What do I need to think of when buying a house?

[Yuwipi Woman]

* check flood plain maps. It might look dry now, but if its in the 100 year flood plain, pass.

* check all crawlspaces, look for new paint, new drywall, etc. Owners will do whatever they can to cover over any major flaws. Better yet, get it inspected. One trick around here is to cover bad basement walls with drywall. You not only get to pay to fix the bad wall, you get to tear out and replace the drywall too.

* don't buy more house than you can afford. Don't listen to what the bank thinks you can afford.

* be sure to factor in things like taxes, insurance, and upkeep in with your monthly payment.

* expect to get screwed somewhere. You can't monitor all the things that might go wrong. A first-time buyer is likely to miss something.

* talk to the neighbors a bit before buying. They can be helpful in knowing what's potentially wrong with the house and good places to eat or shop. Or you may find that you don't, under any circumstances, want to live next to that asshole.

 

[Yuwipi Woman]

First off having a mortgage will fuck you psychologically.Then it'll be "fuck it I can't go on strike the mortgage needs paying" then fuck the cheap tickets to the Marquises Islands I need to pay the mortgage.It's a very long and slippery slope.

Yep. Sometimes it difficult to tell if you own the house, or it owns you.

 

[Yuwipi Woman]

Go to see a good independent mortgage advisor.

I didn't have a clue what to do and the woman who sorted my mortgage just basically guided us through the entire thing. She had recommendations for surveyors, solicitors etc, as well as her knowledge on mortgages.

Speak to friends who have bought houses and ask if they would recommend their mortgage advisor. I imagine most are shit/just go through the motions, but I don't believe she is unique. I found mine through a recommendation and ended up recommending her to others who had similar positive experiences.

Glad you found a good one. I'd suggest seeing more than one mortgage advisor. Shop around.

The first one I visited, asked where my husband was, and then tried to pawn off a loan several points above the going rate. It would have amounted to almost double the interest.

A visit to a second and third advisor made it plain how thoroughly he was trying to fuck me.

 

[Yuwipi Woman]

Google the street to lessen the chances of finding yourself in the midst of devil worship.

Or, raise the chances, if you're so inclined.

 

[kabbes]

That stops being true when you have children. They will colonise rooms at random with horrible music, and do handstands, and watch people called Zoella on ipads, and work their way noisily through family packs of Haribo, and try to start conversations with you. You need at least double the number of reception rooms you had before, including studies, dens and conservatories, in order to escape and keep one step ahead of them.

Well, that's totally your fault for having children.

 

[kabbes]

Not even remotely the point. UK property prices are a house of cards propped up by all sorts of things, particularly continued government intervention. Once it looks - for example - like you can't keep profiting from house price speculation any more, or even more so if god forbid someone should actually do something about that, a whole load of demand flees into thin air, not taking supply with it. That drop then takes out all the low margin BtLers, etcetera. Population growth and pent up demand isn't enough to meet it before it falls a long way.

If you base everything on supply you might as well put your hopes on tulips.

Whether it really matters or not, as long as you're in a better position to pay your mortgage than the weakest segment, who knows.

I think your analysis is a bit simplistic, mauvais. The market is very segmented and different factors drive different segments. The mainstream market is fundamentally driven by affordability and, if anything, this has looks like it has capacity for continued increases of at least 20% over the next five years, unless interest rates take off a lot, lot faster than anyone (Including me) expects. The prime London market is very different, but that's not what we're talking about here.

 

[Looby]

If it needs renovation work think long and hard about whether it's for you. You might think you'd enjoy a bit of DIY but the reality might be soul-destroyingly different. And absolutely do not buy a house that needs substantial work without already having the money to do that. And don't then blow that money on other shit like I did.

Think about how you are likely to actually use a house. I have a two bedroomed house to myself but all the space is in the wrong bits - kitchen is tiny where I spend a lot of time, nowhere on the ground floor to put things like bikes or gardening gear while upstairs there's a pointless humungous bathroom. I am now in the process of working my guts off to get the money together to move rooms around - don't do that, buy the house that fits your needs in the first place!

This is exactly our problem. I think bathrooms in old houses are huge because they used to be bedrooms. Our bathroom is so big, we paint furniture in it. We have no fucking shower though (rented house). [emoji35]

 

[Looby]

I don't own a house, I rent a lovely but slightly shabby house. If I was buying, there are things I don't have now which would be important to me.

Space in the bathroom for a bath and shower or a decent shower over the bath. Better separate though.

