Buy now or wait?

Worried

We are in the same position as you. We couldn't decide to wait and see what happens or get on with it now. We decided to go for it because rises in our area were greater than what we were saving every month, but the main reason was, we felt it was the right time for us. I'm in my late 20's and bf is in early 30's. We both felt like we didn't want to wait any longer to start a mortgage and wanted to establish a home before we think about children in a few years. As it is we're buying a house that we see being the family home, so we would stay and ride out any fall in prices. I think as long as you can comfortably afford you repayments, even at a higher rate, or you fix for a longer term, so you have peace of mind, then you'll be fine, esp. if you're staying put for a little while. If you would really be stretching yourself, don't have much of a deposit etc. then maybe you would be better off waiting a little while, building up a bit more savings and seeing if maybe a correction happens. At the end of the day, do it when it's right for you.

PJD

I agree with the above, - if you really want somewhere, can afford it, - still afford it if rates rise (& after your fixed term runs out), then yes, - why not


http://www.in2perspective.com/images/generated/stats/house-price-to-earnings-ratio-large.png

^^^^ I got on the ladder in 2002 & off again a few months ago, - purely for personal reasons. -- Nothing to do with making money. Patting yourself on the back is neither here nor there as no-one can predict the future, - its just luck.

As it happens i'm unsure where I want to buy at the moment (job reasons), - but, - even if I did, I don't think I *would* buy, - I simply don't believe houses are worth the ridiculous prices being asked.

What with IRs going up etc, & the last bust cycle not far from memory, - I for one am sitting tight & off the ladder for the moment.

mystic_trev

thesaint wrote: »

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.

Then go to Betfair - you can get odds of 14:1 of it NOT happening!

You can also get odds of 28:1 of there being NO Interest rate increase.

So a 0.50% rate increase is twice as possible than a hold - from a betting point of view.

kingkano

For anybody with strong feelings.... betfair runs odds on the interest rate decision.

no change is 19, +0.25 is 1.12 and +0.5 is 12. So if you really believe in the latter, there is plenty to be made off even a small bet! (-0.25 is 400 for comparison lol)

Romani_Ite_Domum

There may be trouble ahead
But while theres music and moonlight and love and romance
Lets face the music and dance

thesaint

mystic_trev wrote: »

Then go to Betfair - you can get odds of 14:1 of it NOT happening!

You can also get odds of 28:1 of there being NO Interest rate increase.

So a 0.50% rate increase is twice as possible than a hold - from a betting point of view.

Thanks, but that all flew way above my head.

I think that a 0.5% increase is very improbable, so if I were to put £20 of my money on there being any decision other than a 0.5% increase what would I win, or is it not possible to do that?

Tiger_greeneyes

Say, for arguments sake, you placed a £20 bet on a horse to win a race, with the odds of 10-1.

If your horse won, then you'd win your original stake of £20 x 10 (£200) plus you'd get your original £20 stake back.

Good odds!

mystic_trev

thesaint wrote: »

Thanks, but that all flew way above my head.

Go to https://www.betfair.com the click - sports > Financial bets > Interest rates > MPC > May MPC - It should then load the odds and you should see "lay" 0.50% increase 14 i.e. 14:1 on interest rates NOT being raised by 0.50%

Hope that helps?

sarah_elton

The comments re odds don't make sense when taken together.

If it's 1.12 for +0.25%, they think that's the most likely move.

Why then are they offering 14:1 on it NOT being +0.50%. Are you sure you've got that right?

The odds quoted by kingkano make sense.

Betfair's blocked at work so can't check myself.

EDIT: Also, if +0.50% is 12:1, and not +0.50% is 14:1, you always win. Put £1 on each, and you win either £12 or £14 for an outlay of £2. Someone must have made a mistake with their quoted odds. Either that or I'll be putting £100 on each of the above tonight.

thesaint

mystic_trev wrote: »

Go to www.betfair.com the click - sports > Financial bets > Interest rates > MPC > May MPC - It should then load the odds and you should see "lay" 0.50% increase 14 i.e. 14:1 on interest rates NOT being raised by 0.50%

Hope that helps?

Sorry for hijacking this thread.:o

I clicked on your link, clicked sports, but can not see 'financial bets'.

I knew there is a reason I don't gamble:mad: .

So if interest rates were to do anything other than rise 0.5% I would win £280, is that correct(£20 stake)? I will decipher this betting blindness and put down some money if this is the case.