Am i losing money by not buying?

jules9

I am currently renting a flat and have been doing so for past 7 months, having divorced last year. I am paying £700 per month for the flat.
I am in the fortunate position of having around £240k in various low paying savings accounts with the idea to buy when the market offers the best value.
I need some advice on this. Am i better off now looking to buy and cease the £700 rent very month or am i better off carrying on renting.
I live in Brighton where property is still reasonably expensive, its come down someway and seems to have reached a level now which isnt changing.
My gut feeling is to look to buy as interest rates are so low and the property market seems to have reached its bottom.
Any thoughts,advice welcomed.

geoffky

YOU ARE GAINING BY NOT BUYING...

prices have dropped 16.5% according to the land registry.

Thats:

£25,387 per year
£2,116 per month
£488 per week
£70 per day
£3 per hour

THE ESTIMATE IS THAT WE ARE GOING TO SEEANOTHER 20% OFF PRICES THIS YEAR.....THIS IS NOWHERE NEAR BOTTOM......

geoffky

House prices 'could fall by further 55 per cent'

House prices may fall by a further 55 percent and there is a "very real probability" that Britain will be bankrupted, a leading investment bank has warned in a private note to clients.






http://www.telegraph.co.uk/finance/economics/houseprices/4974499/House-prices-could-fall-by-further-55-per-cent.html

Geenie

I am no expert, so will probably get shot down for saying this, but in your position I would seriously look at buying now. You haven't said if you would need a mortgage, but with that much deposit behind you, I am sure you could get a great deal and fix at a low rate.

There is talk that rates will start to go up soon in the press, so the cost of this must be considered against any fall in house prices. And if this is going to be a long term home, then you can probably ride out any loss of equity, if any, for a few years.

It is certainly worth looking at, and not dismissing out of hand.

besonders1

I would be careful as a lot of people including the media will try and convince you that we are already at the bottom and that the prices today are a bargain with low interest rates, but in actual fact prices have a long way to fall. My advice is too look at the house prices on ourproperty / houseprices.net and compare them against the selling prices in the late 1990s early 2000s.

Geenie

The investors and BTLers are waiting as well.

melorablack

Where I live you can buy a decent sized house for 240k!!! :eek:

Auric

The simple answer to your question, Jules, is that there's no simple answer.
There are a number of individual variables unique to you to take into account;

These include the type of property you ultimately desire, your eligibility for a mortgage should you require one, your lifestyle, age, health, income, employment prospects and future plan(s) both personally and professionally.

What may or may not happen in the property market (and the direct and indirect ramifications of those possible changes) are outside your control
but your personal circumstances are your main focus, I would suggest.

A decent financial adviser is your best starting point...

besonders1

Geenie wrote: »

The investors and BTLers are waiting as well.

Maybe so but then again there won't be enough of these around to buy everyones house in the estate agents window! Plus BTLer want them for pennies, not to compete with FTBs and end up paying fantastic overvalued prices.

Pssst

Maybe you could flat share to ease your outgoings and widen your comfort zone?

jules9

Thanks for the really helpful tips so far :j
You are correct i wont need a mortgage as i intend to buy around the £175k
mark.
Just getting fed up renting and handing over £700 for the priviledge. However if prices really are going to keep nose diving then maybe im better holding on a few more months.