Buy now, sell later?

ratty2505

My partner and I have long been looking for a certain type of property but it has always been out of our price range. We have considered moving to France to get what we want but would prefer to stay in the UK for family commitment reasons.

We only have 6 years left on our mortgage and due to the falling house prices have just seen our dream home in the local paper at a rediculous selling price - almost half what it was advertised for 2 years ago. We are now in a quandry as to what to do. We do not want to try and sell our current house at the moment as we still have some work to do on it. We know the housing market will recover in the future and that when it does, we will not be able to get what we want. We have some savings, enough for a deposit and were considering buying the house on an interest only mortgage and renting it out until the market recovers, when we can sell our current house. We have some back up if we need to dip into it for mortgage payments and think that even if the market takes 3 years to recover, we would still be better off buying now as this property has lost almost 200K.

Can anyone give advise on buy to let mortgages etc and what other pitfalls we may be letting ourselves into.

Property we are looking at is £265K.

deano72_2

who knows really,, im in same boat,just put an offer in on a house which can get for 50k (about 38%) less than what it came onto market for,,anyway changed my mind now for few reasons,,iv got 2 houses allready,live in 1 & rent other 1 out,i dont mind takeing bit of risk but im happy to have 2 houses at this current time but to have 3 is bit risky if i loose my job or if the rental market becomes flooded then it could be a strugle....also its not my dream house so dont mind waiting to see if the prices are going to full much further & see if theres lot more job loses which looks likely..
but i spoose if u are going to keep both longterm & u got plan b & can rent ur current one out & ur job is secure then personally i think u should put a cheeky offer in,set a cut off point,stick to it then i would say go for it...never know u mite get it for even less what u allready think is bargain

Incisor

ratty2505 wrote: »

My partner and I have long been looking for a certain type of property but it has always been out of our price range. We have considered moving to France to get what we want but would prefer to stay in the UK for family commitment reasons.

We only have 6 years left on our mortgage and due to the falling house prices have just seen our dream home in the local paper at a rediculous selling price - almost half what it was advertised for 2 years ago. We are now in a quandry as to what to do. We do not want to try and sell our current house at the moment as we still have some work to do on it. We know the housing market will recover in the future and that when it does, we will not be able to get what we want. We have some savings, enough for a deposit and were considering buying the house on an interest only mortgage and renting it out until the market recovers, when we can sell our current house. We have some back up if we need to dip into it for mortgage payments and think that even if the market takes 3 years to recover, we would still be better off buying now as this property has lost almost 200K.

Can anyone give advise on buy to let mortgages etc and what other pitfalls we may be letting ourselves into.

Property we are looking at is £265K.

Time to challenge your assumptions.

• Selling your current home is not on? OK, it needs work doing, but if you price taking this into account, it may bring it within reach of someone who wants that style of house, and can't get a big enough mortgage but is prepared to take on a project
• House prices will recover in 3 years? Who knows - I think you are more likely to see a temporary rise in the spring which quickly falls flat [the 'bull trap' - a good time to sell your present property?] followed by a longer term decline in both sale and rental values.