A good sized kitchen with lots of storage or enough money to make it bigger. Our kitchen has one drawer, one double and three single cupboards plus a pantry. It's a nightmare and we have stuff cluttering up the work tops and nowhere to put shelves.

If you drive or plan to, check the parking. Our street is awful for parking and pretty much everyone has two cars and one drive space. We only have one car but a friend visited last week and was driving round for ages trying to park as people park here then get the bus to work.

 

[chilango]

Oops I missed out downstairs toilet..

That's easy round here. Finding an upstairs one not so easy.

 

[mauvais]

I think your analysis is a bit simplistic, mauvais. The market is very segmented and different factors drive different segments. The mainstream market is fundamentally driven by affordability and, if anything, this has looks like it has capacity for continued increases of at least 20% over the next five years, unless interest rates take off a lot, lot faster than anyone (Including me) expects. The prime London market is very different, but that's not what we're talking about here.

Yeah, of course it's simplistic, no claim here to the contrary. And I agree London is almost an entirely different matter.

Nonetheless, if - enormous if - the housing affordability issue becomes such a problem that meaningful intervention is required and palatable, or to a lesser extent if the government plans of kicking the can down the road via sub-prime mortgages, help to buy (new ISA next month for example) and so on run out of steam, then I think confidence is going to take a battering and we'll see what the real market demand is. That and the possibility of another global crash outside of the housing market.

But it's folly to pick a timeframe by which anything will happen, because as noted, people have been saying this for years. So personally speaking, for various reasons, I'll probably just plod on with my life and buy somewhere in the next few years despite my trepidation about the paper prudence of it. But then if I had more freedom to not do that - e.g. were I considering it as an investment - I might think a lot harder.

 

[MarkyMarrk]

The latest on this is that we've agreed a sale on a more expensive and bigger house.
I'm borrowing a bit more from my parents, but I don't think they'll make me pay it back.
It makes sense because I can rent three bedrooms out to pay more than the mortgage, have a spare bedroom and my room (massive ensuite one). If I move out, I'll just rent at least one of the other rooms. Bedroom 5 is quite small so probably not suitable for renting out.
We had to pay the asking price of £300,000.

 

[equationgirl]

The latest on this is that we've agreed a sale on a more expensive and bigger house.
I'm borrowing a bit more from my parents, but I don't think they'll make me pay it back.
It makes sense because I can rent three bedrooms out to pay more than the mortgage, have a spare bedroom and my room (massive ensuite one). If I move out, I'll just rent at least one of the other rooms. Bedroom 5 is quite small so probably not suitable for renting out.
We had to pay the asking price of £300,000.

check you're charging a reasonable rent for the rooms, and make it clear what's included in the rent (e.g. utilities, WiFi etc). Personally I don't think you should be charging so much you're effectively living cost-free. And you'll need tenancy agreements. you may also need to take tax advice.

 

[antimata]

be realistic not emotional.
budget. pushing your limits because you 'really like it' is not a good idea.
location. worst house on best street can be improved to your likes in the future.

boring answers i know.

 

[bi0boy]

check you're charging a reasonable rent for the rooms, and make it clear what's included in the rent (e.g. utilities, WiFi etc). Personally I don't think you should be charging so much you're effectively living cost-free. And you'll need tenancy agreements. you may also need to take tax advice.

No, you really don't want to use tenancy agreements if you are renting out bedrooms in your own home. You'll have lodgers not tenants, and will need a lodger agreement (a license) which is much more simple than a tenancy agreement because, it being your own home, you have a lot more legal rights over the property than a landlord of an assured shorthold tenancy.

 

[kabbes]

Yep. Lodgers basically have no rights. They can even be kicked out overnight in theory (although in practice, "reasonable notice" must be given, whatever that means, and if someone won't go you'll need to follow an eviction procedure)

 

[MarkyMarrk]

check you're charging a reasonable rent for the rooms, and make it clear what's included in the rent (e.g. utilities, WiFi etc). Personally I don't think you should be charging so much you're effectively living cost-free. And you'll need tenancy agreements. you may also need to take tax advice.

Yes, we're going to do it all properly, but that doesn't mean a tenancy agreement. Why shouldn't I charge market rate, or close to it? I'll be a fantastic, live-in landlord. I can't see why I'd "kick lodgers out overnight".

My parents are going to take approximately 30% of the rent, because of the share that they own. We think that 70% of the rent will cover the mortgage and all bills, or come close.

We are going to make sure it's equipped properly.

I'm very excited.

