To buy or not to buy
Discussion
I am in a small ish house currently valued around 400k. VERY disable area, big drive, big garden. Any houses that come up for sale are usually gone within a day or 2.
We are however starting to grow out of the house. Simple solution is to throw away some of the crap we have. I can move my study out of the spare bedroom and in to the "Pub" down the garden. This should buy us a few years before more children, or crap come along.
OR... i go balls out and buy a bigger house, at around 800 / 900k. depending on length of mortgage and how much savings i want to drop on to it.
Right now, the market seems to have dried up a bit and nice houses in this price bracket are few and far between. Currently i can only find 2 that tick the boxes for us.
One is quite small for the money, the other needs extensive renovation. I don't have the time for renovations any more.
The question and reason for this thread is... Do i stay put, or do i move?
My head says prices will drop.. specifically the top end of the market, and i should wait a few years.
Mortgaging my self up to the 800/900k region means i would be very susceptible to interest rate rises.
We are however starting to grow out of the house. Simple solution is to throw away some of the crap we have. I can move my study out of the spare bedroom and in to the "Pub" down the garden. This should buy us a few years before more children, or crap come along.
OR... i go balls out and buy a bigger house, at around 800 / 900k. depending on length of mortgage and how much savings i want to drop on to it.
Right now, the market seems to have dried up a bit and nice houses in this price bracket are few and far between. Currently i can only find 2 that tick the boxes for us.
One is quite small for the money, the other needs extensive renovation. I don't have the time for renovations any more.
The question and reason for this thread is... Do i stay put, or do i move?
My head says prices will drop.. specifically the top end of the market, and i should wait a few years.
Mortgaging my self up to the 800/900k region means i would be very susceptible to interest rate rises.
I feel like you have answered your own question......none of us have crystal balls, but I doubt if prices are going to head up any time soon.....so maybe staying put and spending time tidying (throwing out!) and making the garden cave great for work would be the wiser move right now. Come to think of it, I ought to do a bit of tidying and throwing out myself......
Of course, right up until you see a dream house on the market ;-) Maybe get yours valued anyway.......
Of course, right up until you see a dream house on the market ;-) Maybe get yours valued anyway.......
[quote=Prizam]I am in a small ish house currently valued around 400k. VERY disable area, big drive, big garden. Any houses that come up for sale are usually gone within a day or 2.
Very desirable area, big drive and big garden with small house, i would say the most sensible thing to do would be extend no agents fees or stamp duty and a big increase in your property value house now matches garden and drive.
Failing that could you possible get a site for a new house out of the existing garden move to new house and then sell old one one effectively getting a free site ?
SS
Very desirable area, big drive and big garden with small house, i would say the most sensible thing to do would be extend no agents fees or stamp duty and a big increase in your property value house now matches garden and drive.
Failing that could you possible get a site for a new house out of the existing garden move to new house and then sell old one one effectively getting a free site ?
SS
Just a thought....what would happen to your options if prices rise? With interest rates threatening to go negative, the stock market all over the place, pensions stuffed by the government there is nowhere safe to put your money that offers a good return. People understand houses and feel safe investing in bricks and mortar. Couple that with high demand and low supply and there are still a lot of reasons for price rises. If you wait another 2-3 years could you still afford to move if you had to find another £100k?
Umm, good question.
In 2/3 years time i expect i could have saved up another 100k. But would be good to be in the market properly if house prices are going to rise more.
I dont see our current house rising at the same rate as larger ones, it is already hugley overpriced for what it is. IMO.
I am based in Reading, and house prices are forcast to rise by "42% by 2020". Not sure how much of that i buy in too. Not with prices in London falling, brexit and international investors running away.
I suspect, at best they will stay flat.
My fear is, i will mortugage my self up to the hilt, the property will be worth less and i will then eventuly be hit by cripiling intres rate rises.
Are my fears founded?
In 2/3 years time i expect i could have saved up another 100k. But would be good to be in the market properly if house prices are going to rise more.
I dont see our current house rising at the same rate as larger ones, it is already hugley overpriced for what it is. IMO.
I am based in Reading, and house prices are forcast to rise by "42% by 2020". Not sure how much of that i buy in too. Not with prices in London falling, brexit and international investors running away.
I suspect, at best they will stay flat.
