Page 2 • Buying a house • Non-Gaming • General Non-gaming • Eurogamer.net

bainbrge 11 Feb 2004 17:21:45 1,687 posts
Seen 5 months ago
Registered 19 years ago

If it is not your won primary residence, you will have to pay Capital Gains Tax (UK)

only if you sell the house though- otherwise its taxed as Schedule A income (i think).

If you want to sell at some point, you can reduce the CGT charge by moving into the property for a period of time (i think the charge starts reducing after 1 year as your principal private residence). Also, don't forget indexation allowances.

ssuellid 11 Feb 2004 17:22:34 19,142 posts
Seen 2 days ago
Registered 20 years ago

sheepfish wrote:
Get 12 month binding contracts, make them pay 6 months at a time and he first time they are late with payment, dump them on the street with all their books, clothes and posessions. Their parents will grumble, but pay.

By law they only have to give 1 months notice to get out of a contract.

If they refuse to give their parents number then refuse to rent them the room.

Good point about the gas safety certificate - costs about Ł80 and has to be done annually.

Totally disagree about mixed sex tenants tho. From experience it just does not work very well.

You only pay Capital Gains tax when you sell the property - IIRC 40% of any profit over 7k.

bainbrge 11 Feb 2004 17:25:46 1,687 posts
Seen 5 months ago
Registered 19 years ago

IIRC 40% of any profit over 7k

its added to your existing income, so you'll be taxed at 40% on the combined income over Ł29,900. I think the CGT allowance was raised to Ł7,900 this year too (if you are married your allowances can be combined- transfers of assets between partners do not incur CGT)

BravoGolf Moderator 11 Feb 2004 17:55:50 12,787 posts
Seen 3 days ago
Registered 18 years ago

Thanks for all the feedback, I suspected there was a lot more hidden bits and pieces I needed to know about.

I'll have to do a lot more research (and saving) before I make any decisions though.

pistol 12 Feb 2004 12:35:37 13,018 posts
Seen 8 years ago
Registered 19 years ago

pjmaybe wrote:
My sister does this and makes an OK living out of it, but unless you own more than 1 property it's certainly not a path to untold riches. Plus for some reason she always seems to end up with people that have watched "Pacific Heights" as tenants, the last lot used a soldering iron to draw a huge pentagram on the kitchen floor lino...worryingly.

Peej

I know a couple of people who do it too, but they both own 2 properties. With all the shit you'll get on a regular basis I wouldn't recommend doing it with one property.

Super_Zee 7 Feb 2009 19:09:54 2,105 posts
Seen 5 days ago
Registered 15 years ago

I'm just finalising the purchase of my first property (well, strictly speaking it's my wife's as I'm a no-good penniless actor) and, quite frankly, it's terrifying. I do feel that now's a good time to buy as long as you consider it a very long-term investment.

We're getting an apartment close to Downtown Vancouver, so I'm hoping the economic recovery and the 2010 Winter Olympics will add some hefty value in the five years we plan on staying here before moving into the sticks.

Ginger 7 Feb 2009 19:27:40 7,256 posts
Seen 2 weeks ago
Registered 19 years ago

Confounder wrote:
Is it safe to buy a house now? Or should I wait until late 2009/early 2010?

If you do buy, make sure you negotiate a fucking massive discount. My mum works selling new homes for builders and they're offering anything up to 20 / 30 % discount - this is new homes mind.

themanfromdelmonte 7 Feb 2009 19:57:21 777 posts
Seen 4 days ago
Registered 13 years ago

Confounder wrote:
We are looking at it long-term, around 10 years. I'm more worried about job security and not being able to pay the mortgage. I have a large deposit but it will all go down the drain if I lose my job and fail to pay the mortgage.

If further down the year house prices are lower, I would need to borrow less and pay less per month but then more people may want to rent out their property instead of selling due to low prices which means less choice.

I need a crystal ball.

But the more who try to rent out, the less rent they will be able to get due to increased competition, so it's only a finite thing.

