Buy now or wait?

SoLongLollipops

After a pretty horrendous (to put it mildly) couple of years with bereavement and associated family drama my husband and I have decided to go travelling for a few months next year (possibly an early mid-life crisis!)

We are first time buyers and the original plan was to go travelling and then buy a house in a different area to where we are living now (rented) when we get back. In some interesting timing we leave about a week after the Brexit date.

However, advice from some friends and also a bit of general panic as the date gets closer is making us wonder if it would be better to buy somewhere before we go and either rent it out, bribe family and friends to keep a check on it or pay someone to manage it while we're away.

I guess the concern is that we'll get back, then need to find jobs, then need to be in the jobs long enough to qualify for a smallish mortgage etc. before buying. As it stands at the moment we could qualify for a mortgage with the jobs we have now and through saving and saving could put down a good deposit for the price bracket we are looking at (and would make sure we budget enough money to pay for mortgage/bills/upkeep while away).

So I guess the question is - if you were us would you head off with no ties whatsoever and hope everything falls into place upon return to the UK or would you want to put things in place beforehand so there is less to sort out when getting back to the UK?

Sorry - that was super long winded! Thanks in advance

jonnygee2

We are first time buyers and the original plan was to go travelling and then buy a house in a different area to where we are living now (rented) when we get back. In some interesting timing we leave about a week after the Brexit date

Sounds like a reasonable plan.

As it stands at the moment we could qualify for a mortgage

I disagree. You will be asked "Are you aware of any changes to your income and expenditure that are likely to affect your ability to meet your mortgage payments?" or something like this. If you are truthful, which you should be, you might not be eligible for a mortgage.

Plan A sounds much better to me. It's true you will not be able to buy as soon as you get back. But you will be able to buy a place before long if you both find employment. And you won't have a let property at home to worry about while you are away.

Also - just a thought - I've travelled extensively (6 years living and travelling abroad) and I can tell you it often breaks even the strongest of couples. And those that don't break up often end up staying abroad permanently. Just so you know.

SoLongLollipops

Thanks so much for the response.
I see what you mean about the mortgage eligibility question. Our plan, were we to buy now, would be to set aside enough money to make sure that we could cover expenses for the time we are travelling plus several months after we return. We could also put down a minimum of 50% of the total property value as a deposit.

Not sure to what extent that would help or not! Neither of us have ever applied for a mortgage before.



I hear what you are saying about travelling being tough. I have known plenty of couples break up after living out of a suitcase in close quarters for too long!
Either way returning to the UK will definitely be happening - we have lived abroad previously for 5 years and we're ready to settle down here and put down some roots (after this last bit of travelling).

jonnygee2

Our plan, were we to buy now, would be to set aside enough money to make sure that we could cover expenses for the time we are travelling plus several months after we return. We could also put down a minimum of 50% of the total property value as a deposit.

Not sure to what extent that would help or not!

Me neither, perhaps best to speak to a broker? I do think, though, that as you will have to declare you are leaving your job and you can't actually prove you will get a new one, it's going to be a problem.
Also, it sounds like a complex situation and anything difficult to input into a banks prehistoric compter system usually results in a decline.

Unless you are comfortable not declaring it of course. Which is possible, especially if you haven't booked tickets or handed your notice in.

greendoor665

Surely it's better to go off travelling without a newly purchased property to worry about. What if you want to come back earlier than planned, or stay out longer? It reduces your options and ties you down.

Being a landlord is not a completely hands off job even if you pay a letting agent to manage it for you. Surely when you're travelling you want to be as care free as possible so you have maximum flexibility. Especially after the troubles and stress you have had recently.

I wouldn't want to let out my house to a stranger if I intended to live in it after either. It sounds like you are in a good position with the deposit that you can put down so it shouldn't be too difficult to buy once you're back.

Also property purchases can drag on longer than expected - what if you're really wanting to go or you have flights booked but you're stuck in a chain waiting for completion?

It sounds like this plan to buy now is driven by fear of missing out rather than because it's the rational thing to do. I think you should go off and enjoy your travels, and then you have all the time in the world to buy somewhere when you come back. If you buy now you'll be rushing into it and could end up buying something unsuitable just to get it done.

gazzabboi

You need to show at least 6 months of income to be able to get a mortgage. Also house prices are still rising faster than interest rates. You would be best to buy now and then get a consent to let. As long as you go with a reputable firm you will be fine.

AnotherJoe

What greendoor said, go away without the hassles cost and risk of owning a property thousands of miles away - and in a different time zone which can add to the complications should a real issue arise

AFAIK house prices aren't rising faster than inflation (and even then that will be very geographically based) but even if they are, once you factor in the one off costs of letting I doubt over a year it will make any real difference.

greendoor665

Exactly. Prices are stagnant or falling slightly in many areas. They certainly aren't shooting up like they were from 2013-2016.

Amd even if they were, that's still not a good reason for OP to buy one now. They are buying a home to live in, not just a financial investment, so all aspects should be considered. All my points still stand.

It sounds like they could still easily afford to buy even if prices did rise by a couple of percent while they were away so why rush and do it now?

tlc678910

I think it's reasonably likely that house prices will at least have a wobble with Brexit so you could end up getting more for your money.

SoLongLollipops

Thanks all for taking the time to reply.
There do seem to be pros and cons in both directions. In one way the idea of travelling with no ties whatsoever is really freeing and then conversely the idea of sorting out a property and being able to just move straight into it after travelling seems freeing in a different way.
With regards to renting I think realistically this would not be an option given the timescales.
I hear what you’re saying Greendoor about fear of missing out and rushing a purchase. We wouldn’t want to just buy something in order to buy something and then regret it afterwards and, as you say, with the timescales we have it could all fall through if anything went wrong with a chain or there were delays (we do have tickets booked already to head off in April!)
I think we are leaning much more towards waiting – I think it is a fear thing of having to wait for ages and having to find a place to rent and jobs and then wait to have enough payslips to get a mortgage etc. before being able to buy.

tlc678910

Have you considered asking your current employers for a career break? If they agree you could walk straight back into your jobs on your return. If you aren't keen on your job you could still look for another either before or after getting your mortgage.