AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
|
I'm not on a great amount of money but I keep wanting to get on the property ladder whilst prices are cheap. My yearly basic salary is just short of 16k. Now I went to look at some apartment style buildings by redrow not so long ago and I was looking at about 75k on a shared ownership plan for something I could live with. I decided against it at the time and I expect they've since sold, but today I saw some bovis homes that were for sale at 86k for a 2bed house (i've a feeling thats after the shared ownership 25% is taken off) but I've also seen they have some apartment style 1 bed houses for £79k.
Realistically I would have about 700-800 maybe a bit more i've not done all the figures at the moment. Could anyone advise me further or would I be better off waiting until I'm on a bit more money?
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
What do you mean you'd have 700-800? Is that a month for bills etc? 
Mortgage wise you'd probably get offered 4x your salary so 64k-ish & be expected to stick down 15% of the purchase price minimum.
Solicitor sees will be about £700.
|
AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
|
I'd have about 700-800 a month to cover mortgage and bills etc.
Hmmm 15% better get saving then!
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
That should cover it really mate, for the 75k one youd probably get a 85% LTV mortgage and need to stick down around £10k.
So get saving now. Save up that 700-800 you plan to use to pay bills for a year and see how you get on?
|
AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
|
You think? I really know nothing about the property market haha!
I currently have just over 3k in an ISA (not making alot of money on it atm  )
Thanks for your advice colin
|
AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
|
Simple answer is that you probably wouldn't be able to afford to move out. Remember that those shared ownership schemes (which are a rip-off anyway) also need you to pay rent so you'd have next to nothing left at the end of the month even if you could get a big enough mortgage (which you won't on that amount).
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Your only 20 just now mate, save like a bastard for the next couple years, then move out 
|
gez bay
Member
Registered: 14th Feb 08
Location: South Wales drives: Vxr
User status: Offline
|
i was talking to a person today and they had a shared ownership and they were paying £350 mortage and £175 rent 
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Thats not too bad however it would annoy me that im paying rent on something that I bought/own 
|
AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
|
I didn't know about the rent, I knew you had to pay it back eventually and I knew that some of these apartments have a maintenance charge to cover lecky/gas etc. Wheres this to gez?
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
There is some shared equity deals where the builder retains about 10-15% and you pay it back within 10years or whenever you move, if you pay when you move then its the % of the current value!! So you could well be right depending on which deal you've seen.
|
AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
|
They're a massive rip-off wherever they came from. If people could actually afford the asking price they wouldn't need to do the shared deals. Fact is that its a way to falsely keep prices high.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
I would consider the one where you pay no rent if I knew I could easy clear the balance within the 10 years.
However usually theres better incentives to be had if you dont require the shared equity such as cash discount and assisted move 
|
a_j_mair
Member
Registered: 23rd Jan 04
Location: Scotland
User status: Offline
|
quote:
Originally posted by AlunJ
for something I could live with.
lower you r expectations if you really want to move out
you only need vare essentials to start with untill you get on your feet and start making a little more money hopefully
remember its not just the bills etc, you need to be able to pay for any unforseens and there alweays are some no matter how well you plan it out
|
AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
|
Lol an apartment I saw for about 50k was not much bigger than my bedroom. Think I'm going to forget about it for now, wait til I'm on a much better wage which hopefully isn't too far away
|
