Buy now or wait?

Tiger_greeneyes

I rather got that impression CB1079, it shines through in spades.

I have to say though, I'm far from being worried - if anyone wants to try picking apart my posts then I'd prefer they did it as part of a healthy debate, rather than by rudeness and criticism - there's no weight behind such a weedy approach, and it's not particularly taxing!

meanmachine_2

olive84 wrote: »

borrowing at 5x me and partners joint income. .

If you're comfortable with that, go for it.

I hope you're a same sex couple, though, or aren't planning on a starting a family any time soon.

jyonda

Ridley wrote: »

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?

An interesting gem of wisdom I picked up on these boards was that the best time to get a mortgage is when interest rates are high! Sounds like the worst time to borrow but the logic goes like this....
When Interest rates are high, house prices are low due to affordability. This requires you to borrow less capital in the first place. If you can afford the repayments with a high interest rate then when IR's decrease they will be much more affordable and you can set about paying off the capital quicker.

Now think about the last 5 years. Low interest rates have meant people have been able to afford to borrow larger capital sums but now they are far more vulnerable to rises in IR's.
It's all about the economic conditions of when you buy into the market. 1993 was a good time to buy, 2007 would not be according to this logic.

I think it's reasonably OK to buy if you have:
10% deposit + fees (all savings, nothing borrowed)
The monthly cost of a repayment mortgage + insurances + maintenace costs are less than your rent.
A recession proof job

Now, I expect you can find examples of people who bought with borrowed deposits and 100% interest only mortgages, who have unstable incomes that have seen their studio flat above a knocking shop, adjacent to the crack den triple in value these last years.
Their reckless gamble paid off for them but it doesn't mean it would for everybody.

olive84

Ha! I am really rusty on my maths! It's 3.5x not 5. I thought that sounded a bit much!

meanmachine_2

Ridley wrote: »

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

As you might have gathered by the heated exchanges on here - which always attract proud homeowners happy to tell you how brilliant they are for buying when they did - there is no consensus.

Wait until you feel you can afford what you want to buy.

Tiger_greeneyes

meanmachine wrote: »

If you're comfortable with that, go for it.

I hope you're a same sex couple, though, or aren't planning on a starting a family any time soon.

Maybe I was wrong. It's not just me you've got a problem with.

Do you not realise how offensive you're being?

Olive84 - don't take any notice of the negativity. When I bought my very first property I was single and borrowed 4.5 x my wages, and sold my car for the deposit money. I don't regret it for a second - and although I swallowed hard when I realised I was in negative equity, the market did improve a year or so later - it really wasn't the end of the world I wish you all the best in your future new home

Tiger_greeneyes

That's brilliant advice Jyonda! Remortgaging to a low fixed rate deal once the interest rates drop is very simple - and lots of lenders will actually offer incentives such as no fees and free conveyancing to get you on board.

One of the best things about the climate we're in currently, is that you can get long term fixed rate mortgages for 10/15/20/25 and even 30 years at really good rates. There's absolutely no need to worry about interest rates doubling or tripling when you know that your repayments aren't going to change in that period.

Also, redundancy insurance is well worth having. I had it when I was made redundant - but thankfully I didn't need to use it as I was only out of work for one day.

meanmachine_2

*sigh* So much for this thread not becoming all about tiger greeneyes.

Would you not suggest there is a marked difference between 4.5 x single income and 5 times joint?

Or are you being deliberately provocative?

Anyway, Olive has corrected their original post, so it's all moot..

jyonda

Tiger_greeneyes wrote: »

When I bought my very first property I was single and borrowed 4.5 x my wages, and sold my car for the deposit money. I don't regret it for a second - and although I swallowed hard when I realised I was in negative equity, the market did improve a year or so later - it really wasn't the end of the world I wish you all the best in your future new home

I'd like to know:

1. How many times your equivalent salary does it cost today?
2. Would the equivalent value of the car be a big enough deposit now?
3. What if the market had not gotten better and had in fact got worse?

I'm just curious mind, I'm not looking for an argument!

Tiger_greeneyes

meanmachine wrote: »

*sigh* So much for this thread not becoming all about tiger greeneyes.

Would you not suggest there is a marked difference between 4.5 x single income and 5 times joint?

Or are you being deliberately provocative?

Anyway, Olive has corrected their original post, so it's all moot..

Words actually fail me! Go and pick on someone else, meanmachine, you're boring me to tears.