Way to go Chidera! A few points to add from my experience… Any new home always come with a “new house premium” which means it’s on average 15- 20% more expensive than similarly sized fairly older homes. This may normally take at least 5 years to “equalise”, i.e. achieve actual market value. Not an issue if you intend living there for at least 7 years to have any decent equity. Another thing is the overpayment calculation can be misleading. Regardless of how much you actually overpay, because you are most likely on a fixed deal /term at the moment, your overpayment is definitely going towards your overall mortgage amount reduction, not your total term. You’d likely achieve term reduction when it’s time to remortgage, which is when you will look at your balance by then and decide to lower your new mortgage term, assuming you have a lot more income to throw at it by then. Most of the overpayment calculators used assume you stay on the same rate, for the 25 or 30 years, which is rarely the case. Another thing to consider is that on average, people tend to move homes 2 - 3 times or more during their lifetime, with around 7 years max living in one house. Meaning that “ever-after” home now may not necessarily have the same tag few years later. Better to always assume you’ll move, so keep your options open and avoid over-spending on it especially if you’re both young and early on your careers. Lastly, a house is a psychological investment/asset, not necessarily a financial one (until you start earning from it). Whatever equity you have is worth nothing until it’s realised (via sell, equity release, etc.). So better to, again keep your options open when it comes to properties. Cheers.
Thank you for this video! I pray I don’t experience buyers remorse cos the way every time I look I see something else I like is crazy! Completely agree with you on not then spending 50-70k extra to renovate but I have found the new build homes can be small in comparison. Thankfully I have found some homes that don’t require too much repair so it’s defo about finding the gems amongst the overgrown weeded garden. Appreciate this series and your candidness Chidera!
After listening to this video, I was thinking someone can have buyers remorse despite going for old builds bcs you might find something that looks more attractive and cheaper particularly knowing that old builds don’t really have a fixed prize. It’s influenced by demand, negotiations etc. There are some new-build developers with good sized houses/rooms Also new vs Old builds have their pros and cons. One just need to determine what is important to them.
@@tayebayode9955 yup agreed. That’s why the building surveys are important. I’ve seen some new builds with big rooms, but the price point is a lot bigger too. In as much as a house is an investment, as Chidera pointed out, we must be wise with our finances. I’ll find something soon
Thanks for ur advice, I'm thinking of buying a house as well . Ur husband is my Ghanaian brother and I ve watch all ur videos, very open minded . I'm thinking of doing the same thing , I'm single and searching, I don't mind crossing boundaries as the world revolve around as . I wish we could sit down one day and have dinner with u guys .
Hiii, no the mortgage we got has an early repayment charger when we pay more than 10% years of the amount owed per year. But we will change mortgage lenders in a couple years and ensure we don’t have then 10% cap
Having a fixed rate ERC is not necessarily a bad thing, as most of the time it is generous. A few lenders though do have additional allowances, in addition to the 10%. Barclays for example allows you to overpay up to 3 times your monthly payments (every single month) throughout your fixed term without any penalty, in addition to the 10% yearly overpayment allowance. Most other lenders will either offer a tracker rate, standard variable rate or some other specialist rate with no 10% overpayment limit. These usually come with a higher rate than average rates.
@@ChideraPetershey! I’ve heard of this 10% early repayments before but I wonder if that 10% repayable limit of the mortgage amount based on the start of a given year or at the end ? If it was 100k at the start of the year & by the end of the year you paid down 5k towards the principal ie 95k remaining, is your 10% allowance based on 100k or 95k ? Xx
Very unlikely as you’ve got no income to be assessed against. And even if you did have some income, it’ll not meet the threshold for mortgage lending due to the limitations on your work hours as per your visa. An option though could be to buy your house with cash, i.e. buy outright with no mortgage.
Have you hung or nailed anything on the wall? I heard you're not allowed to do that for the next two years just in case a crack appears, your developer will fix it. Please correct me if I'm mistaken.
lol 😂 but it’s my house isn’t it? Yes some developer warranties will not cover any damages to a walls if you’ve altered it. But that’s not the case in my own situation
What kind of jobs have you and your husband ? Because new build houses are very very costly and morgage rates are insane huge, and top of all the bills, counsel tax, car taxes and living costs extremely huge !! Even the new build houses and old houses these are not worth the amount of money they selling it for !!
It’s about affordability. If you can afford it, then go for it. All things being equal, their house would have more value than old-build in the future. I perceive it as good investment. Like they say, the best time to buy a house was yesterday. It’s extremely challenging to predict interest rates in the future, it can go up or come down. So if you can afford it today, go for it.
Download your FREE checklist to know if you're ready to buy a house in the UK famous-moon-161.myflodesk.com/housebuyingreadiness
Way to go Chidera! A few points to add from my experience… Any new home always come with a “new house premium” which means it’s on average 15- 20% more expensive than similarly sized fairly older homes. This may normally take at least 5 years to “equalise”, i.e. achieve actual market value. Not an issue if you intend living there for at least 7 years to have any decent equity. Another thing is the overpayment calculation can be misleading. Regardless of how much you actually overpay, because you are most likely on a fixed deal /term at the moment, your overpayment is definitely going towards your overall mortgage amount reduction, not your total term. You’d likely achieve term reduction when it’s time to remortgage, which is when you will look at your balance by then and decide to lower your new mortgage term, assuming you have a lot more income to throw at it by then. Most of the overpayment calculators used assume you stay on the same rate, for the 25 or 30 years, which is rarely the case. Another thing to consider is that on average, people tend to move homes 2 - 3 times or more during their lifetime, with around 7 years max living in one house. Meaning that “ever-after” home now may not necessarily have the same tag few years later. Better to always assume you’ll move, so keep your options open and avoid over-spending on it especially if you’re both young and early on your careers. Lastly, a house is a psychological investment/asset, not necessarily a financial one (until you start earning from it). Whatever equity you have is worth nothing until it’s realised (via sell, equity release, etc.). So better to, again keep your options open when it comes to properties. Cheers.
