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On 10/04/2013 08:30 AM, scott wrote:
>> Holy hell, I just bought a house. o_O
>
> Congratulations - good move! Did you move closer to work? :-D
I currently live so close to work that almost *everywhere* would be
further away.
The new place is further away from work. It's right near a main road
that cuts diagonally across the MK grid, so it should be quite
fuel-efficient to get to work. Just get on a road and drive in a
straight line until I get there.
It's also further away from my mum, so... ;-)
>> (And now I'm suddenly feeling awfully twitchy about whether my job is as
>> secure as I think it is!)
>
> What's the worst that's going to happen? Even if somehow the company
> goes bankrupt and can't afford to pay you from tomorrow onwards most
> banks are pretty good with giving you a few months leeway to find a new
> job without evicting you. Or to be super-safe just make sure you have
> enough money to pay a few months mortgage without a job.
Heh. Right now I'm trying to make sure I have enough money to *buy* the
place. This is why I'm only buying 30% of it; I just don't have the cash
to buy an entire property.
> > Heh, thanks. We'll see how this works out... Unfortunately buying a
> > house isn't like buying a loaf of bread. It's pretty complicated, slow,
> > and risky.
>
> If you think this is complicated and slow, wait until you have somewhere
> to sell at the same time, *that* is slow :-)
Well, there is that. The current owner apparently wants to sell quickly
for more or less this exact reason. I guess that's why my first offer
was accepted - and why it's so cheap.
> > I might not actually end up getting this flat. But here's to
> > hoping...
>
> What stage are you at then? Make sure you keep asking your solicitor
> that you've done and signed all you need to as early as possible, and
> then ask what they're waiting for to move forward.
I made on offer, it has been accepted, and I'm told the property will be
taken off the market. Now I need to have surveys done, appoint a
solicitor, finalise a mortgage application, etc. In other words
EVERYTHING ELSE. So I'm really just at the beginning here...
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> It's also further away from my mum, so... ;-)
Never a bad thing - I strategically placed myself with the M25 between
us, and as she refuses to use that road on her own I don't get any
surprise visits :-)
> Well, there is that. The current owner apparently wants to sell quickly
> for more or less this exact reason. I guess that's why my first offer
> was accepted - and why it's so cheap.
I was lucky with both my house purchases that the previous owners
weren't buying anywhere - makes things faster and less reliant on others.
> I made on offer, it has been accepted, and I'm told the property will be
> taken off the market. Now I need to have surveys done, appoint a
> solicitor, finalise a mortgage application, etc. In other words
> EVERYTHING ELSE. So I'm really just at the beginning here...
So you're holding things up at the moment then :-) Get a friend to phone
up to make sure the property is really taken off the market - often the
estate agent will continue showing people round hoping for a better
offer, or to ask you to up your offer.
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On 10/04/2013 09:37 AM, scott wrote:
> So you're holding things up at the moment then :-)
Yeah, pretty much. ;-)
> Get a friend to phone
> up to make sure the property is really taken off the market - often the
> estate agent will continue showing people round hoping for a better
> offer, or to ask you to up your offer.
When I looked yesterday, it was still listed on Zoopla. But I looked
just now, and it appears to have vanished now.
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On 10/04/2013 12:54 PM, Orchid Win7 v1 wrote:
> On 10/04/2013 09:37 AM, scott wrote:
>> So you're holding things up at the moment then :-)
>
> Yeah, pretty much. ;-)
And then of course there's the small matter of ringing round places that
only open during my work outs to try to find the best mortgage rates.
Because, you know, when the principle is drastically more money than you
will ever own, and the term is the rest of your entire working life,
compound interest is pretty steep...
On the one hand, I don't want to slow things down any more than they
already are. On the other hand, I want to find the best deal.
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On Wed, 10 Apr 2013 22:32:03 +0100, Orchid Win7 v1 wrote:
> On 10/04/2013 12:54 PM, Orchid Win7 v1 wrote:
>> On 10/04/2013 09:37 AM, scott wrote:
>>> So you're holding things up at the moment then :-)
>>
>> Yeah, pretty much. ;-)
>
> And then of course there's the small matter of ringing round places that
> only open during my work outs to try to find the best mortgage rates.
