FTB ... Should we buy now or wait?

LittleStar

Hi all,

I am desperately seeking some advice, as me and my OH have two different views ... here is a bit of background ...

My Finace and I are currently looking for a house, he rents and I live with parents, we are both 22 and are in averagely paid jobs. We have a deposit of £10,000 (with some put aside for fees etc) and have been offered a maximum mortgage value of £200,000, we have started looking at some properties and viewed a couple in the £180,000/190,000 region (in London) ... and I have not been too impressed with what I have seen ...

So the problem is, I think we should wait a few more months, get a bit more money saved, hope that prices will drop further and then start seriously looking again after xmas ... but my OH thinks im being stupid and wants to buy now, as he thinks I am being stupid and that the house prices won't get any lower ... BUT ... I think he is being influenced by the estate agents etc and the fact that his tennancy runs out in Nov...

Therefore I would like some advice ... do you think we should hold out for a few more months, or look at buying now? ... I know no-one can predict the future, but any advice would help, or any information to support my argument would be a bonus

Thanks in advance ... and VERY confused First Time Buyer!! .x.x.

CHARDONNAY_3

I'm suprised you would be able to get a £200,000 mortgage with only £10,000 deposit!

Also, how much do you each earn?

Whatever the circumstances, you should defo wait! Not sure where your bf got the idea that house prices won't fall, when all indicators are showing that they most definitely will. Get him to read these forums/ decent newspapers and watch the news. Then see what he has to say.

wymondham

I have some views on FTB's buying now:

http://forums.moneysavingexpert.com/showthread.html?t=1125655

hopefully it helps and does not confuse further!

good luck whatever you decide.....

LittleStar

Well I am in total agreement, I don't think we should buy now at all!

I'd rather not say how much we earn, but we have been agreed a mortgage with Natwest of upto £200,000... I think my other half has been a bit brainwashed by the estate agents saying that 'it is the lowest they have seen it and it won't get lower' ... and I just wanted to see what the views were, if people think that they will continue to fall ... thanks .x.

Thanks for your link wymondham, you make some very valid points!! thank you!! .x.

[Deleted User]

No no no no no no no

Give it at least 6 months to 2 years - we're on the edge of a possible recession ; house prices are bound to drop still, the government might even step in to make buying a house easier (e.g. no stamp duty.. have you set aside 2K for that?)

Also - a £10k deposit isn't a lot. You'd only own 5% of your house and in the event of a drop in price, you'd be in negative equity very easily. You might not think that's a big deal, but you wait till you need to remortgage.

Hold off until you can at least put in 10%, yes, this might be a couple more years. If you are young, have graduate jobs in London, your salaries should be going up (hopefully).

LittleStar

Thank you so much Ringo_24601 ... that is exactly the kind of info I need to back up my arguement!! ... I desperately want to buy a house, it would be great! ... but I really dont think it is best right now!! ... thanks again .x.

andrewmp

You sound like a sensible girl, don't listen to your boyfriend.

[Deleted User]

Oh yes, just remember - the average age of first time home purchase in London is 34... don't feel like you are loosing out by not owning a house.

Have you thought about both moving in together and renting?

GDB2222

LittleStar wrote: »

Thank you so much Ringo_24601 ... that is exactly the kind of info I need to back up my arguement!! ... I desperately want to buy a house, it would be great! ... but I really dont think it is best right now!! ... thanks again .x.

Prices are dropping at 2% a month at the moment, and have been for the last few months. That trend is not suddenly going to turn around. In my view, there's way to go still.

GDB2222

I'll just add that 2% a month translates into almost 25% a year. Effectively that's free-fall.

SquatNow

Now is one of, if not the, worst time in history to be buying a house.

If you buy a house now you will be finacially crippled for the rest of your natural life.