Is now the time to buy?

WBAPanthers

First time poster on here so hello all!

I am looking to purchase my first property, I've got a small deposit saved and I'm planning on just adding to it every month (have an Help to Buy ISA, and also looked at the Equity Loan)

Is now the best time to buy with all the Brexit stuff in mind?
Is there ever a best time or bad time to buy?

Any advice for a new buyer in their mid 20's buying on their own?

warehouse

Honestly, flip a coin.

My own views are that properties seem to be staying on the market longer than normal where I live on the outskirts of London. Others will say the opposite so keep an eye on local prices and see for yourself.

hazyjo

I've seen lots of price reductions in the last few weeks - but people don't like a deadline of any sort so I reckon after the Article 50 shenanigans tomorrow, people will start looking again from Easter.

But then I'm no expert! Although the experts haven't got a bloody clue either.

Buy when it suits you. Rates are low, there are good mortgage deals out there, so long as you don't buy somewhere that you might need to sell in the next 5 years or so (just in case we do experience another dip or recession), I guess you'd be okay.

Set some rightmove alerts and keep a VERY close eye on how quickly things sell after they're up, and look out for reductions or properties hanging around for months.

Jx

PeterPanic

Quite an apt thread for me as I completed on a property two weeks ago. I had been looking on and off for three years and the change in the market in those three years is incredible.

Three years ago the government had just introduced the help to buy scheme and the market was crazy. Every house was an open house inspection and there would be 25 couples who all wanted to buy the house. You could see the panic and desperation in their eyes and everything went to sealed bids.

I think prices have been fairly static for the last year or so, they don't seem to have dropped, but property does seem to stay on the market for longer than it did. I have to say I prefer the market like this, the market 3 years ago was impossible with having to offer well over the asking price just to get a chance at buying somewhere. I actually got as far as almost exchanging on a property 3 years ago only for the seller to pull out at the last minute. I suspect they realised the market was so hot that they could get another £20 - £30k from another buyer.

As has already been mentioned, interest rates are the lowest they have ever been and if you are not looking to move anytime soon then it is a good time to buy as there is less competition and you might be able to get away with a cheeky offer as a first time buyer.

But every situation is different, I am 43 and found a house I could live in forever for what I thought was a good price. Have to say, the relief of not having to worry about it anymore is well worth the risk of a fall in prices in the future.

You are younger and have more opportunity to save and are not in as much of a rush as me. Basically nobody knows what is going to happen in the future, and if you are happy with the house, can afford the mortgage and don't plan on moving anytime soon I say go for it.

I suspect flats have more risk of falling in price due to the rule changes with regards to buy to let properties.

juniordoc

I think it's a risky time to buy, who knows what will happen with brexit.
It would be less risky if you can save a 15 or 20% deposit and that would protect you for some time against fluctuations in house prices during the stormy period ahead.
Keep saving away and remember the longer you save for, the bigger bonus you will get!

Crashy_Time

http://www.propertyindustryeye.com/sales-tumble-right-across-england-and-wales-and-crash-by-one-third-in-london/

Davesnave

No, now is not the best time.

In most places, buying in May 2009, would have been a much better bet.

Mind you, people were saying then that the market had a lot further to fall. Indeed, things were so scary in a financial sense, that I bought a house because bricks n' mortar felt more secure than money in a bank. Others bought gold, or some other commodity.

So...pundits like Crashy scared me into buying, rather than experience something like another Iceland or Kaupthing. Those don't exist today, so you'll have to Google them, but I'm not talking frozen goods!

What's that? You weren't ready to buy in 2009?

Well, that's my point; whether you're ready is more important than what the market's going to do, short term. If you can buy something that will suit you for a good few years, you should be OK, or if your'e still a bit footloose, maybe hold off for a while.

But as to the best time.....nobody knows that.

glasgowdan

The best time to buy, in the eyes of people like Crashy, is tomorrow. Always tomorrow, hence they'll spend their lives paying their landlords mortgages instead.

The actual best time to buy is when it suits YOU. If your lifestyle, family and funds suggest it's a good idea to have your own place, and the desire is there, then go for it.

My area is a very hot market and still sees those mad open days, sealed bids etc. Start watching your local market, check sold prices, see what happens. Go to a few viewings even if you're not keen as you'll learn lots about what you do and don't want.

It's an exciting time! Try not to get too stressed by it all.

always_sunny

If you don't buy now, would you live rent free somewhere?
If you could turn back time many years ago, that was the time to buy but you can't.

As long as what you're buying is within your means and plan to live in it, it's always a good time to buy!

cashbackproblems

I have just bought having been looking for a few years, as I found the right place as a reasonable price. However the last 12 months the market in my area (popular London commuter town) has been flat and slowly falling, things come on at 380k for a 2 bed and doesn't sell till it drops to around 330k.


I offered 20k below asking and got mine but still felt I paid 5-10k too much. As mentioned above set up a RM watch list for the types of properties you like and see how quick they go/price they are listed at.


With prolonged brexit and impact it will have on London financial services, this will filter through to the rest of the UK imo but slowly. I don't expect a crash just a gradual fall in prices in some areas.

westernpromise

At today's mortgage rate fixes you'll pay off 15% of the mortgage in the first five years. Assuming you put down a 5% deposit that means you can withstand a 20% price fall without going into negative equity.

What very few renters ever do is add up all the rent they'll be paying if they don't buy and compare that to the mortgage they need if they do. In pretty well every conceivable case the sum of your unfunded future rent dwarfs your mortgage costs.