Viewing 40 posts - 1 through 40 (of 119 total)
  • Would you buy a house at the moment?
  • Premier Icon Caher
    Subscriber

    Started to look at houses pre-epedemic and the sale is slowly processing through but but now getting the jitters in case we cannot get a removal company, lose jobs and subsequent price drop in the area.

    IHN
    Member

    I wouldn’t, unless I really needed to move house. Too much up in the air at the moment.

    Maybe, if you aren’t already on the housing ladder, at some point during this pandemic would be a very good time to buy.

    Premier Icon Mary Hinge
    Subscriber

    Nope!

    But if you are nearly there, happy with your “situation”, and the house is the right one, then I’d probably carry on.

    Starting afresh now, nope.

    We have been helping our son and his family save for a house with the aim of getting a deposit down in September, we may well save for a little longer to see what plans out.

    I think there may be some favourable interest rates around at the end of all this.

    johndoh
    Member

    My in-laws were about to put their house on the market and even the estate agent told them not to…

    Klunk
    Member

    think i’d be getting nervous and stressed right now if I were in the process/made an offer or about to exchange contracts. It’s stressful at the best of times but right now my bp would be through the roof.

    mjsmke
    Member

    I heard something about interest rates being extremely low right now so for a first time buyer or re mortgaging, it could be the ideal time.

    I’d imagine that there might be significant drop in house prices over the next few months as a sudden oversupply of properties hits the market.

    nickjb
    Member

    I’d say its a good time financially with prices and interest rates. Logistics of moving is another matter. There is also a pretty high chance of any chains collapsing with at least one buyer/seller getting cold feet. If I was close to completion or a cash buyer/BTL/Second home then carry on. For a normal move up the chain then probably not

    No!!

    Premier Icon zilog6128
    Subscriber

    Started to look at houses pre-epedemic and the sale is slowly processing through

    we are in the same boat, although we are selling a property too not FTB. Definitely carrying on, took ages to sell current property, how long would it take to sell it again post-CV, especially if in worst case scenario there are loads more on the market!!

    Surely be better to buy now whilst mortgage company have confidence in you – if you lose jobs after moving, there will be govt assistance whereas you couldn’t even apply for a mortgage with a job!

    Agree things are very up in the air but I cannot see mass deaths/mass house price crash. Hope not anyway (not just for financial reasons lol).

    Removal guys (I know a couple!) are pretty desperate right now (this time of year always quieter anyway at best of times), there will be loads of mans with vans looking for stuff to do too, so this isn’t something I’d worry about at all.

    I think there may be some favourable interest rates around at the end of all this.

    I don’t think they can possibly go any lower than they are now (can the bank set a negative interest rate? 😂) 

    think i’d be getting nervous and stressed right now if I were in the process/made an offer or about to exchange contracts. It’s stressful at the best of times but right now my bp would be through the roof.

    Yep 😂

    nickjb
    Member

    I’d imagine that there might be significant drop in house prices over the next few months as a sudden oversupply of properties hits the market.

    I expect there will be some bargains to be had but I doubt it’ll hit average prices hard. There must be an impact on new builds as well.

    There is also a pretty high chance of any chains collapsing with at least one buyer/seller getting cold feet

    ..followed a few days thereafter by extremely warm feet.

    They don’t mess about at the crematorium, you know.

    Premier Icon cookeaa
    Subscriber

    I wouldn’t expect many house sales to be actually going through during the CV pandemic.

    My advice would be to keep an eye on the local market, see if houses are actually shifting or simply sitting on the market for several months now.
    The question really is will this all slow down/reduce housing values in a few months time?

    Being super morbid/mercenary about it, there’s a chance that a wave of deaths amongst older generations might create a bit more housing availability on the supply side and help you as a post pandemic buyer…

    But seriously, do you think anyone will be allowing viewings at the moment? You won’t be buying a house any time soon…

    Premier Icon somafunk
    Subscriber

    I was about to ask the same question as my bro is looking at buying his first house in our town (kirkcudbright) for £130,000, with the aid of a £25,000 scottish loan/grant/partial ownership thing. He’s 38yrs old and is in the first year of a plastering apprenticeship (last year he got sick of working minimum wage in a local fish factory so sourced an apprenticeship with his mates firm) with a very well thought after local firm, He’s also a retained firefighter (of 10+ yrs) yet the maximum mortgage he can get is £110,000 on his income. At the moment he’s paying rent of £450 month for a pokey 1 bed flat and the mortgage would actually work out cheaper.

    He’s got a house savings isa of £9k or £10k and can get a fixed low rate for 5years so it seems like a good deal but Im not a home owner myself (never will be either) so i dunno what to advise him, I’ve told him to hold off as I’m sure they’ll be a massive correction in the markets next year and gawd knows what is going to happen to the economy in this country and the subsequent fallout on his work.

    nickjb
    Member

    I don’t think they can possibly go any lower than they are now

    People have been saying that for over ten years, rates keep on dropping.

