Is it the right time to buy??

missk_ensington

ali007- the things you mention are just more and more reasons why I'm in the 'buying' camp and not the 'renting' camp.

Tassotti

Interest rates rising...House Price Crash...Balderdash.. Bank of England just announced rates staying at 4.5%

If you don't get on the ladder now, you never will.

In 2001, people told me to wait a year as prices were going to go down. Ignored them and bought. Then what happened, prices increased about 60% over 4 years.

Doom Mongers will always predict a house priced crash, but so what. Even if it does, does it really matter. As long as you buy a house you love, can afford the repayments, what does negative equity really mean? nothing

missk_ensington

Tassotti- Couldn't have said it better myself!

meanmachine_2

Tassotti wrote:

If you don't get on the ladder now, you never will.

I think every time a moneysaver comes out with this line, they should have to take off an item of clothing. Especially as it's so warm out there (I hate summer!).

Also, if that comment isn't the ultimate example of "doom mongering", I really don't know what is.

Everyone's circumstances are different. That's why everyone makes different choices in life.

House prices would have to double in the next 4 years for me to be worse off than if I did buy now. So *personally* I'm happy to wait it out. But for others, the arguments are more finely balanced.

Tassotti

Looks like I'm going to naked for the summer then :rotfl:

House prices will not double in the next four years, but they will in 13.

MM, you are always going to rent, which is good for me as the more people renting, the better for me.

Rents are rising by the way, and approaching mortgage repayment levels. :beer:

Arch-Angel

Time out!! This isn't about price crashes and buy v rent arguements - well not all the arguments deal with that!

My point is this: if you make, or expect to make £15k-£20k+ in the buy-renovate-sell model then great!! However, Miss K is not! Her own figures suggest a profit of just £5K per year. Now, I accept that you (Miss K) are living there as well as renovating it, so you do save in that respect. However, since you're working part-time (think I read that in an earlier post) then the work is either being sub-contracted (which costs more and eats into your profit margin) or you're doing it yourself outside of work hours which takes longer.

There is profit to be made - there are substantial savings to be made as well (by buying cheap and renovating to live in). I also note that you expect to sell for at least £110K; I'm only concerned that you'll have to sell for £115K+ just to make the effort worthwhile...

missk_ensington

Arch Angel where do you get 5k? Buy for 92k spend 6k sell 110 that leaves 12,000, take off £2,000 or fee's etc, that leaves £10,000 (and its 90% certain the house will sell for nearer £120,000 anyway, but 110k is a 'safe' estimate as not to be disappointed) I work part time yeah, what difference does that make? I can't fit a bathroom or kitchen anyway even if I was at home all the time!

Costs include labour and materials, but can increase budget to max £8,000 if needed. I have put £2,000 contingency in case additional plastering is needed/electrics etc.

Even if it all fails and I made a !!!! up, I'll just live in the house an extra couple of years. It's no great hardship, I need a house anyway and at aged 20 I'm more than content at even having my own property, the making money is a bonus!