Good time to buy or wait a year?

Tomis000

Hi everyone,

Me and my partner are looking to buy a house. We are not high earners, but we've been saving very well and have a 10% deposit. We could get a mortgage on a 110,000 house, but we'd be near the 6% interest mark with about £670 repayments each month. We could live close to bone and get a 20% deposit by this time next year offering us much better deals.

With house prices currently falling, do you think now is a good time to buy? Or will we be better or worse off waiting a year to buy? Are there any good times in the year to buy?

Many thank yous
Tom

Tomis000

I forgot to mention the house currently at 110,000 is a very good price for the house in question, which is a bungalow offered to us by someone in the family.

dawyldthing

i can't see house prices rising for some time. Don't forget to offer less when you do make an offer (around 10 - 15%) as they are all overpriced

Peelerfart

dawyldthing wrote: »

Don't forget to offer less when you do make an offer (around 10 - 15%) as they are all overpriced

A bit harsh if it's,


"a very good price for the house in question, which is a bungalow offered to us by someone in the family."

Not to say that you're wrong but really only the OP can make that call

brit1234

Just save like mad for a year and get a better deposit. You will be helped out by the predicted falls (scale of falls difficult to say) next year. The size of the deposit is everything in this market and will save you a lot of money as well as protect you from potential negative equity.

dimbo61

We know very little about you and your partner, ages, plans, kids!, income, job + job security .
Where are you living now ? are you paying rent ? can you afford not just the mortgage but also all the bills !!!!
How long did it take to save 10%
Whats the condition of this property and what area ( schools / transport links / jobs etc)
So many questions that you need to look at first and decide if you want too buy

DELLBOY_2

well considering when the next election should be and the fact that some building companies are looking at and starting developments that will be complete in 2 years i would expect a mini boom in house prices in 2 years time .

By that time the banks will have to increase their lending and this will provide a leg up for our economy ,now after the election the burning question is will it continue or last ?????

omits

Wait a bit. We have just moved and played the EAs at their own game. Politely suggest this or that place is somewhat to high but don't agree. Sellers will come down several steps over a period of time. Don't be pressured - be in total control.

Get a repayment mortgage and every year pay a little bit extra off. Remember the only winner in the money game if the bank and you come off better only if your house goes up substantially in price - which won't happen now for a few years if at all. All brokers get a fee which you pay somehow.

I you've been offered something really cheap (get an EA to give you an idea) then go for it if it's really what you want.

paulmapp8306

Quite why an election would make a difference. Historically its the worst time to buy as you dont know what will happen

I wouldnt bank on lenders being free-er with money either - I think where we at is going to be the norm.

interest rates may have began to rise by then as well so ??

I guess a year is OK. Im probably looking in late 2012/early 2013, but Id buy now if I could. My date is set by:

1. thats when my job will move me from NI to England
2. thats when a decent inheritance will come my way giving me a large deposit.

System

There's never a right time to buy, its totally dependent on your circumstances.

The key points are:
Dont overpay for a house just because it is your 'dream house'. It is a buyers market, so be ruthless

When you find the right house, shop around for the right mortgage - headline rates are sometimes only half the story when fees are taken into account

Can you afford the repayments if interest rates went up (i.e. if you were on a tracker, or after a fixed rate deal is over).

Also lots of other questions around your income and also if you are planning for children etc.....

Tomis000

Thanks for all your input. I think the sensible thing is to wait a year as many of you have suggested. The house would be great to own, but now is not the right time for us to buy it. I believe with not such a great mortgage deal we'd be paying loads more for it over time, which doesn't make it such a good buy in the long run.

We're living in my girlfriend's parents' annex, almost rent-free, so we've pretty much decided to save like mad for another year whilst we have the financial space to do so. Thanks again