FTB ONLY: The MSE Guide to reasons why putting off that purchase is a good idea.

doire_2

neas wrote: »

hence why we bought :P 33% deposit.... and my savings not getting much return... and finding a lovely house that already feels my own. And sorry for long post just 'spouting' my feelings about it all. I do kinda feel a little bitter over being sucked into 'waiting for 3 years' and cant imagine waiting and renting another 3 years to get 10-15% off etc.

Sucked in? So you cant think for yourself then?

neas

doire wrote: »

Sucked in? So you cant think for yourself then?

No i believe its the bias effect again.. and if you can't understand then i suggest you 'can't think for yourself either'.

If you want something to happen, and someone says it will happen you start to believe it too.. so much you won't question it... bit like the extremes of HPI and HPC on here.

As a buyer you want a good discount ... so its not hard to believe when someone says 'house prices will fall 20-40%' eventually you start saying it yourself.

And they did fall. just not so much, whys it so hard to get? Nobody has a crystal ball..

Radiantsoul

1. Is true
2. Is debateable
3. Is sometimes true
4. Is true
5. Is an opinion
6. Is an opinion
7. Is true, but doesn't mean prices will continue to fall(or are due to rise).
8. Is an opinion
9. Is true

Niv

Good thread. It is a personal choice if you decide to rent or buy and I do not believe that buying ir right for all etc. I would however like to put my example into your point number 1:

In your example it is more expensive to have an interest only mortgage as opposed to renting the same property.

For my house it would cost ~£550-600pm to rent (looking at very similar places near to me e.g next door). My interest on my repayment mortgage is less than £2k per year.

I am not disputing that it can be cheaper to rent, all I want to do is add a little balacne from the other side.

Great post though.

Procrastinator333

neas wrote: »

I said a 'little' bitter... not alot or even enough to be botherred.

Just i kinda believed or wanted to believe so much that house prices would drop 30-40% in 2 years that we waited and waited, moved through 3 different rentals and yes in that time we got a good bargain and I wouldn't change it for the world but havingh my own place its a totally different world.

To get my dream house i had to:

1. Put up with risk of being kicked out and had to move and pay double rent 3 times (during moving periods)
2. Live in a 1 bed flat for 2 years and then a 2 bed for 3 more years.
3. Lived in a 'communal flat' where can hear neighbours, lived with tuimble dryer and washing machine coming on at midnight every other night... listened to newborn baby waking me up at night cause flat was of a shoddy design.

I did this and it saved me 10-15% , and allowed me to save more money to get the highest LTV i could get (at 4% 5 year fixed is brilliant) which saved me more money off mortgage, don't make no mistake it was a good decision and we love our house now.

Just the return for waiting another 3 years for another 10-15% off doesn't seem as appealing, i've done my 'time' waiting and am happy to 'own' even if prices do fall.

Spent all weekend painting and repairing house, and even tho im tired it felt great to do it etc.

Good post. And I agree there will cone a point where non monetary considerations take over. If I had needed to move 3 tines, that would certainly been a big dactor! Glad you got ur home. 1 day we will be there too!

Procrastinator333

Radiantsoul wrote: »

1. Is true
2. Is debateable
3. Is sometimes true
4. Is true
5. Is an opinion
6. Is an opinion
7. Is true, but doesn't mean prices will continue to fall(or are due to rise).
8. Is an opinion
9. Is true

Hence why the first paragraph was a caveat to that effect.

Procrastinator333

Niv wrote: »

Good thread. It is a personal choice if you decide to rent or buy and I do not believe that buying ir right for all etc. I would however like to put my example into your point number 1:

In your example it is more expensive to have an interest only mortgage as opposed to renting the same property.

For my house it would cost ~£550-600pm to rent (looking at very similar places near to me e.g next door). My interest on my repayment mortgage is less than £2k per year.

I am not disputing that it can be cheaper to rent, all I want to do is add a little balacne from the other side.

Great post though.

Guessing you have a high ltv or a tracker from back in the day? Very jealous!

housesitter

neas wrote: »

Just i kinda believed or wanted to believe so much that house prices would drop 30-40% in 2 years that we waited and waited, moved through 3 different rentals and yes in that time we got a good bargain and I wouldn't change it for the world but havingh my own place its a totally different world.

Just the return for waiting another 3 years for another 10-15% off doesn't seem as appealing, i've done my 'time' waiting and am happy to 'own' even if prices do fall.

Sounds so similar to me that it's almost scary.

Heyman_2

I'm trying to do a 'what if' scenario in my head as to what would have happened if we'd have held off on buying 4 years ago, and instead stayed put in our 1-bedroom rented flat.

I reckon we could have built up a deposit of around £50 - 60K over that time, taking everything into account. We wouldn't be benefitting from the lifetime 0.79% tracker that we're on now though - it'd be a fixed rate deal, probably around 4%ish over 3-5 years looking at the best buy tables. So we'd be paying more on the mortgage than we are now. Plus we'd have had 4 more years of gettiing under each others feet in the flat.

Not sure if it would have been better to wait in our case, to be honest.

Niv

Procrastinator333 wrote: »

Guessing you have a high ltv or a tracker from back in the day? Very jealous!

I dont have a tracker, its about a 5% interest rate but my mortgage is quite small (to modern standards). I bought early 2000's. House was on the market for £50k and would be on the market today at ~110k (at a educated guess). At the time I got a £60k mortgage from good old Northern Rock. I do appriciate that I am in a fortunate position (mortgage size wise) now but have my father to thank for urging me to buy when he did. Good for him really cos shortly after the prices went mental and would not of been able to afford to buy.