the right time to buy is when you find a house you want to buy and make a home that you can afford.
served me well.
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So its a good time to buy a house...
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Posted 4 months ago #
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And in a falling market - you are better off just renting as you don't expose any of your deposit to being eroded by falling prices,
except inflation and low interest rates are effectively eroding your stash.
Posted 4 months ago # -
except inflation and low interest rates are effectively eroding your stash
Exactly. I have a decent-sized deposit now, and it's basically just getting smaller and smaller.
Posted 4 months ago # -
Midlife crashes has it for me
Im looking at a gaff that will do me well for a long time - by my nature im not a changer i just dont change things for the sake of it. The whole housing ladder thing i dont buy into
Im trying to buy a dated but livable property reasonably cheaply to invest my time and money into making it a 3 bed house i can bring my kids up in - i expect to either rent it out if i go to work abroad or to sell it when i retire/make my millions to move back home to my home town
I have friends that bought flats at 10% down and are stuck with them now due to negative equity and a swamped flat market !
Seems like a wiser move to me than buying a 2 bed Flat that i need to sell and incur fees and probably hit on ??
If it looses that much value i cant sell it itll be sold cheap and pay for my care in a care home im sure !
Posted 4 months ago # -
Interestingly the financial markets are quite positive about the economy at the moment, well up from their lows of a few months ago. So have they missed something? Those that think this is not the right time to buy, would you sell if you had a place and rent instead? Buying is generally less risky than not buying - just as long as you get something because you like it and not because you think you have to. Trying to time the market is a fools game unless you have special knowledge.
Posted 4 months ago # -
Exactly. I have a decent-sized deposit now, and it's basically just getting smaller and smaller
Only if you're using your deposit to pay your grocery bills, utilities & car insurance (all going up)
If your deposit is SPECIFICALLY earmarked for a house deposit, and house prices are falling, your deposit is actually getting bigger.
Money only has value when its exchanged for goods or services. If the asset you intend to buy is deflating, your money has more value (and vice versa for inflating prices)
Posted 4 months ago # -
Choron with that nonsense you are definitely and academic of some kind.
If you cant do, teach eh?
In last year we did a BTL that is returning over 12% ROCE, and the loan was just fixed at 3.5% for 5yrs.
You can have the smoke and mirrors beans, commodities, equities - may as well go to paddypower. I'll take the property. I have been waiting a year and a half for the reposession time bomb to happen, but it blinking well hasnt. Of course we never had this same discussion in the late 80' and 90's did we.
Posted 4 months ago # -
What the kingisdead said.
Inflation is a funny one too, it is a common misconception that inflation erodes away debt. It is only wage inflation that erodes debt, which is something that we arent seeing much of as a nation.
Price inflation without wage inflation just means that people end up with less money to spend on mortgages, putting another downward pressure on house prices.
Posted 4 months ago # -
Dear oh dear. Seen the house now, and its and absolute dream.
Some financial workings out determine we are OK, and have a car loan that would finish in a year and half (in the fixed period) which would help us out if the rates shot up.
I've worked out a 1% rate rise is about £140 a month - any estimates as to how high they could go over the next 5-10 years?
Posted 4 months ago # -
the right time to buy is when you find a house you want to buy and make a home that you can afford.
This is really good advice. I would't consider my home to be an investment vehicle (other than in the simplest of terms).
Posted 4 months ago # -
Here's some real figures, I got a mortgage in principle last week:
Property price: £150k
Deposit: £15k
Mortgage required: £135k
Rate: 5.99%
Term: 25 years
Monthly cost: £879As a first time buyer I'm struggling to get a decent rate. We pay £575 in rent at the moment, so £879 is a significant amount more. I'll actually be looking for a property around £130k simply to reduce the monthly repayments.
Posted 4 months ago # -
We got aip on
215k valuation
35k deposit
3.69%
25 years
Cost was 970 a monthAnd also on same house
21500 deposit ( freeing up cash for some repairs that are needed)
5.69%
25 year
Cost 1200 a monthAnd same over 30 years was 1100
Currently pay 750 a month for a tiny pokey depressing studio cottage about 30 miles from both our works - (property rental in town is crazy - 1200 a month for a 2 bed flat is not unusual and not far from norm - we had a 1 bed flat wi a damp problem on a main road with no parking - 550 a month.)and have to run 2 cars currently Looking to buy on the edge of town and get rid of at least 1 car and get back to commuting by bike and reduce our fuel outgoings - fuel is only going up - investing in being in cycling distance now will save me heaps long term !
Gonna phone the bank and have a chat on monday as im pretty sure they will honour aip on 35k deposit no bother but i might have issues pushing through 10% deposit.
Posted 4 months ago # -
Oh aye taking rates to 10% adds about 500 quid a month which would tighten things up a bit but still not stretch us - reckon if it got 2 15% we would be on a sinking ship but if shit was going anywhere near that id have room let out quicker than you could say shite
That and i plan to be overpaying ( or saving to inject lump sums at remortgage) when im working abroad !
Posted 4 months ago # -
Oh and that doesnt mean i dont think those prices are absurd ! Back home in arbroath i could buy 2 x 3 bed houses in a nice area for that cash
Posted 4 months ago #
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