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Opinions Wanted Please!

Miss Money Penny Avatar
8y, 5m agoPosted 8 years, 5 months ago
OK... here goes.

I'm wondering if you lovely's at HUKD can give me your opinion on the following.

I wasn't thinking of moving home anytime soon due to all the credit crunch business and falling house prices. However I have seen a beautiful 3 storey, 4 bed town house being built by a well known new build developer. After several weeks of various offers from them I decided to decline for various reasons.

FYI.. Its a 4 bed, 3 storey townhouse, with en-suite in master bedroom, main bathroom, and downstairs W/C. House includes garage and one allocated parking space in private development car park

Earlier this week the developer came back to me with a deal that won't let my mind rest. Here's the details:

Im going for a Part Exchange deal FYI

1) £15k off the marketing price
2) PX value on my property only 5k less than real market value
3) Stamp Duty Paid
4) Estate agent & legal Fee's paid
5) Free carpets.

I think its a cracking deal however my partner says he's not happy with the extra mortgage amount we would need to borrow. My disposable income would be £500 and his would be £400 after all bills are paid. meaning we would save £900 a month. Am i being silly or is this not a decent amount to be saving as well as having the opportunity to own a beautiful house. We currently live in a 2 bed terraced, so this is one hell of an upgrade!

Personally I think my partner is being a silly with his decision... he won't move on it at all! Im' really scared we will never get a great opportunity like this again!

All advice welcome :)
Miss Money Penny Avatar
8y, 5m agoPosted 8 years, 5 months ago
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#1
how will you save £900 if the property is more expensive? and the guy must be badly needing to sell!
#2
Not sure I've followed...

Your partner is not happy about the extra Mortgage amount you need to borrow, but you are saying you would be saving £900 a month?

Edit: Oh, I get it... you will have £900 a month spare after all bills. I take it you currently have a lot more spare at the moment, then?
#3
Your bills will probably be dramatically more and so would council tax I imagine...
I don't know much but it might be a deal that's too good to be true at this time., seeing how un-secure the property market is, maybe you should get professional advise concerning it?
#4
and do you need two toilets to clean? look on the positive side!
#5
ok guys,

Let me explain. After accounting for all our bills including the extra mortgage ( i already have two principle offers) we would have a disposable income of £900 combined. I have factored in utility bills based on a friend who already lives in one of those house.
#6
and do you need a bigger house?
#7
louloo
and do you need two toilets to clean? look on the positive side!


LOL... 3 Toilets in total. Downstairs W/C, Main bathroom and En-suite!!! Must be mad huh??
#8
Miss Money Penny
LOL... 3 Toilets in total. Downstairs W/C, Main bathroom and En-suite!!! Must be mad huh??


mmm i have two and its more than enough and the worst thing about two bathrooms...:x
#9
louloo
and do you need a bigger house?


Good question!! yes we need the space but this kind of upgrade and this price isnt anything we would usually be able to afford. It's just a case of developers having to drop prices down so much lower than they would in a normal housing market. However if we stay here and save, when we do want to move we would end up spending everything we saved.

catch 22 or what!
#10
well work out what would happen worse scenario? both houses halved in value-what would be the amount you would need to borrow then?
#11
yimmie
Your bills will probably be dramatically more and so would council tax I imagine...
I don't know much but it might be a deal that's too good to be true at this time., seeing how un-secure the property market is, maybe you should get professional advise concerning it?


I have factored in all bills and council tax and even the increased mortgage payment. It still leaves us with a combined disposal income of £900. I have spoken to my financial adviser and he does agree that this offer will not be around again however the choice is ours! :?
#12
louloo
well work out what would happen worse scenario? both houses halved in value-what would be the amount you would need to borrow then?


Louloo, explain that again... im confuddled! The house I am purchasing is a new build. The offer price I made was £15k off the marketing price. So I know im not going to be in a negative equilty situation as I still have a 50K difference between the new mortgage amount i will borrow and the value of the house.!
#13
whichever you need your partner to agree?
and if hr can offer that he will offer more im sure-see if you can get another £1000 off the price to cover your moving costs? tell him your partner needs more convincing!
#14
go with your heart
#15
hodsey77
Not sure I've followed...

