First time buyer is it the right time now?

geoffky

helenjg wrote: »

If you are buing a home and not just a house and you see the one that is right for you then there is no wrong time to buy.

WHEN WILL YOU PEOPLE REALIZE THAT IT DOES MATTER BUT HEY SOME PEOPLE DON'T EVEN KNOW WHAT LTV IS???? IT IS ALL ABOUT TIMING AND ONLY A FOOL WOULD SAY DIFFERENT..

160K NOW
110K NEXT YEAR
SAVING 50K
TO PAY BACK ON 25YEAR MORTGAGE 150K
NEVER FORGET LTV

Cissi

geoffky wrote: »

You have just got yourself into a mess and future negative equity because you never even got a double figure amount off....you got 6% off the price of a house....you must be mad...what are you going to do when they fall another 20% and you have your ltv to think of....

Actually he got 12.5% off the asking price, which as I understand it is pretty much the average at the moment (I'm sure I've read that current sold prices are around 87% of asking price). While that almost certainly isn't enough to make up for future drops, as long as he has a reasonable deposit he may not end up in negative equity. Also, it depends on whether the 160k was the 2007 peak level or already took into account the falls to date. Oops, sorry, hadn't read the first post properly - I stand corrected, he did only get 6% off £150k. Still depends on what it would have fetched in 2007 though!

Having said that, I'd personally aim for a bigger reduction - as stated elsewhere we're looking at 2004 levels - but then we're able to wait, and simply couldn't afford to pay more for the houses we'd like, so that's our gamble - someone else's position may be different.

downs523

it was 160k in sept 2008 then reduced to 150k in november. i got it for 140k last week. got 14k deposit so mortgage will be for 126k on a 5yr fixed rate 5.69% britannia bs over 25yrs

the house is 3 yrs old, when bought new it was 185k

whathavewedone

Confused, I know a lot of people were repossessed in the 90s (I am 38 so I do remember it) and I know that a lot of people have been repossessed already.

I also know that anyone can get made redundant at the moment (although some occupations are safer than others).

The point I was trying to make is that no one has a crystal ball and no one should be presenting their own opinions (however well informed) as absolute fact.

I don't know where interest rates will be at in 3 to 5 years time. I'm pretty sure they will stay low for the next couple of years but I wouldn't present that as fact.

All I'm saying is that the OP is by the sounds of it in a pretty good position to buy now if she wants to and so long as she is aware of the risks of negative equity and the possibility of interest rates rising then she should go for it. Personally I'd be minded to wait at least 6 months to see if prices drop further but I don't think she'd necessarily be wrong to jump in now.

It's getting a bit tiresome seeing threads being hijacked by people who want to argue with each other. Why not take it to PM guys? We don't all want to read your little squabbles/point scoring etc.

geoffky

downs523 wrote: »

it was 160k in sept 2008 then reduced to 150k in november. i got it for 140k last week. got 14k deposit so mortgage will be for 126k on a 5yr fixed rate 5.69% britannia bs over 25yrs

the house is 3 yrs old, when bought new it was 185k

I really feel sorry for your financial naivety...looks like in your world the biggest boom in history is going to be followed by the shortest bust in history.....ps look at the job losses everywhere...

downs523

i have 100% job security being in the armed forces and please dont feel sorry

jenjade

I am re entering the battle field i created as the OP!

I have looked into morgages etc and to be able to live comfortable i need to find a house to buy for about £110,000 make. so i think this one is out of reach slightly. unless i get a house that is for sale for £155k for £110k? It has been on the market a year and is empty but there is an offer on it at the moment?

Thanks for all the information.

confused31_2

I agree with the arguments they shouldnt be in here, but some people think they know everything, its like what they do is right and what everyone else does is wrong.

Each individual situation is different no one can garantee rates or house prices, im 36, but i can not remember the last resession.

It is a bit risky as a first time buyer at the moment, as the last thing you want to do is buy now and then the prices to go down, personally i would wait if i was a first time buyer.

The reason me and the other person was having a little argument was he say's one thing one week and another thing the next.

But no matter what he says he his right, ive done it before and i will do it again, if i think someone is giving the wrong information, and only giving people information and unreal facts, that will make them look like they are in the greatest position anyone can be in.

When in reality they are not, and thats why i was pointing out to him his situation is not that great.

He can keep on telling himself this and that, whether its going to happen we will all have to wait and see, but he seems to think hes right.

confused31_2

jenjade wrote: »

I am re entering the battle field i created as the OP!

I have looked into morgages etc and to be able to live comfortable i need to find a house to buy for about £110,000 make. so i think this one is out of reach slightly. unless i get a house that is for sale for £155k for £110k? It has been on the market a year and is empty but there is an offer on it at the moment?

Thanks for all the information.

make a offer you never know, and it wont hurt anyone if you do, i wish i could make a offer in a house, but im struggling to sell mine.

Ephemera

If you've seen the home you want at a price you can afford, then go for it.

Personally speaking though, I'm waiting at least another year. I have a feeling that house prices still have a ways to fall yet.....