Wife wants to buy now, I want to wait 5 years+. Advice?

Oldernotwiser

PasturesNew wrote: »

It's better to be stuck with too much savings than a big mortgage round your neck though.

Either can cause difficulties but if you lose your job, having too much savings would be worse.

Pssst

Oldernotwiser wrote: »

Either can cause difficulties but if you lose your job, having too much savings would be worse.

I agree. Recent events have taught some of us that having too much savings is a mugs game,especially if they are traceable.

Lose your job or get ill and the state will bleed you dry until you have nothing.

Get some debt and someone will always help you out.

tonygee_3

get rid of your cc debts,save and only consider buying property if absolute bargain crops up cos prices will not rise for many years

Charlton_King

Buy now....

bluemrchimp

You're right: The financially sensible thing is to pay off your credit card debt first. Even at a low interest rate you're still paying month after month for it. Do you know what the APR is on the card?

How much are you paying for rent now, if you don't mind me asking?

Most predictions are for house prices to continue falling sharply for much of 2009, though the truth is NO-ONE, not you or me or the highly paid experts know for sure what's going to happen with house prices. Having said that, it does seem *likely*, at the moment, that they will remain subdued even when they stop falling. Few are predicting that we'll go back to the ridiculous house price rises of the last few years.

So for my money's worth the ideal thing would be to pay off the card, save up the deposit with every spare penny you've got. It may well take you less than five years though obviously that depends on your personal circumstances.

Francesanne

Glen0000 wrote: »

We would like some advice about where to go from here. We are renting at the moment, council house so very cheap rent. Due to an inheritance we have £15k for a deposit/fees. However, we also have £10k of credit card debt. Wife wants to buy within the next year, me not so sure. I would like to wait 5 years or so, pay off the credit cards with the inheritance and save another £15k for a deposit. We are also pretty bad with money, so need to get that under control. Wife thinks that by then house prices will have risen further and a home that is priced £100k now will be out of our reach.

We have £15k saved up, £10k of credit card debt and are looking to buy a home worth around £100k. I earn £35k, wife earns £7k, 1 dependant child. Would we even get a mortgage on these figures?

How can I convince the wife to wait or is waiting a silly idea? In 5 years time what is a £100k house likey to be worth?

If I was in your position, I would clear all my debts first. Don't forget once you buy a property you're the one liable for the upkeep of it. Sometimes buying isn't always the best choice. Why don't you meet each other half way and pay off debts, save more and then buy.

jm28cardiff

How are you in a council house when you have a combined income of £42k?

Glen0000

jm28cardiff wrote: »

How are you in a council house when you have a combined income of £42k?

When we got the house many years ago we were homeless and on a low income.

Glen0000

bluemrchimp wrote: »

Do you know what the APR is on the card?

How much are you paying for rent now, if you don't mind me asking?

APR on card 17.9%

Rent £370 PCM

longtimelurker_2

If I were you, I'd take advantage of the fact your rent is ridiculously low. Start saving, as others have said by calculating what a mortgage would be and setting that figure minus current rent aside, and start getting used to the cost that higher accommodation outgoings will incur. Think of it like a trial (with the added benefit of building a deposit) for when you get a mortgage.