Buying a house - Now or 18 months time
Discussion
Morning all
Missus and I are looking at buying a place, but concerned over Brexit and whatnot.
Looking between Tooting and Wimbledon South, South London area, and was wondering what peoples opinions are over whether it is a bigger risk buying now, or buying further down the line.
Cheers
Missus and I are looking at buying a place, but concerned over Brexit and whatnot.
Looking between Tooting and Wimbledon South, South London area, and was wondering what peoples opinions are over whether it is a bigger risk buying now, or buying further down the line.
Cheers
To be honest I don't think anybody knows, it could go either way. I think house prices in London are heading for a bubble, but there is so much demand who knows when that will be or if I am even right.
I don't think anybody knows. If it were me I would just buy now and get it done, paying rent for 18 months (£18 to 36k? for two of you) would probably negate any fluctuation in price over that period anyway!
I don't think anybody knows. If it were me I would just buy now and get it done, paying rent for 18 months (£18 to 36k? for two of you) would probably negate any fluctuation in price over that period anyway!
joshleb said:
Morning all
Missus and I are looking at buying a place, but concerned over Brexit and whatnot.
Looking between Tooting and Wimbledon South, South London area, and was wondering what peoples opinions are over whether it is a bigger risk buying now, or buying further down the line.
Cheers
bet you are scared by things that go bump in the night and opening the curtains? Concerned over Brexit and whatnot ?? - what like your shadow?Missus and I are looking at buying a place, but concerned over Brexit and whatnot.
Looking between Tooting and Wimbledon South, South London area, and was wondering what peoples opinions are over whether it is a bigger risk buying now, or buying further down the line.
Cheers
Come on - you want a place to live in. Buy it, live in it, enjoy it. Your not starting a business of x in y area and would like some input if that line of work is a good risk.
superlightr said:
bet you are scared by things that go bump in the night and opening the curtains? Concerned over Brexit and whatnot ?? - what like your shadow?
Come on - you want a place to live in. Buy it, live in it, enjoy it. Your not starting a business of x in y area and would like some input if that line of work is a good risk.
Because being cautious over something that I will be paying off for the next 30+ years is completely irrational. Come on - you want a place to live in. Buy it, live in it, enjoy it. Your not starting a business of x in y area and would like some input if that line of work is a good risk.
Cheers for the thoughts everyone else, all along what I was thinking really.
joshleb said:
superlightr said:
bet you are scared by things that go bump in the night and opening the curtains? Concerned over Brexit and whatnot ?? - what like your shadow?
Come on - you want a place to live in. Buy it, live in it, enjoy it. Your not starting a business of x in y area and would like some input if that line of work is a good risk.
Because being cautious over something that I will be paying off for the next 30+ years is completely irrational. Come on - you want a place to live in. Buy it, live in it, enjoy it. Your not starting a business of x in y area and would like some input if that line of work is a good risk.
Cheers for the thoughts everyone else, all along what I was thinking really.
As you were not starting a business venture but wanting a place to live in then only you can decide when is the right time for you. I presumed you are renting at present or living with parents so again it points to only you can decide if you want to pay rent or to get a mortgage or live with the parents. A house to live in is a home for you - it has other attractions and benefits over and above an "investment".
So as you do appear to be scared of whatnots and bumps in the night only you can decide if the time is right to go out of your comfort zone and buy a property. As I said your not asking for investment advice which is a totally different kettle of octopus.
Yes you should be cautious over something you will be paying off over 30 yrs but that was not your initial post.
Hi OP.
I have the same concerns as you. There is a lot of unease at the moment. Its easy for people to say just buy something and live in it but when you've worked your back side to save up a deposit and the risk of losing value in your home and not getting that back for a while is scarey.
I have done so much research and looking at house prices, back in 2007 people to a right beating in some areas, some not so much ahd some area not affected at all and prices went up a lot. Even when I look back into 2014 prices were still quite low compared to 2007.
I am in still playing the waiting game too, If a dream house comes up for me then yes I will go for it but I wont settle with the assumption well I need to get on the property ladder or that the price will go up anyway.
I have the same concerns as you. There is a lot of unease at the moment. Its easy for people to say just buy something and live in it but when you've worked your back side to save up a deposit and the risk of losing value in your home and not getting that back for a while is scarey.
I have done so much research and looking at house prices, back in 2007 people to a right beating in some areas, some not so much ahd some area not affected at all and prices went up a lot. Even when I look back into 2014 prices were still quite low compared to 2007.
I am in still playing the waiting game too, If a dream house comes up for me then yes I will go for it but I wont settle with the assumption well I need to get on the property ladder or that the price will go up anyway.
XMT said:
Hi OP.
I have the same concerns as you. There is a lot of unease at the moment. Its easy for people to say just buy something and live in it but when you've worked your back side to save up a deposit and the risk of losing value in your home and not getting that back for a while is scarey.
