House/purchase advise

[bhawoddy]

If Simmo is earning £200/£250 a day, he should be able to afford to have a new van.
There are loads of good tradesmen not earning that amount a day, a few years ago when there was no recession maybe, not now i reckon

Decent tradesmen are hugely undervalued. People are so willing to hire cheap tradesmen then moan about the state/quality of the job afterwards.

Buy cheap, buy twice.

 

[Silkster365]

You're not buying a house, you're buying a home. You're not buying an investment, you're buying a home.

Buy the one that you prefer as a home and with luck it will turn out to be an investment as well. Mind you, if that goes up by 20% when you sell the one you buy next will also have gone up by 20% so it doesn't make that much difference.

I guess one thing a house price increase does do though is potentially reduce your mortgage payments. House price rises 20%, amount you owe doesn't, then next time you come to remortgage you have a larger deposit and a lower interest rate....

 

[BN9 BHA]

Really ? I've developed properties ( yes, I know, scum of the earth ) and I have never paid more than £150 a day for a decent tradesman.

If you are supplying all the materials,organising the job and a tradesman just has to turn up with tools and work, fair enough.
It also depends on how many hours a day they are at the job and travelling distance.
Also if you are giving someone 5 days work at £150 a day, that's not too bad.

All my jobs I have to arrange myself, so I ask for more.

 

[Herr Tubthumper]

I guess one thing a house price increase does do though is potentially reduce your mortgage payments. House price rises 20%, amount you owe doesn't, then next time you come to remortgage you have a larger deposit and a lower interest rate....

I'm not following this.

 

[HAILSHAM SEAGULL]

Decent tradesmen are hugely undervalued. People are so willing to hire cheap tradesmen then moan about the state/quality of the job afterwards.

Buy cheap, buy twice.

I did my 4 year apprenticeship as a carpenter back in the 70's, and have been self employed since the early 8o's, so I have a litle knowledge and experience in the trade.

 

[Return of the Rev]

Okay so as a first time buyer and having short listed two properties I am at some what of a crossroads.

The two properties in question are on the market at 235K (3 beds) and 250K (2 beds). They are both located within the same village.

Whilst the 2 bed is valued at 15K less the agent has suggested that he could comfortably get that down to 240K (possibly even slightly lower). This property has been completely re fitted throughout, however my biggest concern is where can I make money when it comes to selling. The answer would be with great difficulty. That said I could move into the property and I would not need to change a thing.

The second more inexpensive property is considerably bigger with the benefit of a third bedroom. Whilst it isn't exactly to my liking right now in terms of fittings I can see the scope to increase the valuation somewhat (and at not too great an expense). I personally believe the price is extremely competitive given the size and has possibly been undervalued. My thought process would be to hold approx 5K (10 at a push) back on my deposit for home improvements. This would initially be for a new bath, toilet and a general renovation of the bathroom, new carpets throughout and to replace the existing living room floor with a lighter coloured wood.

Should I be concerned with sell on value as much as I am? Part of me thinks I'm over complicating things the other side of me thinks I'm correct in my forward thinking.

The other concern is how much should I spend on home improvements? Surely spending 10k on the interior doesn't necessarily mean you will see that return when you come to sell up? Or does it?

Help please, my head hurts!!

Looks like a really difficult decision and one you might regret if you get it wrong,a house purchase is the biggest thing you will ever undertake and could set you up for life! Also the wrong move could plunge you on a downward spiral into debt despair and eventual mental breakdown! I think you need to spend a good while in the making of this life affecting move! Good luck! You'll need it.

 

[Uncle Spielberg]

The survey will find out the amount of work needed on the cheaper property. Go for a mortgage with a free survey so you are not committing yourself to a £ 400 survey fee and then decide.

 

[bhawoddy]

I did my 4 year apprenticeship as a carpenter back in the 70's, and have been self employed since the early 8o's, so I have a litle knowledge and experience in the trade.

Good man. I wasn't suggesting for one minute that you didn't understand, but was making a general point that 150 a day for a decent tradesman is peanuts.
People don't seem to grasp that good electricians,plumbers,carpenters etc... Are as skilled in their trade as most white collar workers if not more and are basically undervalued by the majority because there job involves getting dirty. There are plenty of less skilled people working in offices, with lovely clean jobs who earn twice as much as trades people and who are less qualified IMO.

 

[bhawoddy]

Looks like a really difficult decision and one you might regret if you get it wrong,a house purchase is the biggest thing you will ever undertake and could set you up for life! Also the wrong move could plunge you on a downward spiral into debt despair and eventual mental breakdown! I think you need to spend a good while in the making of this life affecting move! Good luck! You'll need it.

Lol. Geez, nothing like a ROTV rubdown. He only wants to buy his first property and he's probably now thinking he's going to end up a nervous wreck.

