Offer advice?

pinkpiglit

Crashy_Time wrote: »

Once people realise that prices are going down and staying down this sort of thing won`t happen any more.

:rotfl: Can I stop laughing now please??

ukcarper

mrlegend123 wrote: »

I believe house prices will not increase by double figures forever in which it is why I am being very careful during the house buying process. It is a fact that my generation is sat on a mortgage time bomb built from high house prices and low interest rates. My generation has never experienced a rate hike and most would be crippled by a rate increase of 2%. I do not understand how people on lower incomes (£24,000) can afford to buy or rent in Hampshire. The local rental index is £950 PCM and local house prices £183,000.

I experienced interest rates up to 15% and was paying 60% of my take home pay on mortgage payments it was hard but I got through, I think most people do cope.

People on low incomes can't but but it would be possible for 2 people on £24k to buy.

AnotherJoe

mrlegend123 wrote: »

I am a first time buyer in my late 20s. I believe the market will soon change from a seller's market to a buyer’s market due to economic uncertainty (Brexit, landlord tax relief/stamp duty, etc). Experts are predicting falls of 5% over the next two years.

First, experts can't see the future any better than you, and second even if they are right, 5% in two years is nothing , different price pressures in different localities will swamp that. They could fall much bigger in some areas, rise in others.

As for my opening offer of £161,995, I am only using the rule of thumb of current asking price minus 10%. Also I am only looking at houses at this price range because I am only on a salary of £40,000. I do not want to saddle myself with a massive debt at low interest rates. It is all about living within your means at the end of the day.

What rule of thumb is that ? Never heard of it. Depends where you are. When I was buying a house last year, if there was a rule of thumb, it was "offer at least asking price if you dont wish to be thrown out on your ear". We ended up paying about 5% more than asking.

Fair enough you don't wish to over extend yourself but really that doesn't make any difference to the sellers. They will sell bases on local market not on your financial boundaries.

It's a guessing game end of the day, you may get lucky, you may offend and cause them to reject further offers from you. let us us know what happens.

nubbins

spunko2010 wrote: »

. I'm not entirely convinced that this user is a real person or just a bot repeating the same dross in every thread. .

Pot, kettle and black

Smodlet

Since you and the experts have it all figured out between you...

System

pinkpiglit wrote: »

:rotfl: Can I stop laughing now please??

You cannot have a successful economy when house prices are "earning" more each year than salaries. I would like house prices to stabilise with slow growth of 2-3% each year.

We are currently heading into a recession and I do not want to get caught out.

ukcarper

mrlegend123 wrote: »

You cannot have a successful economy when house prices are "earning" more each year than salaries. I would like house prices to stabilise with slow growth of 2-3% each year.

We are currently heading into a recession and I do not want to get caught out.

House prices have always been erratic.

hazyjo

It'll come back out of a recession even if we do hit one. They may tighten lending criteria and you may not be able to get a mortgage. Who knows.


Sounds like you're buying as an investment. If you need/want a home, would it not be better to buy now with low interest rates where you can overpay the mortgage? It's not always nice buying when prices are on the up - it can be ruthless. Even if this is the peak of the market for the next five years, house prices usually double every 10 years or so.


Would you rather be paying rent?! Or are you staying with family?


Each to their own. I have always owned, recession or no recession, and have sold and lost money, but what I've gone on to buy has been affordable rather than out of reach. Sometimes moving up in a recession can be a good thing. Maybe you'll want to buy with someone else in five years' time. Nobody has a crystal ball!


Jx

Smodlet

mrlegend123 wrote: »

You cannot have a successful economy when house prices are "earning" more each year than salaries. I would like house prices to stabilise with slow growth of 2-3% each year.

We are currently heading into a recession and I do not want to get caught out.

I would like to live on Maui but I don't think it's very likely.

Argghhh

Crashy_Time wrote: »

Once people realise that prices are going down and staying down this sort of thing won`t happen any more.

crystal ball by any chance