Is it the right time to buy??

missk_ensington

I only work 16 hours a week and I'm off uni til October. My son is able to go to nursery 7.30-6pm 5 days a week if I want to send him those hours and he foes to his grans most Fridays opvernight as they live 60 miles away and dont get to see him any other time.

I enjoy the hassle, I enjoy haggling for the best prices and getting things at super prices and getting a bathroom fitted for £200 lol, it isn't hassle to me! I thoroughly enjoy trawling the internet and 20 carpet shops in a day to find a carpet I want at £4.99 a metre instead of £9! Renovating is a hobby as well as the money side of it. Yes the money is appealing, of course it is and yes I will live in the house I'm renovating.

Will get the jobs done consecutively, why can't I have someone fitting kitchen, someone laying carpet upstairs and another painting at the same time? PS. my part time work is PA to chief exec so I'm good at organising and getting things diaried one after another weithout wasting so much as ten minutes in between!

pioneer31

missk_ensington wrote:

And where on earth do you live for repayments to be £800 a month??? I calculate a borrowing of £110,000 repays at £433 a month at 4.75% on a 30yr term, if you only need 1 bed you can surely borrow less than that.

i) my calcs come out as £573 for a 30 yr mortgage at 4.75%. £433 is for IO which isn't wise.

ii) What on earth makes you think that IR's will be as low as 4.75% for the next 30 years?

missk_ensington

I used the Hlaifax repayment calculator so dont blame me if its wrong! lol

lynzpower

Miss K is on IO though, thats what she said further up the page.

pioneer31

lynzpower wrote:

Miss K is on IO though, thats what she said further up the page.

maybe, but the argument is very weak. Buying at today's ridiculous prices and assuming an interest rate of 4.75% for the next 30 years is crazy. I can borrow about 50k at 4.75% for the same as it costs me to rent. 50k will buy nothing round these parts. Also if IR's go up by 2 or 3% over the next few years, i'll be in deep water.

meanmachine_2

I think Miss K should be encouraged. At least she's taking a risk - although I suspect she doesn't quite realise how much.

So good luck Miss K.

But please, for the love of all that is holy, don't come back on here screaming for comp if it all goes horribly wrong.

That's all I ask.

F_T_Buyer

This whole thread is full of bubble logic. I've noticed those who have invested in property just want convincing they are doing/did the right thing.

It doesn't matter what is said, they will constantly repeat the arguments to themseleves over and over again...

missk_ensington's logic about renting vs home ownership is quite shocking!

sikejsudjek

So house prices can only go up and interest rates will never rise ?

Yeah right.... remember the 80's. And before anyone points out that interest rates need to be at 10%+ for a house price crash remember that this time around with the massive mortgages people have taken out at 6x income a small interest rate rise will trigger a massive crash and recession.

I bought at 35k after the last crash and sold for 105k, my wife did the same. Now we have no mortgage on a 185k home. Anyone buying now is buying at the peak and not likely to make money. Property is a bubble about to burst. If I was in the market for a home right now I'd rent.

Have a look at this site. Pay attention to the graph of house prices over the last 50 yrs and ask yourself where they are likely to go next ! Happy reading.

http://www.dailyreckoning.co.uk/website/contrarianinvesting.html

MORPH3US

F_T_Buyer wrote:

I've noticed those who have invested in property just want convincing they are doing/did the right thing.

Ditto those who have sold their house / can't afford one / just haven't got one want to keep preaching to everyone that there WILL be a crash and how no-one should buy a house.

We keep going back to the same old points:

1. A house is for living in, if you need somewhere to live, buy one!

2. No-one knows what is going to happen around the corner (except my clairvoyant auntie from Scunthorpe) so everything is just opinion / educated guessing / hoping!!

M

Arch-Angel

MORPH3US wrote:

Ditto those who have sold their house / can't afford one / just haven't got one want to keep preaching to everyone that there WILL be a crash and how no-one should buy a house.

We keep going back to the same old points:

1. A house is for living in, if you need somewhere to live, buy one!

2. No-one knows what is going to happen around the corner (except my clairvoyant auntie from Scunthorpe) so everything is just opinion / educated guessing / hoping!!

M

Thats the bottom line of this arguement isn't it? If you're buying to live - and stay in it for a while - then the fact that the value of your house shouldn't be an issue (unless you want/need to use the equity that's tied up in the house)

But, if you're buying to move up the property ladder then maybe caution should be the buzzword. Interest Rates will (well, probably) go up at some point and the price of houses will (again, probably) go down at some point. The key phrase here is "at some point" - might be next month, might be 3 years....IMHO of course!