Shillzz Posted March 9, 2011 Share Posted March 9, 2011 People are obsessed with home ownership in this part of the world, no idea why. money/security/prudence. if you pay £500 pm on rent, that is "dead money". £500 pm paid on a repayment mortgage is an "investment", assuming the housing market does at some point "recover". Very much this. If I was to live in the house I am in now, btu rented, then the rent would be at least as much as my mortgage, in reality probably a lot more. The thought of paying that every month and it just going into someone else's pocket rather than towards me owning that house is bad. I'd hate that. As a home owner, I'm obviously pro-ownership along with Stevo & Jon. However, the amount of money which actually goes towards paying your house off, particularly in the early stages, is immensely depressing. I'd guestimate that in the first few years, atleast 3/4 of any mortgage payment is simply to pay the interest, probably a lot more. Anyway, OT - good luck Tamuff. Link to comment Share on other sites More sharing options...
mottaloo Posted March 9, 2011 Share Posted March 9, 2011 Got ya. Once bitten & all that....good thinking. I did the same on my first place. Good luck. Link to comment Share on other sites More sharing options...
Stevo985 Posted March 9, 2011 VT Supporter Share Posted March 9, 2011 People are obsessed with home ownership in this part of the world, no idea why. money/security/prudence. if you pay £500 pm on rent, that is "dead money". £500 pm paid on a repayment mortgage is an "investment", assuming the housing market does at some point "recover". Very much this. If I was to live in the house I am in now, btu rented, then the rent would be at least as much as my mortgage, in reality probably a lot more. The thought of paying that every month and it just going into someone else's pocket rather than towards me owning that house is bad. I'd hate that. As a home owner, I'm obviously pro-ownership along with Stevo & Jon. However, the amount of money which actually goes towards paying your house off, particularly in the early stages, is immensely depressing. I'd guestimate that in the first few years, atleast 3/4 of any mortgage payment is simply to pay the interest, probably a lot more. Anyway, OT - good luck Tamuff. Oh yeh, absolutely. I learned the calculations for working out how much you're paying when doing my CIMA exams, so applied it to my house. It's shocking how little of the house you touch in your first few years of paying Link to comment Share on other sites More sharing options...
Stevo985 Posted March 9, 2011 VT Supporter Share Posted March 9, 2011 Just done them quickly. After 5 years of having my mortgage I will have paid over £35,000 on my mortgage. Yet only around 6,000 of that will have paid off the value of the house. The rest will have been on interest. Link to comment Share on other sites More sharing options...
Genie Posted March 9, 2011 Author Share Posted March 9, 2011 I learned the calculations for working out how much you're paying when doing my CIMA exams, so applied it to my house. It's shocking how little of the house you touch in your first few years of paying I remember with my first place when I got my first annual statement I actually rang the mortgage provider to ask if they'd made a mistake Link to comment Share on other sites More sharing options...
Stevo985 Posted March 9, 2011 VT Supporter Share Posted March 9, 2011 Yep. After my first year, (which will be in September this year), I'll have paid off a massive £1,100 Despite over 7 grand having gone out of my account over the year towards the mortgage. Link to comment Share on other sites More sharing options...
legov Posted March 9, 2011 Share Posted March 9, 2011 People are obsessed with home ownership in this part of the world, no idea why Visit Singapore 2011. Link to comment Share on other sites More sharing options...
Gingerlad Posted March 9, 2011 Share Posted March 9, 2011 Its depressing getting a mortgage statement in those first few years. Link to comment Share on other sites More sharing options...
Shillzz Posted March 9, 2011 Share Posted March 9, 2011 Yep. After my first year, (which will be in September this year), I'll have paid off a massive £1,100 Despite over 7 grand having gone out of my account over the year towards the mortgage. Imagine what it would be if the interest rates were say 5% higher? Nasty Business. What irks me is that you (probably) had to pay an arrangement fee for the privilege of giving them all of this money. Link to comment Share on other sites More sharing options...