 

[Looby]

If you're renting rooms in your home you need to think seriously about how you want it to work. I've been a lodger and had lodgers and it was mostly good but sometimes really shit.

When I lodged with a family they had a really long list of rules which I though was ridiculous but they'd added a rule every time something went wrong.
It can be difficult living with strangers and whilst it was alright, I didn't ever feel 100% relaxed when I had lodgers.

There was the guy who insisted on moving in the morning that I was throwing a baby shower and sat with his feet on the table all morning whilst I hoovered, cleaned and decorated around him for the party. So of course I decided I hated him before he'd even spent the night here. [emoji35] He was a bit of a dick and I felt really uncomfortable when he was home and hid in my bedroom a lot.

Then there was the couple who cooked six+ times a day (and night), filled the very small kitchen with all their own pans etc, had loud skype conversations with China all night and argued loudly all the time. They had a baby and then I had to listen to them arguing and screaming at the baby. [emoji20] Plus they ruined my kitchen floor and hall carpet and left a hideous stench in my spare room. When I gave them notice because they woke me up every night for two weeks and I couldn't stand it, they sent someone round to have a go at me. I hadn't even wanted a couple here, let alone a baby but they were being evicted and I felt really sorry for them.

Renting multiple rooms out will be tough in other ways because they've got to get on with each other too. I lodged in a large house with a family of five plus 4 lodgers. It was a nice house but there was only one lodger's bathroom which was always full and the kitchen was really small so we'd have to queue to cook. How many loos are there? Is there enough kitchen storage for everyone to have their own cupboards and fridge space?

Sorry to be a downer but really think about whether you want to live with other people and it not totally feel like your home. I was really skint and had always enjoyed sharing before so thought it would be fun.

I'd rather have a two bed that's all mine personally.

 

[mauvais]

Thread needs retitling, "what do I need to think about before becoming a landlord?"

 

[kabbes]

I was going to point out some stuff but Looby said it all, really.

Be excited by all means -- it's an exciting time -- but *do* prepare yourself for the fact that there *will* be conflict, whether unstated or in the open. There will be resentment and there will be differences in priorities. And you will be the one with the property getting damaged and you will be the one with the power to just throw somebody out of their home if you see fit.

We're not just miserable fuddy-duddies on this thread, we're people that's have lived through it ourselves with our own expectations and excitement. The more you can work out in advance, clearly stated so that everybody knows where they stand, the better. If it is important to you that your sofa doesn't get damaged, you better not assume everybody else realises that. If it is important to you that there is quiet between midnight and 6am, spell it out. And so on.

 

[MarkyMarrk]

If you're renting rooms in your home you need to think seriously about how you want it to work. I've been a lodger and had lodgers and it was mostly good but sometimes really shit.

When I lodged with a family they had a really long list of rules which I though was ridiculous but they'd added a rule every time something went wrong.
It can be difficult living with strangers and whilst it was alright, I didn't ever feel 100% relaxed when I had lodgers.

There was the guy who insisted on moving in the morning that I was throwing a baby shower and sat with his feet on the table all morning whilst I hoovered, cleaned and decorated around him for the party. So of course I decided I hated him before he'd even spent the night here. [emoji35] He was a bit of a dick and I felt really uncomfortable when he was home and hid in my bedroom a lot.

Then there was the couple who cooked six+ times a day (and night), filled the very small kitchen with all their own pans etc, had loud skype conversations with China all night and argued loudly all the time. They had a baby and then I had to listen to them arguing and screaming at the baby. [emoji20] Plus they ruined my kitchen floor and hall carpet and left a hideous stench in my spare room. When I gave them notice because they woke me up every night for two weeks and I couldn't stand it, they sent someone round to have a go at me. I hadn't even wanted a couple here, let alone a baby but they were being evicted and I felt really sorry for them.

Renting multiple rooms out will be tough in other ways because they've got to get on with each other too. I lodged in a large house with a family of five plus 4 lodgers. It was a nice house but there was only one lodger's bathroom which was always full and the kitchen was really small so we'd have to queue to cook. How many loos are there? Is there enough kitchen storage for everyone to have their own cupboards and fridge space?

Sorry to be a downer but really think about whether you want to live with other people and it not totally feel like your home. I was really skint and had always enjoyed sharing before so thought it would be fun.

I'd rather have a two bed that's all mine personally.

Brilliant. Thanks. I'm not too worried about this stuff. I won't have a long list of rules but I will interview carefully. And if we don't rent out rooms we'll be ok.

 

[8115]

Getting a solicitor.

 

[MarkyMarrk]

I was going to point out some stuff but Looby said it all, really.

