Why FTB should Resisit buying now and Save instead! explained

davilown

Sorry but a bit late in joining this one.

So what the original op is trying to say is for FTBs not to buy a house for 12 months and save more money?

Isn't this what they are doing anyway and has been mentioned so many times over the last six months?

Sorry but I feel you may be behind the times, and not in front!:rolleyes:

Yes I will be a FTB but not till I have paid off what I owe and saved my 25% deposit.

confused31_2

davilown wrote: »

Sorry but a bit late in joining this one.

So what the original op is trying to say is for FTBs not to buy a house for 12 months and save more money?

Isn't this what they are doing anyway and has been mentioned so many times over the last six months?

Sorry but I feel you may be behind the times, and not in front!:rolleyes:

Yes I will be a FTB but not till I have paid off what I owe and saved my 25% deposit.

Another person who wants house prices to keep on going down until they have got a big enough deposit.

I want a new car well one thats about 2 years old, now i think at the moment there are some great bargains to be had.

Heres the snag, i havent got the money to buy one at the moment, but if no one buys one for the next 12 months, they will lower the prices of cars even more and then i will have saved up to buy one and we can all get a bargain.:T

whathavewedone

Just wanted to point out that IFA's very rarely recommend people fix their mortgages for longer than 2-3 years. This is because they want repeat business.

Of course at the moment there are just loads of high interest savings accounts available at the moment.

Maisie11

Pandamonia is 24 years old and I guess has never owned a house! Doesnt have a family to worry about. What makes him so qualified to give advice to ALL FTB's regardless of circumstances?

I am not a FTB but I have moved up the house buying chain and we are now comfortably off with lots and lots of equity. I would not dream of TELLING FTB's what to do. Surely it is down to their own personal situation. Lots and lots of people do not want to rent. Landlord having a key, not being able to do anything to the house, having to ask persmission to have a dog....

I feel another serial renter in our midst wanting prices to come down to such an extent that he/she will be able to afford 4-5 bed house in the area of their choice.....

Kenny4315

Best deals today I have found with my FA are 4.99% fixed for 10 years with LTV of 60% on residential property, remortgage, free legal & Val, fee £995, C&G.

On BTL 5.24% 5 year fixed, 2.5% fee, 60% LTV, mortgage works.

Lining up full scale financial revamp, and 4 BTL purchases, with 60% LTV for later in year, once price come down a bit more.

Existing BTL flats on 1.65% above base, for term, may just hold these and drip feed overpayments into this one as it is 3 flats in a freehold, and is more non standard thus more difficult to finance even with a 50% plus equity stake.

Kenny4315

I view market growth/decline as follows year on Year :

End 2009 down 20%
End 2010 up 3%
End 2011 Up 6%
End 2012 Up 9%
End 2013 Up 10%
End 2014 Up 10%

mewbie_2

Kenny4315 wrote: »

I view market growth/decline as follows year on Year :

End 2009 down 20%
End 2010 up 3%
End 2011 Up 6%
End 2012 Up 9%
End 2013 Up 10%
End 2014 Up 10%

Whatever you're on can I have some too please?

End 2009 down 20% - good call
End 2010 up 3% - nah
End 2011 Up 6% - no way
End 2012 Up 9% - not a chance
End 2013 Up 10% - this is a joke right?
End 2014 Up 10% - maybe 2% if you / we are lucky.

pandamonia

mewbie wrote: »

Whatever you're on can I have some too please?

End 2009 down 20% - good call
End 2010 up 3% - nah
End 2011 Up 6% - no way
End 2012 Up 9% - not a chance
End 2013 Up 10% - this is a joke right?
End 2014 Up 10% - maybe 2% if you / we are lucky.

no way will there be a recovery of this sort. since 2nd hand mortgage market does not exsist any more lending will be tight.

IveSeenTheLight

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!

Reasonable post, just two things.

You assume that the FTBer can save up the extra £13,000 in a year or so.
I'm impressed if the average FTBer has this much spare disposable income.
If so they probably would be looking at a property worth more than £130k.

My other point, is remember to look at your specific area and not the UK as a whole.
Some parts of the UK will fare much better and other far worse.

IveSeenTheLight

pandamonia wrote: »

this is my only alias -

FTB like falling prices. where you lose then FTB win

What is your other username?
I don't understand why to have more than one name. I presume because you think your other alias is not taken seriously