Thank you for this video! I pray I don’t experience buyers remorse cos the way every time I look I see something else I like is crazy! Completely agree with you on not then spending 50-70k extra to renovate but I have found the new build homes can be small in comparison. Thankfully I have found some homes that don’t require too much repair so it’s defo about finding the gems amongst the overgrown weeded garden. Appreciate this series and your candidness Chidera!
After listening to this video, I was thinking someone can have buyers remorse despite going for old builds bcs you might find something that looks more attractive and cheaper particularly knowing that old builds don’t really have a fixed prize. It’s influenced by demand, negotiations etc. There are some new-build developers with good sized houses/rooms
Also new vs Old builds have their pros and cons. One just need to determine what is important to them.
Good luck! I hope you find something that ticks your boxes ✨✨
@@tayebayode9955 yup agreed. That’s why the building surveys are important. I’ve seen some new builds with big rooms, but the price point is a lot bigger too. In as much as a house is an investment, as Chidera pointed out, we must be wise with our finances. I’ll find something soon
Thanks for ur advice, I'm thinking of buying a house as well . Ur husband is my Ghanaian brother and I ve watch all ur videos, very open minded . I'm thinking of doing the same thing , I'm single and searching, I don't mind crossing boundaries as the world revolve around as . I wish we could sit down one day and have dinner with u guys .
Hi, my Ghanaian brother 😊
GREAT VIDEO....! THANK YOU CHIDERA
You are looking great. Valid points you've raised.
I love new builds for a personal property too.
Thanks for sharing.
Thanks for watching ♥️♥️
This was suuuccchhhh a good video. THANK YOU SO MUCH CHIDERA!!!
Aww I’m so glad to hear this! You’re welcome ♥️♥️♥️♥️
So is it good to still search for property after you make a purchase
Hey Chidera I'm first here!!😊😊
Helloooooo!!! So good to see you! Thanks for showing up ♥️♥️♥️♥️
You mentioned early repayment in your video. Does that come with an Early Repayment Charge?
Hiii, no the mortgage we got has an early repayment charger when we pay more than 10% years of the amount owed per year. But we will change mortgage lenders in a couple years and ensure we don’t have then 10% cap
Having a fixed rate ERC is not necessarily a bad thing, as most of the time it is generous. A few lenders though do have additional allowances, in addition to the 10%. Barclays for example allows you to overpay up to 3 times your monthly payments (every single month) throughout your fixed term without any penalty, in addition to the 10% yearly overpayment allowance. Most other lenders will either offer a tracker rate, standard variable rate or some other specialist rate with no 10% overpayment limit. These usually come with a higher rate than average rates.
@@ChideraPetershey! I’ve heard of this 10% early repayments before but I wonder if that 10% repayable limit of the mortgage amount based on the start of a given year or at the end ? If it was 100k at the start of the year & by the end of the year you paid down 5k towards the principal ie 95k remaining, is your 10% allowance based on 100k or 95k ? Xx
@@ChideraPetershow do you change mortgage lender while u on a deal with one already?
Can I use a student visa to buy a house 🏠
Very unlikely as you’ve got no income to be assessed against. And even if you did have some income, it’ll not meet the threshold for mortgage lending due to the limitations on your work hours as per your visa. An option though could be to buy your house with cash, i.e. buy outright with no mortgage.
No
If you can afford it. But get you psw or stay in the uk and get a job that you know the pay can afford it either by loan or cash
You are the best ❤
😂 thank youuuuu
1❤
Beautiful Chi😘
Aww thank youuuuu
Have you hung or nailed anything on the wall? I heard you're not allowed to do that for the next two years just in case a crack appears, your developer will fix it. Please correct me if I'm mistaken.
lol 😂 but it’s my house isn’t it? Yes some developer warranties will not cover any damages to a walls if you’ve altered it. But that’s not the case in my own situation
Thanks for the response
You are allowed to but it’s not advisable to do it for a while as the house needs to dry out which causes shrinkage - this can take up to a year.
@@user-yz1lb3cm7z thank you
What kind of jobs have you and your husband ? Because new build houses are very very costly and morgage rates are insane huge, and top of all the bills, counsel tax, car taxes and living costs extremely huge !! Even the new build houses and old houses these are not worth the amount of money they selling it for !!
It’s about affordability. If you can afford it, then go for it. All things being equal, their house would have more value than old-build in the future. I perceive it as good investment. Like they say, the best time to buy a house was yesterday. It’s extremely challenging to predict interest rates in the future, it can go up or come down. So if you can afford it today, go for it.
Thank you
Wisdom has spoken .........🎉
🙏🏽🙏🏽
❤
🥰♥️♥️