I'm going to be a first Time house Buyer...

Discussion in 'Community Discussion' started by cwedl, Apr 9, 2007.

  1. cwedl macrumors 65816

    cwedl

    Joined:
    Jun 5, 2003
    #1
    Hi

    I'm actually buying a house with my sister, and I'm scared of the thought, I'm going to start managing my Finances a lot more.

    Any recommendations, help you could give would be a great help.

    I'm going to have to cut down on the amount of Technology I buy, but is living away from home really expensive, I pay rent at home, for sky (which I will be stopping), the internet, etc etc.

    thanks
     
  2. yellow Moderator emeritus

    yellow

    Joined:
    Oct 21, 2003
    Location:
    Portland, OR
    #2
    Recommedations of housebuying or living on a budget?
     
  3. cwedl thread starter macrumors 65816

    cwedl

    Joined:
    Jun 5, 2003
    #3
    Both would be great, I'm worried that I will not have any money to have fun, But I suppose it will make me more sensible,
     
  4. yellow Moderator emeritus

    yellow

    Joined:
    Oct 21, 2003
    Location:
    Portland, OR
    #4
  5. Jaffa Cake macrumors Core

    Jaffa Cake

    Joined:
    Aug 1, 2004
    Location:
    The City of Culture, Englandshire
    #5
    It will depend on how much you pay in rent compared to how much you have to pay for a mortgage. We became first-time buyers just before Christmas, and we found a lovely little house for which we're paying a little less than the rent on our old flat.

    What you and your sister need to do in terms of the finances is look at how much you can afford to pay each month and (although it sounds obvious)don't go for a property that's beyond your means. One thing to consider is transport – is it just as easy to get to work/town from your potential new pad as it is from where you currently live? If it's a longer journey then it can be quite surprising how the extra transport costs can rack up. Don't forget either that even a fairly new house is still going to need a bit of work to get it exactly how you want it, even if it's something as simple as a fresh lick of paint. And make sure you find out about the local council tax and what band the property falls into.

    It's always a good idea when you go to look at a property to take someone along who's got some experience of buying a house – maybe a parent. It's surprising what they pick up on that you overlook.

    On the subject of parents – even if you don't have any kids it's an idea to find out about the local schools. Obviously if you have a kiddie or two in the future it's a plus point, but even if you don't if you're in the catchment area of a really good school then that's a very saleable and attractive feature when you come to sell in the future.

    One other thing – obviously it's going to take a while to find your house, but be aware that after June 1 anyone who sells a house has to have a Home Information Pack for the property. It's going to cost hundreds of pounds for a seller to get the pack put together for a property, so if you buy after this date then the seller has to do the work for you (ie, if you sell the house in ten years time you'll already have your pack sorted, it'll just need updating which is going to be easier and cheaper than starting it from scratch).

    Good luck!
     
  6. iGav macrumors G3

    Joined:
    Mar 9, 2002
    #6
    Steady on fella... this isn't the backwoods of Georgia y'know. Weheh.
     
  7. bartelby macrumors Core

    Joined:
    Jun 16, 2004
    #7
    Also just because a bank etc say you can get a mortgage of x amount, doesn't necessarily mean you can afford it. Remember interests rates go up more often than they go down.
     
  8. dcv macrumors G3

    Joined:
    May 24, 2005
    #8
    Tis true. My fixed rate expired a few months ago and since then I've been paying the SVR which is about 50 or 60% more than what the fixed rate was. :rolleyes: I should've remortgaged by now but what with being between jobs and not being able to decide when I might move house next, I haven't quite got round to this.

    My advice would be to take out a fixed/discounted rate for as long as possible (bearing in mind that there are often early redemption penalties associated with such products though) and that it *can* also pay to see a specialist mortgage broker (e.g. Charcol). You do have to pay for these services but they can secure you a better rate, which pays off down the line.

    The This is Money website usually has some decent mortgage info. Good Luck!
     
  9. iGav macrumors G3

    Joined:
    Mar 9, 2002
    #9
    Also don't forget the Tories are almost certainly guaranteed to get in at the next election, so that means a recession will shortly follow, so make sure you don't get saddled with a mortgage that stipulates you cannot sell for 5 years without sustaining somekind of outrageous financial penalty.

    Because you'll be really screwed then. ;)
     

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