My Journey as a First Time Buyer!

maisymoo77

hethmar wrote: »

Very best of luck Rob

Yes maisy - prices are still falling

Out of interest, how far do uthink prices wil fall?

Zandoni

maisymoo77 wrote: »

by this do you mean that the property prices arefalling?

Yes, not a good time for first time buying in my opinion.

Zandoni

maisymoo77 wrote: »

Out of interest, how far do uthink prices wil fall?

Another 10-20% I'd say, but who knows.

maisymoo77

Zandoni wrote: »

Another 10-20% I'd say, but who knows.

OK, i am thinking of buying (first time) £110k mortgage, 5 year fixed 6.7%. Offering 10% below asking price? Any thoughts appreciated!

Zandoni

I can't understand why any FTB would take the plunge now. Why not wait until they reach the bottom and then you can get a bargain.

Why do you need to buy now?

maisymoo77

Zandoni wrote: »

I can't understand why any FTB would take the plunge now. Why not wait until they reach the bottom and then you can get a bargain.

Why do you need to buy now?

We dont need to buy now but we have fallen in love with a property. I am also concerned that interest rates will rocket and we wont be able to fix if we wait till the market reaches the bottom?

Zandoni

maisymoo77 wrote: »

We dont need to buy now but we have fallen in love with a property. I am also concerned that interest rates will rocket and we wont be able to fix if we wait till the market reaches the bottom?

If only we had a crystall ball. Imagine buying your dream house though and month after month you see it's value drop until you are in negative equity, now that really sucks.

End of the day it's your decision alone.

maisymoo77

Zandoni wrote: »

If only we had a crystall ball. Imagine buying your dream house though and month after month you see it's value drop until you are in negative equity, now that really sucks.

End of the day it's your decision alone.

The mortgage we have in mind allows us to overpay 20% of our monthly repayments off the capital. By fixing at 6-7% we are avoiding (hopefully) the hyperinflation rates of 11-14%. This was our rationale for wanting to buy now:)

hethmar

You need to do a bit of research. Find out the price of the house last time it was sold - Land Registry website. Find out what houses have been selling for in same road - same type of house. Check out on the Nationwide calculator using the right area - what they reckon house prices have dropped since the last time the property was sold.

No one knows how much they will fall Maisie - predictions of up to 40% from the peak price of about Sept 2007.

rick9525

Interesting thread

I have been saving seriously for last 18 months and have managed to save 30K and combined with a 10K gift from parents I have 40K to put down.

The area I am looking at, Hadfield on the edge of the Pennies, is really nice and prices have dropped about 20K/25K in the last 2 years to the point where I can afford a 2/3 bedroom and only require to borrow around 65/68K which is around 3 X salary. It’s now a case of being lucky when putting offers in.

I am buying on my own but I want to be financially secure so I made a conscious decision to do that.
I am 29 but I have been to Uni and have had many overseas holidays and enjoyed my younger years but I feel now is the time to buy.

My advice would be if you feel the time is right to settle down then go for it but don't get stuck with a large mortgage at a young age then regret not being able to enjoy life due to money being tied up.

Good luck everyone.