Help for First Time Buyers please

MrandMrsW

My husband and I have a dilemma – to buy or not to buy??
We are currently living in a house on a (very long) house-sit while the owners are living abroad. We pay a very low rent and minimal bills. However, we are conscious that we need to get on the property ladder at some point as we would like be settled in our own home and to start a family in the future.
We have a deposit saved and have a mortgage promise for a sufficient amount for a 2 bed house in our area (Hampshire/Surrey border) BUT the owners of the house we are currently living in do not plan to return to the UK for another 1 to 2 years. SO, should we stay where we are and pay the equivalent of the mortgage payments into a savings account for a year, thus having a bigger deposit and maybe getting a lower priced property (if reports of possible price crash can be relied on) OR go for it and buy a house now?
In your honest opinions, what do you think would be the best thing for us to do?
Thanks!

andrewbrydon

Hi

Go a speak to a mortgage broker who can go through the options with you then you make make a decision

Regards


Andy

keeperbear

No one can provide the answer to this question for you. Crunch the figures and decide whether you want to buy your home now or in two years.

pinkshoes

Personally, I would stay where you are and take advantage of 2 things that most people renting don't get: 1) cheap rent, and 2) at least 1 year without being kicked out, so security!

Work out what your mortgage payments would be, and open up an ISA each, then pay this money into the ISA. You'll have a great deposit when the owners come back from abroad, and you might be able to afford something bigger.

I wouldn't hold you breath on the house price crash, because demand is still much higher than availability.

kennyboy66_2

I think I would stay and save as much as could for the next 1 or 2 years.
Whether there is a house price crash or not, I really can't see prices going much higher in the next 18 months.

gabyjane

hmm hard one, we are in the same predicament as we live in a lovely house, nice area etc and pay very cheap rent, the house is secure for the next 6 years BUT being realsitic on what we would actually save (as we are hopeless and prefer to go on holiday!) we have decided to go down the Shared ownership route, we will be moving into a £160k house which we can actually be paying for most of it ourselves and not paying for our friends kids (as this is their house) to have a home when they are older! Also i will be 34 by the time we would move from here and regardless of deposit feel we have wasted time in a way.
We will pay half the mortage amount compared to if we had a £120k house which is about all we can afford and they are pretty dire!
I would buy but it's all iv'e wanted for a long time! good luck whatever you choose to do.

Dr_Doom_3

pinkshoes wrote: »

I wouldn't hold you breath on the house price crash, because demand is still much higher than availability.

This was also true just before the last crash.

wecanhelpu

pinkshoes wrote: »

I wouldn't hold you breath on the house price crash, because demand is still much higher than availability.

So is the demand for ferraris among 10 year old boys.

But guess what?

They can't afford one and no one will lend them the money.



When the easy credit dries up, HPI is over.

Dithering_Dad

If you are sure that house prices in your area will increase at a faster rate than your savings, then why not buy a house and then rent it out while you continue to live in the low rent place. You can then get onto the house ladder but with the advantage that someone else will be paying your mortgage, while you can use the money you save by living in your cheaper accomodation to overpay the mortgage on your place. Once the 2 years is up you will have at least 2 years of your mortgage paid off.

If you are convinced that house prices will reduce in your chosen area then stay put, salt as much money away as you can while living in your low cost accomodation and then pick up a bargain in a couple of years time.

poppy10_2

Definitely stay and save. House prices are likely to fall, and even if they do rise over the next 2 years, it certainly won't be by as much as you could get by saving and investing the money elsewhere.

phlash

Stay and save, take advantage of the rate rises to come. Better to see these rate rises on your savings than on your loans!!
I don't believe you will get much more house price inflation, so don't worry about house prices running away.
You are in one of the best positions in the UK IMHO.