Buy now or wait?

Ridley

New, inexperienced 1st time buyer looking to buy my first house with my partner later on this year (Autumn).

I have read that experts predict a market crash next year, as the prices have reached their pinnacle.

If this is the general concensus, am I best waiting until the end of next year and seeing what the market does or should we risk it and get on the ladder now?

Live in Bristol if that matters, where house prices are very high.

Thanks

ramellous1

Go to http://www.housepricecrash.co.uk/forum/index.php?showforum=23

This has lots of discussion for and against the property market in different regions of the UK.

There are arguments for both sides, I myself am waiting awhile to see what effect interest rate rises this year have

epz_2

it all really depends on your personal situation.

if for example you are paying a grand a month rent and are in stable secure jobs with a healthy deposit then it doesnt really matter if house prices drop cause you will still be living somewhere and be able to remorgage come the end of your term.

if you are living with folks etc and are going 100% streaching yourself to the limit with jobs that could be affected by the rate rises or predicted crash then youll probably be back on here by the end of the year talking about negative equity and bankrupsy.

both oposite ends of the spectrum, im a ftb with a healthy deposit but am up in scotland where i could probably afford a nice place if anyone was acctually selling (theres like 1/4 the ammout available before christmas). say there is the perdicted 30% drop provided i retained enough equity to pay off the loan and have a deposit and dont buy at the top of my budget then i can move up the ladder at a time where otheres will be falling off.

down south is different though since bedsits are event getting mental prices, the 30% drop would be a much larger chunk of your income and its also a lot mor likely to experiance a drop since when FTB's cant buy anywhere there is no way anyone else in the chain can afford to move => stagnation => decline.

Romani_Ite_Domum

Ridley wrote: »

New, inexperienced 1st time buyer looking to buy my first house with my partner later on this year (Autumn).

I have read that experts predict a market crash next year, as the prices have reached their pinnacle.

If this is the general concensus, am I best waiting until the end of next year and seeing what the market does or should we risk it and get on the ladder now?

Live in Bristol if that matters, where house prices are very high.

Thanks

Ah the age old question. The housing market has defied gravity for the last couple of years and against all odds may continue to do so.
There is an expected 0.5% rise in interest rates this month. The spring bouce will be over. I think you should look at the market in the Autumn ...when you were thinking of buying.
If its for a home and not investment, when you buy is when its right for you. If you can afford a home without overstretching that time will be right.

Tiger_greeneyes

Hi Ridley. I would be taking the advice from the 'experts' on board, but not letting them dictate what you do When you look back over the last ten+ years, every year - month in, month out - you'll find headlines warning us of a crash - which obviously hasn't happened yet.

Who knows, maybe it will happen - but, you need to ask yourself if it really matters. You still have to live somewhere - what's the difference whether you're paying rent or mortgage? The house prices will still go up or down no matter what your living circumstances.

Why not look into a long term low fixed rate mortgage (say 10+ years), then at least you can ride out any highs or lows in the market, safe in the knowledge that for 10 years, your mortgage repayments won't change - no matter how much the interest rates rise. That's one guarantee you won't have if you rent... the other one is you won't have to move if your landlord decides to sell up.

The only people who will really lose out if the market crashes are investors. Home owners will be affected, but only on paper.

pinkshoes

They've been talking about housing market crash for a couple of years now... And well done to those people who ignored this speculation, bought a couple of years ago, and will have still seen a good increase in their property price.

It's all about demand in the area you want to live. If it's a 2 bed flat you're after, and not many are coming onto the market, and those that do are being snapped up, then i doubt prices are going to drop.

Get a fixed mortgage and work out a sensible amount you can each afford per month. If you have no plans on selling your property for a while, then even if the prices drop, they'll no doubt climb again, so temporarily you may have negative equity, but it won't be forever. Just make sure you have the means to keep paying your mortgage.

Romani_Ite_Domum

pinkshoes wrote: »

They've been talking about housing market crash for a couple of years now... And well done to those people who ignored this speculation, bought a couple of years ago, and will have still seen a good increase in their property price.

Well done? Are you giving yourslef a pat on the back Pink Shoes?I have nothing against anyone who has bought a home in the last 2 years, it just amazes me that they felt the need to pay so much for it.

Well done to those to have decided not to buy a home at a price that is way out of line with the economy. You too deserve a pat on the back.

mystic_trev

If prices dropped back to the long term trend we'd be looking at a 40% - 50% correction. Many have stated that we are in a new "paradigm" with a new IR enviroment. I'm not so sure this is correct and thought Property was overvalued in 2004, however I still have a considerable investment in Property!

As others have said, its a home you're buying, and you can afford it and are happy to take the risks - do it. Long term you should be OK.

Tiger_greeneyes

I don't see anyone giving themselves a pat on the back

Mystic Trev - that's my opinion too - if it's going to be your home, then you need to look at property as a long-term investment. As I said above, you've still got to live somewhere so it makes no difference whether you're in rented or own if the property prices are going to dip. I think people can place way too much importance on the market trends and what may or may not happen.

If you can afford it, then owning your home is far more secure than renting imo.

CB1979_2

buy buy buy

thesaint

Romani_Ite_Domum wrote: »

Ah the age old question. The housing market has defied gravity for the last couple of years and against all odds may continue to do so.
There is an expected 0.5% rise in interest rates this month. The spring bouce will be over. I think you should look at the market in the Autumn ...when you were thinking of buying.
If its for a home and not investment, when you buy is when its right for you. If you can afford a home without overstretching that time will be right.

Who is expecting a 0.5% rise? I have never placed a bet in my life, but I would put a few quid on this not happening.