Buying a house... Help needed
Discussion
Yes, no, maybe!!!
Nobody really knows if truth be told. The answer I'd give is forget the get rich quick property barons. You need somewhere to live. Does the cost of buying at present rates & prices make sense against the cost to rent?
Nobody knows which way prices will head, nobody knows how long rates will stay low.
Nobody really knows if truth be told. The answer I'd give is forget the get rich quick property barons. You need somewhere to live. Does the cost of buying at present rates & prices make sense against the cost to rent?
Nobody knows which way prices will head, nobody knows how long rates will stay low.
As above, nobody really knows what the property market is going to do, but due to the lack of supply, I can't see prices dropping through the floor any time soon.
If you are buying it as somewhere to live, then I wouldn't worry too much about what the market is doing, as whatever it does you will have a home, and in 10 years it's likely to be worth more than you paid for it. So long as you don't overstretch yourself, and buy a house in a decent area, then once you are on the property ladder, you are slightly more insulated by the vagaries of the market, as the prices of houses you might want to move to in the future will rise and fall at a similar rate to the one you own.
The biggest thing that i'd be thinking about, is whether your mortgage payments will remain affordable when interest rates rise again, which they are likely to, in the next year or two. If you are comfortable with that, then go for it, and good luck.
If you are buying it as somewhere to live, then I wouldn't worry too much about what the market is doing, as whatever it does you will have a home, and in 10 years it's likely to be worth more than you paid for it. So long as you don't overstretch yourself, and buy a house in a decent area, then once you are on the property ladder, you are slightly more insulated by the vagaries of the market, as the prices of houses you might want to move to in the future will rise and fall at a similar rate to the one you own.
The biggest thing that i'd be thinking about, is whether your mortgage payments will remain affordable when interest rates rise again, which they are likely to, in the next year or two. If you are comfortable with that, then go for it, and good luck.
Inkyfingers said:
The biggest thing that i'd be thinking about, is whether your mortgage payments will remain affordable when interest rates rise again, which they are likely to, in the next year or two. If you are comfortable with that, then go for it, and good luck.
I don't see interest rates rising in that term. But then again, they might, so the thing is to leave a safety margin. It's called prudence, a word misused by Gordon Brown.But whether house values go up or down, and whatever the interest rate does, if you buy a house it does mean that your monthly loot goes into your own property and your own future -and not into a landlord's wallet. And you have a place to call your own, and a home to make, and that is just as important as money.
Simpo Two said:
Inkyfingers said:
The biggest thing that i'd be thinking about, is whether your mortgage payments will remain affordable when interest rates rise again, which they are likely to, in the next year or two. If you are comfortable with that, then go for it, and good luck.
I don't see interest rates rising in that term. But then again, they might, so the thing is to leave a safety margin. It's called prudence, a word misused by Gordon Brown.But whether house values go up or down, and whatever the interest rate does, if you buy a house it does mean that your monthly loot goes into your own property and your own future -and not into a landlord's wallet. And you have a place to call your own, and a home to make, and that is just as important as money.
I certainly agree with you second paragraph, though.
Thanks guys for all your quick replies.
I'm more worried about the mortgage interest rates rise and also about the market. Once the Help-to-buy is discontinued there will be surely a crash as the no. of buyers will drastically get reduced. My partner & I are just worried that our savings don't go down the drain. Yeah... It's all like a big gamble.
We have liked a 3-floor terraced house in one of the best school Catchment areas which fits our budget. All the other semi detached homes in that area are way way costlier than this house.
If we buy it we will be staying in.
But if in future we rent it out, do you guys think it will be easy to get tenants? It is in a very good area but how popular are 3-floored houses?
I'm more worried about the mortgage interest rates rise and also about the market. Once the Help-to-buy is discontinued there will be surely a crash as the no. of buyers will drastically get reduced. My partner & I are just worried that our savings don't go down the drain. Yeah... It's all like a big gamble.
We have liked a 3-floor terraced house in one of the best school Catchment areas which fits our budget. All the other semi detached homes in that area are way way costlier than this house.
If we buy it we will be staying in.
