Author Topic: The 'Eeeek...buying/saving for a house' thread (Read 253321 times)

CraigDS · « **Reply #280 on:** August 25, 2015, 11:28:06 am »

Quote from: paul211b on August 25, 2015, 10:36:12 am

I am very tempted to do this, is there a way to check the house price is as stated? Checked Zoopla but they have no figures for this property. It can be seen on an estate agents page for offers £330000 in 2013.

Is there a place to check it's worth what she says you mean?

The easiest way is to use the sold house prices search on rightmove - http://www.rightmove.co.uk/house-prices.html/svr/3122;jsessionid=50B2B056EA0C389E793802010D932EB8

With that you can see what similar houses in the street/area sold for and it'll give you some idea what it is worth, it's not exact though.

Narwin Dunez · « **Reply #281 on:** August 25, 2015, 12:17:59 pm »

There's no CGT on your main dwelling. Just make sure you live there mate and have lots of evidence to back it up.

The bidder on my inlaws hasn't come back with an improved offer, so it appears, for now at least, that I've a few more months to get a bigger deposit.

Really don't want to get a 5%er

paul211b · « **Reply #282 on:** August 25, 2015, 12:48:14 pm »

Quote from: CraigDS on August 25, 2015, 11:28:06 am

Is there a place to check it's worth what she says you mean?

The easiest way is to use the sold house prices search on rightmove - http://www.rightmove.co.uk/house-prices.html/svr/3122;jsessionid=50B2B056EA0C389E793802010D932EB8

With that you can see what similar houses in the street/area sold for and it'll give you some idea what it is worth, it's not exact though.

I have tried all the sites, the problem is all the houses are different, next door is a semi detached house. There are semi detached bungalows and this is detached. Also a small road with about 10 houses.

paul211b · « **Reply #283 on:** August 25, 2015, 12:48:48 pm »

Quote from: Le Jake on August 25, 2015, 12:17:59 pm

There's no CGT on your main dwelling. Just make sure you live there mate and have lots of evidence to back it up.

The bidder on my inlaws hasn't come back with an improved offer, so it appears, for now at least, that I've a few more months to get a bigger deposit.

Really don't want to get a 5%er

Any idea how long for? I assume over 6 months at least.

Narwin Dunez · « **Reply #284 on:** August 25, 2015, 12:57:52 pm »

So -

Quote

You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:
1. you have one home and you’ve lived in it as your main home for all the time you’ve owned it

2. you haven’t let part of it out - this doesn’t include having a single lodger

3. you haven’t used part of it for business only

4.the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total

5.you didn’t buy it just to make a gain

1. You'll sell your place and move there

2. Don't let it out

3. Don't use it for business

4. I assume its not massive

5. You bought it to help out a family friend, then realised you couldn't maintain the costs.

There may be an issue with it being sold to you at an undervalue but I very much doubt it. She needs a quick sale so 275k is the right price for her.

(whilst I do work in law and have studied property law, I'm not a property law specialist)

paul211b · « **Reply #285 on:** August 25, 2015, 01:27:42 pm »

Quote from: Le Jake on August 25, 2015, 12:57:52 pm

So -

1. You'll sell your place and move there

2. Don't let it out

3. Don't use it for business

4. I assume its not massive

5. You bought it to help out a family friend, then realised you couldn't maintain the costs.

There may be an issue with it being sold to you at an undervalue but I very much doubt it. She needs a quick sale so 275k is the right price for her.

(whilst I do work in law and have studied property law, I'm not a property law specialist)

Nice one, thanks.

She should be able to sell it for whatever she likes really.

CraigDS · « **Reply #286 on:** August 25, 2015, 01:43:55 pm »

Quote from: paul211b on August 25, 2015, 01:27:42 pm

Nice one, thanks.

She should be able to sell it for whatever she likes really.

She can, but there are certain tax issues if you receive the house at a vastly undervalued price then sell it on for a big profit.

You should have any issues at the amounts mentioned and if you live in it too as your main residence, especially because you don't/won't own another home either.

paddysour · « **Reply #287 on:** August 25, 2015, 06:05:34 pm »

Quote from: paul211b on August 25, 2015, 10:22:00 am

Yeah as long as she can put an offer on the bungalow she wants.

