A question for the regulars planning to buy houses

Cleaver

A question as I'm a bit bored with the threads on here this evening 'cos I was off work today and have read 'em all. A question, not for point scoring, but just because I'm nosey, inquisitive and a bit bored.

For the regulars on the board who are saving a deposit and waiting for their time to pounce (Graham? Ad? Mgpfgna9? Brit? Mr Matey? Dunno if they are correct, apologies if not) do you have a trigger point as to when to buy? I.e., a certain price in your head? Or a percentage drop? Or when you perceive house prices have bottomed?

I remember that when we bought our first house we didn't really think about any of the above, which was possibly a bit naive. We looked at what a house would cost around our area that we could afford on a monthly basis, worked out what deposit was needed and then saved it. As soon as it was big enough we bought.

This was a period from 2002 to 2004, when houses just seemed to go upwards. It never occured to me, for one second, that that house would ever go down in value as that had never really happened in my adolescent or adult life. Then we sold it this year for a 10% loss. Don't regret it at all, but maybe should have done a bit more research and thought. We were no where near as good with money then.

This isn't a point scoring thread, like Hamish's "what's your plan B girzzlies? I have a house, nyah...". But his thread had some interesting points, around what point would you buy? Can you already afford one but are gambling on another drop? As above, is it a percentage drop? A type of house for a certain price? A certain figure that your deposit reaches?

Just interested really as Hollyoaks is on the TV and I'm being made to watch it. Even I'm getting to that age where looking at fit 18 year old girls in lingerie starts to feel pervy. Well, a bit pervy.

PasturesNew

Personally, if I was living in an area I had a job in and wanted to live in, I'd be looking at buying now... looking at least.

If the time and a house are right, then people should buy. What they shouldn't be doing is rushing in and borrowing far too much, just because they think they're going to miss out on something.

Graham_Devon

As I'm in there.

This is very simple for me.

When I can reasaonably afford it. It's that simple.

HPI is once again outstripping my ability to save the deposit at the same rate. I say "reasonably" as I have said many times before, I don't want to be a slave to a mortgage and not be able to do anything else I like to do, or lose the place as soon as something happens in life.

I'm not gonna jump in to something I can just about afford, as would be the case at the moment.

Cleaver

PasturesNew wrote: »

If the time and a house are right, then people should buy. What they shouldn't be doing is rushing in and borrowing far too much, just because they think they're going to miss out on something.

Which I think is partly what we did in 2004. I suppose compared to some people our age, who were borrowing 5x salary we didn't borrow that much (we borrowed 3x our joint income and our borrowing was down to 2x income by the time we left), but we bought an expensive house for the road because we got excited and loved it and should have been more thoughtful and, well, cold and calculated I guess.

geoffky

180k for a four bed det.. they where 275 to 290k now down to 220k and have been for months but i will wait if the market really starts to go in freefall over the winter..

Cleaver

Graham_Devon wrote: »

As I'm in there.

This is very simple for me.

When I can reasaonably afford it. It's that simple.

HPI is once again outstripping my ability to save the deposit at the same rate. I say "reasonably" as I have said many times before, I don't want to be a slave to a mortgage and not be able to do anything else I like to do, or lose the place as soon as something happens in life.

I'm not gonna jump in to something I can just about afford, as would be the case at the moment.

Do you think you're quite a risk averse person Graham? For example, do you save cash or do you invest your deposit to see it increase in value?

I ask because I didn't even know you could invest when we were saving a deposit. Those who post on here, such as yourself, have such a vast knowledge of mortgages, products, the market detail.. etc. We didn't know anything. Which was our own fault as such. Just interested as to whether it helps or hinders to know in such detail, whether it makes you more cautious and whether that's a bad thing.

Can you tell I'm bored tonight.

What do you do for a living Graham, anything exciting?

Dan:_4

Graham_Devon wrote: »

As I'm in there.

This is very simple for me.

When I can reasaonably afford it. It's that simple.

HPI is once again outstripping my ability to save the deposit at the same rate. I say "reasonably" as I have said many times before, I don't want to be a slave to a mortgage and not be able to do anything else I like to do, or lose the place as soon as something happens in life.

I'm not gonna jump in to something I can just about afford, as would be the case at the moment.

But you have already bought a flat. You will need to sell this first, which will be difficult if your in NE.

lynzpower

PasturesNew wrote: »

Personally, if I was living in an area I had a job in and wanted to live in, I'd be looking at buying now... looking at least.

If the time and a house are right, then people should buy. What they shouldn't be doing is rushing in and borrowing far too much, just because they think they're going to miss out on something.

totally agree. However values in the area we are looking in are still too high. There are things we can afford that are OK, but really the better stuff is too expensive PLUS there is simply not a lot on the market really anyhow.

the same flats ( i guess short leases?) have been hanging in this postcode for 6 months or more.

Cleaver

Dan: wrote: »

But you have already bought a flat. You will need to sell this first, which will be difficult if your in NE.

You sound like his Dad.

mewbie_2

My girlfriend and I were hoping to buy, but she was laid off when Woollies closed. I'm on short time now, plus everything seems to be going up in price. We had managed to save nearly 3,000 pounds over the last four years, but unfortunately we're going to need a newer car soon and we don't have an old enough one to qualify for scrappage.

We haven't given up hope though. It's still our dream to one day buy a one bed flat in an ex LA tower block for 100 thousand. Although reading people on here makes you wonder if we should even bother thinking about it. Apparently they are just going up and up and up.

Cleaver

mewbie wrote: »

My girlfriend and I were hoping to buy, but she was laid off when Woollies closed. I'm on short time now, plus everything seems to be going up in price. We had managed to save nearly 3,000 pounds over the last four years, but unfortunately we're going to need a newer car soon and we don't have an old enough one to qualify for scrappage.

We haven't given up hope though. It's still our dream to one day buy a one bed flat in an ex LA tower block for 100 thousand. Although reading people on here makes you wonder if we should even bother thinking about it. Apparently they are just going up and up and up.

Have you considered shared ownership?