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House buying is the worst

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I'd strongly recommend going through a broker. They will give you independent advice and you will generally get a better rate than going directly to a bank. Some brokers will even have rates/offers that are not available to customers that go direct. 

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20 hours ago, nightwolf said:

The difference is perhaps that we've had covid and the market has been...weird at best. 

We also can't do 5%, at least nothing that I can find that would be worthwhile. 

We are looking at all routes obviously. But with my health, help is needed. 

Yeah covid has shaken up a lot, lots of job instability that wasnt a thing pre covid.  I dont think 5% deals are really a thing anymore, it only happened to be a deal nationwide did at the same, and you had to save all your money with them for the deposit too.

Oh and NI market being significantly different to english makes a big difference... my house was only 70k lol

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37 minutes ago, Raining_again said:

 my house was only 70k lol

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2 minutes ago, Ashley said:

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Don't forget theres also the dire lack of job opportunities and The Troubles... all relative lol.  I know you wouldnt get a garage for that in london.  Contextually you'd be doing well to get £10-12 an hour round here.

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On 26/04/2021 at 6:25 PM, Raining_again said:

Don't forget theres also the dire lack of job opportunities and The Troubles... all relative lol.  I know you wouldnt get a garage for that in london.  Contextually you'd be doing well to get £10-12 an hour round here.

I'm not actually in London at the moment, I'm in Brum.

Just looking at right move to see what the market is like and its all so depressing. Everything is a flat (or apartment, they can't seem to decide what term to use) in a large building. Some are small houses converted into flats. A fair few are for "investors", one even boasted about having tenants in already as if they were furniture. It's all so depressing.

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I'm with a local financial advisor and we're really hoping for a 5% deposit mortgage to have a chance of buying a house. Out savings are in the level where we could potentially get something cheap (for the area) if we can get the 5% deposit.

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We signed the buying agreement yesterday and seller signed it as well, so I guess our search for a new home has ended. It is both exciting and terrifying, we have just agreed to establish a loan of more than 4 times our annual income - before taxes! Shit... But oh man, getting our own garden, getting a garage, owning our own bricks. The garage even is isolated so we could build a small wall inside it and we could create a home gym, something I'd really appreciate! 

But it's going to be sad to leave our appartment for the past 8 years. We really enjoy the company of our neighbours and we'll miss that our son can just go outside and most days find someone to play with. But we don't move that far away and he'll stay in the day care that is nearby so we'll swing by from time to time.

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Well we spoke to a broker and we're able to afford upwards of a 325K house, whoop! 

Kind of.

We have to get the Decision in Principle first, as my partner is currently on agency work, apparently banks want 12 months to prove some kind of weird bullshit. But our broker (the one we've chosen, others were fine, but some didn't want to do anything over the phone only online? What's that about?) has found several mortgages we can be offered. Whoop!

So now we search, I've been keeping an eye (erm every day shh) on the market, so we've got a fair amount to choose from, but I'll feel much better when the DIP is approved. 

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1 hour ago, nightwolf said:

Well we spoke to a broker and we're able to afford upwards of a 325K house, whoop! 

Kind of.

We have to get the Decision in Principle first, as my partner is currently on agency work, apparently banks want 12 months to prove some kind of weird bullshit. But our broker (the one we've chosen, others were fine, but some didn't want to do anything over the phone only online? What's that about?) has found several mortgages we can be offered. Whoop!

So now we search, I've been keeping an eye (erm every day shh) on the market, so we've got a fair amount to choose from, but I'll feel much better when the DIP is approved. 

Congrats!

I know when I looked into it a few years ago I was told self employed needs two years of history before a mortgage will be allowed so it might be something like that.

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11 hours ago, Ashley said:

Congrats!

I know when I looked into it a few years ago I was told self employed needs two years of history before a mortgage will be allowed so it might be something like that.

That's exactly what it is, I don't know whyyyy because he's never been out of work, but all we got was banks need 12 months for agency. Thankfully that's a month and a bit away, so we're safe. 

The main thing was that the banks were willing to give us a mortgage and also for the right amount. We were looking at about 270-280. 

