First time buyer is it the right time now?

pinkshoes

mbga9pgf wrote: »

Prices 20% down. When are you all going to take your rose tinted glasses off and realize this is a crash of epic proportions? You all sound like the Iraqi information minister.

Carpe Diem.

There are more important things in life than money.

Maybe this will help you understand my perspective...

I'm daddy's little girl. He means the world to me. When I was 18, I nearly lost my dad. One day he was a high flying business man, the next he was undergoing a quadruple heart bypass, and they put stents in his heart archeries to allow the blood to flow. He was told to choose between his life and his job.

Obviously he chose his life.

Why wait several years when buying a family home could make you happy, and you have a house infront of you that you can afford and would love to own? If owning a home rather than waiting 2 more years means I lose £30k, then who cares?!?! It's just money! And what does it matter if I'm not selling?

You may not be able to understand my perspective on life, but I understand perfectly well that happiness and love are what's important, not money.

One day you may be put in a position to understand this.

mbga9pgf

pinkshoes wrote: »

Carpe Diem.

There are more important things in life than money.

Maybe this will help you understand my perspective...

I'm daddy's little girl. He means the world to me. When I was 18, I nearly lost my dad. One day he was a high flying business man, the next he was undergoing a quadruple heart bypass, and they put stents in his heart archeries to allow the blood to flow. He was told to choose between his life and his job.

Obviously he chose his life.

Why wait several years when buying a family home could make you happy, and you have a house infront of you that you can afford and would love to own? If owning a home rather than waiting 2 more years means I lose £30k, then who cares?!?! It's just money! And what does it matter if I'm not selling?

You may not be able to understand my perspective on life, but I understand perfectly well that happiness and love are what's important, not money.

One day you may be put in a position to understand this.

Because reckless attitudes like that got us into this whole sorry mess. B*gger the consequences, I want it today! Sorry, if my wife and I can save another 36K this year towards a house that is depreciating in value massively at the mo and get a much better house in a nice area in only 12-15 months time, its a no-brainer. Its also NOT ABOUT MONEY! its about getting a house similar to to the one I could have expected to purchase in 2001 before the market went absolutely completely nuts and a generation were priced out... Those days are about to end!!! Hooray!

Think I want those trainers, new plasma screen, new car, I will just stick it on the never-never and forget that 30K is a hell of a lot of money...:eek:

chairmanofthebored

mbga9pgf wrote: »

Because reckless attitudes like that got us into this whole sorry mess. B*gger the consequences, I want it today! Sorry, if my wife and I can save another 36K this year towards a house that is depreciating in value massively at the mo and get a much better house in a nice area in only 12-15 months time, its a no-brainer. Its also NOT ABOUT MONEY! its about getting a house similar to to the one I could have expected to purchase in 2001 before the market went absolutely completely nuts and a generation were priced out... Those days are about to end!!! Hooray!

Think I want those trainers, new plasma screen, new car, I will just stick it on the never-never and forget that 30K is a hell of a lot of money...:eek:

You're predicting the unpredictable here, Yes, there is a chance that the price could drop to 25% below it's peak, or maybe even 50%, the thing is we simply don't know. It could even go up in the right circumstances, especially with talk of the government talking about underwriting mortgage lending. This will loosen up the banks a little on lending decisions and amidst falling prices may give the market a little jump start... Then again it may not... who knows?

Even the most reliable predictions at the end of 2007 were for a minor increase or stagnation and what we actually saw was around a 16% fall.

Halifax and Nationwide have both said they're not making any predictions this year because there are too many factors at play here.

You're talking exact figures in a completely vague marketplace, you have your opinions, I have mine too. Maybe one of us is correct, maybe neither.

Just don't flaunut your opinions as gospel when you haven't got any better idea than the rest of us.

These are risky times and any decision needs a lot of thought but frankly, if you've found the home you want and you can afford it, it's not necessarily a bad thing to take a chance sometimes. I think i'd rather be paying my own mortgage as a home owner than someone else's as a tenant.

mbga9pgf

OK then lets play. Huge defaults on the US, the peak of which we havent yet seen, are causing banks to lose cash hand as a result. Consumer confidence has collapsed. Unemployment is skyrocketting and likely to go above 3 million. There is not a single source of income other than increased debt which doesnt get us out of this sorry mess that will cause a recovery, until the deleverage process has complete. The US are currently expecting a second wave of write-downs, from hat are known as Alt-A mortgages, due to hit late 2009 early 2010, the peak of which is higher than that caused by the writedowns from subprime.

We havent even got onto UK writedowns yet and the banks have run out of cash. the 500 Billion cash injection the government are spending wont even fil the crater made by subprime and alt-a, never mind the humongous hole created by the wave of UK reposessions and bad debts that is about to hit is. So, where is this recovery coming from? The 50 billion the government are talking about would cover mortgage lending for 3 months at 2007 lending rates. What then? more money? Not after there is a run on the pound and they cant sell government debt at bond markets.

What counter-observations do you have from the above, and what reasons do you have to refute my pov? Its not a possibility, its quite clearly a probablility as a result of the mess this government and its naieve population have gotten themselves into. The debt needs deleveraging.

