Small vans

[abdoujaparov]

I'm too old for a 25 year mortgage (which came as a bit of a shock).

[Rufus Gwertigan]

I think you need to be really careful. You are assuming that you will always have lodgers and tenants. There are houses in my area that have been empty for ages. There is a a house that is offering a double bedroom with its own living room (so 2 rooms) for 64 a week bills included and that has been there for over 9 months. There will be times you will have no rent and times tenants will rip you off. Also I would wonder why the house is so cheap in the first place given that my area is cheap but you wont find a 3 bedroom for less than 100 for an unmodernised.

[the_hedge]

Yup. Mostly driven by the missus wanting her own place, tho driven on once we'd started into it by the realisation that getting a mortgage at my age ain't so easy, because I'm too old for a 25 year mortgage (which came as a bit of a shock). So the longer I might leave it, the harder it's going to be.

From one angle it's probably a bad time to buy because I expect at least another 10% or more fall in prices over the next 2 years or so, but with being the age I am any fall like that over the next year or three isn't going to make a mortgage any cheaper for me because it'll have to run over fewer years. So it's pretty much now or never.

[abdoujaparov]

I think you need to be really careful. You are assuming that you will always have lodgers and tenants. There are houses in my area that have been empty for ages. There is a a house that is offering a double bedroom with its own living room (so 2 rooms) for 64 a week bills included and that has been there for over 9 months. There will be times you will have no rent and times tenants will rip you off. Also I would wonder why the house is so cheap in the first place given that my area is cheap but you wont find a 3 bedroom for less than 100 for an unmodernised.

[eFestivals]

I thought the Tories had burnt your fingers so bad you would would never buy again!

nah, that's never been my view. And I've never been burnt on houses either - even when I had one repossessed around 20 years ago.

If your in it for the medium to long term you wil be fine anyway. I'm looking to move to a bigger house in the next 18 months but I'm concerned with how intrest rates are going. I'm on a vraiable rate and I have got used to paying next to nothing, That aint gonna last....

If I'm in it to live in it I'll be fine. And I've spunked over £50k on rent in the house I've lived in for the last eight years anyway.

I agree with you about interest rates. There's no doubt in my mind that they're going to go somewhere silly (late 80s sort of silly, which is scary) within a decade. But I reckon, with the govt and BoE now only paying lip-service to the supposed golden rule on inflation, then interest rates are back to being used politically again, so I reckon they'll stay around where they are currently until after the next election - it's what happens after that which is the worry.

I've gone for a 2 year fixed, and the plan is to go for a 5 year fixed when that expires - which I'm hoping should keep me away from the worst of it. Fuck paying 19.5% again, as I had to in the late eighties/early nineties (hence the repossession!).

[eFestivals]

there are a load of other wrinkles to the plan - like the fact that if he isnt using the house as his main residence (ie when he goes to Japan or whatever it is he is planning), it's quite likely that his mortgage lender will require to have a buy to let mortgage and to prove that he can cover the mortgage interest payments (at least) without rental income.

It may also be necessary, depending on the approach his local authorty takes, to licence the property as an HMO if there are 3 or more unrelated people living there.

Unfortunately, nightcrawler sees these sorts of comments as negativity, rather than constructive comments designed to help him make sure he's covered all the issues....

not forgetting the negativity of capital gains tax on the profit made from a house which isn't the house you live in.

[Rufus Gwertigan]

there are a load of other wrinkles to the plan - like the fact that if he isnt using the house as his main residence (ie when he goes to Japan or whatever it is he is planning), it's quite likely that his mortgage lender will require to have a buy to let mortgage and to prove that he can cover the mortgage interest payments (at least) without rental income.

It may also be necessary, depending on the approach his local authorty takes, to licence the property as an HMO if there are 3 or more unrelated people living there.

Unfortunately, nightcrawler sees these sorts of comments as negativity, rather than constructive comments designed to help him make sure he's covered all the issues....

[eFestivals]

I realised that I have seen the scheme he is on about (I think). You provide a 5% deposit and then you can get a 20% equity loan off the Government, then you get a 75% mortgage. linky thing: http://www.plumlife....Guide.sflb.ashx

if that's the scheme he's on about, it works very differently to how he's said it does.