I also can't find anything about the tax. People buy cheap homes and sell for a profit all the time. If the limit is a year then would be worth waiting I guess. Would never save 50k in a year. Seems like easy profit but is it ever that easy?

Why is she willing to wait for your house to sell, but not willing to wait for her own to sell for an extra £50k?

Also, does she know your plans? Might cause some unrest between her and your mother if she's under the impression she's doing you a favour as you'll live there for a long time.

Claire. · « **Reply #288 on:** August 25, 2015, 06:28:11 pm »

As you've said the house can be seen for £330k in 2013, has she been trying to sell it for a long time? If she has, then think it through very carefully because if it hasn't sold in two years there has to be a reason.

CraigDS · « **Reply #289 on:** August 25, 2015, 06:42:07 pm »

Quote from: Claire. on August 25, 2015, 06:28:11 pm

As you've said the house can be seen for £330k in 2013, has she been trying to sell it for a long time? If she has, then think it through very carefully because if it hasn't sold in two years there has to be a reason.

This was my thinking too, which is why I mentioned above about making sure that if it doesn't sell quickly and he still has it in another 2 years if he can afford to pay the mortgage/run the house.

Roady · « **Reply #290 on:** August 25, 2015, 08:01:09 pm »

Looks like im going to have to sell the house im in rather than buy my sisters share and stay.first time ive had to do any of this mortgage business.can i ask a simple question.this house was left to me.and my sister when my mum died in january.anyway.i think its likely we will get a minimum of 270k for it.so half of that being my share.qustion is is there any realy advantage to me buying some smal place like a flat or something outright.or should i do the same keep some money back and get a small.mortgage.im totally clueless on this and quite nervous about it all.thanks in advance

Narwin Dunez · « **Reply #291 on:** August 25, 2015, 08:41:01 pm »

Well mate you've got to weight up the following I think

No mortgage = no money spent on interest, so I suppose you'll have more cash at the end of the day

Small mortgage = nicer place = better quality of life?

Roady · « **Reply #292 on:** August 25, 2015, 09:11:00 pm »

Quote from: Le Jake on August 25, 2015, 08:41:01 pm

Well mate you've got to weight up the following I think

No mortgage = no money spent on interest, so I suppose you'll have more cash at the end of the day

Small mortgage = nicer place = better quality of life?

Yes i guess so is it that simple though? I mean is there any benefit to me saying getting a place for 130k and rather than paying it off just paying 100k deposit and have a 30k mortgage but 30k for other investment? Im clueless so pardon my complete ignorance

Narwin Dunez · « **Reply #293 on:** August 25, 2015, 09:41:50 pm »

Your mortgage will be about 2-3% if you're borrowing a small percentage of your new purchase.

So the new question is, can you find a definite investment that has a higher interest rate than that of your mortgage (plus the mortgage fees which may add up to a thousand or two)

KillieRed · « **Reply #294 on:** August 25, 2015, 09:44:06 pm »

Don't do it. A huge crash is coming.

Gordon Brown`s ex-advisor says so...I`m going to the supermarket to stock up on tinned goods tomorrow...

SamAteTheRedAcid · « **Reply #295 on:** August 28, 2015, 08:51:43 pm »

Here's a question.

So we're in the process of setting a moving date, having endured weeks of solicitors, form-filling, and so on. We're in the middle of a chain, i.e someone is buying our house, we are buying someone else's and they are buying sobody elses, everyone moving at the same time. We are currently in the middle of trying to set a definite date for completion i.e. exchanging the keys, but I'm a bit puzzled.

Logistically, how does the move actually work? I mean, it will take us a weekend to shift our stuff, so what does the person buying our house do in the meantime - and when can we expect the seller to have cleared their house by? Does it all get staggered so the seller moves first, then we do, then the person buying ours moves the week after? Or is it going to be chaos with people moving in while we get out?

Narwin Dunez · « **Reply #296 on:** August 29, 2015, 12:36:17 am »

Chaos.

As soon as the money lands in your solicitors account, the house isn't yours any more.

