Good time to buy or wait a year?

Thrugelmir

Tomis000 wrote: »

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

Stick it out for long as possible. As the more you save up, the easiest it will be.

Wh05apk

Are you buying as an investment or as a home?

If as a home, now is probably as good a time as any, 90% deals have dropped and are now under 5%, which is still very good historically, who knows what will happen over the next few years? lending may effectively shut down again, and you may not be able to get a mortgage, prices could rise dramatically and price you out (unlikely) prices could collapse and you will get much more (probably unlikely depending where you are)

Are you renting, if so, you could be paying a similar amount to a mortgage? IF you are both still at home, is that causing stress/making you waste money?

There are a lot of factors, at the end of the day it is your choice, people will tell you to save for a bigger deposit (and eat your 5 a day!), realistically for you to get an extra 5% which will make a difference it could take 2/3 years, are you prepared to wait that long?

DELLBOY_2

I would buy now 2 years and i reckon 10 to 20 % up
anyone want a bet ??

Tom_Pickering

DELLBOY wrote: »

I would buy now 2 years and i reckon 10 to 20 % up

You have evidence to back this up? Or you just woke up this morning, after a night out, and decided prices will be 10~20% up in 2 years :rotfl:

Thrugelmir

DELLBOY wrote: »

I would buy now 2 years and i reckon 10 to 20 % up
anyone want a bet ??

You sound so confident. That you must know something that others don't. Though I'm stumped as to what it could be.

What odds are you offering?

Poosmate

Tomis000 wrote: »

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

Interesting, as you are living almost rent free at the moment and in your first post your guestimate/educated guess at mortgage repayments will be £670pcm, you could test how you'd get on with such a mortgage by doing a dummy run for a few months.

By that I mean act now like you are living in your bungalow with its mortgage and bills. If you can save £1k per month between you (more if poss I only rounded it up to £1k pcm as you haven't stated what your current living costs are) that's the lions share of mortgage and bills paid in your bungalow.

As a bit of guidance, my household expenditure for a month is around £450 for a 2 bed semi. This includes council tax, gas/elec, bt, cable tv, water rates, tv licence and food. It excludes car tax, mot, insurance, petrol and mortgage, birthdays, Christmas and going out.

If you try a dummy run as above, the worst that will happen is you'll find you cannot afford your dream atm but the best news is that, if you can do it, you'll have a few more grand saved than you would otherwise.

Hope that helps,

Poo

DELLBOY_2

Thrugelmir wrote: »

You sound so confident. That you must know something that others don't. Though I'm stumped as to what it could be.

What odds are you offering?

Well listnening to the doom and gloom on here i would say they should be in my favour but i will go evens, loser pays winners charity ??

leftinamess

Tomis000 wrote: »

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.

Reading some other threads as its a family member and they are doing a good price ie the house could value at £120,000 and they are giving it you for £110,000 could the other ten grand in the house not be used as a deposit of kindness? i think the relative would have to write a letter to say they could not claw back this money.
other people on the forum would be able to confirm if you can do this as i am no expert.

try this thread https://forums.moneysavingexpert.com/discussion/3627303

Mrs_Z

Save like mad and buy the bungalow next year! If that particular one is no longer on the market, there will be another equally suitable.

getmore4less

AS has been said you should be saving at least £1kpm less what you do pay in rent and bills.

If thats a struggle them buying will be as well.

This £110k bungalow, have they actual tried to get that or more for it, why is it up for sale?