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Anninyn
07-16-2011, 10:54 PM
I suspect me and Jos are about to.

We've always wanted to own a house, but with me being unemployed, and the housing market being insane in most of the UK it just hasn't happened for us. We rent, like most couples, and home ownership has seemed like a distant dream.

So when an auction place puts up a three bedroom house close to the city centre for 40k it's kind of a big deal for us. We can afford that. I have a ten grand deposit. Jos's bank would happily loan him the rest. Plus a little more, as the hosue in question needs work.

We've peeked in the window, it looks pretty rough but not unfixable. Most importantly, it looks like we could live in it while doing it up. We reckon we can do it, but obviously, we want to view it first. But still, even if it costs as much to do it up as it costs us to buy, thats a three bedroom, golden triangle, city centre house for less than a hundred grand.

So the next three years of my life might be spent with a hammer in my hand. Who cares? Sometimes you need to take a risk.

Ever taken a huge risk? Had it pan out? Fail miserably?

tiny
07-16-2011, 11:12 PM
Yes. I took a huge risk and believed my husband when he said we could afford to buy our own home instead of renting. We've been in it for two years and one month.

Jump, girl, jump.

alleycat
07-16-2011, 11:17 PM
A couple of friendly comments . . .

Buying a house, especially for the first time, can be a very emotional experience. If at all possible, have someone who knows construction or is a professional home inspector, look at the house. First time home buyers are often too close to see things clearly. Really, I've very serious. This is absolutely step one; know exactly what you're buying.

Second, whatever you've estimated for home repairs, remodeling, and maintenance, double it. Almost anything having to do with a house will take twice as soon and possibly cost twice as much as you anticipate.

Still, if you can work it out and understand clearly what you're getting in to, owning a house can be something special. I haven't had to pay a mortgage in ten or fifteen years (although I do have to still pay for maintenance and property tax); it's surprising how much "extra" money you have when you don't have to pay for housing or a car.

Anninyn
07-16-2011, 11:18 PM
Think we will. After a viewing- if it's something we can't afford to fix it's a no.

We've talked, and as it's a n auction we are willing to (and can afford to) go up to 60k.

The fear is started, like I'm freefalling...

Anninyn
07-16-2011, 11:22 PM
A couple of friendly comments . . .

Buying a house, especially for the first time, can be a very emotional experience. If at all possible, have someone who knows construction or is a professional home inspector, look at the house. First time home buyers are often too close to see things clearly. Really, I've very serious. This absolutely step one.

Second, whatever you've estimated for home repairs, remodeling, and maintenance, double it. Almost anything having to do with a house will take twice as soon and possibly cost twice as much as you anticipate.

Still, if you can work it out and understand clearly what you're getting in to, owning a house can be something special. I haven't had to pay a mortgage in ten or fifteen years (although I do have to still pay for maintenance and property tax); it's surprising how much "extra" money you have when you don't have to pay for housing or a car.

Yeah, my mum warned me of all that- they didn;t anticipate it when they bought the only hosue they ever owned, and they ended up having to sell. But we're relatively well off, and most places would mortgage us up to 150k, so it's something we think we can do. Hence the viewing: We'll try and get a builder in on it too, if I can get one to the viewing.

tiny
07-16-2011, 11:29 PM
Think we will. After a viewing- if it's something we can't afford to fix it's a no.

We've talked, and as it's a n auction we are willing to (and can afford to) go up to 60k.

The fear is started, like I'm freefalling...

It never hurts to look or try. When we started looking I had one rule - the mortgage could not be more than the rent we paid. Not even a dime. We didn't worry too much about not being able to fix certain things because of the type of loan we got. They disallowed lots of things, so we were, in reality, protected from making a stupid mistake.