> Because, you know, when the principle is drastically more money than you
> will ever own, and the term is the rest of your entire working life,
> compound interest is pretty steep...
>
> On the one hand, I don't want to slow things down any more than they
> already are. On the other hand, I want to find the best deal.
That's sensible. Also bear in mind, though, that if you do a 30-year
term, most people don't stick with that term. They refinance when the
interest rates go down, sometimes adjusting the term (in the US, it's not
uncommon to start with a 30-year term and then later to switch to a 15-
year term, or to just refinance with a new 30-year term).
We've been in this house for 11 years, and have paid down the principal
by a little bit. But the value has gone up, too - and we expect to get
about $100,000 more selling it than we paid for it (the market in Utah
didn't crash as badly as other parts of the US, and the rebound has been
quicker). So it's something of an investment, too - it's not just about
what you're paying in, but what you get out of it when you sell it.
Just remember that the term isn't "the rest of your entire working life",
it's "until you refinance or sell the property". What you want is to
increase the value so when you sell, you get more than you paid (or will
pay in principal by the end of the term)
Jim
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> Because, you know, when the principle is drastically more money than you
> will ever own, and the term is the rest of your entire working life,
> compound interest is pretty steep...
Don't worry about it, you can swap to another product as soon as any
offer period is over - and usually it's a good idea to do so as the bank
will revert you to some ridiculous rate by default. I found 2 year
fixed/tracker (as the base rate won't likely change any time soon) to be
a good compromise.
Also I'm sure you're aware they try to take advantage of people intent
on the lowest interest rate or lowest initial fee by offering various
combinations of fee/interest rate. Just set up an Excel sheet with it
all in (including any offers like cashback) and see which leaves you
best off after a few years (not after 30 years!).
> On the one hand, I don't want to slow things down any more than they
> already are. On the other hand, I want to find the best deal.
Use the internet (comparison websites are a good place to start, then
move on to the banks themselves), websites are open 24/7 and once you've
found the one you want I've found most banks have phonelines open quite
late in the evening to answer any questions or set things up.
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On 11/04/2013 08:39 AM, scott wrote:
>> Because, you know, when the principle is drastically more money than you
>> will ever own, and the term is the rest of your entire working life,
>> compound interest is pretty steep...
>
> Don't worry about it, you can swap to another product as soon as any
> offer period is over - and usually it's a good idea to do so as the bank
> will revert you to some ridiculous rate by default. I found 2 year
> fixed/tracker (as the base rate won't likely change any time soon) to be
> a good compromise.
Interestingly, all the products I've looked at give you something like
5% fixed rate for a few years, and then it reverts to 3.2% or something.
So once the initial fixed period wears off, you're drastically *better*
off... Doesn't make any sense to me, but hey.
> Also I'm sure you're aware they try to take advantage of people intent
> on the lowest interest rate or lowest initial fee by offering various
> combinations of fee/interest rate. Just set up an Excel sheet with it
> all in (including any offers like cashback) and see which leaves you
> best off after a few years (not after 30 years!).
Heh, yeah, because comprehending financial documents is actually
possible. :-P
>> On the one hand, I don't want to slow things down any more than they
>> already are. On the other hand, I want to find the best deal.
>
> Use the internet (comparison websites are a good place to start, then
> move on to the banks themselves), websites are open 24/7 and once you've
> found the one you want I've found most banks have phonelines open quite
> late in the evening to answer any questions or set things up.
According to channel 4, the deal you get from your estate agent is
always the worst one. And yet, everywhere I've looked or asked has
either offered a far worse rate, or at best the same rate as I've
already got.
It seems the only way to lower the interest rate is to have a bigger
deposit. Now if I could just magic tens of thousands of pounds out of
thin air...
(My mum is seriously suggesting that I should take out a credit card and
put the shortfall on that, just to get the cheaper interest rate on the
mortgage. Because, you know, *that* won't be expensive at all...)
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>> On the one hand, I don't want to slow things down any more than they
>> already are. On the other hand, I want to find the best deal.