My fear is, i will mortugage my self up to the hilt, the property will be worth less and i will then eventuly be hit by cripiling intres rate rises.
Are my fears founded?
Wow wish I could save that much. Who can tell what will happen, you have to ask yourself is it really worth it? ie do you get a LOT for spending a huge amount of money extra or do you just get a little. We found to make it worth while we had to spend nearly twice what we sold for otherwise it was a waste of time. It also depends on how old you are, how stable your jobe is, if you have kids, what your priorities in life are ie holidays, family or whether you are more interested in a bigger property. Also do you want to eventually downsize and make money that way? What might be right for you could be wrong for someone else.
Ten year fixed rate mortgages start at about 2.69%. That tells you two things. Firstly, the markets don't expect interest rates to rise significantly, if at all, for a very long time. Secondly, if this is too much interest and you need a 0.99% two year deal you can't afford to move.
One further thought following on from what you said about Brexit. Have a look online for property prices around the world. Some of the smelliest armpits have higher prices than the UK. If you're could afford a house in London or one in Beijing or Mumbai where would you buy? The problem with Brexit is uncertainty and the government knows that if it is going to get elected again in 2020 it's needs to get its skates on and get rid of the uncertainty. If it gets it right we could have one of the most dynamic economies in the world that absolutely flies while the rest of Europe wades through bureaucracy and discontent. If it gets it wrong.....???
One further thought following on from what you said about Brexit. Have a look online for property prices around the world. Some of the smelliest armpits have higher prices than the UK. If you're could afford a house in London or one in Beijing or Mumbai where would you buy? The problem with Brexit is uncertainty and the government knows that if it is going to get elected again in 2020 it's needs to get its skates on and get rid of the uncertainty. If it gets it right we could have one of the most dynamic economies in the world that absolutely flies while the rest of Europe wades through bureaucracy and discontent. If it gets it wrong.....???
Good shout. Didn't even know 10 year fixed deals existed.
I can afford some interest rate rises, but would hate to see a 4% rise and a lesser valued asset.
Savings are based on staying in my current house, paying down the mortgage by a reasonable lump sum and fixing for 2 years at 1.65%
Combining the two will save me around £650 a month. i also intend to sell off a few other assets in the next 2 years.
So far as the cost of upgrading... i need to spend more than double to make it worth while.
Exhibit A - 3 bedroom end of terrace.
I can afford some interest rate rises, but would hate to see a 4% rise and a lesser valued asset.
Savings are based on staying in my current house, paying down the mortgage by a reasonable lump sum and fixing for 2 years at 1.65%
Combining the two will save me around £650 a month. i also intend to sell off a few other assets in the next 2 years.
So far as the cost of upgrading... i need to spend more than double to make it worth while.
Exhibit A - 3 bedroom end of terrace.
Prizam said:
Good shout. Didn't even know 10 year fixed deals existed.
I can afford some interest rate rises, but would hate to see a 4% rise and a lesser valued asset.
Savings are based on staying in my current house, paying down the mortgage by a reasonable lump sum and fixing for 2 years at 1.65%
Combining the two will save me around £650 a month. i also intend to sell off a few other assets in the next 2 years.
So far as the cost of upgrading... i need to spend more than double to make it worth while.
Exhibit A - 3 bedroom end of terrace.
Is that house in the same area as you currently live?I can afford some interest rate rises, but would hate to see a 4% rise and a lesser valued asset.
Savings are based on staying in my current house, paying down the mortgage by a reasonable lump sum and fixing for 2 years at 1.65%
Combining the two will save me around £650 a month. i also intend to sell off a few other assets in the next 2 years.
So far as the cost of upgrading... i need to spend more than double to make it worth while.
Exhibit A - 3 bedroom end of terrace.
Thankyou4calling said:
Is that house in the same area as you currently live?
About 2/3 miles away. in the direction I want to move too. Not a particularly desirable one either, it is on a main road not far from a toll bridge. So costs you 40p each way to get a pint of milk from the village.Prizam said:
About 2/3 miles away. in the direction I want to move too. Not a particularly desirable one either, it is on a main road not far from a toll bridge. So costs you 40p each way to get a pint of milk from the village.
Its a nice part of town, used to work in Theale so Pangbourne was a regular lunch visit, that and my Impreza Turbo back in the day when they werent chav was serviced there too. Not cheap though.mikees said:
I'd go caver sham , emmer green or sonning common, right side of town for station.
