Shall I buy or pull out..

paye

I'm currently in the process of buying my first home with a 15% deposit, the survey on the property was carried out today and it's all running smoothly (touch wood) anyway after reading a story on a website on the housing market crashing how true is this, because I don't want to buy now and then in a few years time my house is worth less than i bought it for. Don't know what to do. I'm taking out a mortgage of 159K

DVardysShadow

There is no clear cut answer to the question.

You could try looking 3, 5 and 10 years into the future and looking at 20%, 10%, 5% and 0% rises and falls and calculating what you would spend on a mortgage and what you would spend on rent. in the longer term, if you can keep up the mortgage payments, you will always come to a time when it turns out to be better to have bought than rented. But if prices drop over the next few years, it may be better to rent for a while. If they rise however, you will kick yourself. No one is going to solve that dilemma for you.

useless

DVardysShadow wrote: »

There is no clear cut answer to the question.

You could try looking 3, 5 and 10 years into the future and looking at 20%, 10%, 5% and 0% rises and falls and calculating what you would spend on a mortgage and what you would spend on rent. in the longer term, if you can keep up the mortgage payments, you will always come to a time when it turns out to be better to have bought than rented. But if prices drop over the next few years, it may be better to rent for a while. If they rise however, you will kick yourself. No one is going to solve that dilemma for you.

Good response from DVardysShadow. No one can answer this for you, sorry.

PasturesNew

The question really is: why are you buying?

If you're buying a lovely house, where you want to be; if you're in a lovely job that you expect to be keeping, then why not buy?

If you're buying a pig of a horrid house, in a bad area, because you're scared of missing some theoretical boat, then you're buying for the wrong reason.

Buy a house you like, where you want/need to be - and ENJOY IT! Once you've bought it, you'll have a home and how much it's worth will be irrelevant.

useless

PasturesNew wrote: »

The question really is: why are you buying?

If you're buying a lovely house, where you want to be; if you're in a lovely job that you expect to be keeping, then why not buy?

If you're buying a pig of a horrid house, in a bad area, because you're scared of missing some theoretical boat, then you're buying for the wrong reason.

Buy a house you like, where you want/need to be - and ENJOY IT! Once you've bought it, you'll have a home and how much it's worth will be irrelevant.

Also good.

Fire_Fox

Property is a safe investment long term, but it has always been somewhat of a gamble in the short term. Nobody can tell you what the property market is going to do as the government's austerity budget kicks in; if you want to put your money somewhere 100% safe open a high street savings account.

vet8

I don't know which area you are in, but where I live rent is about the same price as mortgage repayments for a reasonable mortgage, so you are always better spending that money on a house you will hopefully end up owning, rather than paying it to some landlord and end up with nothing.

BUT as I said that is this area. Where you live rents might be very cheap, in which case you might want to rethink and wait before committing yourself to such a large mortgage.

poppysarah

is it somewhere you can expand your collection of *whatever* and instal new family members easily?
Can you cope if mortgage rates went up *heaven forbid they do*

Can you see yourself living there in 15 years and still being happy with it?

brit1234

paye wrote: »

after reading a story on a website on the housing market crashing how true is this, because I don't want to buy now and then in a few years time my house is worth less than i bought it for.

Yes today is the worse time to buy with the exception of Sep.2007

We are at the end of the bull trap, from now on its falling prices back to normal values. They can not lower interest rates anymore, there is no more money left for stimulas.

The crash is resuming, the economy can't handle these high prices and is thus correcting.

mufi

brit1234 wrote: »

Yes today is the worse time to buy with the exception of Sep.2007
We are at the end of the bull trap, from now on its falling prices back to normal values. The crash is resuming, the economy can't handle these high prices and is thus correcting.

You and I have absolutely no idea if this is correct or not - if you'd asked me a year ago if property prices were going to drop, I'd have said yes and, I imagine, so would you. We'd have been wrong, despite the fact that all the indications were that property prices were unsustainable.

Good luck to the OP with your decision - I can't advise you what to do, any more than I know what to advise my daughter who is in a similar position.

Eton_Rifle

brit1234 wrote: »

there is no more money left for stimulas

That's a type of flower isn't it?
How awful that we can't afford flowers any more.