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First time buyer

(32 Posts)
Newuser991 Wed 18-Nov-20 13:56:57

I have the stamp duty exemption anyway up to £300k and my budget isn't bigger than that.

Am I best to wait to buy until next year?

I guess in London I cant have anything more than a 1 bed flat for that money?

OP’s posts: |
BlahBlub Wed 18-Nov-20 15:33:08

It’s hard to say what next year will look like. I’d probably consider if the difference I’d be saving in rent if I bought now would be considerable enough not to wait any longer?

AgnesNaismith Wed 18-Nov-20 15:35:39

I would buy now. As a first time buyer I can’t see things getting more favourable!

Is the stamp duty not up to £500,000? Also if you wanted help to buy - that ends in March!

BlahBlub Wed 18-Nov-20 15:47:03

Another thought is the number of mortgages available. There are now less products than a year ago and there may be less next year. Especially products for typical FTB deposits (15% or less).

Also having your first own place is great smile

Newuser991 Wed 18-Nov-20 15:52:43

I can only really afford a one bed flat and I'm just nervous about buying somewhere that I outgrow and then cannot get rid of.

The deposit isn't a problem. I have £65,000. The purchase price is though looking at salary multiple

OP’s posts: |
Newuser991 Wed 18-Nov-20 15:58:49

AgnesNaismith

I would buy now. As a first time buyer I can’t see things getting more favourable!

Is the stamp duty not up to £500,000? Also if you wanted help to buy - that ends in March!

The stamp duty is up to £500k

But first timers get stamp duty exemption up to £300k anyway and that's my budget.

I dont want help to buy.

OP’s posts: |
1starwars2 Wed 18-Nov-20 16:02:07

Can you travel further for a small house? Flats are harder to shift and I would be wary of buying one now, especially if intended as an investment as well as a home. The price of flats in London is likely to come down (they're overpriced in my opinion).

BlahBlub Wed 18-Nov-20 16:05:16

It may well be that house prices drop next year. If you were to stay long enough to ride it out, it wouldn’t matter as much. However, if you could save enough to buy a 2 bed next year it might be worth waiting.

Have you tried a mortgage broker? There were mortgages with a 5x salary multiple available recently. Santander had one last year, not sure if they still have it.

Sadhoot Wed 18-Nov-20 16:06:37

You must have a very high salary to get 300k on your own? It depends on where you're looking to buy, and how long you'd like to stay, I think, but I would always buy sooner rather than later.

I bought a 3 bed house in South London last year for £310k and looking on Rightmove quickly, in my area the cheapest house on the market here is a 2 bed for £340k. Most are £350-closer to £400k, which I think is absurd for the area, but good for us when the time comes to sell I suppose!

Wanderergirl Wed 18-Nov-20 16:09:24

As long as you don’t end up in negative equity for 10 years I think changing isn’t a problem once you outgrow it. But so depends on the flat, what I noticed over time that flat price depreciates soooo quickly, especially new builds.

I’m a FTB too. But won’t be buying now, maybe in a new year. Even with no stamp duty exemption it is simply not worth overpaying for a flat. But that’s just my opinion.

I know lots of people here strongly believe that the rent is a cost. I find that mortgage for same property I live in now is much more expensive and additionally I have to give a big chunk of my savings for the deposit, which I’d rather hold onto for time being. Property feels a bit risky for me right now. Still looking now and then and researching properties in case something sensible comes up worth looking at. But all in all stamp duty holiday definitely inflated prices unrealistically in past 6 months. Rent prices are dropping though, because not everyone happens to be able to sell properties either and overflowing market with rentals.

But as I do invest my money on the open market it is a bit different story to me I guess.

Newuser991 Wed 18-Nov-20 16:16:51

Sadhoot

You must have a very high salary to get 300k on your own? It depends on where you're looking to buy, and how long you'd like to stay, I think, but I would always buy sooner rather than later.

I bought a 3 bed house in South London last year for £310k and looking on Rightmove quickly, in my area the cheapest house on the market here is a 2 bed for £340k. Most are £350-closer to £400k, which I think is absurd for the area, but good for us when the time comes to sell I suppose!

