House Prices #2 Property market, buying and selling

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unidentified said:
Does anyone have any tips for buying a second property? I’m UK based and desperately trying to save to move more into property so I can leave a job I hate but I’m not sure the best way to go about it.
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Are you trying to make a career out of property? Is that what you mean?
The buy to let market has changed recently due to tax laws so it’s difficult to make the money you once could. You will also pay higher rate stamp duty on your second property so it’ll cost you probably 8% more than agreed price. You need to remortgage and keep adding to a portfolio to make any real money but that means the upkeep and management of the properties which costs a lot. Your goal is to see a market rise on the equity but in this peak market you could see a drop or quite some time to see gains.
Honestly, I’d concentrate on looking for a career you enjoy unless you are passionate about property as it’s a 24/7 job, you have to go big to make any money, you are opening yourself up for personal liability etc
If you want a second home for pocket money that’s a different story.
PLEASE, PLEASE DON’T fall for the property seminar scams ‘We’ll teach you to make money from property with minimal investment’. if it were that easy they’d be concentrating on that instead of flogging scams and schemes
 
unidentified said:
Does anyone have any tips for buying a second property? I’m UK based and desperately trying to save to move more into property so I can leave a job I hate but I’m not sure the best way to go about it.
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Things have changed, there is extra stamp duty to pay, you have to cover any Maitenance costs and service change payments and the mortgage if you property is empty. You also need a much higher deposit and you get a much higher rate on buy to let mortgages. Unless you actually know what you are doing I would be very careful.
 
We sold our first house a year ago as it was too small for us and we are planning another baby. moved back in with parents but thought it wouldn’t be long before we found something. A year later and we are still here. Prices are ridiculous and I’m SO fed up. Seen a perfect house this weekend but it’s 15k over budget and no way can we stretch. Annoyingly, the owners paid 40k less for it (with no work being done to it) only two years ago. Will this madness seriously ever end? I feel trapped like we are never going to find anything unless we move to an area we really don’t like or to a house we really don’t want (we made that mistake last time).
 
Bobbleowl90 said:
We sold our first house a year ago as it was too small for us and we are planning another baby. moved back in with parents but thought it wouldn’t be long before we found something. A year later and we are still here. Prices are ridiculous and I’m SO fed up. Seen a perfect house this weekend but it’s 15k over budget and no way can we stretch. Annoyingly, the owners paid 40k less for it (with no work being done to it) only two years ago. Will this madness seriously ever end? I feel trapped like we are never going to find anything unless we move to an area we really don’t like or to a house we really don’t want (we made that mistake last time).
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I know you've said you don't want to, but it might be worth looking slightly out of your area. We had to move into a neighbouring town. Its 100k difference in price and 20 minutes further north from London. I really hope you find something soon.
 
JoeBloggs said:
Things have changed, there is extra stamp duty to pay, you have to cover any Maitenance costs and service change payments and the mortgage if you property is empty. You also need a much higher deposit and you get a much higher rate on buy to let mortgages. Unless you actually know what you are doing I would be very careful.
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+1 to all of the above - you need some deep pockets basically!
 
Can I ask how long it took to find the house you wanted to buy from selling yours? Sold ours 2 weeks ago and there just isn’t anything at the moment, ours buyers are first time buyers and said they are happy to wait till July/August if they need to but really would love to just find something soon.
 
Rmd0609 said:
Can I ask how long it took to find the house you wanted to buy from selling yours? Sold ours 2 weeks ago and there just isn’t anything at the moment, ours buyers are first time buyers and said they are happy to wait till July/August if they need to but really would love to just find something soon.
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I hope you find something soon you must be really feeling the pressure.

I have a question about estate agents fees, I’d prefer to go for an agent that charges a fee after we’ve sold but happens if you’re buyer pulls out? Do you have to pay again?
 
Choco88 said:
I hope you find something soon you must be really feeling the pressure.

I have a question about estate agents fees, I’d prefer to go for an agent that charges a fee after we’ve sold but happens if you’re buyer pulls out? Do you have to pay again?
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You pay on completion. So if the sale doesn't complete no fee due.

We had a buyer pull out the day before exchange. EA got nothing until sale completed 6 weeks later
 
Wondering if anyone can advise on something. We are in Scotland, which uses the home report system for buying and selling which contains a mortgage valuation by a surveyor. Most lenders in Scotland use the value in the home report as the home valuation and base the mortgage on that, and anything you offer above home report value you would pay in cash as you could only mortgage the home report value. Anyway the mortgage lender we are using this time want their own valuation done similar to England I guess. We have only applied for a mortgage for the home report value but have offered £6k more than this of our own money. If the valuation comes back the same as the home report value then all is fine I guess but if it comes back higher (don’t know how likely this is) do we get to increase the mortgage accordingly? How do you make an offer in England without knowing the amount you can get a mortgage for assuming you only have a fixed pot of cash you can add on top? Not really thinking about what would happen if the value came back lower as we would have to pull out in that case.
 
a.pain said:
Wondering if anyone can advise on something. We are in Scotland, which uses the home report system for buying and selling which contains a mortgage valuation by a surveyor. Most lenders in Scotland use the value in the home report as the home valuation and base the mortgage on that, and anything you offer above home report value you would pay in cash as you could only mortgage the home report value. Anyway the mortgage lender we are using this time want their own valuation done similar to England I guess. We have only applied for a mortgage for the home report value but have offered £6k more than this of our own money. If the valuation comes back the same as the home report value then all is fine I guess but if it comes back higher (don’t know how likely this is) do we get to increase the mortgage accordingly? How do you make an offer in England without knowing the amount you can get a mortgage for assuming you only have a fixed pot of cash you can add on top? Not really thinking about what would happen if the value came back lower as we would have to pull out in that case.
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So in England you have an AIP (agreement in principle) as to how much you can borrow in a mortgage based on income etc. I assume that part is the same north of the border!