 

[Return of the Rev]

Lol. Geez, nothing like a ROTV rubdown. He only wants to buy his first property and he's probably now thinking he's going to end up a nervous wreck.

Plenty have! he seems to be rushing a bit thats all.

 

[Westdene Seagull]

I'm not following this.

Your Loan to Value percentage improves as your property value increases. This means you can get a better deal when you re-mortgage.

 

[Uncle Spielberg]

Your Loan to Value percentage improves as your property value increases. This means you can get a better deal when you re-mortgage.

This. Although your loan to value will be better in, say 2 years time with no property increase as the mortgage would have reduced anyway with a repayment mortgage.

 

[Surf's Up]

You're not buying a house, you're buying a home. You're not buying an investment, you're buying a home.

Buy the one that you prefer as a home and with luck it will turn out to be an investment as well. Mind you, if that goes up by 20% when you sell the one you buy next will also have gone up by 20% so it doesn't make that much difference.

Spending money on a property doesn't necessarily add value. You may put in a new bathroom that a buyer might not like and rip out. I've seen plenty of people spend loads on their property and then wonder why people won't pay the price they ask bearing in mind the amount they have spent.

Golden rule - a house is a home, not an investment. A second house may or may not be an investment but if you only have one house it is your home. Buy the one you want to live in.

I totally agree with this. We've just moved back from Gibraltar to Brighton and are in the process of buying a house based on this philosophy. The other point to note is that the housing market has turned the corner in the SE and a house purchased now will almost certainly represent a sound investment - prices down here are accelerating at a bonkers rate.

 

[piersa]

It's hard out there at the moment. My income fell off a cliff in 2008. Lost 50% of my income over night and it hasn't come back yet. Have a fairly big mortgage but if I want anything, I save for it. Credit cards and loans are a slippery slope.

 

[bhawoddy]

Plenty have! he seems to be rushing a bit thats all.

Possibly rev.... As long as the surveys don't show any major structural defects then I think he should go with what he thinks. We all have to take certain risks in life order to progress. Some work out others don't, but bricks and mortar are usually a safer bet.

 

[Marshy]

Me it would be the 3 bed all day long

 

[Greavsey]

Credit cards and loans are a slippery slope.

Possibly, or as an octogenarian multi millionaire once told me twenty years ago "Always borrow as much as the fvckers are stupid enough to lend, and make their money work for you". A strategy that I have followed and had some success with, just about being sensible and being able to keep paying back any loans. Look at Man Utd - a completely leveraged business that the Glazers are doing quite nicely out of!

And for what it's worth for the OP, if the location is the same I would go for the property that needs work every time.

 

[bomber130]

Okay so as a first time buyer and having short listed two properties I am at some what of a crossroads.

The two properties in question are on the market at 235K (3 beds) and 250K (2 beds). They are both located within the same village.

Whilst the 2 bed is valued at 15K less the agent has suggested that he could comfortably get that down to 240K (possibly even slightly lower). This property has been completely re fitted throughout, however my biggest concern is where can I make money when it comes to selling. The answer would be with great difficulty. That said I could move into the property and I would not need to change a thing.

The second more inexpensive property is considerably bigger with the benefit of a third bedroom. Whilst it isn't exactly to my liking right now in terms of fittings I can see the scope to increase the valuation somewhat (and at not too great an expense). I personally believe the price is extremely competitive given the size and has possibly been undervalued. My thought process would be to hold approx 5K (10 at a push) back on my deposit for home improvements. This would initially be for a new bath, toilet and a general renovation of the bathroom, new carpets throughout and to replace the existing living room floor with a lighter coloured wood.

Should I be concerned with sell on value as much as I am? Part of me thinks I'm over complicating things the other side of me thinks I'm correct in my forward thinking.

The other concern is how much should I spend on home improvements? Surely spending 10k on the interior doesn't necessarily mean you will see that return when you come to sell up? Or does it?

Help please, my head hurts!!

How about you just frigging buy a place live in it for a while and not worry about making money from it at this early stage. Get a grip young man. Love dad

 

[Cadiz Seagull]

I totally agree with this. We've just moved back from Gibraltar to Brighton and are in the process of buying a house based on this philosophy. The other point to note is that the housing market has turned the corner in the SE and a house purchased now will almost certainly represent a sound investment - prices down here are accelerating at a bonkers rate.

Didn't realise you'd moved back Chris. Have you sold your place in Vejer?

 

[Triggaaar]

I have to pay my sons wages/my wages/his tax/my tax/employers liability/public liability/his tools/my tools/his clothing/my clothing/my van tax/insurance/my diesel/my accountants fees all out of my PALTRY hourly rate.

So you don't charge anything for having you son work with you, but you pay your son? That's a bit daft. If he's able to contribute, perhaps you should charge for the work he does, then it won't come out of your hourly rate.