Right time to buy?

StractBoo

Hi all. Me and my boyfriend have been wanting to live together for a for years now and thought we were ready to go ahead with it however I am worried with budget cuts and redundancies on the way. Is it a bad time to buy? We are desperate to live together but people keep telling us to wait until next year!!! I don't know what to do.

For info. We are looking to buy a house and have a 20% deposit for the houses we are interested in.

Henry_P_Chester

To be honest I would say now is not a good time buy. According to several house price measures prices have been falling for up to three months now. This is before we see any impact of the biggest austerity measures since world war 2. I'm my opinion there is no chance of prices rising over the next couple of years. So waiting it out will carry little risks compared to the alternative. You could buy now and if prices fall you could be trapped in negative equity. Interest rates are only going to rise maybe this year maybe next. But you need to budget for interest rates of at least the long term average of 6%. Even more if you want to be safe.

If it were me (and it is, I'm in the same position with a bigger deposit) I would hold on for at least 6 months minimum. Keep savings and improve your deposit. But if you really are desperate to get out then rent for a year. This way you can make sure you and your partner are fully compatible.

All my own opinion of course. Do your own research and make your own mind.



I'm sure someone will post an opinion contrary to mine to balance it out a bit. No one knows the future you have to look at the evidence and make a decision for yourself.

Annisele

I'd also say it's not a good time to buy. I think that house prices are either going to fall, or stay flat for a few years. In either case waiting wouldn't hurt you.

And in any case I wouldn't buy a house with someone I'd never lived with. Renting is no more 'dead money' than interest on a mortgage is.

daisydays

Stractbo, If as you say you and your boyfriend have been together for years and have been wanting to buy for a long time, and you're commited to each other, then I don't see much reason to wait to buy. Prices may stay stagnant, they may even drop a bit, but they may just as easily rise. So if you're in it for the long haul and you've seen some homes you like you may as well start feathering your nest now.That's my opinion anyway. It's similar to couples who hold on before starting a famil, the right time never seems to come along, and by the time it does it's often too late............

Good luck.

getmore4less

StractBoo wrote: »

Hi all. Me and my boyfriend have been wanting to live together for a for years now and thought we were ready to go ahead with it however I am worried with budget cuts and redundancies on the way. Is it a bad time to buy? We are desperate to live together but people keep telling us to wait until next year!!! I don't know what to do.

For info. We are looking to buy a house and have a 20% deposit for the houses we are interested in.

You could rent,

Buying is only one option for being able to live together.

as to buing this is a longer term financial commitment so you need to assess your risks, mainly income and spending so itshow you fel abut your own jobs and future job prospects.

StractBoo

Thanks to all. I think you are all right. We have to weigh up what we feel is right and make a decision ourselves. It's nice to get some opinions though.

I think we will go ahead and buy as we are pretty desperate and I have worked out how much I'd have after the rumoured 5.5% pay cuts the tories may put in place so I think we should be ok. We are wanting this home for children one day so we are not looking to move for many years. By then house prices should have risen. If we did wait another year what's to say something else wouln't stand in our way. As they say "there's never a right time". Thanks again

nollag2006

StractBoo wrote: »

Thanks to all. I think you are all right. We have to weigh up what we feel is right and make a decision ourselves. It's nice to get some opinions though.

I think we will go ahead and buy as we are pretty desperate and I have worked out how much I'd have after the rumoured 5.5% pay cuts the tories may put in place so I think we should be ok. We are wanting this home for children one day so we are not looking to move for many years. By then house prices should have risen. If we did wait another year what's to say something else wouln't stand in our way. As they say "there's never a right time". Thanks again

Sage words indeed stract. Sounds like you have thought this through.

Many of those who claim that house prices are at risk know very little indeed.

House price inflation is running at almost 10% according to the Nationwide and not one single independent reliable source is reporting annual house price falls:



If you are buying for the long term, then now is a perfect time to buy

jockosjungle

I'd say its a good time to buy for you, you are wanting to get somewhere to live so why is it a bad time? I'm not quite sure what time people would have said was a good time to buy in the last twenty years, although with the benefit of hindsight it is easy to see when you should have bought! Maybe in two years this period will be seen as the time to buy, you could wait for ever to come up with an ideal situation.

R

dimbo61

Try and save as much as possible towards the deposit 20% good 25% better !
Think long term if this is the home for yourself and OH and kid/s so consider a 3/5 years fix for security.
If you plan on getting married and having kids then consider long term as you dont want mortgage deal to end just as you start maternity leave.
drive a hard bargain as housing market slow and good luck

StractBoo

Thanks again everyone. It's good to hear other people's views :-)

steve237

It's a difficult one. As as FTB it may be worth waiting 6 months or so to see if prices do drop in the short term. Having said that, you may well want to take advantage of the low long term fixed rate deals currently available.

If house prices do drop, I don't personally think we'll see massive drops, and only for the short term.

Taking all that into account, I'd say if you find the perfect place and plan to lock into a fixed rate deal for 5 years +, now isn't a bad time to buy, despite what the doom mongers say.