First time house buying in 2017

Six6siX · 4 Jul 2017 at 12:11

Remember though, market value does not necessarily equal asking price. If it's a good estate agent/valuation, then it should be close but in some areas where demand is high, you'll often find properties going for over asking regardless.

Semple · 4 Jul 2017 at 12:23

We're looking to buy our first property in Manchester too (south) and have found so far the market is pretty competitive in the desirable areas. Not seeing many houses stay up for long, and the few that have been on for months you can usually see are overpriced, or likely have something wrong with them.

We've saved up quite a nice deposit, so should be aiming for around 80% LTV, this should protect us from any short-term negative equity, although i would avoid all situations to sell if it was in that state.

dalehitchy1 · 4 Jul 2017 at 12:50

VincentHanna said:
https://www.thesun.co.uk/news/39288...perts-warn-property-value-could-plunge-by-40/

Shame about the source of the 'news'....

Im new to the property market but I don't see why negative equity is a major thing. I recently bought for 94k.... Let's say my house drops 10 or 20k with a recession....

Just don't sell your house for 5+ years until the market corrects itself. For me... I would rather be in negative equity for a while instead of paying an even more expensive rent

VincentHanna · 4 Jul 2017 at 13:01

That's the difference. I don't know where you bought, but 96k gets you nothing here

Being in negative equity of 20k might not be so bad. Being in negative equity of £100,000 is a bit different.

I saw a small mid terraced 2 bedroom house sell for £325,000 here in Chelmsford the other day.

Oxide™ · 4 Jul 2017 at 14:27

I'm in the same boat - FTB been looking the past 2 months in the South West London region.

Anything remotely suitable 2 bed is 300k+ and we only have enough for a 5% deposit in that case which is squeaky bum time.

Have been looking at sharehold and we found a perfect example for 40%, put in a really compelling application letter to the Housing Association only to be denied due to not enough housing need :/

We tick all credit checks, monthly expenses - it's just the saving for a deposit and not living like a pauper/not enjoying life being really difficult

Six6siX · 4 Jul 2017 at 15:48

VincentHanna said:
That's the difference. I don't know where you bought, but 96k gets you nothing here

Being in negative equity of 20k might not be so bad. Being in negative equity of £100,000 is a bit different.

I saw a small mid terraced 2 bedroom house sell for £325,000 here in Chelmsford the other day.

Is the absolute figure really that important as long as you can afford the repayments to ride out the downturn? Negative Equity is negative equity. Given that everything is calculated as a percentage LTV-wise to end up in NE to the tune of £100k would mean that you would have to have bought into quite an expensive property to start with to shed that sort of value?

I'd have thought that anything with the sort of price tag to allow that would be in a desirable area and be one of the first places to recover on the upswing of any turmoil - if it even lost that sort of value in the first place!

Mercenary Keyboard Warrior · 4 Jul 2017 at 17:26

Neg eq is only an issue if you need to sell.
Yes it can make remortgaging far trickier, if your that worried you fix.
The only fix for 2 minutes because you could have got a cheaper rate crowd will I am sure be along soon, but its really a hedge against changing rates the longer you fix.

Negeq can cause people to get stuck in property they have outgrown, but typically house prices rebound as soon as things improve after a recession, and taking a bigger mortgage and moving during a recession is a risky move for sure.

There is pretty much never a bad time to join the property market, there is just better times than others

Skillmister · 4 Jul 2017 at 18:26

First time buyer in North Wales here. Offered on two properties so far, 90% of asking on one and 95% on another. Both sellers are adamant they want asking price but i know an estate agent and surveyor personally who have advised the above percentages are top end for what I should pay so I won't be going any higher.

Properties are not disappearing off the market quickly and in fact on the streets those properties are on houses have been on for 6-12 months before selling so I'm expecting one of the two may end up accepting my offer..

I have a 20% deposit and no rental contract but that's not a positive to people who are in no rush to sell

Psycho Sonny · 5 Jul 2017 at 12:59

Mint_Sauce said:
What's the general feeling about first time buying a home in 2017? Good idea or bad idea?

From what I can see, buying in London feels risky but buying outside of London feels less risky. Overall though, demand outstrips supply and so any sink in the prices of houses will be met with people clamouring to get their first home and on the ladder.

Although saying that, if interest rates go up and with brexit being a complex beast maybe everything will come crashing down after-all leaving those who have just bought kicking themselves (me).

It seems like there's no real way of knowing whats to come..

I'm in the process of buying our first home in Manchester and feeling unsettled buying at this time, but I'm not getting any younger and I'm fed up of renting and the crap that comes with it.

Aargh!

why would buying in London be risky? It's the only place your pretty much guaranteed to make a profit.

It's a simple case of supply and demand.

Demand is greater in areas there are more jobs, better schools, better areas and good local facilities.