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Is there a rule of thumb what you should spend on a house?

(20 Posts)
Pisssssedofff Mon 15-Aug-16 11:27:33

So if the house cost £100,000 10% that sort of thing ?
Just looking at somewhere, bottom of the market but I would need an extention so £20,000 at least even with the cheapest kitchen and then the bathroom needs redoing too and the garden

90daychallenger Mon 15-Aug-16 11:29:51

Oh, watching with interest here.

I'd guess it also depends on area, type of house and the amount that work is likely to increase the value of your house.

FruitCider Mon 15-Aug-16 11:31:55

I don't think there is, providing the work you carry out adds more value to the house than the money you spend.

Pisssssedofff Mon 15-Aug-16 11:35:52

It's a terrible area, I guess I don't want to end up with the best house in the worst street .... Equally we have to live there for 18 months.
I cannot go for the worst house in the best street because we cannot afford a garage in that area.
Am thinking in 18 months time it will be a rental property.

Bragadocia Mon 15-Aug-16 11:37:21

There are two different issues here - there's the extension, which is actually a permanent improvement to the house, as the square footage will be increased forever. Then, there are kitchens and bathrooms, which will last for a certain amount of years, but will eventually need replacing. So they are a different type of 'investment' (not that homes should be investments, but YKWIM. You don't want your total spend on your home to be more than you are likely to be able to sell it for, should that time come).

Is this a home that you hope to stay in for the long term, or is it more or a 3 to 5 years type of thing?

Pisssssedofff Mon 15-Aug-16 11:39:16

I'll keep the house for the next 12 years at least and let it out and expect to replace the kitchens and bathrooms over that time.
I think the extention would have to be done just to make it habitable

Chloe94 Mon 15-Aug-16 11:40:59

We always offer based on what we decide the house is worth, first house was up for 95 (after being reduced a few times ) and we got it for 90, seccond house was 140 and we got it for 135... I wouldn't put in a low offer due to the amount of work needing doing if it's something you've decided you want to do not something that actually HAS to be done. Also, I wouldn't put in a low offer if the house has been priced accordingly with the work needing doing in mind already.

Badders123 Mon 15-Aug-16 11:43:56

3 X income is always a good indicator

Badders123 Mon 15-Aug-16 11:45:56

Oh sorry misunderstood!
Our house was on for £185k and we got it for £172k BUT this was during the housing slump and we were ready to go buyers

Bragadocia Mon 15-Aug-16 11:47:06

If it's a terrible area, might it be hard to attract a tenant who will appreciate a nicely done house? In which case it wouldn't be worth doing to a high standard. Or is the area on the up?

Pisssssedofff Mon 15-Aug-16 11:51:42

No the area isn't on the up, this certainly wouldn't be a capital gains investment more a giving the kids security in the short term, we've lived in 6 rentals since 2012 and moving closer to their schools

Pisssssedofff Mon 15-Aug-16 11:53:34

I can imagine the tenants won't look after it so it'll be white cheap everything rather than farrow and ball decor. It's annoying because there's another house that's totally done and has an extra bedroom for the same price that's just had an asking price offer on it and I don't want to get into a bidding war because it's not worth a penny more.

Bragadocia Mon 15-Aug-16 12:00:14

So you haven't offered on this place yet? If the other house is on for the same price and is in better condition with more space, then you have a really good negotiating position at least.

You may not feel like a bidding war, but thinking medium term - saving yourself the hassle and intrusion of doing it up must be tempting? And that extra bedroom.

Twelve years is such a long time, that if I had the money, I wouldn't be too concerned about investing too much in making it habitable with basic but decent fittings (as long as I actually had the money).

Pisssssedofff Mon 15-Aug-16 12:08:59

Haven't offered on either.
I would like to save myself the hassle I've not got time to pee this year, could do without the builders.
So A) is 20 mins from school, just needs decorating, could do it a bit at a time, 4 beds, decent garden, I know the area it's shit but I know it.
B) needs decorating from top to bottom before even moving in, small garden which I'm ok with, kitchen you can't turn around in, but 11 mins from school, know the area is shit too but it's not an area I know or have lived in.

A is looking the best bet isn't it

titchy Mon 15-Aug-16 12:19:10

B is almost certainly the best bet sorry. Never ever have the best house in a crap area. Always always buy the worst house in the best area you can afford. Go for B. Decorate living room and kids bedrooms - that's only a week's work.

Pisssssedofff Mon 15-Aug-16 13:13:39

They are both shit areas unfortunately titchy, that's what divorce does to you

Bragadocia Mon 15-Aug-16 13:17:10

It's pretty grim doing work to a house that you don't even like that much. Fine, work hard on a house if it's going to make it lovely and somewhere you want to be, or if it's going to make you money, but spending time and effort on making something tolerable is a bore unless you have no other options in your price range. But you do! House A. Similar price but the work is done - no contest for me.

Pisssssedofff Mon 15-Aug-16 13:32:31

I'm going to beat the other offer by £1000 but that's it

Bragadocia Mon 15-Aug-16 13:41:50

Go for it!

Pisssssedofff Mon 15-Aug-16 14:11:52

Well this is infuriating, house A is being sold by an auction company who want £6,000 from me upon my bid being accepted which is non refundable if my mortgage company don't go a head. So I have to find that on top of my 10% deposit by the looks of it.
I think I'm going to low ball the second house and see how that goes ... The 9 mins less in the car each day would be nice and it's only for 18 months, have to keep telling myself that

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