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7 hours ago, nightwolf said:

That's exactly what it is, I don't know whyyyy because he's never been out of work, but all we got was banks need 12 months for agency. Thankfully that's a month and a bit away, so we're safe. 

The main thing was that the banks were willing to give us a mortgage and also for the right amount. We were looking at about 270-280. 

Yeah they can be a bit weird. I was asking around about rental places a while back and when I said I am working part-time as self employed they said I would need a guarantor earning over £20k a year and I said I earn over that a year but still..

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What's everyone's thoughts on the future of property prices, particularly in and around London?

With covid job losses, brexit job losses, more people going remote working and therefore able to live elsewhere, I keep expecting house prices to go down. But they seem to keep rising.

 

I still don't understand how that can possibly be. The average salary and average house price don't match up.

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18 hours ago, MoogleViper said:

What's everyone's thoughts on the future of property prices, particularly in and around London?

With covid job losses, brexit job losses, more people going remote working and therefore able to live elsewhere, I keep expecting house prices to go down. But they seem to keep rising.

 

I still don't understand how that can possibly be. The average salary and average house price don't match up.

I bought a house a year ago (first time buyer) and I admit I did worry that COVID would cause house prices to collapse but the opposite happened. I now better understand some of the reasons for this:

  • Stamp duty holiday, record low lending rates, easily available mortgages (through a lot of government schemes) and of course demand outstripping supply all key forces at play here. If the cost of buying a house is cheaper for everyone, people will be able to afford more expensive houses at the same average salary
  • People are reassessing where they want to live in a post-COVID/ post-commute world - people now realise they no longer need to be tethered to London so there is an exodus out of London to smaller country towns. This is where house prices are rising the most I believe. In London house prices are rising at a much lower rate
  • It's also business that have been moving out of London (a trend that started before COVID) because places like Birmingham offer cheaper rents and workforce
  • People have a lot of pent up cash and a lot of it is going into property. This COVID recession is different from the previous one in that there is still a lot of cash being pumped into the economy only it's being pumped from different sources in different directions. COVID job losses aren't as bad as you might think because of the furlough scheme and there'll be a post-COVID bounce. As for Brexit, the impact on jobs has been negligible so far, I think the true impact of Brexit will be felt in the coming years

I can only see house prices continue to rise unless there's a big unforeseen market crash, and no-one wants that. The ideal would be for house prices to stagnate or rise by very low amounts, i.e. below inflation so the wages start to catch up and house prices go down in real terms if not in nominal terms. 

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34 minutes ago, Zell said:
  • People are reassessing where they want to live in a post-COVID/ post-commute world - people now realise they no longer need to be tethered to London so there is an exodus out of London to smaller country towns. This is where house prices are rising the most I believe. In London house prices are rising at a much lower rate

This is one thing I'm unsure about. How far out will people move to/from? Currently considering places such as Watford, Rickmansworth etc. But are those (particularly Watford) the areas that people will be moving too or moving from?

 

As for the stamp duty holiday, I'm hoping that means a small drop once that ends next month.

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1 hour ago, MoogleViper said:

This is one thing I'm unsure about. How far out will people move to/from? Currently considering places such as Watford, Rickmansworth etc. But are those (particularly Watford) the areas that people will be moving too or moving from?

 

As for the stamp duty holiday, I'm hoping that means a small drop once that ends next month.

I really don't know the answer, it's so hard to say what will happen. People still don't have a good idea of what kind of commuting/office commitments there will be and it's going to be different job to job, company to company. My company made an announcement about flexible working a month ago which got some positive press but so far there's no real details or any changes to our contracts. So I have no idea how often I'll be expected to work from an office.

The risk is in moving to somewhere which is nicer and cheaper to live but not easily commutable to London. If it was say over a 1 hour for just the train journey, how often could you put up doing that in a week, and would you want to pay for that? Having said that, there were people before COVID who did these silly commutes 5 days a week.

With places like Watford and Rickmansworth, I would guess people from the centre of London would be moving in at the same time as people are moving out to more rural areas but I'm a bit clueless really as to what will happen.

Do you know what you're working situation will be like post lockdown, do you know if you'll be expected to be in the office 5 days a week?  

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