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- No, as you have identified you have a market to sub-let / have lodgers from.
- No, because your future circumstances usually improve and what is top of budget today isn't in 5 years, 10 years, etc. Also with interest rates where they are you'd be silly not to take advantage.
- Yes, but it works out in your favour to some extent... just get a 2-3 year fixed rate now and when that expires re-mortgage as applicable if your circumstances change. Everyone re-mortgages when the fixed term expires.
- Huge... 1-5% of the total loan value, fix for the term you're guaranteed to stay for.
- No, as you have identified you have a market to sub-let / have lodgers from.
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Also know Derby, do you really want to live in such a nice area? You can pay far less in some of the slightly less desirable or further out areas or get more for the same money if you don't mind being much further out but still close to work assuming you work at RR. Can understand wanting to be close to town as I am further out but go out in Notts mostly and getting to/ from the station is a ball ache.
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Well you're in a great position for your age so one thing I would say is you absolutely don't have to rush in to anything. Whether you buy a property that needs work or not depends whether you have the time and money but also whether all that work will give you what you want? I would lean more to just having a nice place with very little to do and just get on with enjoying life and then see where life takes you, plus if after 12 months you decide you want to shoot off somewhere it'll be far easier to rent out than a half-finished project.
I went to uni in Derby and lived there for about 6 years, a lot of my best friends still live there so I'm quite fond of the place plus you've got the peaks on you doorstep so there are definitely worse places to live. Also anything you buy around darley Park should be a decent investment (but I don't think anyone can predict anything in the current climate)
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Velocio
greentricky
Gewürzt
@bobble
After some house-buying advice if possible please and will be making a donation to the forum (which I try to do anyway) for the pleasure because some of the advice is incredible that I read on the forum. My dad isn’t too clued up on all of the renting out and mortgage intricacies that I will explain below, I don’t like discussing it with colleagues and none of my friends are on the property ladder yet.
I turned 22 this week and work as a graduate in Derby at a big engineering company. Not sure what I want to do career wise 100%, but I have an economics degree from a decent uni. Also not sure where I want to live and I’ll come on to this later, but my company have other UK sites/offices in Bristol and London.
Since starting in Sept 2019, I have lived at home (happen to have got a grad job in my home city) with cheap rent. With living frugally, cheap rent at home, joining bonus, lifetime ISA 25% top up, 50% of my income saved each month and past savings (worked since I was 16), I should have 15k saved myself by the summer towards a deposit. Could get a 5-10k interest free loan for a few years off my dad or grandparents if needed. I think I can borrow 150-160k (HSBC AIP). So 180k is the max house price I could get which is fine for a decent 2 up 2 down in a nice area close to the city centre, train station and work. Here is an example https://www.rightmove.co.uk/property-for-sale/property-78197860.html. Rough mortgage payment £720 + £120 bills is affordable for me, and I could rent a room to a grad mate for £400-450 ish. I don’t need to do this, but I probably would do. 170 grads started on my intake so definitely a market for it and renting it out if I didn’t live there. I know people who pay £500 for a room in a 5-person house in a worse area.
I am desperate to not live at home but don’t want to pay a landlord £500 to live in a shared house in a worse area. Derby is not special, a lot of my home mates live elsewhere now, none of my uni mates live here, city centre isn’t great, not a lot going on, quite Brexit and tory. I am keen to avoid never leaving Derby but will stop digressing and bring it back to house rather than life advice.
Questions I have:
Covid-19 wise (not trying to sound selfish mentioning this and have had mates lose their jobs this week. I am very lucky to still be working, and it is a shit situation for all) it is really hitting my company but given Friday’s announcement and the company’s different arms, hopefully we can survive, and my job will be safe. Wouldn’t do anything house wise until this was certain. I think there will be a lot less houses changing hands, house prices will fall with the recession, but that it could be a good time to buy cheap with the uncertainty and 0.1% base rate.
Cheers