To Buy or Wait?

milliebear00001

Thanks for all the advice. Affordability (for us rather than the mortgage companies!) is not a problem. We are very frugal and have no interest in buying a massive house. We have two children, and would be more than happy with a reasonably sized terrace. Security is what we don't have while renting, but with one child already in an oversubscribed school, I don't want to risk buying outside the (expensive) catchment area until my son has an offer of a place.

I am in a very 'safe' profession and the risk of redundancy is minimal. I am covered against illness and also have excellent work-related sickness benefits should I become ill. The price and mortgage commitment we are looking at is at a level that would allow us to keep a 'slush' fund, and save reasonable amounts each month.

It would be worse for us (as parents) to be priced out of the market (again). Negative equity is not a huge concern, simply because we have no plans to move again - nor would we be likely to be able to afford to move to anything significantly bigger, given my likely salary increases.

Am tempted to wait and see if anything comes up in son's catchment area, and if not, plan (pray!) to look to buy outside it as soon as we receive his offer of a school place).

HAMISH_MCTAVISH

milliebear00001 wrote: »

It would be worse for us (as parents) to be priced out of the market (again). Negative equity is not a huge concern, simply because we have no plans to move again.

Then you've answered your own question.

For you, the bigger risk, with the worse consequences, is that of being priced out.

If you can afford a place, and feel sufficiently secure, you should buy.

PasturesNew

amcluesent wrote: »

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

The price of houses isn't included in inflation ... so, it might be considered that as other stuff inflates, people will be worried and spending more on their day-to-day things .... leaving less for houses :P

Just a thought.

Therefore, during times of inflation (without wage inflation), house prices would logically have to fall as people are unsure and have less left over each month.

nembot

I'd be tempted wait about 6 months, see how the market goes. With the current trend (almost flat growth) you're hardly going to be priced out.

However, this is only my opinion and I would suggest you take it as such.

The bullish just want you to buy, so your sale can be used as ammunition on this forum. The bearish want to save you money, but sometimes even the best intentions go awry.

Speak to friends & family, never take any one person's advice or one forum for that matter.

Best of luck, exciting times ahead and I wish you the best!

Asheron

Wait for the Crash my friend

milliebear00001 wrote: »

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?

Gorgeous_George

I think November may be a better time to buy than today. The Spring generally brings buyers out in larger numbers. A good sized repo in November could be a bargain.

GG

Gorgeous_George

Eton_Rifle wrote: »

That's such a prejudiced viewpoint, it's actually embarrassing to read!

Millie, neither 'side' on here give a damn about you or your family.
They don't care if you end up on the streets of if you have to live in your mum's spare room for the rest of your lives.
They just want you to do whatever will serve their own selfish interests.

Generalising can be offensive.

GG

nembot

Contrary to your thoughts Eton, I take great pleasure in helping people out. In fact over the last couple of years I've saved family, friends and some of their friends many thousands of pounds without taking a single penny. Much like many others on this forum, who inspired me to do the same and fight for what was ours from the banks.

I'll always suggest "do not take my advice and do your own due diligence" to any new poster and my statement which you find so uncomfortable, is pretty much on the mark.

I'm guessing you're a landlord, so your response is understandable.

Davesnave

I suggest you listen to yesterday's 'You & Yours':

http://www.bbc.co.uk/programmes/b00s8jxm

In that, the 'experts' that discussed the matter of renting or buying just now were generally agreed that there was nothing on the horizon pointing to a large rise in prices overall.

Of course, where you are will make a difference, as prices are increasing in some places, and still falling or static in others, but it doesn't sound to me that you are going to be priced-out before you get that all-important school place.

HAMISH_MCTAVISH

Davesnave wrote: »

In that, the 'experts' that discussed the matter of renting or buying just now were generally agreed that there was nothing on the horizon pointing to a large rise in prices overall.

And the 'experts' at this time last year were all unanimous that there was nothing on the horizon pointing to any price rises at all......

But since then the average house price has risen by almost £20,000.

Now I'd actually agree, that there doesn't seem to be much chance of 'large' price rises in the next year. But I'd have said the same thing this time last year as well.

Ultimately we're all guessing, and everyone should evaluate the risks of prices rising or falling for themselves, and then quantify the impact of that risk on thieir own situation. Which the OP has clearly done.

Best leave it there, I think.