Viewing / Buying a house

[Rugeley Villa]

Just now, itdoesntmatterwhatthissay said:

If I had the chance of security for that sort of money I would go for it. Good luck to you.

Ahhh housing policy. For the few, not the many.

Never seen that kind of money before. Hopefully it can set us up. Just want to do the right thing and not **** it up hence why I'm hoping for some solid advice from people.

[itdoesntmatterwhatthissay]

10 minutes ago, Rugeley Villa said:

Never seen that kind of money before. Hopefully it can set us up. Just want to do the right thing and not **** it up hence why I'm hoping for some solid advice from people.

Awesome  

It's all personal but in my opinion if I could cement a roof over my head any salary I had would serve to top up the value of my house when/if I wanted to move. Or in your case, maybe rent it out. 

Obviously I don't know where you live but if it's in the Midlands then £50k is a good price for a house, I guess you'll know your local market. The price isn't going to drop unless you're in Scunthorpe and if anything, it will go up in value, particularly at £50k.

There's lots that influences the value of a home but at 35 in this jobs and housing climate, I'd love the security of homeownership.

Edited July 11, 2017 by itdoesntmatterwhatthissay

[Rugeley Villa]

5 minutes ago, itdoesntmatterwhatthissay said:

Awesome  

It's all personal but in my opinion if I could cement a roof over my head any salary I had would serve to top up the value of my house when/if I wanted to move. Or in your case, maybe rent it out. 

Obviously I don't know where you live but if it's in the Midlands then £50k is a good price for a house, I guess you'll know your local market. The price isn't going to drop unless you're in Scunthorpe and if anything, it will go up in value, particularly at £50k.

There's lots that influences the value of a home but at 35 in this jobs and housing climate, I'd love the security of homeownership.

The area that my house is situated is quite sought after. Houses in this street that are identical to mine have been going for atleast 110k, so 50k is a good deal. It's not somewhere where we can stay long term because it's just not big enough, but we ca make do for another 5 years until we have the right to sell or rent out. 

[Kingman]

1 hour ago, Xela said:

I'm going to sit by the sidelines for a bit and see how it pans out before I invest in a property. I'm in no desperate rush at the minute. 

I would do just that and take a market check around Christmas. 

One of the first could be Carillion, shares are in carnage and could be close to collapse,

This is the first of many FTSE listed companies IMO with a black swan and profit warnings, could very well snowball far and wide!

Edited July 11, 2017 by Kingman

[TrentVilla]

42 minutes ago, Rugeley Villa said:

Ive just came into 20k. Live in council house and can buy for 50k. House is a tad small but we can sell or rent it out after 5 years of buying it. Also wife's brother wants us to go in shares with him on his mums bungalow which can be bought for 25k. Good idea or not, or are we best putting the 20k down on a bigger house. Want to invest it instead of leaving it in bank.

Well... funny you should say that, I've got some magic beans I'm looking to sell and would you believe it I'm willing to let them go for £19'999!

I'm not going to give advice on this, I'm not qualified to do so and I don't know you or your situation well enough to do so.

But what I would say is that is potentially a life changing sum of money for you, make sure you use it to change your life and that of your family in the way you want it to.

I'm obviously aware of the issues you've raised in another thread, so please don't blow this money on the things you don't need in your life.

As for buying a place... it sounds like buying and flipping your property (selling at a profit in x years) could be financially very rewarding for you. I'd also point out that if you are buying significantly under market value then you are likely to be insulated against a market crash or general fall in prices. But don't forget you will have two lots stamp duty to pay, one on this property and then again on a bigger property in x years.

In terms of the other thing, personally I would never ever enter into any kind of financial venture with a family or extended family member, it just isn't worth it.

Sticking it in the bank is a safe option and one that still allows you to change your life/lives at a later date. If things are a little out of balance still that might not be the worst move to make.

 

[itdoesntmatterwhatthissay]

7 minutes ago, TrentVilla said:

Well... funny you should say that, I've got some magic beans I'm looking to sell and would you believe it I'm willing to let them go for £19'999!.......

..................... But don't forget you will have two lots stamp duty to pay, one on this property and then again on a bigger property in x years.

 

I don't think there's stamp duty under £125,000 and there used to be some discount mechanism for right to buy.
SLDT on the second property though, that's an extra likely 3% unless you sell the rental.

Maybe I'm wrong, I better check. something I should really know!

[TrentVilla]

1 hour ago, Kingman said:

Just to be clear its yesterdays article claiming 40% and not myself,

Like i said last month a massive correction will be happening for a whole bunch of reasons I've explained over the last few pages not just Nationally but Global markets. 