Be excited by all means -- it's an exciting time -- but *do* prepare yourself for the fact that there *will* be conflict, whether unstated or in the open. There will be resentment and there will be differences in priorities. And you will be the one with the property getting damaged and you will be the one with the power to just throw somebody out of their home if you see fit.

We're not just miserable fuddy-duddies on this thread, we're people that's have lived through it ourselves with our own expectations and excitement. The more you can work out in advance, clearly stated so that everybody knows where they stand, the better. If it is important to you that your sofa doesn't get damaged, you better not assume everybody else realises that. If it is important to you that there is quiet between midnight and 6am, spell it out. And so on.

I don't think you're fuddy duddies. I don't really know what gives that impression. I do think the person who hinted I should just charge less money on moral grounds is a bit weird. Apart from that, it's quite helpful.

The house is quite big. Perhaps we'll start with one room rented out first.

 

[MarkyMarrk]

Also I have to buy the fricking thing before renting it.

 

[baldrick]

You'll have to tell whoever you have a mortgage with about potentially renting out rooms. When we bought ours the bank was very clear we could only have lodgers after we'd had the mortgage for a year.

I would be worried about a house not feeling like ' mine ' and not enjoying all my own space if I was renting all the rooms out and living with strangers. Why don't you buy somewhere smaller you could afford on your own? I don't understand why a single man needs a 4/5 bed house. I guess ultimately the idea is eventually it will be all yours but if you can't afford the mortgage without renting out rooms I can't imagine anyone lending you the money and you're facing 20 years of living with strangers.

 

[mauvais]

Because it appears to be a BTL investment opportunity.

(I am a miserable fuddie duddie and make no pretence to the contrary)

 

[baldrick]

Because it appears to be a BTL investment opportunity.

(I am a miserable fuddie duddie and make no pretence to the contrary)

I would rather have a home tbh. And a relatively small mortgage that can be paid off quickly. I'm obviously looking at this all wrong!

 

[MarkyMarrk]

You'll have to tell whoever you have a mortgage with about potentially renting out rooms. When we bought ours the bank was very clear we could only have lodgers after we'd had the mortgage for a year.

I would be worried about a house not feeling like ' mine ' and not enjoying all my own space if I was renting all the rooms out and living with strangers. Why don't you buy somewhere smaller you could afford on your own? I don't understand why a single man needs a 4/5 bed house. I guess ultimately the idea is eventually it will be all yours but if you can't afford the mortgage without renting out rooms I can't imagine anyone lending you the money and you're facing 20 years of living with strangers.

I wouldn't be able to afford the mortgage without my parents. It is partly for an investment. Partly because house prices are rising constantly and I really won't be able to afford to get on the ladder if I leave it much longer.

We won't be throwing away the money we've invested so far because of a suggestion on a bulletin board, to be honest. Some suggestions are useful, but 'just throw away money' seems to be a recurring theme.

We're aware of the mortgage restrictions and have looked into this. First Direct aren't helpful, but others are. We can't get the cheapest deals, but it seems OK.

While interest rates are low we don't have to rent any rooms out, but I'm interested in doing so. It makes financial sense, and I'm a social kind of guy. I like people.

 

[Looby]

I wouldn't be able to afford the mortgage without my parents. It is partly for an investment. Partly because house prices are rising constantly and I really won't be able to afford to get on the ladder if I leave it much longer.

Call me old fashioned but I see houses as homes not investments. Maybe we wouldn't have a housing crisis if everyone felt the same.

 

[kabbes]

I would rather have a home tbh. And a relatively small mortgage that can be paid off quickly. I'm obviously looking at this all wrong!

Quite, as per rule #1

1. Don't overextend yourself. Don't get bigger than you need, because you'll just be paying to heat it and furnish it for no reason as well as committing yourself to more debt. Don't think about how much you /could/ afford, think about the least you need to spend to get want you /really/ want (rather than the nice-to-haves). That way you can enjoy some spare cash each month and also have a chance of paying it off before you get too old. If and when you have spare money, pay off your mortgage as fast as possible. And invest anything after that in something /other/ than the place you live. If you really must be maximised in property investment, do it via a second property or property fund, not your own home.

He's breaking rule #1 and breaking it hard.

 

[bi0boy]

Call me old fashioned but I see houses as homes not investments. Maybe we wouldn't have a housing crisis if everyone felt the same.

I doubt it. If everyone regarded houses and homes not investments, there would still be the same number of people and the same number of houses. In fact, there would probably be less houses.