Buying first house

youdsy · 25 Nov 2020 at 20:10

Hi all! I’m just after some advice.

is it best to buy a small house first time or invest in something substantial?
I can buy a 5 bed detached house for 250K or a 3 bed terrace house that’s not as desirable for 125K. I’m trying to deduce if it’s best to jump in deep end or start off small first time, investment/profit wise.

if you were me, single 28 year old with 60K in bank, what would you go for ?
I can provide links to property if interested.

cheers

Ripper · 25 Nov 2020 at 20:17

Why do you need a 5 bed property as a single person? Monthly costs will be unnecessarily high.

Start small if that’s all you need

Dis86 · 25 Nov 2020 at 20:19

What crap hole is the 5 bed detached for 250k in?

Maccapacca · 25 Nov 2020 at 20:19

If I did it all again I’d borrow as much as I could on interest only trackers.

I’ve spent a fortune chipping away at a tiny amount of mortgage and locking myself into rates that dropped soon after.

All from listening to the parents, pay off your mortgage, fix your rates etc etc

Quartz · 25 Nov 2020 at 20:20

youdsy said:
is it best to buy a small house first time or invest in something substantial?

Remember that a substantial house will have more more substantial ongoing and maintenance costs. A terrace house will shift far more quickly too when you come to sell.

Dis86 · 25 Nov 2020 at 20:23

Maccapacca said:
If I did it all again I’d borrow as much as I could on interest only trackers.

I’ve spent a fortune chipping away at a tiny amount of mortgage and locking myself into rates that dropped soon after.

All from listening to the parents, pay off your mortgage, fix your rates etc etc

Your parents probably owned their first homes in times when interest rates were nuts though and what we see now is to them nothing more than a blip.

BennyC · 25 Nov 2020 at 20:23

Dis86 said:
What crap hole is the 5 bed detached for 250k in?

Probably a place a reasonable distance outside of a major city which may very well be, by most people's standards, perfectly nice.

I can relate to the OP somewhat, so my two pence would be to not stretch yourself financially unnecessarily.

If you intend to use the additional rooms to subsidise your outgoings then it could make sense but don't rely on income from them for the decision to be financially viable.

You're in a position to retain some of your deposit whilst still achieving a decent LTV, never hurts to have some cash behind you.

PapaLazaru · 25 Nov 2020 at 20:28

youdsy said:
I can buy a 5 bed detached house for 250K

Where the heck is that? a 5 bed detached where I live will set you back £1.5m.

SPG · 25 Nov 2020 at 20:29

Location location location

Dis86 · 25 Nov 2020 at 20:29

BennyC said:
Probably a place a reasonable distance outside of a major city which may very well be, by most people's standards, perfectly nice.

Check my location. You cannot get a 5 bed detached up here in any decent area for that price and this region has the lowest property prices in the UK. For a semi-reasonable area you're looking at £350k upwards for that size property.

youdsy · 25 Nov 2020 at 20:32

PapaLazaru said:
Where the heck is that? a 5 bed detached where I live will set you back £1.5m.

https://www.zoopla.co.uk/for-sale/d...h_identifier=dd2cff98b64b235a01180d710d0e9f0e
Ironically prices have gone up since covid.
People are looking to leave built up areas and move somewhere quiet.
People near me are jumping at the chance to inflate their house price and take advantage

Dis86 · 25 Nov 2020 at 20:35

Ah, the 1980's! That explains it!

youdsy · 25 Nov 2020 at 20:35

Dis86 said:
Check my location. You cannot get a 5 bed detached up here in any decent area for that price and this region has the lowest property prices in the UK. For a semi-reasonable area you're looking at £350k upwards for that size property.

This is what I’m thinking. Prices local for me are going up. If I get something like this now, 5-10 years time could be with 350K plus potentially

Dis86 · 25 Nov 2020 at 20:36

youdsy said:
This is what I’m thinking. Prices local for me are going up. If I get something like this now, 5-10 years time could be with 350K plus potentially

It's an old, large house. Make sure you go in to it with your eyes open. It will have substantial upkeep costs and monthly bills.

Oh and try not to end up with 472 cats. Please.

youdsy · 25 Nov 2020 at 20:37

Dis86 said:
It's an old, large house. Make sure you go in to it with your eyes open. It will have substantial upkeep costs and monthly bills.

Oh and try not to end up with 472 cats. Please.

Im very hesitant to do so.

Just bouncing my thoughts around in here to be honest.

PapaLazaru · 25 Nov 2020 at 20:38

youdsy said:
https://www.zoopla.co.uk/for-sale/d...h_identifier=dd2cff98b64b235a01180d710d0e9f0e
Ironically prices have gone up since covid.
People are looking to leave built up areas and move somewhere quiet.
People near me are jumping at the chance to inflate their house price and take advantage

That's a beautiful house in a beautiful location. I'm so jealous.

Maccapacca · 25 Nov 2020 at 20:45

PapaLazaru said:
That's a beautiful house in a beautiful location. I'm so jealous.

Shame you need to learn another language

PapaLazaru · 25 Nov 2020 at 20:45

Cheapest property where I live and still more expensive - https://www.rightmove.co.uk/properties/99782153#/

fobose · 25 Nov 2020 at 20:46

youdsy said:
if you were me, single 28 year old with 60K in bank, what would you go for ?

I bought my first house at 155k with 70k deposit on my own. I was earning 25k at the time so it was about as much as I was comfortable paying. I think if you can afford it and you have job security then go big. It'll make the next step easier in years to come.

youdsy · 25 Nov 2020 at 20:54

Maccapacca said:
Shame you need to learn another language

Full of English down here mate

Buying first house

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