FTB ... Should we buy now or wait?

lonestar1

SquatNow wrote: »

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.

Not so if you are a cash buyer how can buying a house cripple you financially for life ?

wymondham

lonestar1 wrote: »

Not so if you are a cash buyer how can buying a house cripple you financially for life ?

Very true, But the OP is not a cash buyer....

LittleStar

Hi all, thanks for your advice ... I am getting pretty worn out with it all at the moment ... the other half still thinks were in a good position and should buy now ... I really don't know how else I can back up my arguement (to be honest I don't really know much about it, just what I have read on here and in the papers) ...

My other half is renting at the moment (very small one bed flat - £600p/m) and we have discussed me moving in with him while we get some more £ saved, but he seems adamant to buy now! ...

Anymore advice would be much appreciated, or infomation to support my argument to him! :P ...

Thanks again!! .x.x.

penguine

If you don't think it's a good idea, you shouldn't go ahead with a purchase regardless of what your OH thinks. Have you worked out a budget for all of your outgoings if you were to buy a house with a mortgage of £200K on average salaries? If the figures seem high to you, think about the strain this will put on your relationship, especially if you didn't really want to buy a house at this particular time in the first place (and if it's a house you weren't that impressed with). Financial stress can be one of the largest strains on a relationship. And if prices continue to fall for several years (as the current situation seems to indicate), think of how frustrating it will feel if you're stuck in a house you weren't all that crazy about to begin with (possibly in negative equity) watching as house prices fall and much more attractive properties come onto the market but you can't sell yours and buy something new.

This is one the biggest financial decisions you will make in your entire life. Making a bad decision now could put you into debt for years to come and could affect what kinds of choices you can make later on, ie changing jobs, taking time off to travel, having a child and taking time off work to be with them when they're young, etc etc. Don't let yourself be pressurised into making a decision you're not 100% comfortable with.

poppysarah

Buying a house is the biggest financial decision you'll ever take.

It's probably not the right time.

sugarpants_2

Wow how did you get a 200k mortgage with average salaries? Can I have you rbanks tel number? haha

LittleStar

Hi Penguine,

We don't want to go upto the £200k mortgage, were looking at at mortgage of £170k, which we are looking at repayments of approx £1200 ... which I think is a hell of a lot! ... Especially like you say with the other outgoings ... and we're currently saving for a wedding too!!

I really feel like I am stuck in an awkward place ... my heart says buy a house, but my head says wait! ... My parents think we should wait, and my otherhalf thinks we should buy ... I am so confused, I really don't know what to do for the best ... .x.x.

huntersc

Your other half is wrong. But leaving aside that for a moment, 10k is very low for a deposit right now. House prices only need to drop 5% for you to be making a loss. If we see the same drops we have done for the last three months you would be there. If you know for certain you will be there for the long term then 'maybe' it doesn't matter but can anyone know for certain?

You're 22 and could be tying a noose around your neck financially for a very long time.

Oh, and send your OH here. I'm sure it would be good for him to get some advice.

penguine

If you have a deposit of £10k and buy a house worth £170k, that's just under a 6% deposit. As another poster said, prices are falling 2% a month at the moment (that varies from place to place so where you buy might fall faster, or slower, or have a sudden dramatic drop). But just using 2% a month as an example, you would be in negative equity in just 3 months.

If you decide to buy a house even if you think it's not such a good idea, because your OH is adamant to buy now, this does not bode well for the future of your relationship -- you should BOTH feel absolutely certain that this is the right decision for your future together. If interest rates go up in a few years' time and you're stuck with higher mortgage payments, if either of you lost your jobs and you were struggling to meet your monthly outgoings, if you have a baby and you have to go back to work sooner than you'd like because you can't afford to take unpaid maternity leave -- deep in your heart, would you feel resentful that he was the one who was adamant to buy before you were 100% ready?

sugarpants_2

Id wait hun esp woth the wedding. They are so expensive but worth it

Go live with your bf in his flat for a year.