First time buyer - wait out Brexit?

alchemist.1

All I will say is that if i hadnt bought the place nearly a year a ago i wouldn't be able to afford to buy it now.

Even with Brexit and all uncertainty prices are still increasing. If they drop in a few years time, it would even itself out with potential rent payments.

glasgowdan

Be careful who you take advice from. There are some dangerously psychotic and delusional posters on this thread who you won't know anything about if you're a new user.

Crashy_Time

ReadingTim wrote: »

So you "wait out Brexit", and it'll be a success or a failure. If it's a success then surely it can't last, whereas if it's a failure then surely things will get better soon...? All of which creates uncertainty - best wait a little longer.

Meanwhile, over the pond, Trump's decending further into dillusional paranoia and arbitrary agression - doesn't look good for global markets as he cozies up or alienates Russia, China, the middle east etc. Hold off on the house then....

Here, they'll be an election - you'll have to hold off in the run-up to that, then see what efect the new government's policies have: can the economy take more austerity? Will the Lib Dems or even Labour mount a credible opposition. And what of Scottish independence again...? Don't rush into housebuying too soon....

There will always be something which gives rise to uncertainty, and you'll only be able to call the top or bottom of a boom or bust retrospectively. But you can't buy a house in the past or in the future, so you can only do what seems right at the time.

And of course, no matter what the global situation the bank will always loan you any old amount to meet a delusional sellers demands?

Crashy_Time

Planet_Switzerland wrote: »

As someone who waited several years to buy, I'd say if you can afford a property then buy a property.


I posted my journey on another thread a few days ago so won't do that again, but basically in 2012 I had a 15% deposit and didn't buy, in 2016 I had a 35% deposit and did buy but have borrowed more than I would have in 2012.

That is what a property bubble does, the trick is not to be the one borrowing 500k for a so so house when it bursts, and interest rates in the reserve currency of the world are rising.

AdrianC

Crashy_Time wrote: »

And of course, no matter what the global situation the bank will always loan you any old amount to meet a delusional sellers demands?

Unfortunately, "No" isn't long enough on its own.

So "No, don't be a clueless muppet" will have to do.

Crashy_Time

AdrianC wrote: »

Unfortunately, "No" isn't long enough on its own.

So "No, don't be a clueless muppet" will have to do.

Is that what the bank actually said to you?

glasgowdan

Crashy_Time wrote: »

And of course, no matter what the global situation the bank will always loan you any old amount to meet a delusional sellers demands?

Stop asking STUPID questions whilst always avoiding answering any asked of you. Know nothing about house buying/selling/mortgages? Then DON'T POST on this section of the forum.

Crashy_Time

glasgowdan wrote: »

Stop asking STUPID questions whilst always avoiding answering any asked of you. Know nothing about house buying/selling/mortgages? Then DON'T POST on this section of the forum.

I wasn`t really asking, I know the answer, the ? was to help people think it through. Higher rates seem to be the only reality check that will get through to some people at this stage?

AdrianC

Crashy_Time wrote: »

I wasn`t really asking, I know the answer, the ? was to help people think it through.

Great, so you know that your question was pointless, because the answer is that they don't, and haven't for a very long while if ever.

Crashy_Time

AFF8879 wrote: »

If house prices truly crash, it will most likely be precipitated by an economic crash / deep recession. In that scenario, contrary to all the wannabe FTBs snapping up property, the likelihood is they'll have to deal with a) banks not lending, b) whether they will even have a job anymore.

And it's not as though prices would stay rock bottom forever, they would only fire right back up again as the economy picks up.

So that leaves the other negative scenario, a dip in prices after you've bought. As has been highlighted, long-term prices need to drop by more than your capital repayments to be in a negative equity scenario, and even if they do, it's extremely unlikely to last for a prolonged period. The longer any economic downturn lasts, the lower rates will go which will compensate you in the form of lower interest payments.

Point is - it's not as though a material proportion of homeowners have ever regretted purchasing, at least not for financial reasons.

The market has already stalled and is dropping, any assertions to the contrary mainly come from people trying to sell or who have just bought IME. Seeing LOTS of empty retail space in prime areas of Edinburgh, something is definitely up. All it needs is for the US to tweak rates higher or a country to come out and say it is leaving the Euro for the low interest rate scenario to run out of road. Banks NEED higher rates now, they don`t really care if your mortgage goes up or not.