Your partner is not happy about the extra Mortgage amount you need to borrow, but you are saying you would be saving £900 a month?

Edit: Oh, I get it... you will have £900 a month spare after all bills. I take it you currently have a lot more spare at the moment, then?


Well its not that really!! (wish it was) both myself and my partner earn a decent wage so even if we had a mortgage of £1400 we would still have a comfortable amount of disposal income after all bills are paid, inc, living costs, petrol, food etc....

currently at the momment our combined disposable income is £1200
#16
Miss Money Penny
I have factored in all bills and council tax and even the increased mortgage payment. It still leaves us with a combined disposal income of £900. I have spoken to my financial adviser and he does agree that this offer will not be around again however the choice is ours! :?


I would probably go for it, as house prices are low at the moment, can't see them going much lower!
My bf's family have the same w/c downstairs and an ensuite upstairs with another small bathroom for the kids (18 & 21 y/o) I'm incredibly jealous as we only have 1 bathroom with a seperate loo (no toilet in the bathroom)
are intending to have children? as that's also another big factor to consider! even if it's an accident
is you job 100% secure?
will other properties be built in the area... such as council houses, i guess that would put the price down... hope i'm helping!
#17
ok well i bougt a house valued at £40000 for £31000 and within months it was worth £20000..so my equity vanished!! i had to rent it to move on as i couldnt afford to sell it!
anyway it came good as i sold at a vast profit as the house market soared. But if the same happens and it is 50% where would you be better off? your house now or the new one? i dont know the value today of either house..
#18
So why is your partner against it (if you don't mind answering)?

How much extra will you be paying out per month by moving into this new house? Do you dislike where you are living at the moment?

Also, think about whether this is the house you really want, or are you being dazzled by the offers? i.e. do you really want (as pointed out above) to have to clean 3 bathrooms / toilets? Do you want to have to hoover 2 flights of stairs?, etc....
#19
ding
go with your heart


Please don't say that.... I've balled my eyes out over this! Im so torn. My partner is a little unfamiliar with the whole house buying thing and so I don't think he appreciates how good an offer this is. Although we both need to agree and be happy. A brand spanking home wont buy happiness! :cry:
#20
Miss Money Penny
Please don't say that.... I've balled my eyes out over this! Im so torn. My partner is a little unfamiliar with the whole house buying thing and so I don't think he appreciates how good an offer this is. Although we both need to agree and be happy. A brand spanking home wont buy happiness! :cry:


My friend recently moved down the road from me, in to one of the nicer homes on my road she hates it! It broke her heart that she had to move out of her original home, so think of it that way too!
#21
get a second opinion from a friend who can go and LOOK at the deal with you? but dont choose someone emotional choose someone level-headed?
if you are local to me ill look!!!!
#22
hodsey77
So why is your partner against it (if you don't mind answering)?

How much extra will you be paying out per month by moving into this new house? Do you dislike where you are living at the moment?

Also, think about whether this is the house you really want, or are you being dazzled by the offers? i.e. do you really want (as pointed out above) to have to clean 3 bathrooms / toilets? Do you want to have to hoover 2 flights of stairs?, etc....


I have thought of all those things you suggested... and yes it will be one hell of a chore however i do think its worth it. The area we are in now is OK, not too great. Then again the area we are moving too isn't that fab... which is another reason why the house is maybe cheaper than other 4 bed town houses.

The cost increases would be an extra £300 extra than what we currently pay on our mortgage. The council tax is double so £205.
#23
yimmie
My friend recently moved down the road from me, in to one of the nicer homes on my road she hates it! It broke her heart that she had to move out of her original home, so think of it that way too!