Genie Posted March 9, 2011 Author Share Posted March 9, 2011 What irks me is that you (probably) had to pay an arrangement fee for the privilege of giving them all of this money. Me too, its like going into a clothes shop, taking a £30 shirt to the till and then they add £5 on for the cashier to ring it through the till. Mental. Link to comment Share on other sites More sharing options...
RunRickyRun Posted March 9, 2011 Share Posted March 9, 2011 People are obsessed with home ownership in this part of the world, no idea why. money/security/prudence. if you pay £500 pm on rent, that is "dead money". £500 pm paid on a repayment mortgage is an "investment", assuming the housing market does at some point "recover". True, it makes sense if you are middle aged and/or have a family. If you're young and/or single, renting is favourable because you have the ability to move jobs at short notice and earn more as a result. Link to comment Share on other sites More sharing options...
Shillzz Posted March 9, 2011 Share Posted March 9, 2011 What irks me is that you (probably) had to pay an arrangement fee for the privilege of giving them all of this money. Me too, its like going into a clothes shop, taking a £30 shirt to the till and then they add £5 on for the cashier to ring it through the till. Mental. Really is appauling - the fact that you have to pay for a valuation aswell... as if you dont have enough money troubles when moving houses. If it wasnt for the fact that moving house costs about £5000 before you even begin, people might be more inclined to buy one! Link to comment Share on other sites More sharing options...
maqroll Posted March 9, 2011 Share Posted March 9, 2011 Going to look at a house tonight, the early signs are all good and we may well make an offer on it. What tips does anyone have? I heard before to offer an odd amount (like £170,750 for example). Does this give the impression that we're near an upper limit? Any other tips? Check for termites, check the foundation, check the roof, check the chimney (if there is one). Check to see what the other houses in the area have sold for, and lowball them based on the average you come up with. The worst they can do is say no. Link to comment Share on other sites More sharing options...
Genie Posted March 9, 2011 Author Share Posted March 9, 2011 Check for termites, check the foundation, check the roof, check the chimney (if there is one) I'm hoping the survey will capture these problems if they exist. Link to comment Share on other sites More sharing options...
Genie Posted March 10, 2011 Author Share Posted March 10, 2011 Well, looked at the house, both really liked it and put in a 'sighter' offer which as expected was turned down. They said they wouldn't accept below a certain figure (£5,500 above our offer). We made another offer £3k below that. The wife agrees but has to talk it through with the husband... will hear tomorrow... Link to comment Share on other sites More sharing options...
rjw63 Posted March 10, 2011 Share Posted March 10, 2011 Want to lower the asking price? Simple. When you go to view, knock on the door and take this guy with ye: Link to comment Share on other sites More sharing options...
Stevo985 Posted March 10, 2011 VT Supporter Share Posted March 10, 2011 People are obsessed with home ownership in this part of the world, no idea why. money/security/prudence. if you pay £500 pm on rent, that is "dead money". £500 pm paid on a repayment mortgage is an "investment", assuming the housing market does at some point "recover". True, it makes sense if you are middle aged and/or have a family. If you're young and/or single, renting is favourable because you have the ability to move jobs at short notice and earn more as a result. This makes Stevo an unhappy chappy Link to comment Share on other sites More sharing options...
johnsonp Posted March 10, 2011 Share Posted March 10, 2011 Use the estate agent, as they will know what the sellers mindset is. We viewed a load of houses when we were buying ours including the one we bought even though it was on at £350,000, £30,000 over our budget and when they asked what we thought we told them straight our budget was £320,000 they approached the buyer and deal done. In the end they don't always give a shit as long as they sell and move on to the next one. Possibly could have got more off but saved all the crap Link to comment Share on other sites More sharing options...
Genie Posted March 11, 2011 Author Share Posted March 11, 2011 Just accepted our second offer (3k below their 'minimum', 12k lower than their original price) :mrgreen: :mrgreen: Link to comment Share on other sites More sharing options...
Stevo985 Posted March 11, 2011 VT Supporter Share Posted March 11, 2011 Good work mate! Link to comment Share on other sites More sharing options...
Recommended Posts