Advice on right time to move

deefadog

Hi all, i am after a little advice, I know know no one can predict the future but after some guidence.

Ok, bought our first house just over 5 years ago, so we bought at the right time, before the massive price hikes! Our house has trebbled in price at this present time, (will maybe have dropped abit in recent months).

We are thinking on buying bigger this summer, due to the new arrival But are we in a good position, should we wait and see how the housing market go's or does this not apply to us as we are already in the mix as it were?

Cheers

johannamse

As long as you can afford the mortgage payments (taking into account possible IR rises), it does not really matter. Don't put your life on hold waiting to see what house prices do, just get on with it and enjoy the new arrival!

deefadog

Thanks, As we are in no rush within the next 18 months I was just wanting to make sure what the best option was

I guess the difference between our house sale price and the second hand purchase property will move hand in hand so no real benefit there in waiting I guess, but waht about the new house prices? will we be better off or in the same boat? As we quite like the new 4-5 bedroom Bellway homes, are these a decent quality company?

Thanks again

dougk_2

New house prices tend to move with the market. So if "second hand" properties go up so do new builds etc.
Its the land value that changes largely, not the building itself or its costs for building (although inflation/labour costs does have an impact obviously).

If you already own a house then really you will be in the same situation as now although if prices go up (like it appears they are again - see halifax releases) then the amount you will be lent against your salary may become more difficult.

Personally I don't like new houses and have never looked at one so can't answer your last question!

deefadog

Thanks Doug, that's good to know

So basically new or old I will be in the same position! apart from the loan but maximum it will be a total of 80K with 32K joint income, so that will not be a problem!

dougk_2

Yes in my view the same position unless you are moving to a different area/location where prices are substantially different, as obviously locality has a big effect on prices too.