Short term property purchase?(6 Posts)
I've just completed my divorce and I have signed over our properties to my ex in exchange for cash. We are both in a UK city that I'm not sure how long we will stay (the properties are in London). However I have been renting for a year and just feel like it's not "home" for my kids and I. Friends have suggested that I buy somewhere here (although I don't like the city) to have a home. If it turns out I can move, I just sell it. I can't leave the city now because I have 50/50 with my ex and he doesn't want to move. His job is here but my job has been posted to another city so I commute to my job (I work FT) but I can also work from the city we live in. I feel like I am "waiting" for something to happen but I should probably take control and live for today and therefore buy a home. It's scary though because I've never bought a property solo!
Mmm so your ex doesn't want to move, but what is going on is not want you want and is making you miserable?
I think you should be thinking about what you want, not what suits him. Isn't that what he is doing?
Don't be frightened about buying a house either.
You just have to shop around regarding Solicitors fees,( they don't all charge the same) be ruthless about bargaining when buying, don't get too attached to one house, be cool and don't make any comment when viewing a house, location is everything.
Write down carefully what you actually need, 3 beds, etc. And try and stick to it. Remember second hand goods Washing machines etc are more or less worthless, when a house owner is trying to tell you otherwise. They will want you to buy built in goods as they can't take them with them.
Take a builder round. A reputable builders opinion is as good as a Surveyor IMO.
Be careful if offered Life insurance as you can shop around for every kind of insurance. Don't use the mortgage advisor attached to or recommended by the seller and don't tell the estate agents exactly how much you can afford to spend, as their idea is to sell you the most expensive house as they get commission. Just say in the region of.....
In my experience the only side an Estate agent is on, is theirs.
If you decide not to do anything for the moment, then make sure that your money is earning a good rate of interest. I suggest Ratesetters and Zopa. Split your money up and invest it in small parcels.
I have money in those two peer to peer lending groups. Yes they have a small risk but they both have contingency funds and they both spread your money. Bank rates are too pathetic.
Best of luck.
one or two clarifications;
peer-to-peer has no protection at all. Unlikely to have a problem but not impossible.
correct that safe savings rates are very low.
remember you pay stamp duty when you buy and agents fees when you sell. The example I use is that downsizing to a house half the value cost me £20k with those and other fees.
'just' selling may not be that easy. A house is not a liquid asset.
What! Peer to Peer lending groups do have contingency funds. The government has made them set them up. At least the OP should take a look at their sites and decide for herself. Millions of investors have money in Ratesetters and Zopa, we can't all be stupid. I think they are minimal risk. I acknowledge that they are not without risk.
However, We have our investments spread all over the place and we haven't lost a penny yet.
Keeping money in a current account in a high street bank will lose you money as it earns nil interest.
I agree that a house is not a liquid asset. Buying and selling houses costs money and has to be factored in. Our next move is going to cost us thousands. It is depressing.
However the OP should be thinking about what is best for her.
no, of course it isn't a stupid thing to do peer-to-peer; many of us have no alternative now. But with no FSCS protection there IS a risk from fraud etc, and it happens.
banks don't earn zero interest, you can get 3% on up to about £70k. This is above inflation although not by much!
Yes buy and also don't listen to people saying move because children need stability. They have already had their lives rent asunder because their parents couldn't stay together so don't move them to the city where your job is, leave them be and near their father.
If you are in a Northern city stamp duty will not be so bad so a short term move won't kill you. If you're in London a one bed flat could set you back £10k in stamp duty so short term purchases are less worthwhile.
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