Dos & Donts of Buying a new house - Advice needed

[Austin 3:!6]

I am planning to buy a property here in London. Since I am novice in this field, any advice would be appreciated.

 

• What are the key things I must take into consideration while choosing a flat?
• Should it be leasehold or freehold?
• Should I buy house whose mortgage price will be lower that what I am paying in rent currently?
• Best way to negotiate for mortgages

 

Any other things I need to be aware off?

 

[EnterTheVoid]

Even if you choose the worst house on the best street, you'll still be better off in the long run.

 

It's all about location. 

Edited March 24, 2021 by EnterTheVoid

[Austin 3:!6]

Even if you choose the worst house on the best street, you'll still be better off in the long run.
 
It's all about location. 

Yes but I am not necessarily looking for investment but to stay in it

Sent from my SM-G950F using Tapatalk

[Khota]

22 minutes ago, Austin 3:!6 said:

I am planning to buy a property here in London. Since I am novice in this field, any advice would be appreciated.

 

• What are the key things I must take into consideration while choosing a flat?
• Should it be leasehold or freehold?
• Should I buy house whose mortgage price will be lower that what I am paying in rent currently?
• Best way to negotiate for mortgages

 

Any other things I need to be aware off?

 

That is a hot market and cannot offer much advise.

A person who can afford to buy a house in London is lot smarter than I am and any advise I give will be frivolous.

[coffee_rules]

In US, desis buy homes in this criteria 

 

1.  Good school district

2. Good school district

3. Good school district

4. Other desis living  in the neighborhood. With other desis doing the first three, no. 4 is automatically satisfied

5. good resale value in the last 20 years. Again first 3 will achieve that

6. low crime rate. Again first 3 will achieve that

 

Other criteria like, buy it in summer, before the school year starts and when interest rates are low , etc are secondary issues. Most of them buy before they start families , hence all criteria is centered around school choices. 
 

if Mortgage internet is tax deductible, it doesn’t matter if it is less or more than your current rent. It depends on if you can afford it with income and minus expenses. You should be saving about 10% min even with all deductions, for investments and rainy day

 

Edited March 24, 2021 by coffee_rules

[coffee_rules]

I don’t know what adv one has in leasehold, nothing but a glorified rent, where you can avoid yearly rent hikes. Also, if you don’t want to live in the house permanently, you lower the risk. But all the money spent on lease is got back, but is lesser value now (inflation etc)

Edited March 24, 2021 by coffee_rules

[Clarke]

Buy a plot of land near Canary Wharf and build your own place instead of moving into an existing one 

[coffee_rules]

6 minutes ago, Clarke said:

Buy a plot of land near Canary Wharf and build your own place instead of moving into an existing one 

Yes, I suggest that if you are first-time buyer. Newly built homes are valued much more and you will have the luxury of planning the house the way you want. It doesn't cost a lot more  than buying an existing home in a costly neighborhood. A lot of people are doing it now.

[velu]

you could rather buy a home in islamabad rather than buying a home in london  

[Clarke]

17 minutes ago, coffee_rules said:

Yes, I suggest that if you are first-time buyer. Newly built homes are valued much more and you will have the luxury of planning the house the way you want. It doesn't cost a lot more  than buying an existing home in a costly neighborhood. A lot of people are doing it now.

 

Especially near Canary Wharf 

[Austin 3:!6]

59 minutes ago, Clarke said:

Buy a plot of land near Canary Wharf and build your own place instead of moving into an existing one 

 

I see what you did there

 

Yes even I was planning to buy a land in canary wharf

[Austin 3:!6]

For Amreekan folks, Canary Wharf is our Manhattan where a decent 2 bed flat can go upto millions

[coffee_rules]

32 minutes ago, Austin 3:!6 said:

For Amreekan folks, Canary Wharf is our Manhattan where a decent 2 bed flat can go upto millions

tab to mujhe advice dene ki aukat nahin hain. 

[Austin 3:!6]

Just now, coffee_rules said:

tab to mujhe advice dene ki aukat nahin hain. 

I cant afford to buy even a jhopri anywhere close to 25 miles radius near canary wharf

 

My reach is only upto desi areas in London neighborhoods - Ilford, Dartford etc.

[G_B_]

Avoid leasehold....

 

 

[LordPrabhzy]

4 hours ago, Austin 3:!6 said:

I am planning to buy a property here in London. Since I am novice in this field, any advice would be appreciated.

 

• What are the key things I must take into consideration while choosing a flat?
• Should it be leasehold or freehold?
• Should I buy house whose mortgage price will be lower that what I am paying in rent currently?
• Best way to negotiate for mortgages

 

Any other things I need to be aware off?

 

 

First of all! How can people actually afford houses/flats in London lol

 

Anyways:

 

1. The cost? Your salary? Your work? transport links to work? have you got kids? so schools is something very important

2. Most mortgages are freehold- never really looked into leasehold ( these are usually business properties)

3. Depends on what your rent is and what your initial deposit is ( which issued to calculate your monthly mortgage + interest payment)

4. Just shop around which banks/lenders give you the best interest rate/flexibility which fit your needs. Theres not a big scope of negoiations when BoE interest rate is almost 0%

[coffee_rules]

Regarding negotiating mortgage, In US, we shop lenders with points. Lot of lenders have moneybacks.  For first time buyers, the points make sense, because you pay money upfront (you can even have a 2nd mortgage for this)  to get lower int rate rate and lower EMI. But in the longer run, it is best to pay mortgage with no points for lower rate, it is just a gimmick for short term gains. It all depends on wjhat you can can afford and how much 

[Tattieboy]

8 hours ago, Austin 3:!6 said:

I am planning to buy a property here in London. Since I am novice in this field, any advice would be appreciated.

 

• What are the key things I must take into consideration while choosing a flat?
• Should it be leasehold or freehold?
• Should I buy house whose mortgage price will be lower that what I am paying in rent currently?
• Best way to negotiate for mortgages

 

Any other things I need to be aware off?

 

. Always buy freehold 

Buy what you can afford but always remember morgage  interest rates can go up , better to look at fixed year morgages , 3 or 5 years to start with then you know your budget for a fixed time .

Shop around for best mortgage, Funchal pages in newspapers give you best deals at that time .

Check the surveyors report fully, sellers by law must provide one but you can pay to get one find by a surveyor of your choice 

[BacktoCricaddict]

Don't become emotionally attached to a house, especially the first one you see.

If you liked a house and it comes off the market before you decide, don't panic.  There will be others.

View several and make a pros/cons spreadsheet and decide what compromises you are willing to make.  

Stay under your budget.  Agents/brokers may try to tempt you to go "a bit higher."  Resist.

 

 

Budget in maintenance costs over the years.  

 

 

 

[Vilander]

dont know abt UK, but its critical to negotiate buyer and seller agent commission - as this can run into several grand. 

 

house should have location advantage either high school or elementary school - avoid any demographic strongholds ( ghettos), walk score can help when you sell starter homes to incoming fresh home buyers - if you are upgrading look at demograph, salary range , school etc. Best of luck.