Why FTB should Resisit buying now and Save instead! explained

leveller2911

Running_Horse wrote: »

You stink of paranoia. My mortgage is less than 50% the value of my home, and has fallen by £175 pcm. What exactly do I have to lose in the home I plan to live in for the next 20 years? I hope prices fall so my daughter can buy a house one day. I also believe nobody is dumb enough to make life changing decisions based on the advice from busy-bodies like you on the Internet. Loser.

You should lay of the orange smarties, think theyre making you agressive.:rolleyes:

No need at all to call the OP a "loser"

Really2

pandamonia wrote: »

This is for FTB looking to buy at some point in the next 12-18 months.

Ill explain why you should not do what quite a few have been doing lately and why you should resist taking the plunge.

Lets say for example you have 10% deposit saved and ready to buy a 130k home.

The best mortgage on the market now is C&G 27 month fixed at 5.69% - The payments would be £731.82 plus about £1400 fees

Now if instead you held fire and continued to save for the next year or so and you managed to get 20% rather than 10% which would be 26k instead of 13k

You could get a HSBC tracker mortgage which is currently 3.69% - Your payments would reduce to £531.31 with about £1300 fees. - on the same £130k house!

Saving £5400 over the 27 months! - This saving will probably increase since interest rates are set to go near zero over the next year and stay quite low until signs of recovery are truly underway.

There is also the benefit from being immune to asset erosion as prices are currently falling about 1% per month saving you a possible £1300 per month on that house!

Also if more FTB resisted buying this year then home prices will keep on falling until enough demand for them forces prices to stabilise.

So all in all if you only have 10% which most people do then there is almost no benefit from moving out of rented or your parents until you have 20% deposit!

All of your posts today seem to worry that people are buying houses, and denying some are.

If they are it won't push prices up they still expect to fall.

Like some have said they dont want to live with inlaws etc for the next year + (I would pay a fortune not to live with mine)

It is better than buying 18 months ago.;)

leveller2911

Really2 wrote: »

All of your posts today seem to worry that people are buying houses, and denying some are.

If they are it won't push prices up they still expect to fall.

Like some of said they dont want to live with inlaws etc for the next year +

It is better than buying 18 months ago.;)

Surely in the sceme of life 1 years wait to prove worthwhile?

Its the biggest purchase anyone is likely to make and as a FTB im holding out.I had some many people telling me over the last 2yrs or so to "buy now" and in the past I missed the chance ,this time I don't think I will.

pandamonia

Really2 wrote: »

All of your posts today seem to worry that people are buying houses, and denying some are.

If they are it won't push prices up they still expect to fall.

Like some of said they dont want to live with inlaws etc for the next year +

It is better than buying 18 months ago.;)

Some people are obviously buying but id rather people know the facts before making their own minds up, if you believe EA's and mortgage brokers then u can find yourself in a right mess.

i often call them up to see what they are saying then end up having to explain that what they are tryin to tell me is rubbish.

Running_Horse

pandamonia wrote: »

i often call them up to see what they are saying then end up having to explain that what they are tryin to tell me is rubbish.

Everyone needs a hobby.:rotfl:

mr.broderick

pandamonia wrote: »

Some people are obviously buying but id rather people know the facts before making their own minds up, if you believe EA's and mortgage brokers then u can find yourself in a right mess.

i often call them up to see what they are saying then end up having to explain that what they are tryin to tell me is rubbish.

!!!!!! i hope this isn't you, i will not be happy sir

Really2

pandamonia wrote: »

Some people are obviously buying but id rather people knew the facts before making their own minds up, .

? Surely they are making their mind up to suit there own situation.

You can't change a persons personal circumstances on an internet forum.

Chill out there is not going to be a shortage of houses at the bottom (hopefully)
But dont get desperate

This line.
"Also if more FTB resisted buying this year then home prices will keep on falling until enough demand for them forces prices to stabilise"

Makes you sound worried?
No body is not going to not buy because of what you wrote neither would they buy if I did an article on why it would be a good time to buy.

SamIAm_3-2

pandamonia wrote: »

This is for FTB looking to buy at some point in the next 12-18 months.

Ill explain why you should not do what quite a few have been doing lately and why you should resist taking the plunge.

Lets say for example you have 10% deposit saved and ready to buy a 130k home.

The best mortgage on the market now is C&G 27 month fixed at 5.69% - The payments would be £731.82 plus about £1400 fees

Now if instead you held fire and continued to save for the next year or so and you managed to get 20% rather than 10% which would be 26k instead of 13k

You could get a HSBC tracker mortgage which is currently 3.69% - Your payments would reduce to £531.31 with about £1300 fees. - on the same £130k house!

Saving £5400 over the 27 months! - This saving will probably increase since interest rates are set to go near zero over the next year and stay quite low until signs of recovery are truly underway.

There is also the benefit from being immune to asset erosion as prices are currently falling about 1% per month saving you a possible £1300 per month on that house!

Also if more FTB resisted buying this year then home prices will keep on falling until enough demand for them forces prices to stabilise.

So all in all if you only have 10% which most people do then there is almost no benefit from moving out of rented or your parents until you have 20% deposit!

There are potential benefits to waiting which you point out.

What I would advise to FTBs is that if you find a house, you like it, and you can see yourself staying there for a few years then go for it! You may well find yourself in negative equity for a few months, or even a year but in the long term you won't be.

There's lots of good things owning your own place - there's just a great feeling you get knowing it's yours (i'm finding it difficult to describe). And you can do what you like to it to make it the place _you_ want it to be.

Think of it as a home for the next few years (you'll be spending money on rent in any case) and you'll be fine!

pandamonia

Really2 wrote: »

? Surely they are making their mind up to suit there own situation.

You can't change a persons personal circumstances on an internet forum.

Chill out there is not going to be a shortage of houses at the bottom (hopefully)
But dont get desperate

This line.
"Also if more FTB resisted buying this year then home prices will keep on falling until enough demand for them forces prices to stabilise"

Makes you sound worried?
No body is not going to not buy because of what you wrote neither would they buy if I did an article on why it would be a good time to buy.

[FONT=&quot]i disagree with what you are saying.

in actual fact ive changed my own mind about buying by reading things on the news, forums and talking to IFA's

its not until you sit down and look at the numbers do you realise what you are doing.

this is exactly what i have done for fellow FTB's in a similar position.

isn’t this moneysavingexpert.com? haven’t i just potentially saved people money? this 5k a year challenge everyone’s on is pennies compared to the cost savings to be had here?

doesn’t Martin Lewis always say your biggest cost is your mortgage - get it right?[/FONT]

ess0two

The patron saint of the FTB'r:rolleyes:

If people really need to ask whether to or not to buy on the net,it aint gonna be on here.