £150-£200 to get a valuation done at the same time.
stoney
stoney avatar

17322 posts since 22/1/05

29 Aug 2018 06:28
Hit me up with address and post code. I have access to right move plus, gives access to lots of data. On holiday so might not get straight back to you.
Scottishmark
Scottishmark avatar

504 posts since 25/1/11

29 Aug 2018 17:54
Lender will require a proper valuation, even if off market purchase (assuming you are borrowing).
nothingelseworked
nothingelseworked avatar

3176 posts since 21/2/10

4 Sep 2018 11:06
I know no one has a crystal ball, but anyone that has experience of is actively following the market have any educated guesses/thoughts on whether to wait post-Brexit for first-time buy? Or just yolo it now pre-brexit. Looking at cheap residential to get on ladder rather than investment/BTL, but potentially look to move within 2 years and potentially let out property rather than sell.
swede
swede avatar

7757 posts since 21/3/09

4 Sep 2018 12:02
my take on it is that brexit and new stamp duty are trampling the higher end of the market. the lower end (I assume you aren't going above £500-600k if you are a first time buyer…. could be wrong) has hardly been affected, and will continue to be relatively stable - whatever the outcome from brexit

demand from first time buyers isn't falling. record numbers of young people renting etc etc.

the government are looking to replace the help-to-buy scheme when it expires in April 2021, as they say it isn't helping low income households at all - but seems more like a tax relief for the middle class (myself included). I'd suggest getting involved with that. Coupled with a lifetime ISA for more free money
andymakesglasses
andymakesglasses avatar

20121 posts since 26/1/06

4 Sep 2018 12:11
There are too many unknowns about Brexit currently to accurately predict its impact on the property market. My advice would be to buy now but rather than buy something cheap to get on the ladder I would suggest trying to future-proof yourself slightly by looking for something that could suit you for 4 or 5 years (if that's feasible). That should (might) take you beyond any initial Brexit fallout. Keep in mind that the bigger the deposit you can scrape together the more you insulate yourself from potential negative equity.

Very generally speaking if you buy now and are looking to move / sell post-Brexit then everyone will be in a similar boat. If the property market implodes people will still want to move and while property values might go down the values of property you'd be interested in will also go down.
nothingelseworked
nothingelseworked avatar

3176 posts since 21/2/10

posted 4 Sep 2018 14:13, edited 4 Sep 2018 14:13
Cheers for the input, guys.

I'm aiming for £200-250k range, but my ceiling for affordability is probably closer to £300-350k, obviously higher with help-to-buy. Looking outside of London, though, as you get so much more for your money and I'm self-employed so not reliant on a job in London, but business is London-based so a convenient link to London is important and I've found some alright spots in South East. Makes me think why spend on London if I don't need to? However, I'm predicting I will need to be back in or closer to London within next 2-3 years, so kinda looking at things with that in mind, too.

Anyone know the point at which help-to-buy would become an unnecessary cost (because of interest) when taking into account someone's deposit? I understand the value for people with low deposits (5-10%) and people looking to buy outside of their range, but is it still valuable for someone with a higher deposit that is buying within their range? What is the cutoff for the vale on HTB? When you have a 30% deposit? 40%? 50%? Or does it have value at all brackets? I suppose it does as long as you pay it back within 5 years before interest kicks in? Thinking about this 'cause deposit-wise I think I'll be in a decent spot compared to most people, so don't want to unnecessarily pigeonhole myself into new builds if there's not a decent benefit.
swede
swede avatar

7757 posts since 21/3/09

posted 4 Sep 2018 14:57, edited 4 Sep 2018 14:57
interest only kicks in after 5 years - at 1.75% of the total of the equity, the rate increases after that at RPI + 1% until the loan is paid off. it is sort of assumed that within 5 years you will be able to remortgage with a higher salary/saved money to cover the equity (https://www.moneysavingexpert.com/mortgages/help-to-buy-equity-loans/). either way it is a fucking cheap loan

the cut off is £600k for a house in london (within m25 iirc) and £450k outside of london. £300k in wales

the deposit you have saved doesn't alter the equity loan amount, me and my gf are using a 20% cash deposit. the loan amount is 20% of the value of a new home (40% in london!)

it is a really good scheme if you have at least a 5% deposit and an alright wage, but you can see how it artificially inflates property prices - as suddenly more people can afford a £600k flat in london, whereas before they could only stretch to £340k..

note you cannot use a mortgage leveraged above 4.5x your salary. this fucked us originally as we had a monster 4.8 leverage (if anyone needs a mortgage advisor I can share details)




collizhun
collizhun avatar

3880 posts since 19/10/06

posted 4 Sep 2018 15:07, edited 4 Sep 2018 15:07
Its only on New Builds that allow the scheme too - you can't just use it on any purchase you find on rightmove.