Well I am emotionally tied to this house as it was the first property I ever bought with my boyfriend. However its a 1950's terraced and it's starting to show its age and its problems. For the extra amount of money we would be forking out we would be getting one hell of an upgrade!
#24
:
louloo
get a second opinion from a friend who can go and LOOK at the deal with you? but dont choose someone emotional choose someone level-headed?
if you are local to me ill look!!!!


awwww, thanks for the offer! your in warrington right? Im in London... and yes we pay silly prices for houses! :)
#25
i live in a 4bed two bathroom house and its big although not old and trust me it IS a chore-and it costsa mint to heat!! and if you stop working to have kids? how will you manage on the reduced income?
#26
Miss Money Penny
:

awwww, thanks for the offer! your in warrington right? Im in London... and yes we pay silly prices for houses! :)


a 4 bed 3 storey here is around £250000
#27
louloo
a 4 bed 3 storey here is around £250000


Thats a good price compared to over £300k!!!!
#28
louloo
i live in a 4bed two bathroom house and its big although not old and trust me it IS a chore-and it costsa mint to heat!! and if you stop working to have kids? how will you manage on the reduced income?



Good point about having kids however im still 6 or 7 years away from thinking about having a family so I hope by then I we would have a good amount of savings aside. Im only 26... well 27 on the 27th June :thumbsup: :)
#29
To be honest I wouldn't move anywhere at the moment unless you have no choice.
Seems like you have a winning formula already, why spoil it ?

The market is too volatile and no matter what it is still going to be a gamble that you don't have to make.

Spend some money on your existing home to make life easier if need be.

Remember you are only being offered a "cracking deal" because the developer can't sell ! That in itself should tell you something ??

Best of luck to you and of course the above is only my opinion.
#30
yimmie
I would probably go for it, as house prices are low at the moment, can't see them going much lower!
My bf's family have the same w/c downstairs and an ensuite upstairs with another small bathroom for the kids (18 & 21 y/o) I'm incredibly jealous as we only have 1 bathroom with a seperate loo (no toilet in the bathroom)
are intending to have children? as that's also another big factor to consider! even if it's an accident
is you job 100% secure?
will other properties be built in the area... such as council houses, i guess that would put the price down... hope i'm helping!


Thank you for all your advice... I appreciate an outside view! The house itself is only a 15 second walk to two tall council blocks. I think this is one of the major factors contributing to the selling price by the developers. I don't think the prices will fall. They rarely do for new builds. The trick is to buy off plan or negotiate a good chunk off the marketing price.. that way you are safer if the house prices's fall. Saying that house price falls do not seem to affect new builds in quite the same way.
#31
hottoshop
To be honest I wouldn't move anywhere at the moment unless you have no choice.
Seems like you have a winning formula already, why spoil it ?

The market is too volatile and no matter what it is still going to be a gamble that you don't have to make.

Spend some money on your existing home to make life easier if need be.

Remember you are only being offered a "cracking deal" because the developer can't sell ! That in itself should tell you something ??

Best of luck to you and of course the above is only my opinion.


I totally understand and to some extent agree with your thoughts. However for the very reason alone that the developers are struggling... is the very reason that this house is affordable to us. In a normal market this house would be untouchable to me. I know this kind of offer will not come about again... unless were in for another house price fall soon... some how I don't think that will happen again for a very long time.
#32
Miss Money Penny
I totally understand and to some extent agree with your thoughts. However for the very reason alone that the developers are struggling... is the very reason that this house is affordable to us. In a normal market this house would be untouchable to me. I know this kind of offer will not come about again... unless were in for another house price fall soon... some how I don't think that will happen again for a very long time.


Are you confident about the market not falling again ? In fact has it even stopped falling ?
I somehow think not.

Having written that I understand your predicament. Everyone else has given you good advice as well especially on maintenance costs, don't underestimate these. Energy costs are set to rise by up to 40% in the year to come. Perhaps the new house is more energy efficient ?

Food prices, fuel prices etc etc inflation is not pretty at the moment and that will all have an effect on your disposable income. I know you're already aware of those things but they can't be stressed enough. It's never a clever idea to go from comfortable to uncomfortable, leads to all types of stresses, illnesses and break ups.

Difficult decisions but not ones to fall out with your partner about. I'm sure he cares as much as you do on a different level otherwise he would be just saying OK ??