Millie · « **Reply #297 on:** August 29, 2015, 06:43:31 am »

Quote from: Le Jake on August 29, 2015, 12:36:17 am

Chaos.

As soon as the money lands in your solicitors account, the house isn't yours any more.

This

You are expected to vacate the property - and your new property should be ready for you to move into

Why will it take you a weekend?

As soon as a completion date is set and you have exchanged contracts - then start packing

SamAteTheRedAcid · « **Reply #298 on:** August 29, 2015, 09:08:11 am »

Ok, I was expecting chaos so nice to have it confirmed

I wanted to do it over a weekend as we've got a two year old and he is good at slowing things down. Doing it in a single day seem optimistic especially as it's not as if I will get lots of help with the move, it'll be me and the missus and a two year old. My brother might pitch up if we're lucky. I also imagined having to clean our house once we've got the stuff out but maybe that won't happen.

Narwin Dunez · « **Reply #299 on:** August 29, 2015, 10:50:06 am »

I'm afraid they expect you to be fully packed up in the moving van at 9am, estate ~~c*nts~~ agents will hand over keys as soon as your solicitor allows (once money drops in their account). You're gonna have to hire some movers by the sounds, or a babysitter.

Sorry to be blunt pal.

redbyrdz · « **Reply #300 on:** August 29, 2015, 01:26:36 pm »

Everyone in the chain moves the same day, it's madness.

Logistically, hire a van for a couple of days, pack everything in the van bar the mattress on the floor the night before. Drive over and sit outside your new home until those inside are out. Have your missus hang around the estate agent to pick up the keys as soon as they are handed in. Park the two year old with family/friends until the whole thing is over.

SamAteTheRedAcid · « **Reply #301 on:** August 29, 2015, 07:39:36 pm »

Thanks for the replies. Sounds great, looking forward to it

killer-heels · « **Reply #302 on:** September 3, 2015, 02:41:45 pm »

I have a property that is being let out at the moment who's fixed period is ending in winter this year. Just wanted to know peoples thoughts on the best product to get at the moment.

I have looked at Tracker mortgages which currently are the cheapest and exist for around 2 years. The best one I saw is for 2.25% and that tracks 1.75% above the base rate. However, there are some fixed deals at 2.55% for 2 years as well.

I did some calculations and for the tracker to end up costing more than the fixed rate, there would need to be a 0.5% rise in interest rates. You would imagine that it would equate to two rises of 0.25% each. Just wanted to know peoples opinions of that liklihood coming to fruition.

Trump's tiny tiny hands · « **Reply #303 on:** September 3, 2015, 02:53:55 pm »

How quickly will rates rise?

Even after the first rise, the market is pricing in only very slow increases, far slower than seen in previous cycles of rising rates (see the chart above), expecting a return to 3pc not until 2025

Capital Economics expects a rate of 1pc by the end of next year and 1.5pc by the end of 2017.

The Bank of England's quarterly Inflation Report on August 6 (more on this below), captured market forecasts: a rate of 1pc by autumn 2016, 1.7pc by 2017 and 2.3pc by 2018.

http://www.telegraph.co.uk/finance/personalfinance/interest-rates/11032396/Interest-rates-predictions-When-will-the-Bank-Rate-rise.html

.adam · « **Reply #304 on:** September 3, 2015, 02:55:51 pm »

Fix now before the inevitable rate rises start would be my advice.

I work for a bank and last week saw our strategic plan for the next five years. They're forecasting for rates to be at 1% this time next year.

killer-heels · « **Reply #305 on:** September 3, 2015, 03:21:13 pm »

Thanks. I have used a 0.5% rise (which would put the BBR at 1%) as a guide for this point next year and it makes the tracker mortgages only a couple of pounds more expensive than the fixed rate. As both are two year deals its more of a question of the rise for the following year.

Quote from: .adam on September 3, 2015, 02:55:51 pm

Fix now before the inevitable rate rises start would be my advice.

I work for a bank and last week saw our strategic plan for the next five years. They're forecasting for rates to be at 1% this time next year.

What was their projection for this point in 2017 then

SamAteTheRedAcid · « **Reply #306 on:** September 18, 2015, 07:05:29 pm »

Just came in to say, fuuuuuuuck property chains, so annoying.