Be realistic in what you can and cannot fix or live with until you can fix or have fixed and you should be okay.

alleycat
07-16-2011, 11:32 PM
Not to beat a dead horse, but there are a lot of people with a vested interested with someone buying a house (I'm not sure how it works in the UK, but I assume it's reasonably similar to the US). There is nothing wrong with what they're doing (it's their job after all), but remember, it's YOUR money, and YOUR life, and YOUR commitment. Don't be pressured in to anything. For the buying phase, try to leave your emotions ("It's the house I've always dreamed of! I want it so badly!") at the door as much as possible.

Again, I'm not trying to tell you what you should or shouldn't do (or deflate your balloon), just trying to offer some "fatherly" advice.

tiny
07-16-2011, 11:45 PM
And for Gosh sakes do not get any kind of balloon style mortgage!!! Never count of future monies. Count on what you have now.

Anninyn
07-16-2011, 11:45 PM
I'm not an easily pressured kind of girl. In fact, if I feel pressured I immediately start looking for the hidden catch.

But yeah. I want this, but if something strikes me as 'no', or if it doesn't happen I won't be heartbroken- I'll have another chance.

Anninyn
07-16-2011, 11:49 PM
And for Gosh sakes do not get any kind of balloon style mortgage!!! Never count of future monies. Count on what you have now.

Oh god no!
Jos earns 25k a year, so 40k or even 60k mortgage is perfectly affordable though.

He's a clever man, not one to take risks, and even he agrees this may well be worth the risk.

alleycat
07-16-2011, 11:51 PM
But yeah. I want this, but if something strikes me as 'no', or if it doesn't happen I won't be heartbroken- I'll have another chance.

That is the right way to go about it.

They build more homes, and put more homes on the market, every day.

Just as long as you're going in to it with your eyes wide open you'll probably be okay.

And yes, many of the best things in life come with taking a risk.

Chris P
07-16-2011, 11:53 PM
Go for it, if that is the direction you want to go. It sounds like this is the chance you need to take. But as others have said, do your homework on your finances, legal obligations, and the homebuying process. Get people on your side to help you spot the trouble areas.

I'm done living in the "I shouldas" and encourage everyone to take (informed) risks.

Anninyn
07-16-2011, 11:57 PM
Thanks guys. Before making a decision we will of course look at everything.

If we decide to go for it and we're successful, I'll let you all know how everything goes.

Anninyn
07-18-2011, 02:59 PM
The final viewing is at 1 today and the house goes on auction thurs. That's not enough time to make an informed decision, so we're going to skip this one. It's a disappointment, but I'll keep an eye on the auction website for similar places for in future.

Snitchcat
07-18-2011, 03:36 PM
Not sure if anyone's mentioned this, but for the next place you consider: if you're thinking of getting a loan, look out for the fluctuation interest rates vs a flat and fixed interest rate. And the fine print is a nightmare, too. Ask every single question you can think of, and then some, regardless of how stupid you think it is. And get at least four quotes, or five.

While there are many risks, knowing what you're getting into, owning your own home is a great experience.

Good luck!

tiny
07-18-2011, 06:24 PM
The final viewing is at 1 today and the house goes on auction thurs. That's not enough time to make an informed decision, so we're going to skip this one. It's a disappointment, but I'll keep an eye on the auction website for similar places for in future.


Bummer, but in the end it'll be the best. We passed up a couple of houses over 'bad feelings' about them. Sounds silly, but we ended up getting a much nicer house for the money because when everything was right, it was right and we got it.

Now that you've made the decision it's a possibility, you'll find the right place at the right time.

Anninyn
07-19-2011, 08:39 PM
Bummer, but in the end it'll be the best. We passed up a couple of houses over 'bad feelings' about them. Sounds silly, but we ended up getting a much nicer house for the money because when everything was right, it was right and we got it.

Now that you've made the decision it's a possibility, you'll find the right place at the right time.
I have to admit that part of me is hoping it doesn't sell and they put it back up for auction at even less money, but I'm not holding my breath. A buy-to-let someone will get their hands on it.

But, I've set up so they email me with other houses under 70k, and keeping my eager eyes on the option, and we have an appt with a mortgage advisor on saturday.