    I would.

    Price drop would be my last consideration. As long as the mortgage is affordable, house value is pretty irrelevant once bought.

    IHN
    Member

    (can the bank set a negative interest rate? 😂)

    Yep. You won’t be laughing if they do though.

    Premier Icon FB-ATB
    Subscriber

    I doubt there’d be a significant increase in houses available as we are massively undersupplied and (slightly contentious maybe) it’s not overly clear how many extra deaths will be caused by coronavirus as proposed to std flu.

    Premier Icon the-muffin-man
    Subscriber

    Depends massively on your circumstances!

    Millionaire looking to bag some cheap property over the next few months – then Yes.

    Normal person who’s income can’t be guaranteed – then a massive No.

    I expect they will be a big influx of homes put on the market, if the UK economic shutdown is still in effect towards the end of the official kids school summer holidays, by which time the current 3 month mortgage grace period will be over and some families will be having to dig into “emergency savings” to cover essential costs including mortgage payments.

    Premier Icon Caher
    Subscriber

    For me the one factor is the mortgage will be the same as the rent.

    Premier Icon zilog6128
    Subscriber

    Yep. You won’t be laughing if they do though.

    that was more of a nervous laugh tbh!! What would negative interest rates actually mean though for mortgages? Reduced to very little or they actually pay YOU if low enough?!

    For me the one factor is the mortgage will be the same as the rent.

    surely you’d still be better off then even if the house did drop in value after you’d bought it?

    I expect they will be a big influx of homes put on the market

    possibly a lot of holiday/2nd homes if people suddenly can’t afford them any more! (Optimistically) hoping there won’t be a huge amount of deaths & that the govt will support people who’ve lost their jobs thus meaning people shouldn’t have to lose their homes over this.

    Premier Icon lunge
    Subscriber

    Small or no chain, only buying (so moving out of rented or out of family home), in a very stable job and looking to take advantage of low interest rates. Yes, I would as I think you’ll pick up a bargain.
    Any of the above not in place would give me concerns.

    Premier Icon 2tyred
    Subscriber

    I’m surprised I haven’t – Mrs Tyred and I specialise in buying houses at the worst possible times. Couple of months before the 2008 crash? Why yes, with baby #2 imminent too. The morning after the EU referendum? Why ever not! Feels like we’re missing the boat here.

    toby1
    Member

    Unless you have cast-iron job security I’d be wary about it. If you are happy you can both continue to earn money while this all blows over then go for it!

    Premier Icon peekay
    Subscriber

    I’m meant to be exchanging next week.

    It has taken the chain over six months to get where we are, and the whole chain is super motivated to move ASAP before the situation develops further. The general feeling from the chain is that it would be better to be locked in the next house than the current one.

    Removals companies still seemed keen to come round for quotations, but have implemented some strict but sensible controls on distancing, contact and cleaning.

    Estate Agents, Solicitors, removal and mortgage companies are all making contingencies to allow sales to continue during this.

    The only real things that will put a brake on the process is job loss or financial uncertainty somewhere in the chain.

    Obviously everyone is monitoring the situation and understands that things may change.

    The negative equitiy risk must be a consideration if one purchases a house now. I’m not saying don’t buy – but be aware:

    1. House prices will drop after this – if they don’t I will be utterly amazed. Then again, the propensity of housing bubbles in this country is SOMEWHAT STRONG.
    2. Re-mortgaging in two years, if you but now -I suspect the loan to value amount will be negatively impacted -e.g. either you still struggle to get a mortgage, or it will be at worse rates.
    3. Interest rates likely to be low for the foreseeable – which would make buying cheaper, of course.
    4. End of transition period with the EU (or whatever the period is called) will likely wreak further havoc to the economy unless Boris of course sees sense and goes with close alingment. Don’t want to de-rail this thread but it’s worth considering.

    If I was a single earner, in a job that isn’t looking good long term – you could also argue it’s more difficult getting thrown out from your mortgaged house vs a rental.

    No idea 🙂

    Premier Icon tomd
    Subscriber

    Re. drop in house prices. There is always the possibility the government fires up the printing presses and any losses are eaten up by rampant inflation.

    Hob Nob
    Member

    But if you are nearly there, happy with your “situation”, and the house is the right one, then I’d probably carry on.

    This is us. We’re moving from suburbia to a bigger, more remote property, which isn’t actually costing us much more. To buy a similar property in our local area would be into 7 figures. i’d be very concerned right now about dropping big numbers into a mortgage however.

    Jobs are probably about as stable as one can hope for in today’s day & age, we have sizable savings pots for if things really go south. I’m sure we might see some sort of blip, but then we will recover.

    johndoh
    Member

    I heard something about interest rates being extremely low right now so for a first time buyer or re mortgaging, it could be the ideal time.

