better to buy now (or soonish), than at the bottom of the market

kai666

I think, surely it is better to buy now (or soonish) than at bottom of the market The reasons for this are:

1.There will be lots of demand at or near the bottom, reducing choice and increasing prices as people fight for the bargain they want

2.Currently it is a buyers market. Once the bottom is reached, and more people are out looking, this will swap back to a sellers market, as they realise plenty of other people are also looking around

3.you are more likely to get the house you want now, with fewer people wanting to buy. As the numbers looking increases, the choice will decrease unless you are quick (thus less room to haggle and neogiate)

4. You won't know it's the bottom of the market until it's too late!

anyway thats just my thoughts on why you shouldn't wait till the bottom!

Cat695

all depends if you have the cash

If you haven't got a decent enough deposit you won't be buying anything, and the way the banks are going you will need a pretty good deposit before your even looked at

so i wouldn't worry to much

Cannon_Fodder

I don't think its possible to hit the bottom precisely.

With hundreds of thousands of people likely to end up unemployed in the next year, I don't think there will be a huge rush of buyers in the next 3 months.

I'll wait and see what spring brings, thanks.

ftb_home_dream

kai666 wrote: »

I think, surely it is better to buy now (or soonish) than at bottom of the market The reasons for this are:

1.There will be lots of demand at or near the bottom, reducing choice and increasing prices as people fight for the bargain they want

2.Currently it is a buyers market. Once the bottom is reached, and more people are out looking, this will swap back to a sellers market, as they realise plenty of other people are also looking around

3.you are more likely to get the house you want now, with fewer people wanting to buy. As the numbers looking increases, the choice will decrease unless you are quick (thus less room to haggle and neogiate)

4. You won't know it's the bottom of the market until it's too late!

anyway thats just my thoughts on why you shouldn't wait till the bottom!

Even with good deposit the banks are not cutting the rates. For people with 25% deposit the next best rate comes at 5% that is two year fixed. Yes there are 3.99% deals for 25% deposit but they have £5000/- fee.

I think if you don't get a property at a very (i mean a very) good price then it is very likely you could lose 15% of your deposit and after two years you may end up with 85% LTV which would push the cost of mortgage. You never know if inflation picks up then mortgage rates may be even higger.

It is a good time to buy now if:

You have 25% deposit
If you know and you are confident you job is secure
If you get that property atleast 20% less then the asking price
If you get a good mortgage rate with not much fee

then its a good time to buy

Phirefly

I actually brushed my screen then before realising it was an avatar :embarasse

ad9898_3

You need money and a mortgage to create demand, both are in very short supply.

People wanting to buy a house badly, (which would cause demand) is different than actually having the money to go and buy.

An example would be if a Ferrari 430 was 5k, demand would outstrip supply almost instantly, however because they are 130k there is little demand, despite the fact most people would perhaps like to own one, not many have the money.

Same with a house.

Kenny4315

There is still a substantial amount to come off until the bottom of the market, another 6 to 9 months. or 15% ish. It won't be going up in a hurry after that for quite a while either.

sympatex

It is a good time to buy now if:

You have 25% deposit
i'd rather sit on it for now, the larger the deposit the stronger your position. And you should always be able to get a competative mortgage.

If you know and you are confident you job is secure
Even public sector jobs are going now (customs and excise, the only money earners in the government!)

If you get that property atleast 20% less then the asking price
What if the asking price is 20% over valued, it's all very subjective. DYOR.

If you get a good mortgage rate with not much fee
I'm a FTB and struggling with this one, we have a mortgage guarentee for 6months tracker .99 above BOE rate. £399 fee's, small exit fee. However either we buy at a high price (but cheap money) or buy at a low price and no doubt it will be expensive money. In the end the debt is real so the less of it you have the better.

Although my points all point to a bad time to buy i am in the process of looking now as well due to circumstance. House prices will continue to go down and sginificantly, there are no green shoots yet.

Really2

sympatex wrote: »

. DYOR.

If you get a good mortgage rate with not much fee
I'm a FTB and struggling with this one, we have a mortgage guarentee for 6months tracker .99 above BOE rate. £399 fee's, small exit fee. However either we buy at a high price (but cheap money) or buy at a low price and no doubt it will be expensive money. In the end the debt is real so the less of it you have the better.

Disagree their I took out .49 over BOE base for the life of the mortgage. Cost £999 I worked out to start out with that would repay itself after 4 years (2X remortgages every 2 years)

Now that will pay for itself in no time.

ad9898_3

Regardless of anything else house prices have zero chance of going up in a recession, everyone admits we are at the beginning of one that is going to last 12 months, hell, even Clown admits this.

So there are at least 12 months of saving left at the absolute minimum, then you can only hazard a guess at how long the bottom will be, all previous busts have been 4 years at least, will this time be any different ?, we could end up without even a sniff of a rise for another 5 years, I guess we will have to see.

silvercar

kai666 wrote: »

I think, surely it is better to buy now (or soonish) than at bottom of the market The reasons for this are:

1.There will be lots of demand at or near the bottom, reducing choice and increasing prices as people fight for the bargain they want

2.Currently it is a buyers market. Once the bottom is reached, and more people are out looking, this will swap back to a sellers market, as they realise plenty of other people are also looking around

3.you are more likely to get the house you want now, with fewer people wanting to buy. As the numbers looking increases, the choice will decrease unless you are quick (thus less room to haggle and neogiate)

4. You won't know it's the bottom of the market until it's too late!

anyway thats just my thoughts on why you shouldn't wait till the bottom!

Totally agree.

Worked on that basis in the last recession.