10 years of hard saving for a house, what should I do now?

Pierre0001

I've been saving hard for a house from my early 20s and have about £30,000 sat in a bank. Interest rates have dropped, I'm getting about 2% on about 20,000 pounds, the rest is in ISAS.
Reading the forums many people say to hold on buying a property. I'm worried with the way that the pound is going and the government is talking about printing money, I do not fully understand the implications but from what I can work out if they do this my savings are likely to drop drastically in value. Should I be investing my money in gold? I keep reading the pound will collapse, so I was also wondering would it be worth changing my savings to Euro's and saving with a European bank?

It’s taken so long to save this money and get to the stage of having a decent deposit for a house I don't want to lose it. I'd appreciate any help, thanks.

cloud_dog

Exchange rates and £ weakness should not affect your position.

You have your savings in £ you want to buy a house (in the UK presumably) in £ so exchange factors should not affect you / your decision, unless you want to buy a house abroad?

You are currently in a very good position with a sizeable deposit. Depending on the cost of a property and what percentage of the total your £30k equates to you may also be a good bet for a good mortgage rate / offer.

Assuming the above, i.e. a mortgage would be forthcomming, you are probably in the best position, i.e. house prices have dropped and you are a cash buyer.

Wish I was in your shoes

cloud_dog

mr_fishbulb

You need to have your cash available to make a purchase as soon as you decide is a good time. Anything else than an instant access savings account will mean you will not be able to get at your money at short notice.

Investments (even in bonds) shouldn't be considered as these are long term visions. The capital value can be volitile and you could make a loss if you need to withdraw your money in the short term.

Primrose

I think you'll be kicking yourself if you tie up your savings in something like gold or other non instantly convertible mechanism if an affordable property of your dreams suddenly crops up. All you can sensibly do is look around for the best instant savings rate you can find. With the housing market in its current state you need to be ready at any time. Put another £3600 of your savings into another ISA on April 5th as you're obviously a taxpayer, but if I were in your shoes, I'd stay liquid.

Calchas

Circumstances are entirely in your favour.

House prices are heading towards you far quicker that your savings would have been moving towards them at any time within the last fifteen or so years, no matter what the interest rates.

The value of the pound only applies should you wish to buy property abroad.

There will be a bottom in house prices, but it won't be any time soon, in my humble opinion.

Cat695

you need to remember house prices are coming down by about 2000 pound a month.....so thats 2000 pound you're saving a month on top of whatever your putting in

thats the positive way of thinking about it!

and anyone that thinks house prices are going to rise why'll we're in a recession and with lots of job losses happening is very much mistaken

Doomcow

you need a roof over your head, bite the bullet and buy a house.

without somewhere to live, what use is cash in the bank?

personally im still seeings houses buy and sell fine here, doesnt appear to be much dip, just a lack of people buying "new" homes.

tonygee_3

I wouldnt 'invest' in property at the moment because I cant see worthwhile rises for 10 years
However I would consider buying a 'home' if in your position
Make sure you find a good deal/bargain to buffer you from any further falls
Although I suspect the market may be bottoming there may be a spring rise

melbury

Calchas wrote: »

Circumstances are entirely in your favour.

House prices are heading towards you far quicker that your savings would have been moving towards them at any time within the last fifteen or so years, no matter what the interest rates.

The value of the pound only applies should you wish to buy property abroad.

There will be a bottom in house prices, but it won't be any time soon, in my humble opinion.

They said on the news last week that house prices had gone up by 1.9% in January, so have they bottomed out yet?

pixiepie99

melbury wrote: »

They said on the news last week that house prices had gone up by 1.9% in January, so have they bottomed out yet?

Most people are putting this down to a blip. Until we've seen consistent rises for 3 months or so, don't think the market is in recovery. I bet next month we'll found they've dropped.

G_M

Interest rates are nice and low for your impending mortgage. House prices have come down making your dream home more affordable. Be grateful, and get yourself into a home some time in the next few months. Property prices may come down a bit lower, may stay flat, or may rise a bit, but on a long-term deal like a house purchase it really doesn't matter which as it's impossible to 2nd guess the precise 'bottom' of the market.
Keep your cash accessible for your purchase but find a better rate than 2%.