First time buyer - wait out Brexit?

dooberry

Hi all,

I've got a bit of a dilemma and am after some advice on everyone's favourite topic - Brexit!

My wife and I have just about managed to save up enough deposit for our first house, but I'm loathed to take the plunge for at least two years so that I can see how Brexit is going to affect house prices.

My wife unfortunately doesn't share the same opinion, and argues that we're losing money the longer we wait (since house prices still seem to be on the up at the moment).

As a first time buyer who will have a large LTV, we're going to be most vulnerable to any drops in house prices so I guess what I'm asking for is some advice...

To wait, or to buy? Which is more financially prudent?

Thanks!

Victor_the_Gink

It seems like you are buying an investment, and your wife is buying a home.....

richard2511

Are you planning on buying a house and then move again in the next few years? If not, why worry? Find a house you love, buy it and spend many happy years in it.

What if you were hit by a bus in a couple of years? Cannot live your life on what ifs.

That is my two pennies worth!!

We bought a house in October on a fairly high LTV!

Crashy_Time

https://www.bloomberg.com/news/articles/2017-04-10/the-only-solution-to-britain-s-housing-crisis-may-be-a-crash

AdrianC

So - A50 has just been invoked, and it'll be at least two years before the UK actually leaves the EU. But what point in that process will you decide is the right time?

And what about after? That's when the real uncertainty and shaking-out will happen, because initially there'll just be so much of the same legislation in place. Then that'll change over the process of years. New international trade deals may or may not happen. The after-effects are going to go on for at least a decade, probably more. Never mind prices. How will your affordability change?

Sounds like you're just nervous, and trying to find something to blame it on.

MEM62

Ignoring all the doom and gloom that newspapers love to publish on the 'possible' impacts of leaving the EU, what impact are you realistically expecting Brexit to have on house prices? This is a complete non-topic methinks.

One things for sure, you need somewhere to live. The only question for you is do you want to pay rent or a mortgage?

steampowered

Uncertainty is not necessarily a bad thing for first time buyers and house prices. It means low interest rates, as the government encourages debt to maintain consumer spending.

Low interest rates mean a cheap mortgage which particularly benefit you as a first time buyer.

dooberry

Thanks for the quick replies.

I'm ultimately looking at this purchase as both a family home and an investment for the future. When you're planning on spending £250k going for just one or the other doesn't make much sense to me.

I've been keeping an eye on house price movements (I've found this tracker is especially useful - yopa.co.uk/homeowners-hub/brexit-house-prices/) ever since the vote, but there's not been much change thus far so I think I'm just going to hold out to see what's what.

Adrian makes a good point with his comment: "But what point in that process will you decide is the right time?". I agree - I think I'm going to have to set myself a firm date to decide what to do... likely a few months after Brexit's actually happened.

Crashy_Time

MEM62 wrote: »

Ignoring all the doom and gloom that newspapers love to publish on the 'possible' impacts of leaving the EU, what impact are you realistically expecting Brexit to have on house prices? This is a complete non-topic methinks.

One things for sure, you need somewhere to live. The only question for you is do you want to pay rent or a mortgage?

People going home due to Brexit and tax changes for landlords could mean a LOT of BTL property hitting the market all at the same time, meaning prices will take a hit.


https://audioboom.com/posts/5793636-sell-up-hold-or-expand

Crashy_Time

steampowered wrote: »

Uncertainty is not necessarily a bad thing for first time buyers and house prices. It means low interest rates, as the government encourages debt to maintain consumer spending.

Low interest rates mean a cheap mortgage which particularly benefit you as a first time buyer.

Doesn`t really help you if you are massively over-paying for the house though due to the property bubble, and the US go and jack up interest rates anyway? The emergency rates were to stop mass defaults in 2008, and allow people to keep maintaining their debts until the banks could be put on a more stable footing. Low rates are now HURTING the banks and Trump/Brexit provides the perfect cover for pushing them up a bit. IMO.

AdrianC

MEM62 wrote: »

Ignoring all the doom and gloom that newspapers love to publish on the 'possible' impacts of leaving the EU

And there was me, thinking it was the papers that were pushing the benefits...