If you take a chance on the market right now, and are tight for cash/deposits, you are kissing goodbye to any chance of fture financial stability.

chairmanofthebored

Behave

I never said you were wrong, I didn't even give my own opinion, all I said is don't give an opinion you hold as fact.

I'm fully aware that financially we're up sh*t creek, and at the very begining of my post I even said that house prices could fall up to 50% for all we know.

The point i'm making is that we don't know, and that a home is a home first and an investment second.

I do not wish to "play", and I fail to see what benefit doing so would be to the OP.

mbga9pgf

Fair one. Sorry.

confused31_2

mbga9pgf wrote: »

Now is a ridiculously stupid time to buy a house if you are in the above situation.

mbga9pgf wrote: »

Because reckless attitudes like that got us into this whole sorry mess. B*gger the consequences, I want it today! Sorry, if my wife and I can save another 36K this year towards a house that is depreciating in value massively at the mo and get a much better house in a nice area in only 12-15 months time, its a no-brainer. Its also NOT ABOUT MONEY! its about getting a house similar to to the one I could have expected to purchase in 2001 before the market went absolutely completely nuts and a generation were priced out... Those days are about to end!!! Hooray!

Think I want those trainers, new plasma screen, new car, I will just stick it on the never-never and forget that 30K is a hell of a lot of money...:eek:

And then in another post you say this, your full of shxt.

mbga9pgf wrote: »

I have 55K in the bank (2 actually) and am defiantely in a position to buy. I told an EA this morning I would only come round to view if the seller was willing to consider offers 35% off their peak price. He said it wasn't likely, so I told him to get in touch when he thought they would be interested. I reckon I will get a call in 6 months or so. (390K initially on for, bought in 2001 for 165K and I offered 255K MAX).

I can wait as long as it takes. But what it comes down to at the end of the day is price. I am proceed able, can get a mortgage, no chain. As soon as sellers get realistic, properties will start to sell.

Hes full of crap, he says hes going to get a great mortgage deal, hows he going to get that with 55k on a 255000 pound mortgage, hes only got a 14% deposit, the blokes a clown, you always find people say how they want the market to be to suit themselves.

He will still be renting in two years time trust me, hes telling people not to buy, but last week he was there telling the estate he was in a position to buy.:T

hes a fully fledged pxxck

I dont think you will hear of him again:T

Idiophreak

mbga9pgf wrote: »

Because reckless attitudes like that got us into this whole sorry mess. B*gger the consequences, I want it today! Sorry, if my wife and I can save another 36K this year towards a house that is depreciating in value massively at the mo and get a much better house in a nice area in only 12-15 months time, its a no-brainer. Its also NOT ABOUT MONEY! its about getting a house similar to to the one I could have expected to purchase in 2001 before the market went absolutely completely nuts and a generation were priced out... Those days are about to end!!! Hooray!

Think I want those trainers, new plasma screen, new car, I will just stick it on the never-never and forget that 30K is a hell of a lot of money...:eek:

Great, so *you've* decided that at 2001 prices a house will become acceptable value to you.

A house is only worth what you're willing to pay for it. When X house gets to 2001 prices, you'll consider it worth the cost and buy. Great. What happens if it keeps falling? You're screwed, aren't you? No, not really. If you think of your house as a home or long-term investment, you won't be in the slightest bothered. If anything, you'll be pleased that any fufture property upgrades you decide to do cost you less, as prices have continued to fall.

You *could* be bitter that you didn't buy at the bottom of the market, or you could just say "I paid an amount I was happy to pay" - which seems to be where the OP is now.

This isn't anything to do with the "I want it now" culture at all - unless you're advocating saving until you can pay 100% cash?

mbga9pgf

right, for the slow chap up above in the room, here is some VERY BASIC mathematics... I know you struggle with big words, so I will go over this really really slowly for you so your brain can cope...

55/255 = 21.5%. Not 14%.

Currently saving 3K per month, so, by next crimbles, will have: 55+36 = 91K + interest, which, according to this wonderful thing called, wait for this, Microsoft excel, works out at 95.5K on a savings rate of 4.5% fixed for a year.

Add 5K LSAP loan (interest free paid off over 7 years) = 100K or another 1.5 months saving + interest = No LSAP and 40% deposit.

with 90K deposit, today I could go out and get this:

Coventry BS
Fixed 4.79% Fixed to 31/03/2014 4.79% 5% £1,037.46 £125,743.62 to 31/3/14: 4% Sum Repaid; Redemption Admin Fee £125.00 Fixed (not payable for last year)
5 year fix. 10 year fix at 5.65%.

thats 10K less than we will have saved/available. This also doesnt take into account any reduction in rates as a result of rates dropping this year.

Cunfused, has your brain ever been deprived of Oxygen for more than 5 minutes? Is this why you are confused?

confused31_2

So whats with telling people not to buy, and then turning round last week telling everyone you had told the estate agent you will offer 255000 and nothing lessand that your expecting to hear of them withinn 6 months:p

255000

for you to buy a property for 255000 you will need 102000 pound to get the best mortgage deals 40%, im not saying your mortgage will be 255000, your mortgage will be for 153000.:mad:

so get saving we will see how your getting on in 6 months dreamer


or are you buying in 15 months????