To Buy Or Not To Buy - That Is The Question?

cwcw

After our purchase fell through we ended up in a nice rented property and we really like it here, but don't like having to pay rent and not having the control of our own house. New, suitable properties are coming up now but all seem to be asking for prices that are getting increasingly higher, without any reason to back up the pricing. Most of them are sticking, but the odd one does sell within a few weeks.

My personal view is that house prices are still much too high, but the correction seems to be a long, drawn out, real terms one, rather than a rapid collapse, so I don't want to be waiting and waiting to buy, but at the same time I don't want to buy just before a big collapse. We bought a flat in 2007 and were lucky to sell earlier this year for almost the same as what we paid. I think we're in a great position, but I'm not willing to pay anywhere near the prices now being advertised, which mainly look about 20% overvalued.

dimbo61

You might be waiting a very long time for sellers to drop prices 20%
I have know idea where you live or want to buy but over the long term prices will rise because there is a housing shortage ?
Now having said that some areas have loads of empty properties and other places have a huge shortage of good housing.
Get looking and saving and try to time your purchase in line with the tenancy agreement so you can move out at the end of the term

cwcw

It's more a general question really, although my situation fits it. Interest rates are at a record low and will surely go up in the medium term. The economy is in recession, yet house prices have somehow held up.

cwcw

Wow, quite resounding in the poll, wasn't expecting that.

getmore4less

If you have a place that you like living in at a reasonable cost against the cost of owning(interest, maintanence etc.) you might as well sit tight.

OK you can't do things you might want but then you don't have to pay anything but renr.

Keep looking for the perfect place or bargain where cost/price drops don't matter as much as it will be a keeper.

Just keep an eye on actual selling prices.

When they go up for sale at these ever increasing prices, think what would we pay, then see what they are selling for.

Only view the outstanding properties.

Can't agree with buy now, buy right.

budget for higher rates and overpay if you are confinced they are going up.

getmore4less

cwcw wrote: »

It's more a general question really, although my situation fits it. Interest rates are at a record low and will surely go up in the medium term. The economy is in recession, yet house prices have somehow held up.

A lot of people can't move previous lending criteria mean they don't have a deposit for the current lending criteria.

Many try to sell at prices that are optimistic and no one buys.

Low deposits, rates are not that low so FTB are thin on the ground.

Rock bottom sales downt appear in the stats.

Some areas there is a shortage of supply.

Otheres a shortgage(NO) buyers.

LOok at my house has no viewers thread, 2beds no one is buying even at low prices, OP on that thread has a price floor where they won't sell.

cwcw

getmore4less wrote: »

A lot of people can't move previous lending criteria mean they don't have a deposit for the current lending criteria.

Many try to sell at prices that are optimistic and no one buys.

Low deposits, rates are not that low so FTB are thin on the ground.

Rock bottom sales downt appear in the stats.

Some areas there is a shortage of supply.

Otheres a shortgage(NO) buyers.

LOok at my house has no viewers thread, 2beds no one is buying even at low prices, OP on that thread has a price floor where they won't sell.

Yeah, where we're looking there is a shortage of supply and pent up demand, but over the last couple of months since our purchase fell through, new ones are coming on at noticeably more than before, but are generally sticking now, whereas they would previously shift within weeks (established family homes in decent well to do suburbs with good school catchments). I just feel it could be the calm before the storm.... or maybe it's just that people are on holiday so not buying.

dimbo61

Lots of factors some of which have been covered but you also have school hols, olympics, uncertain outlook re jobs,recession, banks+ lending.
Just keep looking as renting is only really a short term solution.
Know idea about your age but lenders not happy to lend past 65

note_2

if you're planning on living there for 5 years plus i'd go for it, any less and i'd either not bother or be very cautious and only move if i got it for a good price...

but its a buyers market so you could get a bargain in the absence of buyers in the market...

wymondham

The government are doing their best to keep house prices high, so you may be waiting a long time ..... buy now if your circumstances allow otherwise you may need to wait a while for the inevitable drop in prices...

cwcw

Lending past 65 will not be a problem for a long time yet! We were FTBs at a young age but sold up to start family life with a new arrival in a new, bigger house, intended to be a forever home. That fell through but we are renting a family home instead now, in an area we want to be, but obviously renting is not ideal with a family, and we want to and can afford to buy, but can also wait maybe another 6 months to a year to see how things go. As you say, I don't want to be waiting ages and ages for the drop that may never come. Admittedly I'm tight though, and buying now and later knowing that I could have saved £10k or more if I'd waited a year would eat me up inside!