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Buying property advise


StevoD

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right time for an unusual sensible Steve thread,

 

Do we have any estate agents or people recent taken the first step on the ladder etc, As i might have a opportunity to get on the property ladder in the next 6 months im aware this is a big thing not something you do on a whim, ive been having a nose on zoopla etc at local places for me, it seems most now are on this shared equity thing ie you only mortgages and own 30% etc, which to me unless im seeing it wrong looks a scam you pay a mortgages and then rent on top which turns out more in most cases than just taking the full mortgage, i understand its so people with small deposits can get a mortgage of £75k instead of trying to get one for £150k, If there anyone on here on a share equity that can give me there opinions,

 

for the question which i think will follow

 

im looking at a 1-2 bedroom property with a deposit of about £10-13k im aware its **** all for deposit. but im not looking for £400k 3 bedroom house

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Help to buy scheme not an option?

 

Im in the middle of buying a £250,000 3 bed property and the deposit (5%) was £12,500.

 

isnt that still shared equity tho

Nope, government help

http://www.helptobuy.org.uk

Yep, the scheme is laid out kinda like shared equity, but it differs legally. The cash the government give you has to be repaid starting in year 5, so its like taking a smaller mortgage and a loan, and then delaying re-paying the loan for 5 years. Kinda anyway.

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Help to buy scheme not an option?

 

Im in the middle of buying a £250,000 3 bed property and the deposit (5%) was £12,500.

 

isnt that still shared equity tho

Nope, government help

http://www.helptobuy.org.uk

Yep, the scheme is laid out kinda like shared equity, but it differs legally. The cash the government give you has to be repaid starting in year 5, so its like taking a smaller mortgage and a loan, and then delaying re-paying the loan for 5 years. Kinda anyway.

 

Ok sounds interesting will look into it cheers,

 

im looking along the line of something likes this, but do we have any property traders going to nick it from me :stir:

 

http://www.zoopla.co...414b35a28c9c1dc

Edited by StevoD
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Sarnie will help.

 

Also new builds (builders) often help out too.

 

I got help with deposit and part of the value gifted too. Not shared equity as such . I would defo look at new build schemes.

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Another vote for chatting with Liam (Sarnie) - great guy, very helpful, and really knows his stuff about the whole process.

 

I have no experience re: shared equity schemes, but good luck OP and hope you find a way onto the ladder that suits you :thumbs:

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I was in the same boat as you a few years back, and decided rather than get a 1 bed flat the size of a shed in Cambridge, id buy slightly out of cambridge and get a 3 bed massive house instead for the same money.

 

On the road behind where I work in Cambridge, I see 3 bed terraced houses, no parking, small gardens selling within days for £600k, its a crappy area too.

 

If I was you id be looking up near Peterborough (30miles away), maybe some of the villages/towns like Manea, March, Chatteris, Huntingdon, Haddenham etc... there are some lovely areas and prices are a lot cheaper. Downside would obviously be a commute in and the costs/time involved in that, but ive done it for the last 15 years without any problems. I currently live about 42miles out of Cambridge and my commute usually takes me about 45mins->1hr depending on traffic, but the advantage is that I have a spacious 3 bed detached house, with double garage and a big garden for less than £200k.

 

Good luck though with what ever you decide!

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I was in the same boat as you a few years back, and decided rather than get a 1 bed flat the size of a shed in Cambridge, id buy slightly out of cambridge and get a 3 bed massive house instead for the same money.

 

On the road behind where I work in Cambridge, I see 3 bed terraced houses, no parking, small gardens selling within days for £600k, its a crappy area too.

 

If I was you id be looking up near Peterborough (30miles away), maybe some of the villages/towns like Manea, March, Chatteris, Huntingdon, Haddenham etc... there are some lovely areas and prices are a lot cheaper. Downside would obviously be a commute in and the costs/time involved in that, but ive done it for the last 15 years without any problems. I currently live about 42miles out of Cambridge and my commute usually takes me about 45mins->1hr depending on traffic, but the advantage is that I have a spacious 3 bed detached house, with double garage and a big garden for less than £200k.

 

Good luck though with what ever you decide!

 

i currently with parents and my job is south cambridge area so im looking letchworth/royston/stevenage area as id rather not use the m11/a14 everyday

Edited by StevoD
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Good luck with your first house, it's pretty hard for people without a big deposit at the moment....

 

Just bear in mind interest rates will go up in the next 12 months or so. A 2% rise in interest rates can lead to a 25% jump in your repayments depending on your mortgage size. Before the crash post 08, interest rates were around the 5-6% mark, currently they are sitting at 2-4%, so a 2-3% rise over a few years is not beyond belief. Rather scarily I remember my parents pulling their hair out when rates were 10%+ !!!

 

I also noticed that 95% mortgages are back....given that we've all use to living off cheap mortgages for the last few years there's no telling how a jump in rates are going to squeeze incomes, and than affect house prices...negative equality is not something you want to be stuck with when interest rates go up and prices fall (I've been there and done it!!).

 

Rather perversely (as always) if your loaded and have access to a big deposit you also have access to the best rates and will be least affected by any rate rises, as well as paying less than everyone else (There's about a 2.5-3% difference between rates for people with a 40% deposit compared to people with a 5% deposit)....As they say the rich just get richer!!

Edited by gangzoom
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Good luck, this is a big step but generally well worth it, negative equity is generally only a problem if you have to sell at the wrong time. But do make sure you can afford payments WHEN the interest rates start rising. I hope we never see rates in double digits again - it hurts.

Regarding shared equity, i understand they can be much harder to sell, i dont think the actual monthly cost is to bad after all you bear all the maintenance costs and most schemes i have seen have been run by housing associations in an effort to keep affordability.

Do think about ultimately selling particularly with shared ownership and get some professional advice

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