Define very high salary?

That £300k includes my deposit

OP’s posts: |
Newuser991 Wed 18-Nov-20 16:17:55

Sorry sadhoot what area of south London?

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Sadhoot Wed 18-Nov-20 16:52:17

Maybe you've got a huge deposit then! grin it's alright, I'll unpoke my nose from your business.

I bought in the north bit of Carshalton. There are good links to lots of places, so even though the house is not attractive by any stretch of the imagination, I'm happy to have a house with a garden, and I can be in Wimbledon in 10-20 minutes and Central London in about 30 minutes.

We've gutted it and have been doing it up to our tastes, which is a nice feeling.

Newuser991 Wed 18-Nov-20 16:56:50

I've already said about the deposit upthread

OP’s posts: |
Newuser991 Wed 18-Nov-20 16:57:25

Your home sounds wonderful Sadhoot

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Sadhoot Wed 18-Nov-20 17:01:36

Ah sorry, I skim read that.

So where are you thinking of buying, if you don't mind me asking? I love looking on Rightmove etc for any reason!

Newuser991 Wed 18-Nov-20 17:13:20

SW London but my budget buys nothing

OP’s posts: |
Sadhoot Wed 18-Nov-20 17:30:06

Yes, I used to live in Teddington, it's beautiful and has lovely parks, the lock, and of course is close to Kingston shopping. I think at the time I could have bought a one bedroom flat with my budget, and I seriously considered it! blush

Come join me in Carshalton, we can be the pioneers grin the place will be cool in no time.

OnlyFoolsnMothers Wed 18-Nov-20 17:52:29

I’d buy before interest rates go up

Newuser991 Wed 18-Nov-20 19:00:05

Sadhoot

Yes, I used to live in Teddington, it's beautiful and has lovely parks, the lock, and of course is close to Kingston shopping. I think at the time I could have bought a one bedroom flat with my budget, and I seriously considered it! blush

Come join me in Carshalton, we can be the pioneers grin the place will be cool in no time.

What's Carshalton like in terms of town centre etc?

OP’s posts: |
Sadhoot Fri 20-Nov-20 14:52:52

It's ok, nothing special, but has everything you need imo.

I usually go to Sutton or Wimbledon for shopping though. Or to Kingston if I'm feeling boujie and have money to burn.

MedusasBadHairDay Fri 20-Nov-20 16:27:26

We're planning on waiting until next year to start looking, we're hoping prices dip once the stamp duty holiday ends. The kind of properties we want are currently 20-30k over our budget, so we're hoping it might just bring them within reach. Especially as prices went up just after the first lockdown ended.

Turnedouttoes Fri 20-Nov-20 16:31:27

Yes we’re FTB as well and seeing how overpriced a couple of houses friends have bought locally are recently we’ll be waiting until next year to see what happens. Our budget is around £400k so stamp duty only £5k anyway.

Also DP is self employed and not allowed to work during lockdown so I doubt we’d be able to get a mortgage at the moment anyway

WombatChocolate Fri 20-Nov-20 21:19:31

I hunk you can have more than a 1 bedroom flat for that money in quite a few areas of London. You just need to research areas carefully.

Consider where you might have to travel to for work after Covid and decide the journey you would like and also the journey you can come with and then start looking Ali g the appropariate transport routes. You’ll see a range of prices and need to get to grips with whether you value location more and will sacrifice space or vice versa.

You doN t need help to buy. Avoid it if you can. Prices are likely to fall further so you probably have time to research and find the right location and not rush in. I think you could get 2 beds in some areas. Look perhaps at maisonettes which often have a private garden, along with a private entrance....these can feel like houses and might be better if you don’t want to feel you grow out if somewhere, plus we know people really value gardens which helps them sell now and in future.

Pipandmum Fri 20-Nov-20 21:24:43

Who cares what your salary or deposit is? You said your budget is £300k so I do not understand why people care how.
You just need to look at different areas, but I'd rent before you buy to make sure you like it.

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