If you can afford to a property without I would do that. Adds an additional pain when selling as need to get your place valued yourself, and get a redemption statement from the HCA. Though its good if you can only afford 5% deposit or have a low borrowing range. Much better than Shared Ownership.

We're selling our help to buy now and buying a house, actually just bid today so should know within the hour if we've got it!
collizhun
collizhun avatar

3880 posts since 19/10/06

4 Sep 2018 15:11
swede wrote: interest only kicks in after 5 years - at 1.75% of the total of the equity, the rate increases after that at RPI + 1% until the loan is paid off.

You only actually pay interest on the amount though not capital as well. The only way to repay the HTB equity loan is in 10% chunks. You must repay it after 25 years or when you sell the property.
Rez
Rez avatar

7898 posts since 5/4/09

4 Sep 2018 15:28
Pretty sure you can't let out a property that you've bought on help to buy.

You can't even rent it out if you've used a help to buy isa Laughing out loud
swede
swede avatar

7757 posts since 21/3/09

4 Sep 2018 15:43
you can with an ISA after some time, as the government are aware that "circumstances can change" https://blog.moneysavingexpert.com/2016/04/can-you-rent-out-a-home-bought-with-a-help-to-buy-isalifetime-isa/

but yeah you aren't allowed to with a help-to-buy property.. apparently

you might need to remortgage though?
Hello World
Hello World avatar

12096 posts since 7/3/05

5 Sep 2018 15:19
I sold in May this year, waiting until after Brexit to buy again, was already renting another place anyway at the same time.

No chain purchase coming out of a rented place gives more flexibility as well. Since I am married now and starting a new job in the new year we can get a little better deal with 2x salary and higher income, but it doesn't really seem to make a massive difference to loan amount. People are offering 95% mortgages again.

Prices in Bristol / Bath area are high so any savings would be useful even 5%.
MrW
MrW avatar

2481 posts since 1/8/11

posted 5 Sep 2018 15:57, edited 5 Sep 2018 15:57
Hello World wrote: No chain purchase coming out of a rented place gives more flexibility as well.

We thought the same as we sold our old place, put everything in storage, had large lump of equity and mortgage ready to go. Even moved in with parents so we could continue to save and have no ties around a rental property.

When we complete later this month, it will have taken 11 months and 3 weeks after selling our old place. We got let down on 3 properties regardless of offering full asking price on all 3, one seller decided after several months of us waiting she simply didn't want to sell after all.

It's cost us £15k+ in not being able to port our mortgage within the window (which I spent ages negotiating an extension from 3 to 6 months), surveys, searches, solicitor fees and storage before we've even started buying our new place. Add into that the hundreds of hours I've spent on the phone to solicitors, estate agents and mortgage providers as well as the time spent viewing properties (we viewed over 80 properties in 8 months before it all started progressing with house no.4).

While you may think you're 'perfect buyers in the perfect position', you're entirely at the mercy of others and I really cannot underestimate what utter time-wasting cunts there are out who think nothing of fucking you over at the drop of a hat knowing there is zero comeback on them.

With that said, good luck to anyone going through a house sale / purchase at the moment Sticking out tongue
swede
swede avatar

7757 posts since 21/3/09

5 Sep 2018 15:59
fuck sake Cry
swede
swede avatar

7757 posts since 21/3/09

8 Sep 2018 12:41
nothingelseworked wrote: I know no one has a crystal ball, but anyone that has experience of is actively following the market have any educated guesses/thoughts on whether to wait post-Brexit for first-time buy? Or just yolo it now pre-brexit. Looking at cheap residential to get on ladder rather than investment/BTL, but potentially look to move within 2 years and potentially let out property rather than sell.

https://www.bloomberg.com/graphics/property-prices/london/

spicy
Trent
Trent avatar

1820 posts since 18/1/09

9 Sep 2018 14:31
Anyone friends or family bought a place in Turkey?

I've seen some outrageously nice places for not much at all 150-180k which probably has a lot to do with the plummet on their currency (and not in Euro, politics etc)