Should I buy my dream home ?

rickswords

Could anyone help persuade me to buy my dream home - My wife really wants it !!!
Its gonna cost me £1000 more or less per month on the mortgage (including insurances)
Our net income is currently £3110pcm
we currently have a small mortgage of £69000 owing which is very comfortable, should I considering interest rates are very low consider this jump. Ive got a good price on the house, I also used the budget planner on this website and im in the green incluiding a bit of savings.
Can anyone counter mt natural caution - Im scared.

Many Thanks

twirlypinky

If you're looking for someone to make this decision for you, then you've come to the wrong place.

Toss a coin and if you're pleased with the choice then it's the right one, if you're not then take the other.

What's the worst that could happen?

cattie

If you're asking people on a public forum, then you must have doubts about the advisability of it.

Interest rates aren't always going to remain low & I'm old enough to remember interest rates of 15% & more back in the 80/90's. Lot's of people repossessed & others in negative equity.

No job is 100% safe in these rocky times & unless you've got enough money in the bank to see you through mininum of 6 months, but preferably a year or more without a job, then think very, very carefully about your decision is what I'd advise.

Nosht

rickswords wrote: »

Could anyone help persuade me to buy my dream home - My wife really wants it !!!
Its gonna cost me £1000 more or less per month on the mortgage (including insurances)
Our net income is currently £3110pcm
we currently have a small mortgage of £69000 owing which is very comfortable, should I considering interest rates are very low consider this jump. Ive got a good price on the house, I also used the budget planner on this website and im in the green incluiding a bit of savings.
Can anyone counter mt natural caution - Im scared.

Many Thanks

Go for it, the opportunity may never come again.
Well worth it if only for peace & quiet.
OK prices may come down but, & its a BIG BUT, if you miss this house your life will be unbearable.


Regards,

N.

FoxtonsRIP

rickswords wrote: »

should I considering interest rates are very low consider this jump.

You can't use this as a reason to move as you must realise interest rates will only stay this low for a short time.

Nenen

In order to give any kind of reasoned opinion we need to know a bit more.... e.g:
how old are you (the decade will do), and how old will you be when you pay the mortgage off, have you got (or are you likely to have) children, what is wrong with the house you are currently in, what will the 'dream house' give you that your current one doesn't, how long do you anticipate living there for, how secure are your jobs, how much bigger will your mortgage be?

The final problem will be selling your current house, or have you already done that?

rickswords

Nenen wrote: »

In order to give any kind of reasoned opinion we need to know a bit more.... e.g:
how old are you (the decade will do), and how old will you be when you pay the mortgage off, have you got (or are you likely to have) children, what is wrong with the house you are currently in, what will the 'dream house' give you that your current one doesn't, how long do you anticipate living there for, how secure are your jobs, how much bigger will your mortgage be?

The final problem will be selling your current house, or have you already done that?

Its a part exchange so House not applicable - Me and wife are 33 - mortgage is for 25 yrs - We have 2 young children and need more space. Mortage is going from £69k to £177k - lending approx 73% of total hse value.

ben37564

As others have said, interest rates will not be this low forever! You must ensure your income is not overstretched when interest rates start increasing again. If it is still affordable then I'd say go for it. What's the point of earning all that money if you're not going to enjoy it.

Pee

I think you need to make sure that you could cover the mortgage, even if it was a huge struggle and might mean unpleasant choices, but at least that it was possible if interest rates were 15% and I would budget so that you treat it as though the interest rate is 6% and either overpay on the mortgage or add this to savings, so that when rates do go up you don't notice it so much and have some extra savings.

I think if it is your dream house and you can afford it, then you should go for it. If it is your OH's dream house and not your dream at all, then you have to decide how much keeping her happy is worth!!

QTPie

VERY personal decision...

I am 35 (husband 36) and we are looking for our dream home too (i.e. one we can really stay in - and that will grow with us - for the next 25+ years). The way prices are at the moment (I fully expect them to fall further - though don't know how much), we are not rushing: will only buy the right home at the right price...

(have just seen a lovely home some onto the market - which would suit us perfectly - but it is priced 6/7% over what an identical house, 3 doors down, sold for in Aug 2007! :eek: )

Our next house (at least what I have budgeted for it) will be a leap in monthly mortgage payments too. We will probably be looking at longer term fixed rates (ideally 10 years). I know that shorter term that might look mad, BUT longer term it is good for us to have fixed out-goings.

As a wife too, I must admit that I feel a lot of self-inflicted pressure to make a lovely home for my family (probably some deep social conditioning in my past!): so I can see where your wife is coming from

But you have to make the right decision (between you) for your family: no-one has a clue what the property market and economy are going to do and you have to be the best judge of your family's financial stability and needs for the future.

Whatever you decide, good luck.

QT

stolt

I would say if it all looks good on paper go for it, me and my wife have just gone for it and should be moving into our dream house at the end of next month. we have 3 kids under 7 and the house needs doing up aswell but i'm sure it will be a different lifestyle to what we currently have in our rental house. But i'm looking forward to it. Personally it came at the right time for us, we have been renting nearly two years, got 50k off the house we are buying and which we looked at in 2007 when we sold. Plus I got a good 5 year fixed mortgage deal Which was pull by alliance and leices pretty quickly. Maybe try to fix for 10 years if you think its your final house.

Personally go for it, good luck.