Wait or buy?

bluedrop

We are looking at buying a bigger house (SE London - Beckenham). As buyers, we are in a very good position - AIP and deposit in place. Ready to proceed. We are looking at properties most people would upgrade into (hence in a chain) - so our "no chain" position will (hopefully) get us some negotiating power.

The question now is, buy or wait ? The market seems to be cooling down. I know its subjective, but I'd really like to hear what you'd do if you were in my place.

BlaEm

Personally, I think any short term 'cooling' is likely a knock-on effect from the BTL-buyer rush ahead of the stamp duty changes - so now that's passed, we'll see the market calm down.

I think the long term trend in London will still be to maintain / grow, at least at an equivalent rate to properties outside of London.

You say you're looking for a bigger place, presumably a property where you'll be staying for the medium to long term - in this case, I'd say go for it - the sooner you buy, the longer you have to pay down capital, and if you're not looking to move in the next few years any short term fluctuations won't be a problem.

Hoploz

It depends on supply. Are you likely to find something later on if prices cool? (seasonal variation means there's usually a bit of a cooling at the end of the summer and at Christmas)

In other words, if you're looking for something there's plenty of then you might wait, but if it's rarely available buy it as soon as you see it.

Having said all that, how much of a cool do you expect to see? My guess is not all that much if it's in the south east, so you might find you're still looking for a bargain when prices nudge back up again

ReadingTim

What do you mean "no chain"? If your purchase of another property is in any way dependent on selling your existing property, you're in a chain. It might be a chain of only 1 other person, but it is still a chain. You may not be in a strong a position as you think you are.

In terms of what to do, maybe consider the alternatives - where you'd live while you were waiting? Waiting in rented is always more of a gamble than waiting in your own place, as you're paying your landlord's mortgage rather than your own. So do you think you could live in the current house for the length of time you think you could wait?

bluedrop

ReadingTim wrote: »

What do you mean "no chain"? If your purchase of another property is in any way dependent on selling your existing property, you're in a chain. It might be a chain of only 1 other person, but it is still a chain. You may not be in a strong a position as you think you are.

Yep, no chain. We are not selling our current property to buy the new one.

In terms of what to do, maybe consider the alternatives - where you'd live while you were waiting? Waiting in rented is always more of a gamble than waiting in your own place, as you're paying your landlord's mortgage rather than your own. So do you think you could live in the current house for the length of time you think you could wait?

We will live in our current house while we wait - but its getting tighter here. We have a new baby now and parents are visiting us more often. Our "study" currently is a desk and one shelf in a wardrobe to put our books in etc. We are desperate for more space. BUT we don't want to foolishly jump when the whole world sees things differently. You know what I mean? We'd really like to buy, but I am seeking others opinions to see if we are thinking sense or just blinded by our desperation!

bluedrop

Hoploz wrote: »

It depends on supply. Are you likely to find something later on if prices cool? (seasonal variation means there's usually a bit of a cooling at the end of the summer and at Christmas)

In other words, if you're looking for something there's plenty of then you might wait, but if it's rarely available buy it as soon as you see it.

Having said all that, how much of a cool do you expect to see? My guess is not all that much if it's in the south east, so you might find you're still looking for a bargain when prices nudge back up again

I will post a new thread shortly about the property I am seeing.

bluedrop

<bump>

for more responses.

ReadingTim

Try posting on this board

tom9980

i am in the time to move camp if your new property is going to likely be a home for 10+ years

bluedrop

tom9980 wrote: »

i am in the time to move camp if your new property is going to likely be a home for 10+ years

100% with you on that. I would have moved straight away if I were selling my old property and buying a new one.

We are not selling our current property. Would you still vote for "buy"?

ADJAFC

Life's too short if you're buying a house to live in. Buy the house, Live in it. Enjoy it.

If you're planning on being there 10years plus any minor variations in the market will smooth out anyway and as others have said the south-east doesn't really go anywhere but up long term.