To Buy or Wait?

milliebear00001

OK, so I finally have a permanent contract at work, have money for a deposit in the bank and broker reckons we can get just about enough of a mortgage to buy something small, but reasonable at today's prices. Do I buy now, or wait it out a year? (Dilemma because would have to risk not being in catchment area for son's proposed school if we buy now).

I am concerned about waiting because by my own observations, prices have increased in my town (slightly) for approximately the last four/five months. If that trend continues, I may well be priced out again in a year!

Sooo - any advice?

smamst

Buy, you'll double your money by this time next year easy.

PasturesNew

Don't feel pressurised to buy. You're buying for the wrong reasons if it's just "so you don't miss the boat". Boats are like buses, there'll be another one!

diable

smamst wrote: »

Buy, you'll double your money by this time next year easy.

You still living in the 80's ;p

amcluesent

Inflation is rising, cash is trash, get a tangible asset.

lostinrates

I think you should see what you're affordability can get you, and think about whether you can make it work for a few years. I personally still feel the market to be unpredictable. I personally wouldn't buy something that I was likely to outgrow very quickly.

ninky_2

don't just judge affordablility on whether the broker can get you a mortgage. make your own affordability considerations.

what sort of safety net do you have if you lose your job - how long could you continue to cover your expenses for? do you feel happy with this?

how big is your deposit and does it offer you some protection against negative equity (for example, if prices drop 10 percent would you be stuck, unable to remortgage or move house?)


if you are happy with the answers to these sorts of questions then start looking and see what you can actually find to buy.

good luck.

Mr.Mulla

In my opinion, I would wait, it's only maybe less than a year of wait isn't it? You'll probably get a better deal next year, also think about your son.

Gorgeous_George

Wait.

If you wait long enough, you'll be able to buy a nice plot - about 6ft by 3ft - that'll be just perfect.

Live your life.

More seriously, I'd buy when I could afford a house that would suit me for 10 years or more. There is no point in buying a small house that you will outgrow within a year or two. the moving costs and risk of negative equity are too great.

GG

shane42

better to leave your money in the bank where it will loose value each month , i mean be safe.

Harry_Powell

Decide what's the greater risk. If house prices continue to rise for a year, or if house prices start to fall for a year. In the first scenario, you could be priced out of the market, in the latter scenario you will be annoyed because you paid more than you had to for your house.

Which is the worst case scenario for you? Priced out, or annoyed?