With regards to BTL, Lets not forget many BTL landlords are not stupid, reptilian and evil yes. The bright ones who have made some good money, by that I mean doubling, trebling their money or better, I hope will now be thinking a 10-50% (Pending area) loss on highs will be still leave me quids in. This type of thinking will be the push of the tyre on the first few feet of the mountain, it then becomes unstoppable.

Certainly going be interesting, the insanely low yields in the SE have been justified by "it'll go up in value by x by year xxxx, so it doesn't matter if I'm breaking even at the moment". This in in a rising market on record low interest rates, basically as good is it will ever be for them.

Ive been involved in Construction and Civils for 25 years and the 2008 pattern is emerging, Now we're in a falling market with emerging market investors pulling out of yet-to-be finished new builds, BTL tax changes not even kicking in yet (if they understand them), falling rents, massive shift in HPI sentiment, greater stress testing, and talk of gradual IR rises. 

I suspect most people won't be willing to sell until its too late but those with far worse quality, location, twigs in vase than rental and will just keep the property rented out until its too late to escape...

For most the time frame for disaster will be either:-

1) Tenant moves out and no one can't be found - leading to mortgage default and repossession. House is then sold at auction and the significant shortfall recovered from the BTLer by repossessing the BTLer's main house 

or 

2) Discounted mortgage period comes to an end. Remortgage options are not available leading to the BTL being mortgage reverting to Standard Variable rate. BTLer attempts to keep the property going by paying the £xxx extra on the mortgage until he fails to do so. mortgage default and repossession. House is then sold at auction and the significant shortfall recovered from the BTLer by repossessing the BTLer's main house. 

Just an opinion 

I know the 40% figure wasn't yours but you are still predicting a "massive correction", so what are you talking about? Are you saying 5%, 10%, 15%...20%...30%?

I'm glad to know you don't think I'm stupid even if you do think I'm evil, cold blooded and covered in scales!!!! It is interesting that you claim to have an insight into my mind and financial acumen as well as all the other people in the market.

I'm afraid the above is more your wet dream than it is a glimpse into the future, it certainly isn't representative of my position or that of many other reptilian BTL investors I know. Sorry if that disappoints you.

In fact, were there to be a "massive correction" then actually a lot of BTL reptile overlords would actually see it as an opportunity and look to invest.

[Risso]

Hopefully exchanging contracts on our new house back in Blighty this week.  Have just worked out what the stamp duty is going to be, so I'm off for a lie down.

[TrentVilla]

6 minutes ago, Risso said:

Hopefully exchanging contracts on our new house back in Blighty this week.  Have just worked out what the stamp duty is going to be, so I'm off for a lie down.

Blimey, its taken you way longer to do that sum than it should of done

PS - Congrats for tomorrow...

[Risso]

1 minute ago, TrentVilla said:

Blimey, its taken you way longer to do that sum than it should of done

It was the house purchase equivalent of not checking your credit card statement at the end of the month!  Oh well, if you're going to start paying high rates of tax again, might as well do it in style.

[Rugeley Villa]

36 minutes ago, itdoesntmatterwhatthissay said:

I don't think there's stamp duty under £125,000 and there used to be some discount mechanism for right to buy.
SLDT on the second property though, that's an extra likely 3% unless you sell the rental.

Maybe I'm wrong, I better check. something I should really know!

Correct. 

[Kingman]

1 hour ago, TrentVilla said:

I know the 40% figure wasn't yours but you are still predicting a "massive correction", so what are you talking about? Are you saying 5%, 10%, 15%...20%...30%?

I'm glad to know you don't think I'm stupid even if you do think I'm evil, cold blooded and covered in scales!!!! It is interesting that you claim to have an insight into my mind and financial acumen as well as all the other people in the market.

I'm afraid the above is more your wet dream than it is a glimpse into the future, it certainly isn't representative of my position or that of many other reptilian BTL investors I know. Sorry if that disappoints you.

In fact, were there to be a "massive correction" then actually a lot of BTL reptile overlords would actually see it as an opportunity and look to invest.

As I've said over the last few pages the ingredients are all there:                                                                                                                                                                                                                                                           

Rising inflation
Potential rate rise, Unstable Global Market
Stagnating economy, Brexit Uncertainty  
Unrealistic house prices
Mass baby boom die off

Not there yet. Denial phase will be protracted in my opinion. Only higher interest rates will change that.

