Putting an offer on a flat during Brexit votes

GRBR

Hi all- me and my partner are first time buyers in Liverpool and have found a 2 bed flat we want to buy (valued at £129k). We have a mortgage in principle until April 2019. With the recent outcome of the Brexit vote, we are now feeling uncertain about when is the 'best time' to put an offer in. Was going to do it tomorrow but now not sure!

Would appreciate anyone's thoughts on buying during Brexit uncertainty....

Sibz

My take on it is that people will still need to live in houses after brexit regardless.

People selling houses are still going to want a good price as will people buying.

I think Brexit is just another Y2K.... housing market was fine before the EU. If I was selling I certainly wouldn't be entertaining silly low bids based on brexit anymore than I would based on an earthquake, alien invasion or Alfred Hitchcocks film Birds actually happening in my neighbourhood

Bossypants

If you want to move, are confident in your financial situation and like the flat, just do it. The fallout (or lack thereof) of Brexit won't be known for at least a year, possibly longer. You could wait, but even once we are (finally) in a stable position re Brexit (or lack thereof), who knows what new crisis will be looming?

I'm in the process of buying because my current living situation does not suit me and I think I would be much more comfortable in the place I am trying to get to, regardless of Brexit nonsense. My buyers are thinking much along the same lines. We're still in the early stages and a lot may go wrong still, but if it does, I would be surprised if Brexit turned out to be the cause.

antilles

As long as you think it's a good price and you're not struggling to afford the mortgage, then just carry on and buy it. There will always be lots of people warning against buying property now in case of some upcoming crash. Then when the crash doesn't happen, they will be warning of the next one, and waiting for it to come.

It might come or it might not. But the reality is if that you're waiting for the next crash or downturn, you'll always be renting and never buy. I bought my first house in my 20s when everyone was saying it was a bad time to buy. It's worth about 3 times the price now, I've bought 2 more times since, and I've never looked back.

Crack on and enjoy your first home.

Crashy_Time

Sibz wrote: »

My take on it is that people will still need to live in houses after brexit regardless.

People selling houses are still going to want a good price as will people buying.

I think Brexit is just another Y2K.... housing market was fine before the EU. If I was selling I certainly wouldn't be entertaining silly low bids based on brexit anymore than I would based on an earthquake, alien invasion or Alfred Hitchcocks film Birds actually happening in my neighbourhood

Yes, prices were lower and transactions and mortgage approvals much higher, the only way it will be fine again is if prices drop. Buy now if you must, but be prepared to lose money, and maybe have difficulty selling in the future. FOM as it has been happening isn`t going to continue, and that alone, never mind all the other economic/political uncertainties and changes will lower prices IMO. The advice on here is always "Just buy", seemingly at any price?

ess0two

GRBR wrote: »

Hi all- me and my partner are first time buyers in Liverpool and have found a 2 bed flat we want to buy (valued at £129k). We have a mortgage in principle until April 2019. With the recent outcome of the Brexit vote, we are now feeling uncertain about when is the 'best time' to put an offer in. Was going to do it tomorrow but now not sure!

Would appreciate anyone's thoughts on buying during Brexit uncertainty....

Buy a tent.....

Marvel1

I need a house, I don't care about Brexit, so will go ahead.

Crashy_Time

AFF8879 wrote: »

For most FTBs (understandably) it is psychologically never the right time to buy. When the market is hot and prices are rising fast, then places are too expensive / there is too much perceived competition. When (like right now) its a buyers market and prices are being reduced left right and centre, then people become too nervous about prices dropping further and hold back / pull out.

The problem us that whenever the market picks up, be it because Brexit is sorted / cancelled, BTL tax reform is scaled back, or any number of things - this news is broadcast to everyone who will then jump in and take the market back to where it started...

Bottom line is that if you can see yourself living there 5+ years, can comfortably afford it and don’t have any immediate concerns around keeping employment, there’s really no reason not to go for it. But it’s tough to break through that mental barrier

Where is everyone living while they wait for the news to break? The reality is that the price of houses was driven up by availability of credit and irrational sentiment pumped up by the media, credit conditions have changed and the media is now singing from the HPC song book and the numbers of people needed to create a housing "shortage" (even although this is really just a media meme as well) won`t be there after Brexit.

shortcrust

My offer was accepted on my current house a couple of weeks before 23 June 2016. I thought it was the end of the world, but here I am with a chunk of mortgage already paid off in a house that's probably worth 10k to 15k more than I paid for it.

fussyhumanbeing

In my opinion it depends on where you're buying.

A two bed flat worth £130k in Liverpool will always have demand, irrespective of brexit. People need a home to live in and brexit should have little impact on domestic demand.

I on the other hand, have decided to stall on my purchase of a 400k+ 1 bed flat in London because I know it is the sort of property with higher levels of foreign and investor ownership - this sort of flat is more likely to drop in value due to brexit as a result of dwindling investor confidence. If I were you I would proceed as long as you've found the right place for you.

diggingdude

I wonder how much a property will have to drop before Crashy buys??

OP if you like it go for it. Nothing really to lose, at worst just think of it as paying yourself rent