Then you just offer what you think the house is worth and hope the mortgage company think the same!

We had an AIP for 340k saw a house that was listed as 300k we offered 295k and were accepted. So we know we can borrow that much but when the mortgage valuation was done they only valued the house as 290k. So it means pay the extra 5k cash, seller drops the price or pull out. As first time buyers we didn't have a spare 5k (that wasn't already earmarked for repairs etc) and seller wouldn't drop the price so we had to pull out

Hope that explains it?
 
HoGi said:
So in England you have an AIP (agreement in principle) as to how much you can borrow in a mortgage based on income etc. I assume that part is the same north of the border!

Then you just offer what you think the house is worth and hope the mortgage company think the same!

We had an AIP for 340k saw a house that was listed as 300k we offered 295k and were accepted. So we know we can borrow that much but when the mortgage valuation was done they only valued the house as 290k. So it means pay the extra 5k cash, seller drops the price or pull out. As first time buyers we didn't have a spare 5k (that wasn't already earmarked for repairs etc) and seller wouldn't drop the price so we had to pull out

Hope that explains it?
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Thanks, it’s the same with AIPs, so you know how much you can borrow but my question is more around mortgage for a specific house- you have explained it how I thought it was but surely this means quite a lot of buyers end up pulling out if the valuation doesn’t match! Although I have seen debates about the home report system being flawed so don’t want to get into that but it feels like getting the valuation done after agreeing a price is a bit backwards as you’re stabbing in the dark as to what you think it’s worth! The valuation is getting done today anyway so hopefully I get put out my misery soon 🙈
 
a.pain said:
Thanks, it’s the same with AIPs, so you know how much you can borrow but my question is more around mortgage for a specific house- you have explained it how I thought it was but surely this means quite a lot of buyers end up pulling out if the valuation doesn’t match! Although I have seen debates about the home report system being flawed so don’t want to get into that but it feels like getting the valuation done after agreeing a price is a bit backwards as you’re stabbing in the dark as to what you think it’s worth! The valuation is getting done today anyway so hopefully I get put out my misery soon 🙈
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Yup it is a little backwards. I suppose you are relying on EAs to not overprice.

I think everyone I know has had either the house they are selling or the house they are buying down valued at some point. Which is a shame.

Sometimes the valuation makes sense. So my friend had the maisonette she was buying down valued by 2k as they said it needed 2k of damp working doing. The seller agreed to do the damp work and the mortgage company agreed the purchased price upon receipt of the evidence the works were complete. But in the case of the house we were buying it was because it was a fairly small estate and nothing similar had sold in the last 5 years! So they were just doing a desktop valuation based on the estate and the last sold property. If they had looked even 1/4mile further out it would have been evident that 295k was more than fair for that type of property.
 
HR values are usually almost identical to what the house is worth by a valuation. I think the chances of it coming back higher are slim. Generally mortgage companies will only ask for a valuation when they believe the home report value is higher than its worth.
 
unidentified said:
Does anyone have any tips for buying a second property? I’m UK based and desperately trying to save to move more into property so I can leave a job I hate but I’m not sure the best way to go about it.
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My grandfather did this on the side. There's the youtube channel : stupid is the norm who recently bought his latest property where he talks about his progress.

Maybe look at landlord forums for a real idea for what it's like now.

There's also investing and buying shares in REITs like Realty income. Own property without the hassle of management and income every month (they also lease to Amazon, B&Q, Sainsbury's and Tesco). Or with Civitas social who invest in social housing and give payments every 3 months. If you do it in a stocks and shares ISA all income is tax free.
 
Bobbleowl90 said:
Surely the house prices won’t continue to rise as they are in todays market. The average car now costs over £80 to fill up…people won’t be able to afford to live day to day like this so the house market will be one of the first to suffer.
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I was thinking the same thing last year and prices rose by an additional 14%. It is crazy!

A lot of them are bought by foreigners (mostly British and Americans) who can't buy in their own country. Less and less Irish can afford a 400k house as a starting price.

Since people can fly again, a lot more foreigners will buy houses in other people's countries. I am French but I will buy a house in Ireland because this is where I live and work. British are buying here too because London is way too expensive. Singaporeans are buying in New York because it is cheaper. It can go on and on for years like that.
 
Thoughts on this?

www.telegraph.co.uk

‘Making my buy-to-lets safe will cost me £150,000’

The Government’s plans to fix the cladding crisis are a ‘bizarre lucky dip’ that will delay works, a report has found
www.telegraph.co.uk www.telegraph.co.uk

The below section is particularly interesting to me... Why does anyone invest if not to fund their retirement or support their children?

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