Roady · « **Reply #307 on:** September 18, 2015, 07:48:18 pm »

Quote from: SamAteTheRedAcid on September 18, 2015, 07:05:29 pm

Just came in to say, fuuuuuuuck property chains, so annoying.

Try selling a house that is only half yours and having a sister who is a complete amd utter idiot.

TSC · « **Reply #308 on:** September 18, 2015, 11:41:37 pm »

Quote from: .adam on September 3, 2015, 02:55:51 pm

Fix now before the inevitable rate rises start would be my advice.

I work for a bank and last week saw our strategic plan for the next five years. They're forecasting for rates to be at 1% this time next year.

To be fair they've been saying the same for about 3 years.

killer-heels · « **Reply #309 on:** September 19, 2015, 09:21:39 am »

Quote from: TSC on September 18, 2015, 11:41:37 pm

To be fair they've been saying the same for about 3 years.

Yesterday they said the bank of england may have to cut interest rates to stem inflation.

Joff · « **Reply #310 on:** September 22, 2015, 03:46:40 pm »

Quote from: killer_heels on September 19, 2015, 09:21:39 am

Yesterday they said the bank of england may have to cut interest rates to stem inflation.

Cut to what?!

killer-heels · « **Reply #311 on:** September 22, 2015, 04:44:39 pm »

Quote from: Joff on September 22, 2015, 03:46:40 pm

Cut to what?!

Maybe down to 0.25?

paddysour · « **Reply #312 on:** November 30, 2015, 09:26:31 am »

Anyone jumping on the new ISA's then? The Halifax one looks great so far

Narwin Dunez · « **Reply #313 on:** November 30, 2015, 09:43:05 am »

Are Hsbc doing one? My current one gives me a tenner a month if I put 25 in but only a few months left on that.

killer-heels · « **Reply #314 on:** November 30, 2015, 01:49:33 pm »

Quote from: .adam on September 3, 2015, 02:55:51 pm

Fix now before the inevitable rate rises start would be my advice.

I work for a bank and last week saw our strategic plan for the next five years. They're forecasting for rates to be at 1% this time next year.

Bank of England again said that interest rates may not rise for a while still. Looks like it might be late 2016 at the earliest.

killer-heels · « **Reply #315 on:** November 30, 2015, 01:55:50 pm »

Quote from: paddypower on November 30, 2015, 09:26:31 am

Anyone jumping on the new ISA's then? The Halifax one looks great so far

Looks good at 4%. I guess its ok to just save for the interest alone even if you dont intend to save for a house?

paddysour · « **Reply #316 on:** November 30, 2015, 02:10:47 pm »

Quote from: killer_heels on November 30, 2015, 01:55:50 pm

Looks good at 4%. I guess its ok to just save for the interest alone even if you dont intend to save for a house?

Seen lots of people say that's their plan, although the banks and government haven't been very clear on the details.

killer-heels · « **Reply #317 on:** November 30, 2015, 03:27:43 pm »

Quote from: paddypower on November 30, 2015, 02:10:47 pm

Seen lots of people say that's their plan, although the banks and government haven't been very clear on the details.

Apparently if you dont buy a house then you just dont get the government contribution. Also its only for first time buyers (rightly so).

lfcrule6times · « **Reply #318 on:** November 30, 2015, 11:33:21 pm »

I have a question about this..so I have a normal cash ISA which I've been putting money into for about 2 years. Does that mean I wouldn't be allowed to the help to buy ISA?

Surprise me. · « **Reply #319 on:** December 1, 2015, 12:00:58 am »

I don't really know if I'm saving for a house, well it's the end goal but I'm not doing it properly. I've got two ISA's set up, one just a bog standard ISA and the other a stocks and shares one. Putting double every month into the stocks and shares one, the other is just because it has a better interest rate than the banks. Same goes for the stocks and shares I guess just with a bit more risk. Anyway by the end of next year I should be able to put a deposit down. Hopefully...

At the moment the plan is just to save for saving, and when I do have enough I will be using it for a house. Of course it will be in London so next year might be a bit optimistic considering I only started saving a few months ago.