Should I buy my dream home ?

QTPie

GDB2222 wrote: »

I saw that, but I couldn't see why you were saying it's a game of chicken. That implies taking unnecessary risks for fun, with no benefit.

Sorry, maybe the wrong term (didn't sleep very well at all last night )...

I meant that the property market is all a risky game - whatever you do:
- if you buy now, prices could fall quite a lot over the next year or so (you loose).
- whereas some people think the opposite - buy quick before prices rise! (which I personally don't agree with).
- if you fix your rate for a longer term now, you will be paying over the odds for a while.
- if you don't get a good fixed rate now, then you could pay for it later...
- if you wait for a better bargain and loose your "dream house", then you may be stuck with the dregs of the property market for a few years... (and struggle to find your "dream home" again).

There is no right and wrong: just doing what best suits you.

QT

GDB2222

Sorry if I misunderstood, and I hope you sleep better tonight. Sweet dreams!

Nenen

rickswords wrote: »

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.

Well - given that info, and provided you think your jobs are as safe as they can be given the current economic climate, in your shoes I would be tempted to go for it if this really is a dream home for both of you for a really long time. I happen to think (gazing into my crystal ball here as my guess is as good - or bad - as anyone's) that house prices will still fall at least another 10% and so this is a gamble, but I also think interest rates will rise. I suppose you have to decide which is the worst case scenario for you, is it (a) you buy your dream home and prices fall considerably - how hard will you be kicking yourself? or (b) you don't buy and when house prices have fallen a bit but you can't find anything you like half as much as the 'dream home' or interest rates have gone up -will you be kicking yourself harder?

However, as a PP said, is this a dream home for you as well as your wife? Many a marriage has floundered under economic strain, so unless this purchase is something you both really want (and are prepared to go without other things to afford) then this has endless ramifications. I don't mean to be rude and I don't expect you to answer this but you might like to consider whether your wife is the sort of person who is always wanting the next 'dream' purchase to make her happy - which lasts for about as long as it takes to 'open the box', in which case I wouldn't bother.... or is she someone who is really keen to put down roots and will continue to love the 'dream house' for many years to come (very important if you end up in negative equity).

Good luck in your decision