I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
Nice enough areas, I used to live in Emmer Green, but wrong side of river unless you like spending long times in queues crossing bridges all the time! I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
I live to the West of Reading now and can get to the M4 in about 10 minutes most mornings.
Oh, and the toll at Whitchurch is now 60p each way. I used to get there before 7am just to avoid having to pay it each Monday on my weekly commute to work!
That's good going to be able to save 100k in 2-3 years after all other expenses.
So the lowest PCM value to achieve that over 36months is 2,777pcm.
Or saving it in two years you'd need to save £4,167pcm.
Now you say owning a £400k house is very comfortable but stretching to a 800-900k house could push it too far.... I struggle to see that if your currently able to save £100k in 2-3years. Can you clarify if that was a flippant comment or genuine as really you should be looking at £1.5m houses with comfort not struggling or even worrying about £800-900k houses.
So the lowest PCM value to achieve that over 36months is 2,777pcm.
Or saving it in two years you'd need to save £4,167pcm.
Now you say owning a £400k house is very comfortable but stretching to a 800-900k house could push it too far.... I struggle to see that if your currently able to save £100k in 2-3years. Can you clarify if that was a flippant comment or genuine as really you should be looking at £1.5m houses with comfort not struggling or even worrying about £800-900k houses.
Welshbeef said:
That's good going to be able to save 100k in 2-3 years after all other expenses.
So the lowest PCM value to achieve that over 36months is 2,777pcm.
Or saving it in two years you'd need to save £4,167pcm.
Now you say owning a £400k house is very comfortable but stretching to a 800-900k house could push it too far.... I struggle to see that if your currently able to save £100k in 2-3years. Can you clarify if that was a flippant comment or genuine as really you should be looking at £1.5m houses with comfort not struggling or even worrying about £800-900k houses.
Perhaps a little flippant.So the lowest PCM value to achieve that over 36months is 2,777pcm.
Or saving it in two years you'd need to save £4,167pcm.
Now you say owning a £400k house is very comfortable but stretching to a 800-900k house could push it too far.... I struggle to see that if your currently able to save £100k in 2-3years. Can you clarify if that was a flippant comment or genuine as really you should be looking at £1.5m houses with comfort not struggling or even worrying about £800-900k houses.
Assuming no surprise expenditure and reducing my existing mortgage down to around 600 PCM, i can save around £2,500 a month without too much worry.
Bonus months wont be a problem. I also have my own business running that makes almost all its money in 2 months of the year. I have not accounted for this.
I also have a head start on a healthy savings pot.
Banks wont take a lot of my income in to consideration, My wife does not work. But we really do spend very little every month.
Piersman2 said:
mikees said:
I'd go caver sham , emmer green or sonning common, right side of town for station.
I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
Nice enough areas, I used to live in Emmer Green, but wrong side of river unless you like spending long times in queues crossing bridges all the time! I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
I live to the West of Reading now and can get to the M4 in about 10 minutes most mornings.
Oh, and the toll at Whitchurch is now 60p each way. I used to get there before 7am just to avoid having to pay it each Monday on my weekly commute to work!
Goring / Streetly are candidates, but a little far north for easy access to the M4/London.
West of Reading, south of the river but before Newbury is my preference. Currently in Tilehurst not too far from the station.
The main problem is the traffic in the airea. It really is beyond a joke and worse than London at times.
Prizam said:
Piersman2 said:
mikees said:
I'd go caver sham , emmer green or sonning common, right side of town for station.
I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
Nice enough areas, I used to live in Emmer Green, but wrong side of river unless you like spending long times in queues crossing bridges all the time! I still don't think cross rail is priced in.
Used to live in Spencer's wood, then cookham, now bucks but think cr will have an impact
Mike
I live to the West of Reading now and can get to the M4 in about 10 minutes most mornings.
Oh, and the toll at Whitchurch is now 60p each way. I used to get there before 7am just to avoid having to pay it each Monday on my weekly commute to work!
Goring / Streetly are candidates, but a little far north for easy access to the M4/London.
West of Reading, south of the river but before Newbury is my preference. Currently in Tilehurst not too far from the station.
The main problem is the traffic in the airea. It really is beyond a joke and worse than London at times.
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