When to by a house - low interest rates vs lower house price
Discussion
I figure that interest rates may go up over the next year or so and prices will fall - either way i'll lose or gain, but what would be the best option.
I currently work overseas, so figure i could rent the house for a year and use the income to make more payments as well as overpaying with the money i would have otherwise saved.
So would you mortgage now at lower rates or save for a bigger deposit and take advantage of lower house prices?
2013 has always been the plan but i'm just considering other options.
I currently work overseas, so figure i could rent the house for a year and use the income to make more payments as well as overpaying with the money i would have otherwise saved.
So would you mortgage now at lower rates or save for a bigger deposit and take advantage of lower house prices?
2013 has always been the plan but i'm just considering other options.
Crystal ball time.
House prices may increase decrease or stay the same on average. But how they change on what your looking at is more relevant.
Interest rates are currently very low so logic says they will raise at some point in the future by how much how quickly who knows.
You could wait for twenty years ten buy it cash outright
Now could be te best time ever for you to buy then again could be the worst.
Fact is it's a 25 year investment so one year short term doesn't have a huge impact key is buy the house you want at a price you think it's worth and can afford. What happens in the future who knows.
House prices may increase decrease or stay the same on average. But how they change on what your looking at is more relevant.
Interest rates are currently very low so logic says they will raise at some point in the future by how much how quickly who knows.
You could wait for twenty years ten buy it cash outright
Now could be te best time ever for you to buy then again could be the worst.
Fact is it's a 25 year investment so one year short term doesn't have a huge impact key is buy the house you want at a price you think it's worth and can afford. What happens in the future who knows.
no-one really knows ...you used to buy a house for somewher to live in, and hopefully over time, it got cheaper, and one day you live in it mortgage free
if you are looking for investments then there are many others than property ...its just that over the last 20-30 years there has been a property bubble and people have become obsessed with it - easy money for many...but it might not ever be the same again...maybe prices will be flat for another 10 years or more, who knows
theres never a good or bad time to get in that you can judge up front, only can you judge that if you know the time you get in and the time you sell...so unless you have the power of foresight then just get in when the time is right for you
so ask yourself why you are buying a house in the first place....
if you are looking for investments then there are many others than property ...its just that over the last 20-30 years there has been a property bubble and people have become obsessed with it - easy money for many...but it might not ever be the same again...maybe prices will be flat for another 10 years or more, who knows
theres never a good or bad time to get in that you can judge up front, only can you judge that if you know the time you get in and the time you sell...so unless you have the power of foresight then just get in when the time is right for you
so ask yourself why you are buying a house in the first place....
Housing is essential to life.
Nothing affects your life like the country you live in:-
Like the area you love in.
Neighbours you have.
Quality of air you breath.
Water you drink.
Life you Live.
Therefore buy the best home you can which ticks all these boxes and live there.
Greed has hijacked housing in the UK.
The market may never recover.
The market may collapse totally.
The market may soar.
But if you cover the 6 areas above in your home, then who cares?
How better could you spend your money and live your life?
Nothing affects your life like the country you live in:-
Like the area you love in.
Neighbours you have.
Quality of air you breath.
Water you drink.
Life you Live.
Therefore buy the best home you can which ticks all these boxes and live there.
Greed has hijacked housing in the UK.
The market may never recover.
The market may collapse totally.
The market may soar.
But if you cover the 6 areas above in your home, then who cares?
How better could you spend your money and live your life?
Advice on buying a car is always to buy the best you can afford. Don't see why that's any different to a house.
Anyway
Make sure you buy in a good school catchment area you may never use it but by buying there you will always have strong demand for people to move in.
You know in the future at some point interest rates will rise when and by how much and how quickly impossible to say
Anyway
Make sure you buy in a good school catchment area you may never use it but by buying there you will always have strong demand for people to move in.
You know in the future at some point interest rates will rise when and by how much and how quickly impossible to say
e8_pack said:
I figure that interest rates may go up over the next year or so and prices will fall - either way i'll lose or gain, but what would be the best option.