Are you in UK? If so, unless you are forced to buy, it's probably for the best to hold out for a while yet. The BOE wouldn't be cutting interest rates to record low levels if things were on the up. When you do buy, I'd also advise getting the longest possible fixed rate you can get, as when the economy does pick up inflation will be back and the BOE will have to raise rates as rapidly as they've been cut.

seasidebaz 7 Feb 2009 20:15:16 7,500 posts
Seen 10 hours ago
Registered 15 years ago

Ginger wrote:

Confounder wrote:
Is it safe to buy a house now? Or should I wait until late 2009/early 2010?
If you do buy, make sure you negotiate a fucking massive discount. My mum works selling new homes for builders and they're offering anything up to 20 / 30 % discount - this is new homes mind.

20-30% discount is about right. Bearing in mind house prices will fall by about that much again, anything more and you'll be in negative equity. Good news for me, bad news for homeowners.

Mekanik 8 Feb 2009 15:08:43 4,729 posts
Seen 5 days ago
Registered 17 years ago

Ive been wanting to buy for a few years now but was advised to hold on till late 2009 (back in 2006) by a friend and he has been proven right.

Now its a decision as to whether prices keep dropping or just take the leap later this year.

Decisions decisions.....

oldskooldeano 8 Feb 2009 15:41:15 3,496 posts
Seen 16 hours ago
Registered 18 years ago

The market is picking up, let's say it is no longer on its knees just badly bruised and with a bloodied nose. I'm looking to move and have seen a place I want. My house is on the market and we have had several viewings in the week it has been on. One of them has come round twice. I'll know on Monday if they make an offer. Also Confounder, my house is on at a similar price to the 330K you said. If you went in at 290k to me I'd tell you where to get off. The market isn't that that desperate any longer I feel, especially in London and the South-East. Prices will drop until the summer probably but interest rates and the mortgage deal you want should factor into your decision. If you are looking long-term then I suggest get on the bus if you see the house you really love.

Edit: Your maths seems right for the mortgage. I cant see how you can borrow 200k and pay 900 a month over 20yrs either!

tenofspades 8 Feb 2009 15:58:33 1,805 posts
Seen 14 hours ago
Registered 15 years ago

I bought 4 houses once. I thought it was a bit expensive but then the iron landed on the square and he went bankrupt.

DaisyD 8 Feb 2009 16:18:13 11,816 posts
Seen 5 years ago
Registered 16 years ago

The problem with buying at the moment is a) the prices are still falling b) there are far fewer mortgages on offer and c) most banks expect you to put in a huge deposit for you to even be considered. I read something recently that you need at least Ł100k deposit to buy in London atm, although it's less elsewhere. Generally it's expected that you have 20 - 30 % deposit instead of the 5 - 10%, or sometimes no deposit at all, that they used to take. The problem also is that many people get a mortgage approved in principal, but once they've found their house they are then turned down, so arranging it in advance (which is sensibly anyway) is still no guarantee.

How much of a deposit do you have? Why are you being pressurised into buying now?

BTW if a house was on at Ł330k and and you offered Ł290, I would not think that a daft offer in this climate. In fact I'd probably offer lower and work up to Ł290k. If they still didn't take the offer, I'd walk away. The chances are they will be so desperate after a few months they might get the estate agents to xall you back because they've changed their minds.

skuzzbag 8 Feb 2009 16:28:24 5,950 posts
Seen 5 years ago
Registered 17 years ago

Confounder wrote:
Also, should you get the mortgage arranged first and then look for a house or find the right house and get the mortgage?

Many times, I've heard of houses coming back on the market because the potential buyer was unable to obtain the mortgage.

Generally banks expect you to have a house you like first.

famous_roy 8 Feb 2009 16:30:11 4,126 posts
Seen 3 years ago
Registered 16 years ago

So me and my gf are each earning around the 20k mark, there is no way we can buy is there? Like at all, I mean 100k deposit?! Maybe 15k after some saving but come on, how are people starting out expected to be able to buy?!

skuzzbag 8 Feb 2009 16:31:27 5,950 posts
Seen 5 years ago
Registered 17 years ago

BTW - house sellers are being advised at what price to expect in the current market and then you price your house at a level so that after negotiations it falls to the expected price. It's a buyers market but don't think that all sellers are panicking or desperate. Desperate sellers are probably in trouble anyway and need to sell but many more are simply moving house.