Banks are doing their bit to rob their customers though. My mates 2 year fix ran out and now on SVR of 4%. His savings in the same bank earn 0.000125%. so contacted the mortgage department, The savings  exceed the mortgage loan by a ratio of 500%.

The LTV is under 50%. They advertise an offset mortgage, which their calculator implies would set the mortgage rate at 0%. He's been in to the branch, gone online and tried all 3 mortgage telephone advice lines. On the last call they actually denied that he was even a customer. The branch promised a call back that never happened.

Obviously They want him to stay on the 4% of course as been a customer for over 25 years. 

On a side note, i have no idea who you are, where your from, what you do or that you could be flirting with the above 1 or 2. 

Having seen it all before I'm simply having an opinion on a public message board and making a prediction of the possibility to the next black swan just like i will be predicting the score against Hull City in couple of weeks if thats ok.

[TrentVilla]

5 minutes ago, Kingman said:

Having seen it all before I'm simply having an opinion on a public message board and making a prediction of the possibility to the next black swan just like i will be predicting the score against Hull City in couple of weeks if thats ok.

And I'm disagreeing with your prediction as I may well do re the Hull game.

Oh and I suggest your mate checks out Atom Bank and their mortgage rates, they'll need to go through a broker as you can't go direct but I recently fixed with them for 5 years at 1.29%.

[TrentVilla]

 

PRICE REBOUND

The doomsayers have been calling a UK house price crash for the last decade and have got it wrong every time.

The clamour increased after Nationwide published figures for May, showing that property prices had fallen for the third consecutive month.

However, the panic quickly subsided after the most recent statistics showed that they rebounded by a healthy 1.1 per cent in June.

The average house costs 3.1 per cent more than 12 months ago, Nationwide says, while official Land Registry figures show annual prices up 5.6 per cent in April to £220,094.

http://www.express.co.uk/finance/personalfinance/826556/Economy-slowsdown-house-prices-stay-firm-Brexit

[snowychap]

33 minutes ago, TrentVilla said:

 

 

 

Sounds like the same kind of call as there was in 2008.;

[mikeyp102]

10 hours ago, Rugeley Villa said:

Ive just came into 20k. Live in council house and can buy for 50k. House is a tad small but we can sell or rent it out after 5 years of buying it. Also wife's brother wants us to go in shares with him on his mums bungalow which can be bought for 25k. Good idea or not, or are we best putting the 20k down on a bigger house. Want to invest it instead of leaving it in bank.

Take the advice of George Best

"I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

[Rugeley Villa]

39 minutes ago, mikeyp102 said:

Take the advice of George Best

"I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

 he was a bit of a lad our George was.

[peterms]

22 hours ago, omariqy said:

You only need to apply basic economics of supply and demand to know that prices won't fall 40% across the board. There are more willing and able buyers then there are houses. Until that changes you won't see a rapid shift in prices. Maybe a stabilisation. 

It depends what you mean by a 40% drop.  Between 2004 and 2008 we saw a 40% drop in the rate of change of house prices in the UK and US.  That's not the same as prices falling by 40%.  That kind of change could very easily happen again - the Australian market is massively overpriced, and the US has apparently been doing with car loans the same stuff they were doing with mortgages before the last crash, and big shocks in either of those sectors will have effects that are more than just local.

Demand can change quickly as well.  There are so many people in insecure employment compared to say 20 years ago, and so many people on mortgages with the lowest rates we have ever seen, who think this is normal.  It's pretty unusual, historically, as the chart shows.  Even a fairly modest increase in rates would leave many people unable to pay their mortgage, and at that point, effective demand immediately slumps.

It seems like a pretty safe bet to say we will experience some big shocks in the housing market.  Saying just when that will happen is far harder, especially since keeping the housing market inflated is just about the only economic policy of this government, so they will try hard to keep prices too high.

[rodders0223]

I have a question, I have started trying to look at a few properties.

Is it normal for estate agents to have a single day where you book a slot to view the property (usually when I am at work and very short notice as the property went up few days prior)
What is this rubbish? I thought I am a buyer looking to spend £££s, can you not take the time out to let me view the **** after work or a weekend?
 

[omariqy]

FYI I have managed to get some pretty good builders who are based in Birmingham. Well they have been good so far. They are reasonable when it comes to labour costs but I have had to source a lot of the materials myself as they are based in Brum and my house is in Leamington. I will wait till they finish before I recommend them to anyone but so far so good but let me know if you need anyone. So far they have knocked one of the chimney's out all the way through, knocked down a load bearing wall and started on the bathroom.