Have a play with the sliders on this mortgage calculator.http://www.drcalculator.com/mortgage/
On a 25yr term,
200k house at 4% = 316k total paid
At 5%, for the same total paid, you could buy a 180k house
Steffan said:
Housing is essential to life.
But the ownership is NOT.And it's usually the most expensive item an individual will but or sell, so even more of a reason to look at the financial side.
Btw, I suggest looking at the long term - rates can stay low for now but may go mental should the hyperinflation kick in. Also possibly there may be a long term price decline/stagnation rather than a crash. No one can tell, and there are big regional differences as well. Just make sure you can afford it.
You'd have to factor in your ex-pat status. There is a very restricted number of lenders for ex-pat right now, and it'll come down to what you do and who you work for as to whether anyone will even consider a loan for you. If anyone will do it, you may find its a question of what you'll be offered rather than what you want.
Either way to get the best rates you may find the ability to overpay is limited.
Drop me a line if you want me to run thorugh your mortgage options.
Either way to get the best rates you may find the ability to overpay is limited.
Drop me a line if you want me to run thorugh your mortgage options.
The one thing with say renting over owning.
Clearly it's never yours nor will it ever. You cannot change things about the property say turn two rooms into one say get a new bathroom new kitchen.
Say you want to plant a veg patch. Cut back a tree put up a new shed security of how long you will be there as you could be served notice at any point.
Also clearly if you never buy you will be paying out for rent until you die so money will be tight then and what's left over will not be huge.
Plus of course if you never buy a house you should in theory have that cash in a bank account. Banks can go bust and savings are only safe up to £85k. Say that happens the day you retire? Suddenly you are screwed you will be in council housing probably a high rise flat.
If you buy a house at some point you will physically own it outright so then only small bills to pay. Clearly you may need a new roof etc but you could choose when to fix it or risk it until it really does fail. Personally I see a house as a home and a forced savings plan which is clearly an investment purely on the saving plan side of course any capital gains which come along all the better ad it's capital gains tax free if it's your primary residence.
You can upgrade the house loft conversion side extension etc Modify it to improve it result you don't need to move house very often.
If you buy at the right time you will also beat the Market of course sell at the wrong time same applies too but you have the power to choose when you sell unless it's a true fire sale.
Whatever as long as the choice is affordable then financially it's fine but choose the right property
Clearly it's never yours nor will it ever. You cannot change things about the property say turn two rooms into one say get a new bathroom new kitchen.
Say you want to plant a veg patch. Cut back a tree put up a new shed security of how long you will be there as you could be served notice at any point.
Also clearly if you never buy you will be paying out for rent until you die so money will be tight then and what's left over will not be huge.
Plus of course if you never buy a house you should in theory have that cash in a bank account. Banks can go bust and savings are only safe up to £85k. Say that happens the day you retire? Suddenly you are screwed you will be in council housing probably a high rise flat.
If you buy a house at some point you will physically own it outright so then only small bills to pay. Clearly you may need a new roof etc but you could choose when to fix it or risk it until it really does fail. Personally I see a house as a home and a forced savings plan which is clearly an investment purely on the saving plan side of course any capital gains which come along all the better ad it's capital gains tax free if it's your primary residence.
You can upgrade the house loft conversion side extension etc Modify it to improve it result you don't need to move house very often.
If you buy at the right time you will also beat the Market of course sell at the wrong time same applies too but you have the power to choose when you sell unless it's a true fire sale.
Whatever as long as the choice is affordable then financially it's fine but choose the right property
WB, did you mean to post that in the correct thread?
Admittedly it's a very simplistic view of house ownership and not one I necessarily agree with.
That aside i am planning to buy, but buy quickly hence why the possible devaluation of the market and prospect of inflation may save or lose me a few quid.
Mr S, you have mail.
Admittedly it's a very simplistic view of house ownership and not one I necessarily agree with.
That aside i am planning to buy, but buy quickly hence why the possible devaluation of the market and prospect of inflation may save or lose me a few quid.
Mr S, you have mail.
Gassing Station | Finance | Top of Page | What's New | My Stuff