Ok now to more important things Holland vs Russia !! Go Holland !! :p:thumbsup::);-)
#33
Miss Money Penny
Good point about having kids however im still 6 or 7 years away from thinking about having a family so I hope by then I we would have a good amount of savings aside. Im only 26... well 27 on the 27th June :thumbsup: :)


schhols in the areas you live and new area? 6 or 7 years isnt long away!
#34
[QUOTE=hottoshop]Are you confident about the market not falling again ? In fact has it even stopped falling ?
I somehow think not.

Having written that I understand your predicament. Everyone else has given you good advice as well especially on maintenance costs, don't underestimate these. Energy costs are set to rise by up to 40% in the year to come. Perhaps the new house is more energy efficient ?

Food prices, fuel prices etc etc inflation is not pretty at the moment and that will all have an effect on your disposable income. I know you're already aware of those things but they can't be stressed enough. It's never a clever idea to go from comfortable to uncomfortable, leads to all types of stresses, illnesses and break ups.

Difficult decisions but not ones to fall out with your partner about. I'm sure he cares as much as you do on a different level otherwise he would be just saying OK ??

Ok now to more important things Holland vs Russia !! Go Holland !! :p:thumbsup::);-)[/QUOTE

*BUMP*... me thinks I just dropped back to Earth:-(
#35
Forget about the current economic climate for a moment, and all the sweeteners you have been offered, if this house was well within your budget, would you want to buy it or would you prefer to move to a better area?
Are you sure its not just the sweeteners on offer that is swaying you?

we toyed with the idea of moving a couple of years back, but decided to stay put and totally upgrade the house, new bathroom, kitchen, extra bedroom, driveway etc. We are relatively lucky as we only paid £56k for it 13 years ago and have made a tidy profit even with the extra work. Houses and apartments are springing up everywhere at the moment but seem poorly built compared to older more solid ones.

8 months ago a new small estate was built in a neighbouring area to us. All 4/5 bedroom houses. they have struggled to sell the last 8 properties and have reduced the price by £38,000! I wouldnt be very happy if I had been one of the original buyers!
#36
Best advice I was ever given was to always buy the worst house in the best area, not the best house in the worst area. Basically, if the surrounding area is rough, no matter how nice the house, it'll be difficult to sell unless the market is really good. You have to think about the next move!
#37
tony_s1
Best advice I was ever given was to always buy the worst house in the best area, not the best house in the worst area. Basically, if the surrounding area is rough, no matter how nice the house, it'll be difficult to sell unless the market is really good. You have to think about the next move!


I agree with you however the area isn't terrible. We decided to sit there for an hour one saturday night to see what kind of people hang about the streets. We were lucky enough to spot a patrolling police car, which we flagged down for some advice on the area. They said it was'nt different to any other town. In all honesty it will be better than where I am now, not massivley but better! ;-)
#38
tony_s1
Best advice I was ever given was to always buy the worst house in the best area, not the best house in the worst area. Basically, if the surrounding area is rough, no matter how nice the house, it'll be difficult to sell unless the market is really good. You have to think about the next move!


It is all about location, if the market drops again the location is going to be a major deciding factor. I also agree that you should look into schools, a house in the right school catchment can be worth alot more than one outside, also they sell easier and quicker.

Before deciding maybe its worth looking at other properties available and seeing if you can get just as good a deal or better, its a buyers market a t the moment.
#39
mmm but its a lottery..cos house prices have risen in the better areas so much the worse areas have risen more as people are priced out of the nicer areas...but we have considered a new house similar value to ours, but found them smaller-little gardens-and parking is worse! one 4 bed house we looked at didnt have wardrobes in the bedrooms and the beds were shorty beds. My daughter loved the house but realistically it was tiny compared to ours. Vinylandtrinkets is a scarey story i am hearing too often too!
#40
BUMP*... me thinks I just dropped back to Earth


Oh dear, apologies, I could have worded that a bit better maybe. :oops:

Wasn't belittling your problem more trying for a bit of humour..................
You'll be fine OP, wish we all had the same difficult decision eh !

Take care :thumbsup:

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