quick question to those who have had an experience of dealing with a mortgage or those currently saving for a property, i just want to know how much they feel the amount for a deposit should be (in this current economy) or how much they are looking to save. im currently saving for a 25% dep and just wondering what over people are also doing. im just looking for as much advice and info as possible.
ta
0
Comments
If you want any more info , give me a whisper
http://www.google.co.uk/m/url?ei=pVCeTZihHIeR8wOxpf_yAg&q=http://www.homesandcommunities.co.uk/FirstBuy-schnulleme-launched&ved=0CDMQFjAH&usg=AFQjCNFllCDJ0oVmkQNZFmqen3yI0Fs91g
With interest rates expected to rise next month and house prices predicted to fall this year it makes me more nervous about taking this step.
Good luck!
I would also recommend going for the full survey, I opted for the middle one and found a few problems that have cost me money to put right. If I had gone with the full survey then I could have asked the owners.
Anyway good luck.
Can only second that.
Am currently paying a heavy price for not having a full survey done and thinking i'd save a few quid with just the mortgage survey.
At the end of the day, of course your home is important, but its essential you stay in a position where you can still 'live your life'.
All I need is someone to buy into the property with me and my partner. Whoever is the lucky person will pay the 20% deposit. They will then have 25% of the property for that investment. It will state in the contract that they have no responsibility for the mortgage payments or upkeep at all, would solely be our responsibility. My parents home would be used a a guarantor incase of defaulting on the mortgage to protect the investors 20%. Then in a set time 10 years, the house will be sold and the investor will receive 25% of the sale value or if both parties agree extended.
I thought of this last week and think its a great idea......................feedback or anyone interested??
not an expert but you might be better to try shared ownership with an Housing Association. It's not the same but it is similar to what you are suggesting. Try London and Quadrant or Hastings which might be more local to you.
Good idea but:
Legal costs. You and they would need a very tight contract
10 years is a long time to have that money tied up for an uncertain return. Why is this a better deal than an ISA or paying a flat off plan? Most investors who aren't family will want a return over what they could get from an investment fund/shares.
As always the Exit strategy is key. If in 10 years you don't want to move but they want their money back they could either force a sale or demand 25% of the then value. Could you pay say £50k?
You've also tied your parents into a deal for a long period. Don't know what they might want to do during the next 10 years
The not moving part I think is irrelevant as we both know we would have to move so you can plan things around that, so I don't see that as being a problem.
It is a better deal than an ISA or any other plan because they would only be paying for 20% of the property but owning 25%% of it. AND they would be helping out two very nice young people who are fed up with renting and don't have any money in the family to help out.
I have discussed it with my parents and they are happy with being guarantors on this.
Would I be guessing that you are not interedted Mr Irving?
Not interested either then lol I thought it seemed like a good idea..........anyway. I am not aiming this at people like yourself who trade on the stock markets or investing here and there on a regular basis. I am aiming this at someone who either has a couple quid out aside or someone who is actively looking to put some of their money into property
All you have to do is get a better job and earn more money.
Then you and your missus have to make sacrifices and cut back on most of the enjoyable things in life, like watching Charlton play.
And save like crazy.
It's what most people on CL had to do to get on the first rung of the housing ladder.
;o)
I've just put my life saving's on Peanut's tips so no.
Trouble is if the house price stays the same I've made 25% profit over 10 years or 2.5% a year. Not a great return.
If the house price doubles (which it could but I would say is unlikely) then it's a 5% a year return or similar to a building society account but without compound interest.
And a lot can happen in 10 years. Kids/schools/family sickness/new jobs/etc/etc.
I'm more worried that you are tying yourself into what could be a very tricky deal to get out of.
What were your objections to Shared Ownership?
Just tongue in cheek, Mr LoveChild (great name, BTW) ........ but it is, in fact, exactly what most of us have had to do, prior to the last 10 years.
Up until then, you invariably needed 10% to 20% deposit, but interest rates were frequently massively higher than they are today.
Anyway, (just for once, hehe) pay attention to Sir Henry Irving. It might be the simplest route for you.
Otherwise, what's the rush?
House prices don't seem set for any sort of major increase, especially with the threat of higher mortgage interest rates.
They may even fall further. Nobody knows.
In a couple of years, with some hard saving and perhaps topped up with a loan from family, could get you a much better deal without too much of a financial millstone around your neck.
I can't see how a non-family investor would even consider it.
You and them would be named owners of the second property and you could pay them directly the amount of their mortgage payment (or agreed other amount) and they have an investment along the lines of your original idea in that they also own the second property along with you.
You would need to all take out some sort of life insurance in case the unthinkable was to happen to any of you in order that your parents' home is protected and the mortgage repaid.
I do sympathise though. Life as a first time buyer is hard when to get any sort of rate you need a 25% deposit.
With regards to the part buy, I have looked at it and spoken a few people. Obviously what I have asked is technically a part buy. But I don't like not being in control. And from speaking to people I know who have gone down the part buy route I have decided it is not the best route for me. Anyone got Duncan Bannatyne's email address?
Seriously though, shared ownership is not at all bad. Buying and selling can take ages, as the paperwork is more complicated, and there is a more limited pool of mortgages available. However, once you're actually in a place, it's not much different from being a leaseholder in an ordinary block of flats.