should I buy now or wait??

jovcry

I have recently sold my house and am renting a hobbit hole. Have found a house I like but will need a huge mortgage to buy it. Meanwhile I'm earning £600 pcm on profits from old house. Bearing in mind all the speculation about interest rate rises and falling markets should I continue to rent for a year or bite the bullet and just buy now? I know this is the million dollar question and no-one can answer definitively but I'm so fed up of trying to choose the best course of action!What would you do?

kingkano

All depends on your situation. I am buying now (trading up), but its going to be our family home for the foreseeable future (we are thinking 15-20yrs). If I was FTB or buying for shorter term I would be more hesitant...

And your right your gonna get the mixture of 'dont buy now its all gonna CRAASSSHHHH!!' and the 'definitely buy now because property can only go UP UP AND AWAY' crowd. Only you can decide really. Are the repayments affordable, is it long or short term? Are you in a hurry to own or do you like renting?

jovcry

I hate renting and am sick of living out of boxes!! In addition the landlady has said she wants the house back at the end of our tenancy so we have to find another property to rent (and incur all the moving expenses and fees again). The repayments on the new house would be £1350 pcm , a huge chunk of our income, but then we're paying £1000 pcm to rent. I just wonder whether we'll ever get back on the ladder if we keep renting??

kingkano

Although the £1000 rent is partly offset by the £600 profit It depends how long you intended being off and who you believe. If you believe the crash, your better off waiting for it and then you might be able to buy outright or for a very small mortgage. If you dont believe there is gonna be a crash then go for it now

Or if your like me and you just want a place to live and !!!!!! the actual value, do whats best for you

apk1

Are you buying as an investment or as a home, sounds like as a home, in which case future vaues really are immaterial, sounds like you're sick of renting and want the peace of mind of living in your own home.

If you buy now you could probably almost guarantee prices will fall and you could have bought somewhere slightly better, but is that not always the way with any purchases ?

David_B_2

What about if the interest rate went up a further and therefore your new mortgage payment too, could you cover this?

phlash

With regards to the interest rates.....please see this thread!

http://forums.moneysavingexpert.com/showthread.html?t=459573

In there you'll find strong evidence to suggest that interest rates have got further to go yet.

Everyone also knows the strong correlation between interest rates and house prices.

I may be wrong in these figures, but they're based on what you've said.

Current outgoings = £400 pcm (1000-600)

New outgoings if you buy = £1350 pcm (Assuming you put all the cash that was gaining the £600 interest before into this new house)

Saving incurred from renting is £950 pcm (1350-400)

Must be some hefty mortgage you're thinking about! It would have to be a really nice place for me to increase my monthly outgoings by £950 pcm at a time when house investment is at its most risky!

jovcry

Thanks for your advice guys, oh for a crystal ball.....!