will the house prices crash in your opinion?is it a bad time to buy

thewinkshow

no putting me off at all,i need both points of view and everyones opinion in order to get a better picture.what you say does make sense,and my answer to both your questions are yes and yes,they are richer than me,as they earn more and are couples and yes they are in debt.

thanks again

Rick62

All the signs are that property is overpriced and the market is already softening in most areas outside London & SE. A mortgage of £50k on £15k is not a stretch by todays standards, although it will leave you with a lot less than you have now, and having 50% equity is an excellent position to be in.

My advice would be if you are going to, then take your time looking, you're certainly not going to miss out on any increases (outside London), also I think the prospect might be clearer over the next few months. If the market does crash the hardest hit will be the poorer property, so if you do buy make sure it is a nice property in a good location (as someone said, 2 bed better than 1 bed). If you buy quality then it may still crash but there is always demand for quality property and so it falls less and recovers quicker.

Zammo

On 15k a year with a 50k deposit on a 100k house you should easily be able to afford it. In fact when I bought my first house I was in pretty much the same situation (though without the 50K deposit) I took on a mortgage of 60k on a 70k house and managed quite comfortably.

Melissa177

I think you have a sensible plan and won't be overstretched.

Are your parents looking to adopt a daughter by the way?

nollag2006

This'll be one of the best decisions you'll ever make. Go for it !!!

Good luck to you ...

garethhr

£500 a month is really not a lot these days, I think you need to carefully collate all your outgoings and also all your "possible" outgoings.

For example, in the next 10 years, are you sure you wont want to get a car. Then there's family, holidays, hobbies etc.

http://www.statistics.gov.uk/PIC/index.html

Try using this link to give yourself an idea of possbile spending patterns.

thewinkshow

hi again

thanks all.

how much do you recommend i should hae spare each month in order to live confortabley?personally i think i can quite easily cope on 500 quid,unless there are things i have not accounted for.how much does the average person on here have spare each month?1000 quid 1500 quid,i dont know,could some people post up how much they are left with,that way i can gauge mine,i have no children or girlfriend so that money is purely to support myself with,basically emergencies and beer money.

i do intend to get a car e.c.t but id imagine in 10 years time ill be earning alot more than 15k,so having a car wont effect my spare cash at the end of the month as much.i aint looking for a girlfriend anything serious for the next 5-6 years.id imagine if i came a bit stuck i have plenty of mates who would jump at the chance of moving in with me and renting.

i dont know where many of you are from but i think that wages and house prices are relative to your area e.c.t,i mean most people my age from my area who have got a house have paid around 89k to 110k for their first home,and they have wages of roughly 13-14k per year and they manage fine,so the wage im on (15k) and the house im looking at 100k isnt really a massive out the ordinary thing around here,i guess it comes down to lifestyle.whereas on the otherhand most people i see on this board are earning 25k plus easily,and look at first time house around the 150k mark,so they probley see me tying to get a house on 15k and think no chance,but im from the north west of england,prices aint as high as say london or down south,i think its all relative to each other.150k up here would get you a very nice house indeed.

thanks everyone for your invaluable advices.

ashcarrot

bear in mind that the £50k would have to be paid back or your parents own half the house, so its not really free money its more a shared equity scheme. I personally unless you really can't stand the parents stay where ya are until prices are more reasonable.

brasso

My view is that his is a bad time to buy as the rate of HPI is starting to fall, and no one knows yet where prices will be in a year from now.

Given your finances, you should be able to save far more than the appreciation in property prices, so why not save like mad and keep an eye on the housing market in the meantime?

I'm generally bullish incidentally, and am a property owner myself, so don't want to put you off, but I do think that you have more to gain by sitting tight for 12 months than buying now at what's looking like the top of the market.

If you do decide to jump in now, personally I would go for a much shorter term mortgage from the start. A 30 or 35 year mortgage wil mean you're paying a lot of interest in your repayments. Get comparative figures for 35 years and, say, 20 years, and see the difference in the total you're repaying. It will shock you.

A 50k mortgage is pretty small, so I would attack it hard from the start while interest rates are still relatively low (compared with where they have been in the last 35 years). But overall, my advice would be to wait and see. You've very little to lose by sitting tight right now for a few months.

blue_haddock

Personally chap i'd say do it - yes you are living virtually rent free at home but having your own place is seriously worth it.

Would it be possible for you to get a £55k mortgage and your mum and dad put down a £45k deposit with the other £5k being used for fees, furniture and a small rainy day fund?