ElectroDiva 8 Feb 2009 17:09:14 592 posts
Seen 6 years ago
Registered 13 years ago

Confounder wrote:

DaisyD wrote:

How much of a deposit do you have? Why are you being pressurised into buying now?

I have 60k deposit but do not want to put all of it down, probably 50k.

Do you have an offer? I think you'd be very hard pressed to find anyone that would lend you more than 150k with 50k down.

Most (if not all) banks are limiting LTV to 75% maximum at the moment

Deleted user 1 March 2009 21:45:44

Only if you buy a home which is below stamp duty threshhold. No one would pay it if it was avoidable.

If you're a keyworker apparently you can sometimes get a loan for your deposit with deferred payments.

shamblemonkee 6 Mar 2009 12:51:59 17,967 posts
Seen 3 days ago
Registered 17 years ago

im in the process of buying a house and nationwide have just told me i cant use my chosen solicitor because he is not on some panel of theirs - anyone ever heard of this?

im quite annoyed as i wasnt told of this requirement at any point. trying to sort it out now. advice welcome!

Mageme 6 Mar 2009 13:39:49 2,330 posts
Seen 2 weeks ago
Registered 15 years ago

If you put in an offer on a house, do you have to state explicitly that it's subject to contract and survey, so that you can pull out just in case?

Dougs 6 Mar 2009 13:42:30 100,414 posts
Seen 13 hours ago
Registered 18 years ago

I think STC etc is pretty standard. Basically until you sign and exchange contracts you can do whatever the fuck you want.

gammonbanter 6 Mar 2009 15:58:36 2,282 posts
Seen 8 hours ago
Registered 14 years ago

Confounder wrote:
Also, should you get the mortgage arranged first and then look for a house or find the right house and get the mortgage?

Many times, I've heard of houses coming back on the market because the potential buyer was unable to obtain the mortgage.

your offer only has 6 months on the clock too. So it makes you get of your arse and start hunting!

Dougs 6 Mar 2009 16:00:12 100,414 posts
Seen 13 hours ago
Registered 18 years ago

Surely you get a mortgage arranged in principle (i.e. they are happy to lend to you with x deposit etc). Find the house, get formal offer

Deleted user 6 March 2009 16:03:22

Mageme wrote:
If you put in an offer on a house, do you have to state explicitly that it's subject to contract and survey, so that you can pull out just in case?

All our offers were in writing and with this wording, but my wife is a lawyer so was bound to do things properly. Not sure how necessary it was, but can’t hurt.

As for the mortgage, you need to get one agreed in principle, however, that doesn’t mean they’ll approve it once you have an offer accepted. This can be a bit of an arse frankly, as I recently discovered myself.

Mageme 17 Aug 2009 12:57:10 2,330 posts
Seen 2 weeks ago
Registered 15 years ago

So do different estate agents share information about potential buyers?? I just talked to one agent saying I'm turning down buying one place and they asked me if it was because I'd found somewhere else with another agent (which was actually the truth!); they had details and all!! That caught me off guard completely as I thought it was competitive between agents... and there I was thinking I was going to have to explain myself for not buying the place!!!

Deleted user 17 August 2009 13:12:03

Dougs wrote:
Surely you get a mortgage arranged in principle (i.e. they are happy to lend to you with x deposit etc). Find the house, get formal offer

Yeah, this. It's much much more attractive to the seller to know you can afford to buy.

JuanKerr 26 Aug 2009 13:55:43 37,710 posts
Seen 10 months ago
Registered 15 years ago

Depends on a lot of factors - how long has the house been on the market? Are the owners keen to sell? Etc. If they are keen to sell, you could bung in a cheeky offer way below the asking price. However, some sellers simply won't budge.

As for property websites, I quite like globrix.

Buying a house • Page 2