Should we buy?!?!

hankkosovo

Hey guys, I've posted on here a few times and yet again could use some advice, current situation:

We currently rent but have a 10% deposit and have found a repossessed apartment that we very much like for 120k. All factors considered, buying this will save us about £200 a month in bills.

But I can't decide if we should buy it or not.

We're having a lot of trouble with the place we're renting and I think this is clouding my judgement as I just want out.

My concern is, the apartment prices in this building have fallen 30-40% since 2006, for the past 3 years they have settled at around 140-160k depending on the aspect.

From the research i've conducted, they seem to have crashed because they where city centre apartments 10 miles from the city (but still in a lovely desirable town) and they where completed at the height of the bubble. There have been quite a number of repos in the building due to this and I think this has also contributed to the price fall. There current asking prices are 10-20% below other comparable properties in the area.

I'm worried that if there is another crash (which I think there will be) the prices could drop further, however as it's a repossession we have a little equity buffer.

I just don't know what to do, could use some opinions.

thenewbee

I'm looking to buy in a similar area - stagnant with no increases recently but big drops in prices a few years ago. I've come to decide its the bottom of the market and prices may go down but will more likely increase. Either way my home is a long term investment (we're looking to buy a forever home) so house prices aren't too influential on our decision.

hankkosovo

thenewbee wrote: »

I'm looking to buy in a similar area - stagnant with no increases recently but big drops in prices a few years ago. I've come to decide its the bottom of the market and prices may go down but will more likely increase. Either way my home is a long term investment (we're looking to buy a forever home) so house prices aren't too influential on our decision.

Good luck with your purchase

I'm not quite in the same boat, we're considering emigrating in a few years time, my rational for buying is I can put 10k in an investment and make maybe £400 a year on it, or I can put it in a flat and save 2.5k a year while at the same time get out of renting which I hate. It being a reposition works in our favour I think as if we do emigrate and wish to sell, we bought it below market value so this should give some buffer for buying/selling fees.

I do think we're at the bottom, in certain parts of the country at least (the north) but theres always a nagging doubt that we're not, maybe I've just been spending too much time lurking on HPC.

thenewbee

hankkosovo wrote: »

Good luck with your purchase

I'm not quite in the same boat, we're considering emigrating in a few years time, my rational for buying is I can put 10k in an investment and make maybe £400 a year on it, or I can put it in a flat and save 2.5k a year while at the same time get out of renting which I hate. It being a reposition works in our favour I think as if we do emigrate and wish to sell, we bought it below market value so this should give some buffer for buying/selling fees.

I do think we're at the bottom, in certain parts of the country at least (the north) but theres always a nagging doubt that we're not, maybe I've just been spending too much time lurking on HPC.

I'm in the North and agree prices surely can't get much lower! If buying will save you 2.5k a year and give you a potential (tax free) capital increase if prices do go up I think it's good sense for you to buy :-) it's tricky committing in the current climate though because it's unavoidable to wonder ' what if? '

Good luck to you too :-)

TheMetalMan0

That 2.5k saved will soon be eaten up by the fees for buying the house that you wouldn't of had to spend if you stay renting.

hankkosovo

TheMetalMan0 wrote: »

That 2.5k saved will soon be eaten up by the fees for buying the house that you wouldn't of had to spend if you stay renting.

This is true, however as it's a repossession i'd think the fees would be reclaimed in the equity of the flat.