Buy Now Vs Saving a bigger deposit

Orpheo

thriftychap wrote: »

2) If you see yourself staying then buy now IMO - i dont see house prices dropping much in Hampshire if at all. Offset any smeall drop (say 5% of a 150k house = 7.5k ) against 2 years of wasted rent @ 700pm = £16800.

The same 7.5K borrowed over a 25 year mortgage at 4.5% comes to £12642 paid in total. That closed the gap a little.

Orpheo

Loanranger wrote: »

Key word in bold.

Absence of any coherent argument in bold. To be expected when facts escape you. Keep it up, snowflake.

DVardysShadow

thriftychap wrote: »

2) If you see yourself staying then buy now IMO - i dont see house prices dropping much in Hampshire if at all. Offset any smeall drop (say 5% of a 150k house = 7.5k ) against 2 years of wasted rent @ 700pm = £16800.

But don't forget the mortgage and lost interest on £150000 over 2 years [say 4%] would be £12000. So you are down by £19500 on ownership but by £16800 on renting.

Don't forget a mortgage is renting money - and if house values do not go up, then it is also wasted rent or 'dead money'

Loanranger

Orpheo wrote: »

Speculation, probably wildly inaccurate.



Speculation.



Interest rates will rise, probably bringing with them lower house prices.



Blather. If only mortgage interest rates were determined so casually.



Sounds simple, doesn't it? Any number of things could happen over the term of a 25 year mortgage to make this statement untrue. Furthermore, for every year you save an amount greater than HPI, you could, potentially, reduce the term of your mortgage by 1 year or more.



Loanranger has absolutely no idea what (s)he is talking about. For the term of my tenancy agreement, I effectively own the property and have almost all of the rights of the actual owner. If I want to change the decor or style, I can, the only caveat is that the property must, if the landlord requires, be restored to the original condition before the tenancy is up. Also, when renting a property, you might rent from a decent landlord, like I did.



This is such drivel that it is not even worth the effort.

Username: Loanranger. (Uh-huh)

You are wrong on so many of your points but yes I do know what I'm talking about. I have bought and sold many times and have no axe to grind.

You have hijacked a newbie's thread who was asking for advice with unnecessary sarcasm and use of offensive language.
You show yourself up with an arrogance that disallows anyone else's perspective. Suggest you calm down and get off your high horse and allow others to make their views without your childish language and sarcasm.

Orpheo

Loanranger wrote: »

You are wrong on so many of your points but yes I do know what I'm talking about. I have bought and sold many times and have no axe to grind.

You have hijacked a newbie's thread who was asking for advice with unnecessary sarcasm and use of offensive language.
You show yourself up with an arrogance that disallows anyone else's perspective. Suggest you calm down and get off your high horse and allow others to make their views without your childish language and sarcasm.

I have no problems with the OP, snowflake. You, however, are embarrassing yourself.

joerugby

There is no longer a "property ladder". It may return in the future but on the other hand it may not, the jury is out.

The lack of price inflation and the increased costs of buying and selling have made frequent moves prohibitive.

When you are ready to settle down for the long term you should think about buying, meanwhile rent and save (or invest!).

gingertips

Loan amortization and Loan analysis templates - do a google search for this - its the first link (sadly Im not allowed to post the exact link due to rules on here for new users)
this is really useful if you have excel (if not go and download the free openoffice software!) & will let you model buying now or saving & buying later with a bigger deposit (and Im assuming a lower interest rate?)

Right now all the news is about property prices staying flat for 2011 assuming rates stay at 0.5%...but if they increase I would expect property prices to fall as people who are living beyond their means or buy to letters realise that property isnt the investment for them...at which point you would be in a really strong position with a bigger deposit & possibly buying property at significant discount to what they go for currently...

Also, I dont believe mortgages are that cheap currently - try and get yourself a fixed rate deal after the last mad rush for refinancing a month ago & knowing that its not going to be long until the variable rates start to creep up - the Bank can only put off increasing interest rates for a couple more months yet.

Loanranger

Orpheo wrote: »

I have no problems with the OP, snowflake. You, however, are embarrassing yourself.

No embarrassment on my side.
You, on the other hand, have hijacked this thread and made an unnecessary attack about my opinion which happens to differ from yours.

paint

Orpheo & Loanranger, if you need to have a willie-waving contest, can you take it to PM please, and not hijack the OP's thread? Thanks.