[abdoujaparov]

I realised that I have seen the scheme he is on about (I think). You provide a 5% deposit and then you can get a 20% equity loan off the Government, then you get a 75% mortgage. linky thing: http://www.plumlife....Guide.sflb.ashx

However the scheme is aimed at families getting on the ladder and the agents limit what sort of property you can have. For me it was a 2 bed, as I only need one bedroom, as well as it been only in specific areas.

As to his negativity, why does he ask for information in the fist place if he is not willing to take constructive criticism

[nightcrawler13]

done offer advice, and for that I am very grateful!

Others however just tell me how everything I'm saying is wrong, which is not helpful.

The house I'm getting is in an area populated by hospital staff, students and city workers. I'm being a 95% mortgage and living in the house for three years before I move out when I can then change to a buy to let write easily. I wont be selling the house, so I don't know why everyone keeps warning me afainst begative equity....

As I've explained I'm only spending 4k, my mortgage will be paid by a lodger, the money I make from the house I wouldn't have at all if I didn't get the house so it's all profit IF I sold it, which I have no intention of

Anyone with personal examples or advice i'd be happy to hear from, anyone who tells me I'm wrong with nothing else to say whilst cackling to themselves i'm ok for your advice thank you

[Rufus Gwertigan]

I think we are just confused at what is happening. So you are buying a 70k house at the bargain price of 50k full ownership?

[nightcrawler13]

Arg...

The house is 70k, the first person said if I sell and only get 50, if that did happen then id still be in profit because the 26k is something I wouldnt have if I didnt buy the house, as I rent and will never see the 350 a month I pay ever again

[eFestivals]

anyone who tells me I'm wrong with nothing else to say whilst cackling to themselves i'm ok for your advice thank you

What you want to hear is one thing, but there's a bunch of us queuing up to tell you you're wrong - and that's because you're wrong and not for any other reasons.

Tony has just posted to point out where you've wrong. Whether that's because you've explained it poorly or because you're thinking about it wrong I don't know, but what you've said is 100%, without-any-doubt wrong.

[nightcrawler13]

What you want to hear is one thing, but there's a bunch of us queuing up to tell you you're wrong - and that's because you're wrong and not for any other reasons.

Tony has just posted to point out where you've wrong. Whether that's because you've explained it poorly or because you're thinking about it wrong I don't know, but what you've said is 100%, without-any-doubt wrong.

[Rufus Gwertigan]

So what is the Government scheme part in this? :-). Just interested as I have ended up on the housing register after looking at government schemes.

[eFestivals]

£4k makes sense then...

£3.5k deposit plus valuation plus legal fees...

Nah, even that doesn't work. Fees will be at least £1.5, and more likely over £2k.

[eFestivals]

What about the above is incorrect?

flip back to the previous page, and read tony's post towards the bottom.

It's what he's quoted of yours that's getting me and others saying you're wrong.

As I've said, it might be because you've explained it poorly, but what you've said there is wrong from how me and others are reading it.

[nightcrawler13]

It's as if you are purposely not understanding what I've said...

If I'm wrong, then great, EXPLAIN why I'm wrong

If I continue to rent for 25 years, I will have 0 to show for it

If I buy a 70k house with a 4k deposit, have lodgers pay my mortgage and save the rest, then in 25 years sell the house for 50k, I would have 26k to show for it, putting me in profit compared to if I didn't buy a house

Can someone explain, instead of just telling me I'm wrong, what is incorrect about that

[eFestivals]

How so?

legal is a couple of hundred and then valuation is about £150-£250...

where you getting those numbers from ?

From the process I'm going thru and shelling out on right now.

The legals are £1100 as the most basic quote for 'everything'. They've already managed to shove an extra £150 on that, because their 'everything' is not actually everything. Buying a cheaper house doesn't vary anything with this as it still needs all the same searches and paperwork. There might be cheaper solicitors of course, but they won't be much cheaper.

The mortgage (with Abbey) has an arrangement fee of £500. Yes, I could get a mortgage without a fee, but I'd end up paying more than that via higher interest charges (I've checked all of the available mortgages out).

Then there's the mortgage valuation fee, which I think is extra to the arrangement fee (tho I might have got confused about that). I think it's £150.

They'd defo be an extra £400 for the mid-range survey if we were having one. I'm going to do it myself initially (as ex building trade I feel confident doing this) but will get an expert in to look at anything that causes concern - it should save a couple of hundred quid at worst doing things this way, but I wouldn't advise it if you don't know buildings.