    Or, alternatively, they could buy a house that is worth significantly less in 12 months time and have no job with which to pay the mortgage.

    Depends on your situation? You say the “sale” is moving through, do you mean your sale or the purchase of a new place? If you are in the process of selling then I’d definitely continue (and cross fingers the buyer doesn’t pull out), surely the best possible outcome would be to sell quick and bank the cash, then buy once the market crashes!

    poolman
    Member

    There’s a savills property auction on 26th, remote bidding only, look at the achieved prices on the day to see what the market is really like.

    Loads of headwinds…stamp duty, landlord legislation, economy collapse. Saying that I d buy at the right price. A good house is a good house regardless of price.

    Ewan
    Member

    We were about to. We’re not now. Who the hell knows what is going to happen – this + brexit seems to be an inflexion point in our history.

    Premier Icon b33k34
    Subscriber

    (slightly contentious maybe) it’s not overly clear how many extra deaths will be caused by coronavirus as proposed to std flu.

    A lot. Have you been living in a dark room? In a best case scenario maybe 250k, worst case 500k or more. Although evidence seems to be coming through that the fatality rate may be higher than early evidence suggested as it wasn’t that young people had a better survival rate, just that they take longer to die so hand’t hit the stats
    https://www.imperial.ac.uk/media/imperial-college/medicine/sph/ide/gida-fellowships/Imperial-College-COVID19-NPI-modelling-16-03-2020.pdf

    All the measures to contain COVID-19 will reduce transmission of normal seasonal flu but more people who get it will die because there won’t be any emergency beds.

    But the death rate isn’t what’s going to hit house prices, more that the economy has just basically shut down (or been entirely nationalised depending on your outlook). But either way productivity just went through the floor. There is going to be a massive financial hit one way or another, a lot of job losses, a lot of repossessions.

    However, if you’re not a first time buyer and have a decent amount of equity you’re not actually increasing your personal risk that much and, yes, you could be stuck in the new house. Against that I can’t see that you’ll manage to move any time soon.

    NO

    Wait till the epidemic sorts itself out.  I have a horrible feeling that there will be a glut of suddenly vacant possession places up for sale as well as a lot of holiday homes as people are suddenly unemployed.

    Premier Icon RichPenny
    Subscriber

    I was due to, realistically about a week before exchange my buyer pulled out. It’s only an entry level flat and 2 of us in the chain. So we’re both back on the market, but not really expecting anything to happen. Deposit money is in my bank account now though, so it’s basically a question of time before the coke and hookers hoover that up.

    Gutted too, as the house I was buying was awesome.

    Premier Icon P-Jay
    Subscriber

    Hmmm.

    Possibly. I was actually at a large solicitors office this morning putting the last pieces in place so they can abandon ship and all WFH. Smaller practices may differ but the ones we manage were first to put processes in place for WFH and all had a robust contingency plan in place.

    As for buying – renting v mortgage. They have announced NO EVICTIONS during this period, but the law also says you can’t fire people without reason or notice and that’s still happening, the UK always has and always will protect mortgage payers at any cost, you could in theory move in, request a 3 month holiday and be given it.

    Values? Who knows, most people remember the crash post-credit crunch, but not the stupid boom before it. Post crash prices only fell to the level of 2005/6 ish – when the market was still jumping 2/3% a month and starting rising straight away again. The economy at that point was fundamentally broken. The economic problems we have now (pre Corona) were hangovers of the Great Recession and most considered them ‘the new normal’ this is different, the global nature of Corona means it’s more like a pause than a crash. There is expected to be a massive feel-good push post ‘lock down’ and with the 80% salary grants their will likely be a much smaller rise in unemployment as expected which will fall again as soon as the places that let people go realise that they do indeed need their staff, frankly I hope most of them will go under and the jobs and trade picked up by better employers, we’ll see.

    Not to mention, there’s not a feeling people are spending any less, Online Retailers, Supermarkets etc are seeing huge rises in sales.

    Yes, sadly there will be a lot of homes up for probate sale, but probate takes such a long time and there WILL be a hell of a back-log so it’s not like 20k houses will hit the market all at the same time.

    Last week was ‘bad’, this week will be too, but soon people are going to realise that this is going to be a relatively long road and we’ll have to accept this ‘new normal’ for a few months, and we all have to find ways to work and live behind closed doors.

    Anyway, in short – renting v Mortgage, I’d do it, if you can. You might need to rent a van and yeah you might find some of your deposit ate away when you remortgage in 2 years, but with base rates at 0.1% you’ll probably pay off more than you lose in any downturn compared to renting.

    tpbiker
    Member

    If a first time buyer I’d hold out and await the oncoming crash…you will save a fortune

    Premier Icon Caher
    Subscriber

    I’m buying just for clarification or maybe not!

Viewing 40 posts - 1 through 40 (of 119 total)

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