Discussion
I have just had a long term relationship breakdown and I will be receiving a reasonable lump of equity from the family home (£100k ish) as I am being bought out by the half. The dimema is to move straight back into buying or wait a while and rent (hoping house prices continue their current downward trend).
I am aware that I will get the usual 'do your own reseach' comments, but I have quite a bit going on in my head at the moment so things aren't possibly as clear as they could be. As such any opinions from those who are in a more rational place would be welcome.
I am aware that I will get the usual 'do your own reseach' comments, but I have quite a bit going on in my head at the moment so things aren't possibly as clear as they could be. As such any opinions from those who are in a more rational place would be welcome.
Obviously no one call tell you with anything even approaching certainty what the housing market will do in the near-medium future so, as such, I can only tell you what I'd do in your position;
I'd be looking to rent. For a number of reasons - from your other thread you have children, therefore you'll not be sure where you want to live and not sure of the reality/practicality of visiting/custody etc. Renting will at least allow you to up-sticks if you need to and move around "at will". You may find that living too close to your old home is a bit painful or whatever (bumping in to ex and new partner etc). If you do buy, you'll have to wait till it's sold etc. before you can remediate any problems like this. Conversely, you may find that where you rent is perfect so can either look to buy from the landlord or at least look around the area at your leisure.
Also, it is my personal opinion, that house prices have to rationalise at some point before resuming their historical long-term rise. I also don't think that it's going to be that long either (next year or two). The only other option would be a shift-change in the public psyche towards negatively geared house ownership and/or long-term rental but I'm not convinced this will happen before the house price rationalisation.
So - as I said, this is IMHO only, but I hope another opinion helps with a consensus.
I'd be looking to rent. For a number of reasons - from your other thread you have children, therefore you'll not be sure where you want to live and not sure of the reality/practicality of visiting/custody etc. Renting will at least allow you to up-sticks if you need to and move around "at will". You may find that living too close to your old home is a bit painful or whatever (bumping in to ex and new partner etc). If you do buy, you'll have to wait till it's sold etc. before you can remediate any problems like this. Conversely, you may find that where you rent is perfect so can either look to buy from the landlord or at least look around the area at your leisure.
Also, it is my personal opinion, that house prices have to rationalise at some point before resuming their historical long-term rise. I also don't think that it's going to be that long either (next year or two). The only other option would be a shift-change in the public psyche towards negatively geared house ownership and/or long-term rental but I'm not convinced this will happen before the house price rationalisation.
So - as I said, this is IMHO only, but I hope another opinion helps with a consensus.
Landlord said:
Obviously no one call tell you with anything even approaching certainty what the housing market will do in the near-medium future so, as such, I can only tell you what I'd do in your position;
I'd be looking to rent. For a number of reasons - from your other thread you have children, therefore you'll not be sure where you want to live and not sure of the reality/practicality of visiting/custody etc. Renting will at least allow you to up-sticks if you need to and move around "at will". You may find that living too close to your old home is a bit painful or whatever (bumping in to ex and new partner etc). If you do buy, you'll have to wait till it's sold etc. before you can remediate any problems like this. Conversely, you may find that where you rent is perfect so can either look to buy from the landlord or at least look around the area at your leisure.
Also, it is my personal opinion, that house prices have to rationalise at some point before resuming their historical long-term rise. I also don't think that it's going to be that long either (next year or two). The only other option would be a shift-change in the public psyche towards negatively geared house ownership and/or long-term rental but I'm not convinced this will happen before the house price rationalisation.
So - as I said, this is IMHO only, but I hope another opinion helps with a consensus.
A clear, logical analysis of the sitiuation. Many thanks as it pretty much concurs with my thinking.I'd be looking to rent. For a number of reasons - from your other thread you have children, therefore you'll not be sure where you want to live and not sure of the reality/practicality of visiting/custody etc. Renting will at least allow you to up-sticks if you need to and move around "at will". You may find that living too close to your old home is a bit painful or whatever (bumping in to ex and new partner etc). If you do buy, you'll have to wait till it's sold etc. before you can remediate any problems like this. Conversely, you may find that where you rent is perfect so can either look to buy from the landlord or at least look around the area at your leisure.
Also, it is my personal opinion, that house prices have to rationalise at some point before resuming their historical long-term rise. I also don't think that it's going to be that long either (next year or two). The only other option would be a shift-change in the public psyche towards negatively geared house ownership and/or long-term rental but I'm not convinced this will happen before the house price rationalisation.
So - as I said, this is IMHO only, but I hope another opinion helps with a consensus.
I did this some years ago and my discovery of the change in the attitude and approach of women was one of the best lessons of my life. Frankly iyt changed my whole view of relationships for the better. I get a lot more out of them now.
That's the good news. You have a lot to look forward to.
Now the not so good (but realistic) news.
Every indicator on the economies of the UK, the EU, the USA and the rest of the world shows every sign of all of them falling further. I think we are in a long slide recession. I see no rise from the one that started in 2008. It is one continuous downward slope and in my view with all the indicators suggesting at least three years before any real recovery.
The housing market needs two major changes to recover.
Willing lenders, which the Banks are clearly not, and willing purchasers which with rising unemployment and falling employment upon us I do not see in numbers.
In my view the housing market will continue to slide down.
I would suggest renting for at least a year and using the time to enjoy living and life again. Keep an eye on the Housing market and watch the prices of properties you are interested in.
I would wager these will be unsold and at lower prices in 12 months.
Above all, take the opportunity to really expand your horizons and get back your zest for life. It will improve.
Good Luck
That's the good news. You have a lot to look forward to.
Now the not so good (but realistic) news.
Every indicator on the economies of the UK, the EU, the USA and the rest of the world shows every sign of all of them falling further. I think we are in a long slide recession. I see no rise from the one that started in 2008. It is one continuous downward slope and in my view with all the indicators suggesting at least three years before any real recovery.
The housing market needs two major changes to recover.
Willing lenders, which the Banks are clearly not, and willing purchasers which with rising unemployment and falling employment upon us I do not see in numbers.
In my view the housing market will continue to slide down.
I would suggest renting for at least a year and using the time to enjoy living and life again. Keep an eye on the Housing market and watch the prices of properties you are interested in.
I would wager these will be unsold and at lower prices in 12 months.
Above all, take the opportunity to really expand your horizons and get back your zest for life. It will improve.
Good Luck
RichB said:
Which areas are people living in where they area seeing house prices falling? Around here, Berskhire/Thames Valley they have firmed and are increasing.
Interesting point. The London market (including any commutable area) has always been a different market to the rest of the UK. Its an international City and must be viewed as such.
Virtually everywhere else there are more sellers than buyers.
As the recession continues to bite how can the market rise? London excepted.
RichB said:
Which areas are people living in where they area seeing house prices falling? Around here, Berskhire/Thames Valley they have firmed and are increasing.
I'm in Bucks, can't see any signs of price increases.OP, rent for now, invest in something >inflation (Ferrari might be good) and see what happens in the next year. I expect prices to fall 10-20% over 18 months for ordinary houses in this neck of the woods.
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