Hi I need some advice. Unfortunately due to different circumstances I'm not yet on the property ladder and have a very limited budget. (Quite a bit less than 60k) ( Properties that I do come across on the net usually need a lot of work doing on them which means I could afford the mortgage but would have difficulty making it liveable. (Some have been really bad). I thought perhaps shared ownership was an option but even if the mortgage is 45k most of the time the rent on the rest of the property bumps it out of my budget. But I'm just wondering which you think is a better option - a home that I can afford completely (though needs work and yes hopefully this'll add to the value) or is a shared/part ownership better as they are more likely to sell on if needs as usually in better location etc. I'm so confused and so need help! Thanks
Sorry about this but I'm going to sound a little harsh... Obviously I don't know which part of the country you live in but if owning a property you can afford means you need to spend loads on it to bring it up to good standard... then you can't afford it.
If you have then looked at shared ownership and the rent part knocks it over your budget, then again you can't afford it.
Not everyone has to own a house and to jeopardise yourself financially to do so is mad. Do you not have any friends that are in a similar position that you can club together with (do this properly tho with solicitors advice and contracts between you) ?
Not everyone who has a house could afford to buy it had they not built up thousands in equity over previous houses. I couldn't afford to buy my house if it were my first house and I reckon there's loads like me. It's just as properties have got dearer there has and does come a point where people cannot get on the property ladder either at all... in their home village, near to where they work etc or i nthat nice little first house they always dreamed of owning. Are you renting or at home with parents ?
If you or someone you knows is good at DIY, then go for the buy outright option and do the place up. But you will still need some cash to do this, as materials cost!
Part buy/part rent is a good option IF you can afford the rent portion. If not, don't even bother going for it.
It may well be best to wait a while, maybe your earnings will increase, and possibly property prices fall back slightly.
The best advice I can give you is not to stretch yourself too far, it is a horrible life living in your own place when you have no money and struggle to pay the bills, I know, I have been there, and I would never go back!
I was lucky that I can cope with most DIY tasks, I never paid attention too much at School in woodwork classes, but it was amazing how much came back to me when I had to fashion fireplaces out of £2.99 planks of wood! I was able to add £20k in value to the house in a year, some due to price rises, mostly due to DIY. I laid a new wooden floor, proper planks from a recovery yard, and I built two wooden surrounds for fireplaces using a Mitre saw for the first time! And various other bits, like re-pointing the outside of the house.
I struggled to pay the mortgage and hated every minute of it as it affected my social life badly, so think very carefully before making the move!
I personally would not do part buy/part rent. From the examples I've seen the rental side of it seems very pricey and I get the feeling you're always going to feel like you're renting anyway.
The idea of buying a run down property is sound but only if you have the money or skills to work on it. Remember that you have ongoing maintenance costs in any house which you have to keep on top of. Is there anything left for the other work after all your outgoings and if not, how long will it be until you are in a position to be more comfortable?
I could have got a far 'better' property had I gone for something that needed work doing to it but the fact was I only had enough money to buy the place and pay all the associated costs.
*It is not necessary to understand things in order to argue about them. -- Pierre De Beaumarchais
Unfortunately LilPad there are thousands and thousands of people in the same position as you are who cannot afford to purchase a property and have to rent until such time as the financial position changes which enables them to get a foothold on the property ladder. Some people never do.....my own Brother in Law didn't and has rented his house for 25 years. I have no idea where you live but 60k is not a lot, which means you are, by circumstances, a low wage earner and even if you could buy on your Salary I doubt if you could keep up the expense of maintaining and overheads associated with property owning, as indeed, hundreds of other people are finding out right now with repossessions at an all time high and climbing fast. Sit tight for the moment,rent if necessary,remain debt free and be happy with no financial worries. Mel.
LilPad, wait a few years. Interest rate rises will hopefully mean prices will slip a bit. Keep saving in the meantime.
Watch the japan affect kick!
I'm sorry but there is very little possibility of this happening. Interest rates are rising here. House prices stabilised and now they are rising again. There is about to be a massive housing shortage. The UK has a HUGE population density and it is not falling.
Ireland has a much lower population density and property is significantly more expensive. Prices has never stabilised and are some of the fastest growing in the world. And a crash there is far from assured. Expecting a crash in the UK is pure folly. The only way that is happening is if a plague wipes out a third of the population.