[eFestivals]

It's as if you are purposely not understanding what I've said...

we've only got what you've said to go on.

When there's a number of us all believing what you've said is wrong, if you're actually right with what you're thinking then the issue is going to be how you've said things.

If I continue to rent for 25 years, I will have 0 to show for it

not quite right (tho I get what you mean) - because you'll have 25 years when you've not been showing people that you're living in a cardboard box. You DO get something for your money.

If I buy a 70k house with a 4k deposit, have lodgers pay my mortgage and save the rest, then in 25 years sell the house for 50k, I would have 26k to show for it, putting me in profit compared to if I didn't buy a house

Can someone explain, instead of just telling me I'm wrong, what is incorrect about that

Either you've still got it wrong or your maths is wrong. I can't come up with a £26k profit from what you've said there however I work those numbers. As far as I can work out from what you've said, I'd make the 'profit' (that's not actually profit; you've paid more than the 'profit' to make that 'profit') £34k ... but perhaps I've come up with that via a different way to how you've come up with £26k.

How *exactly* are you arriving at £26k? Can you lay out the calcs you've used?

[eFestivals]

Legals don't have to cost that much for everything... I got it for £450 last time I did this in 2007...

Like you say some fees don't have to be paid...

So £500 or so could be right... I guess it could be more like 750... But 2k??? No way it HAS to be that much... No way in hell...

The £2k I said was everything, including mortgage arrangement fee, homebuyers survey, etc.

Just having googled, the amount people say for legals is £500 upwards - but the list of things that the solicitor does for that £500 isn't the full list of what needs doing, so it'll come in at much more. Anyone who believes they'll only pay that £500 is kidding themselves.

[eFestivals]

You are simply paying more than you have to... Try looking at using a firm around Manchester... Its miles cheaper up here!

All this extra stuff sounds like you are bing taken for a ride a bit... There is nothing "extra" unless you have special requirements.

You can do it yourself for about £300 and it isn't diffiuclt.

But as always, your the master of the Universe so I will leave you to it...

And if you were the master of the universe you're thinking yourself as, you'd not make silly, unrealistic, inconvenient, unworkable, and expensive suggestions as a way to save money.

It very probably is cheaper up there. But not that much, and only possible for you to stupidly price without you knowing what's being bought.

Somewhere around here I've got the details but I can't find it right now. I'll have it in my hand no later than Monday tho, so when I find it I'll come back to you and show you why it's that, and so also why it's not me being shafted.

[eFestivals]

I have bought two houses and remortgaged another... So I can very much ensure you the amounts you are paying need not be so...

But only you and your experiences count for anything...

And I've bought 4 houses, this is my 5th. 20+ years ago, the fees were hugely more than they are now, so you talking about what they were 4 years ago - and in a different part of the country - isn't necessarily of relevance, and without you knowing what I'm paying for, you can't have the first idea whether I've over-paid or not.

Remortaging, btw, carries lower fees cos much less needs doing. So that's of zero relevance.

[Yoghurt on a Stick]

there are a load of other wrinkles to the plan - like the fact that if he isnt using the house as his main residence (ie when he goes to Japan or whatever it is he is planning), it's quite likely that his mortgage lender will require to have a buy to let mortgage and to prove that he can cover the mortgage interest payments (at least) without rental income.

It may also be necessary, depending on the approach his local authorty takes, to licence the property as an HMO if there are 3 or more unrelated people living there.

Unfortunately, nightcrawler sees these sorts of comments as negativity, rather than constructive comments designed to help him make sure he's covered all the issues....

[Rufus Gwertigan]

Presumably that's if a decision is made to tell the mortgage lender anything at all about the situation if it happens 3 years down the line. Although not ideal, one could wing it by letting an agency that guarantees an income (they are around) control the house while he travels. As long as the agency pay into his account and his account pays out to the mortgage lender then whose to know.

It's a different situation with the HMO though. As you say if you have 3 or more unrelated people in the house then you are supposed to have fire doors, fire detection, emergency lighting. If you choose not to have this work done and one of the tenants goes to the Council with a complaint the whole house of cards could come down. Retrievable if you were in the locality but nigh on impossible if your half way across the world oblivious to it or with limited access to information etc.