12 reasons to not buy a house

ukcarper

AndyGuil wrote: »

ukcarper wrote: »

I don't think renting is good long term. It is a good short term position, especially when the Eurozone storm is just about to get started. It will make the last credit crunch look like bonus day.

　
I am not against renting in the short term and weather you benefit from any falls depends on your personally circumstances as I said before it’s a gamble but as it’s your money its up to you.

AndyGuil

ukcarper wrote: »

AndyGuil wrote: »

　
I am not against renting in the short term and weather you benefit from any falls depends on your personally circumstances as I said before it’s a gamble but as it’s your money its up to you.

I'm ready and waiting. In the mean time just keep adding to the deposit. It is a gamble either way at the moment. The risk of the mortgage is dangerous if the Eurozone issues escalate.

ukcarper

AndyGuil wrote: »

ukcarper wrote: »

I'm ready and waiting. In the mean time just keep adding to the deposit. It is a gamble either way at the moment. The risk of the mortgage is dangerous if the Eurozone issues escalate.

True if only we knew the future after all a Euro zone crash will affect more than mortgages

robmatic

AndyGuil wrote: »

The market is still not stable and the risk of a severe bust is higher than ever. The Eurozone is on the brink now and if that goes under debt is going get very expensive.

A fixed rate mortgage will mitigate that risk (and delaying purchase exposes you to it more).

Indeed, if things are about to go belly up I'm quite comfortable having less cash and owning the asset that I live in.

AndyGuil

robmatic wrote: »

A fixed rate mortgage will mitigate that risk (and delaying purchase exposes you to it more).

Indeed, if things are about to go belly up I'm quite comfortable having less cash and owning the asset that I live in.

If you can pay it off before renewing it then you're safe. Eurozone breakdown will mean high rates for a long time.

AndyGuil

MrReweird wrote: »

Euro zone breakdown is simply the latest straw (from a long list of 10 years worht of straws) being clutched at by the crashaholics to try to scare genuine buyers from the market in a pathetic attempt to justify their own position. Rates have never been lower. Fact. Rates will come no lower. Fact. Waiting simply exposes you to rate rises and the increasing expense of getting a mortgage. Fact.

That is incredibly naive. This is the greatest threat to the housing market there is. The cost of countries and banks to borrow will become very high and this will causes a large increase in mortgage interest rates. It will also cause a credit crunch like nothing seen before.

Mr._Pricklepants

AndyGuil wrote: »

That is incredibly naive. This is the greatest threat to the housing market there is. The cost of countries and banks to borrow will become very high and this will causes a large increase in mortgage interest rates. It will also cause a credit crunch like nothing seen before.

Andy, if Europe collapsing is such a threat, don't you think it would be a good move to grab one of the lowest ever long term fixes available at the moment?

http://money.aol.co.uk/2012/02/05/how-low-can-mortgage-rates-go/

However, uncertainty in the Eurozone is preying on lenders' minds, with several raising rates in recent days. If you like the look of one of the current deals you should therefore move now to secure a rate rather than waiting in the hope that they will become cheaper still.

AndyGuil

Mr._Pricklepants wrote: »

Andy, if Europe collapsing is such a threat, don't you think it would be a good move to grab one of the lowest ever long term fixes available at the moment?

http://money.aol.co.uk/2012/02/05/how-low-can-mortgage-rates-go/

No because house prices will fall a lot. There is also no guarantee the economy will be any better in a few years time. It probably will be, but I think it is better to buy the house cheap (even with the higher interest rate) and then renew the mortgage at a time of lower interest if there is one. The mortgage is very long term so the best thing to do is get the lowest price with as big a deposit as possible.

Mr._Pricklepants

Fair enough Andy, it's quite a gamble though, counting on falls to offset a worse rate.

Also, many of those fixes have a yearly 10% balance overpayment facility. Max that out for 5 years and you won't be losing any sleep when it comes up for renewal, even with rates significantly higher in 5 -10 years time.

Anyway, all the best.

AndyGuil

Mr._Pricklepants wrote: »

Fair enough Andy, it's quite a gamble though, counting on falls to offset a worse rate.

Also, many of those fixes have a yearly 10% balance overpayment facility. Max that out for 5 years and you won't be losing any sleep when it comes up for renewal, even with rates significantly higher in 5 -10 years time.

Anyway, all the best.

It is a much bigger gamble to have a mortgage at the moment. Jobs losses will be quite big, negative equity and inability to sell will cause a lot of problems. Low risk and versatility will be a big advantage if the everything (inevitably) goes wrong in Europe.