To the op, if you are planning on buying a long term home, then something that is run-down but livable is what I suggest. You can do it up as and when you can afford it, it's what my parents had to do when they bought. It's not ideal but can work, though it's only possible if you would be happy to live there for the forseeable future.
Also you can not do enough research. I spent a year planning what I could afford what I wanted and what compromises I would have to make. I looked for something i thought had a better chance of rising in value and I ended up with something much better than I expected when I started looking. I have friends who had similar budgets but looked haphazardly and have not made the best of their budget.
That's fine Lillie-B, no harshness felt. Thanks for your comments. I've been renting the last 10 years and moved 6 months ago 75 miles to be nearer my family again. So not made any close enough friends to share with yet plus I know that's not what I want really. So having looked for a house for the previous 12 months (though not whole heartedly) while looking for a new job, I got a job before a house so yep, back with the parents. They've been great but I'm no spring chick and just itching to have my own lil pad.
Thanks stateofplay. Yes a friend of mine has just recently bought a new build (much much better salary than me) and she's mortgaged to the max so is now having to consider a lodger. I wish I was a DIYer but I'm just not. I can make a place look like a home but can't make a house look like it's not just been bombed. One place recently I viewed was a repossession and the previous owners smashed into the walls, the windows, the glass in the kitchen panels.
I do agree with u queenstomper that even a part ownership still has that "renting" feel. Tho in my last place I felt very much at home (and quite miss it now!) And yes again, on mulling things over, I have been more inclined to think a run down property is the better option. I think you get more for your money. Some of the "affordable" new builds are tiny, tiny, tiny. It's a right pain all this. Five years ago I considered buying and it would have stretched me back then but I made the wrong move and didn't. C'est la vie.
Sadly yes, your right too Melboy. Supposedly the "affordable" properties were supposed to help. The only plus side is at the minute (living with the parents) I can save some way towards a deposit. Which is a first as being on such a poor salary it's not been possible to save. Anyhow I shall keep on looking as I really, really, yes really want my own place.
Yep reverand, it would be nice (for me soundin a bit selfish there) if they slipped and perhaps a bit would be all so not going to help me but yes I am trying to save towards a deposit so that's a plus.
I am more inclined to think a run down property is the better move, iguana. I remember my parents saying they called a home Penny Over cos that's just what they had left!! I came on this forum too to try and get an idea of what others thought. Thanks for your comments.
Lilpad, just keep saving up hard. If you do go for the run-down property, ensure that you the sufficient funds to do the work when you complete, unlike what I did. Nearly 2 years on I still need to replace the bathroom & kitchen but I just afford to do it. Try not to overstretch yourself either, as I did!
Still waiting for this "Japan affect" to kick in, how long have you been telling us this Rev?
It will happen. It will take time to feed through (like oil price inflation we are now FINALLY seeing in the UK). Why do you think a lot of loan/mortgage rates have risen (only slightly mind) when Base Interest Rates have remained static?
Sorry to hear that, MattW. I will try and be careful and trying to save but boy, I'm so getting itchy feet to get somewhere. I'd even put up with an avocado bathroom suite! I even got a brochure tonight thru the post to become a plumber so I could do some of it myself. But a pal did point out that I'm too much of a girlie for that! And some good news, a possible offer of an interview for a better paid job. woo hoo.
Originally posted by LilPad: One place recently I viewed was a repossession and the previous owners smashed into the walls, the windows, the glass in the kitchen panels.
Don't be put off by places like this -just get a quote for the required repairs. A house that has been trashed by disgruntled former occupants usually carries cosmetic damage which is easily remedied. This is a better option than a house that has suffered from decades of poor maintenance where structural problems will be far more expensive to put right. If you are determined to buy and have to choose between a run down property and a trashed repo then go for the repo (provided, of course, that the property is not both a reposession and dilapidated!)
[/QUOTE] Don't be put off by places like this )[/QUOTE] I'm not put off by that,susiecam, it's just that it was already at the top of my tiny budget and that's one of my problems - the run down or repossessions even start higher than what I can afford. But there must be one somewhere so I'll keep looking and saving in the mean time. One day LilPad will get her lil pad. (well that's what I have to keep telling myself!)
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Try not to overstretch yourself either, as I did! 
we are now FINALLY seeing in the UK). Why do you think a lot of loan/mortgage rates have risen (only slightly mind) when Base Interest Rates have remained static?