>
> That's sensible. Also bear in mind, though, that if you do a 30-year
> term, most people don't stick with that term. They refinance when the
> interest rates go down, sometimes adjusting the term (in the US, it's not
> uncommon to start with a 30-year term and then later to switch to a 15-
> year term, or to just refinance with a new 30-year term).
Can you actually do that?
Obviously, I've never had a mortgage. But from other loans I've had, if
you try to pay back more money or pay it off early, they charge you very
steep penalty fines.
> Just remember that the term isn't "the rest of your entire working life",
> it's "until you refinance or sell the property". What you want is to
> increase the value so when you sell, you get more than you paid (or will
> pay in principal by the end of the term)
I had assumed that the value of a property can only go down, never up.
I mean, think about it. The longer I have the property, the older and
therefore less desirable it becomes. The green fields around it get
built on, reducing the value. The surrounding properties get cheaper so
the wrong sort of people start moving in and making the neighbourhood
undesirable. And so on.
I guess if you did something to massively transform the property you
could conceivable raise its value. (E.g., taking a derelict shell and
turning it back into a habitable building.) But other than that, it
would seem obvious that property, like everything else, gets less and
less valuable over time.
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On Thu, 11 Apr 2013 18:38:18 +0100, Orchid Win7 v1 wrote:
>>> On the one hand, I don't want to slow things down any more than they
>>> already are. On the other hand, I want to find the best deal.
>>
>> That's sensible. Also bear in mind, though, that if you do a 30-year
>> term, most people don't stick with that term. They refinance when the
>> interest rates go down, sometimes adjusting the term (in the US, it's
>> not uncommon to start with a 30-year term and then later to switch to a
>> 15- year term, or to just refinance with a new 30-year term).
>
> Can you actually do that?
In the US, certainly. We've refinanced once already, it's a fairly
standard practice here.
> Obviously, I've never had a mortgage. But from other loans I've had, if
> you try to pay back more money or pay it off early, they charge you very
> steep penalty fines.
Home ownership is a different sort of thing. Refinancing is different
than paying it early, but some mortgages do have early payment penalties
attached. Others don't.
>> Just remember that the term isn't "the rest of your entire working
>> life",
>> it's "until you refinance or sell the property". What you want is to
>> increase the value so when you sell, you get more than you paid (or
>> will pay in principal by the end of the term)
>
> I had assumed that the value of a property can only go down, never up.
That's actually fairly rare. Usually property appreciates in value.
> I mean, think about it. The longer I have the property, the older and
> therefore less desirable it becomes. The green fields around it get
> built on, reducing the value. The surrounding properties get cheaper so
> the wrong sort of people start moving in and making the neighbourhood
> undesirable. And so on.
And you also make improvements to the house. You might (for example) put
a new roof on it, or build an addition, or redo the kitchen. Those
things add value.
> I guess if you did something to massively transform the property you
> could conceivable raise its value. (E.g., taking a derelict shell and
> turning it back into a habitable building.) But other than that, it
> would seem obvious that property, like everything else, gets less and
> less valuable over time.
It doesn't take a massive transformation. You'll want to talk to your
estate agent about how to increase the value of your flat if/when you
decide to sell it.
I bought my first place for $89K, and sold it for about $120K. This
current place we bought for $145K, and will likely get about $250K for.
On the first place we did very little. On this place, we've put a new
roof on (paid for with $20K in equity), did a lot of repainting and some
other not-so-insigificant things (proper vent for the stove, strip out
the paneling and properly finished/updated the walls in the addition,
improved the condition of the yard, installed a sprinkler system, added
additional capacity to the circuit panel, and so on).
Before we move, we'll get the floors refinished as well (they're hardwood
and need a good sanding/polishing).
Jim
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>> I mean, think about it. The longer I have the property, the older and
>> therefore less desirable it becomes. The green fields around it get
>> built on, reducing the value. The surrounding properties get cheaper so
>> the wrong sort of people start moving in and making the neighbourhood
>> undesirable. And so on.
>
> And you also make improvements to the house. You might (for example) put
> a new roof on it, or build an addition, or redo the kitchen. Those
> things add value.
Hmm, OK. I'm not sure how much of that I'm allowed to do since I'm not
actually buying the entire thing, I'm renting part of it from somebody
else. It's just one more of the things on my list of stuff I need to
figure out...
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