But if in future we rent it out, do you guys think it will be easy to get tenants? It is in a very good area but how popular are 3-floored houses?
You are buying a Home, not an investment.
Today that house is worth 4 x £X. Fortunately I kept it. Unfortunately when prices crashed I didn't buy more!!
lotuslakeland said:
My partner & I are just worried that our savings don't go down the drain.
In the last 80's I bought a house for £X. I put down a 12.5 deposit. Within 18 months the house was worth only two thirds what I paid for it. My deposit was effectively gone. And in real terms a sum equal to twice my deposit was also gone!!Today that house is worth 4 x £X. Fortunately I kept it. Unfortunately when prices crashed I didn't buy more!!
Compared to the last year the house prices have become a bit more stable. Where I live, the houses that were listed in October are still on market.
I always follow the "Don't buy from others' money". Have a credit card which I hardly ever use. With the house prices today, I can't afford anything with just my money. Going for a huge mortgage has surely made me very anxious and a lil sad. But I can't just keep giving £600/month rent all my life . Wish I'd never grown up. Life was so much fun & simple back then when we were kids.
I always follow the "Don't buy from others' money". Have a credit card which I hardly ever use. With the house prices today, I can't afford anything with just my money. Going for a huge mortgage has surely made me very anxious and a lil sad. But I can't just keep giving £600/month rent all my life . Wish I'd never grown up. Life was so much fun & simple back then when we were kids.
@Sir Bagalot
Don't regret that you did not buy when the market crashed.
I'm sure you worked hard for the 12.5 deposit and getting much more than what you put in... You are indeed very fortunate. Enjoy it.
I'll be over the moon if i can just buy one proper house paying the correct price.
Don't regret that you did not buy when the market crashed.
I'm sure you worked hard for the 12.5 deposit and getting much more than what you put in... You are indeed very fortunate. Enjoy it.
I'll be over the moon if i can just buy one proper house paying the correct price.
lotuslakeland said:
@Sir Bagalot
Don't regret that you did not buy when the market crashed.
I'm sure you worked hard for the 12.5 deposit and getting much more than what you put in... You are indeed very fortunate. Enjoy it.
I'll be over the moon if i can just buy one proper house paying the correct price.
sDon't regret that you did not buy when the market crashed.
I'm sure you worked hard for the 12.5 deposit and getting much more than what you put in... You are indeed very fortunate. Enjoy it.
I'll be over the moon if i can just buy one proper house paying the correct price.
t happens. During the tech bubble I bought £5K worth of shares. Within 12-18 months they were worth £82K. Did I sell them? Did I fk. Did I set a stop-loss? Did I fk? Did they crash and I sold them for about £1K? Of course I fking did.With houses I have managed to get the purchases after correct. Last place I bought was March 13. Easy 25% profit within 18 months.
lotuslakeland said:
It is in a very good area but how popular are 3-floored houses?
Just a quick comment on 3 storey dwellings.Is it a modern 3 storey townhouse?
These make fine rentals but I wouldn't recommend buying one as the living accommodation is disproportionate on the ground floor to the bedrooms and feel cramped.
Sir Bagalot said:
In the last 80's I bought a house for £X. I put down a 12.5 deposit. Within 18 months the house was worth only two thirds what I paid for it. My deposit was effectively gone. And in real terms a sum equal to twice my deposit was also gone!!
Today that house is worth 4 x £X. Fortunately I kept it. Unfortunately when prices crashed I didn't buy more!!
- the salient point to the OP being that if you're going to stay there for a decent while, it doesn't matter what happens to property values. It's all just paper. If when you sell there's been a crash and it's halved in value, guess what? The house you want to buy next is also half price. You only crystallise the gain or loss when you enter or leave the housing market (and to a certain extent if you change area of course).Today that house is worth 4 x £X. Fortunately I kept it. Unfortunately when prices crashed I didn't buy more!!
As for interest rates, which determine the real money bit (your monthly repayment), nobody knows what they will be in 10 or 20 years' time. But the weather is set very fair for now and the base rate is heading to zero so there's no reason not to do it.
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