I have done so much research and looking at house prices, back in 2007 people to a right beating in some areas, some not so much ahd some area not affected at all and prices went up a lot. Even when I look back into 2014 prices were still quite low compared to 2007.
I am in still playing the waiting game too, If a dream house comes up for me then yes I will go for it but I wont settle with the assumption well I need to get on the property ladder or that the price will go up anyway.
exactly - different location are different with different rates of rises/declines and desirability. There is no one direction properties are going for the uk - each area is different. I have the same concerns as you. There is a lot of unease at the moment. Its easy for people to say just buy something and live in it but when you've worked your back side to save up a deposit and the risk of losing value in your home and not getting that back for a while is scarey.
I have done so much research and looking at house prices, back in 2007 people to a right beating in some areas, some not so much ahd some area not affected at all and prices went up a lot. Even when I look back into 2014 prices were still quite low compared to 2007.
I am in still playing the waiting game too, If a dream house comes up for me then yes I will go for it but I wont settle with the assumption well I need to get on the property ladder or that the price will go up anyway.
For my local area prices are very strong and good properties were not hit by any slump other arears near by were static. So for my local area and a "good house" it would be sensible to buy as soon as you can. Other areas in the country were hit - although I would wager most are back up over 2007 The key is to avoid those less desirable areas.
OP if you are going to make an informed choice on waiting or buying then you have to be very familiar with the property prices and demand in the exact areas you are looking at.
Are you buying because you want to buy a house there, or buying as an investment.
If the former, then who cares because you want to buy a house. Unless you plan on moving and selling in the next two years (in which case, why not rent rather than sink money into lawyers and estate agents), then your horizon is much further out, so the benefits of ownership outweigh the uncertainty.
If as an investment, no-one knows...
If the former, then who cares because you want to buy a house. Unless you plan on moving and selling in the next two years (in which case, why not rent rather than sink money into lawyers and estate agents), then your horizon is much further out, so the benefits of ownership outweigh the uncertainty.
If as an investment, no-one knows...
bobclayton said:
No one can honestly predict what it's going to look like in 18 months time - if you find the property you like now and the payments are affordable, then surely now is the right time? The same property may not be available in 18 months time!
That's true, but I can understand the OP's dilemma. Say he buys a place now at £500k on a 2% mortgage, interest rates go up and that sends prices down to £400k in 18 months time. He'd end up with an extra £100k to pay off, and he'd be doing so at a higher interest rate.
I am not saying that will happen (in fact I think it is extremely unlikely), but it must be a decision factor.
supercommuter said:
XMT said:
kingston12 said:
bobclayton said:
No one can honestly predict what it's going to look like in 18 months time - if you find the property you like now and the payments are affordable, then surely now is the right time? The same property may not be available in 18 months time!
That's true, but I can understand the OP's dilemma. Say he buys a place now at £500k on a 2% mortgage, interest rates go up and that sends prices down to £400k in 18 months time. He'd end up with an extra £100k to pay off, and he'd be doing so at a higher interest rate.
I am not saying that will happen (in fact I think it is extremely unlikely), but it must be a decision factor.
If you are buying it for somewhere to live simply; do not over stretch yourself with monthly payments, do your research on sold property prices and offer what is reasonable and make sure that if the interest fluctuates by best and worst cases if you are going to be up s
t creak or not.Making scenarios up like - what if it drops 1/5 in value overnight if some unforeseen thing happens is pointless.
The fact is that the UK housing market (and the OP's area in particular) is in the grip of by far the largest housing bubble ever if you compare property prices to incomes.
We all know why it has happened, no one can really tell if it is going to continue, and the OP is right to be cautious. If things continue was they have done, prices will be another 10% higher in 18 months time for no good reason.
It could also go the other way, perhaps unlikely, but this has gone on for so long that a lot of people have forgotten that prices do sometimes go down.
Edited by kingston12 on Tuesday 7th February 13:41
Edited by kingston12 on Tuesday 7th February 13:41
Behemoth said:
Lots of people chasing few homes, prices go up. Few people chasing lots of homes, prices go down. Basic maths of supply & demand not a good reason? 
Yes, it's a market. All you need to do now is accurately predict what will change to impact supply and demand in the next 18 months and we can make an informed choice. Off you go...
kingston12 said:
That's true, but I can understand the OP's dilemma.
Say he buys a place now at £500k on a 2% mortgage, interest rates go up and that sends prices down to £400k in 18 months time. He'd end up with an extra £100k to pay off, and he'd be doing so at a higher interest rate.
I am not saying that will happen (in fact I think it is extremely unlikely), but it must be a decision factor.
Where did the extra £100k debt appear from?Say he buys a place now at £500k on a 2% mortgage, interest rates go up and that sends prices down to £400k in 18 months time. He'd end up with an extra £100k to pay off, and he'd be doing so at a higher interest rate.
I am not saying that will happen (in fact I think it is extremely unlikely), but it must be a decision factor.
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