Buying House before or after Brexit? Best time?

skellington

Hi, I have the offer of buying a house at a cheap price (outright) as it needs a lot of work and doing up.

Its a property that my Girlfriend currently lives in and rents from a friend. As it needs so much work for us to do it our way/decoration, we have put in a low offer to be considered, over the next few weeks.

I am just asking, whether to do anything now (if they proceed) or wait until Brexit is out of the way (if it ever happens) due to the predicitons in the house market?

I suppose there is no rush as my gf lives in the property anyway, but I didn't know 'if' with the scaremongering and predicitons if all property takes a hit, it would become a 'buyers market' ?

I suppose I am just asking to see what others would do in my situation? I guess a 'no rush' approach at the moment due to the limbo we are all in would work?

If I do buy this property, would Brexit affect other retailers, if we were to completely re-fit a property (flooring, decoration, design, furniture?)

Thank you

foxy-stoat

I doubt the cost of a tin of paint or pack of laminate flooring will change much after 31st October.

System

I've decided to wait unless something comes along that I just cannot refuse. There's no hurry since the market is, at best, stagnant. Plus, global economic growth is sinking into recession, from which I doubt the UK will be immune. If recession hits here (which it will at one point or another), it is likely the property market will take a further hit.

hazyjo

Are you buying it to live in, or do up and sell?


I wouldn't be rushing to buy as a FTB, but don't let a good opportunity go. If you want to live together now, then buy. I certainly wouldn't put a relationship on hold to make a few more £££. There's no guarantee you'll make more dosh anyway by waiting - especially if paying rent.


Not sure what you think will happen to stores/tradespeople after Brexit? Am I missing something? Do you think they'll all go out of business, or that the price of wallpaper/paint will double, or that they're all going to leave the country and set up elsewhere?!

lisyloo

If it’s a great opportunity then I think you’d be wise to take it.

Some retailers may go out of business whether or not we have brexit.
Pay for everything you can on credit card as you’ll be covered by the card for any transactions over £100. That’s generally a good idea.
If a company wants cash I always make sure I put at least £1 on the card to cover the whole transaction.
If they don’t take cards then cash on delivery/collection, don’t pay up up front for anything.

No one knows what’s going to happen with brexit or property prices and we could well be looking at another delay.
All the time you are delaying you are both paying rent.

I wouldn’t be rushing, but if a great opportunity comes by you should take it.

datlex

I bought a year ago, prior to Brexit. No way of knowing whether house prices will go up or down. It may be different in different areas. One thing is certain though, waiting means more rent and longer before you fully own a property.

Thrugelmir

skellington wrote: »

I suppose there is no rush as my gf lives in the property anyway,

Rent is effectively dead money. Every month that goes by is a month towards purchasing a property that you would make your home.

Davesnave

Some of us doubt there will be a real Brexit. If there is, no one knows what it will mean for the property market. If you have cash, it could work out well, if mortgage constipation is rife.

That's the 'ifs.'

What's more important with a doer-upper is that you have (or can borrow) the relevant skills, money and time to renovate properly. Having recently spent 3 years in total chaos whilst renovating, it's also critical that both of you have the right mental attitude.

I have seen renovations that went wrong. It's not pretty!

Bossypants

Bearing in mind that there have already been multiple extensions to Brexit, and that, if it does ever happen, the economic repercussions will take a while to really become apparent, choosing to wait could mean waiting for quite some time.

SouthLondonUser

Thrugelmir wrote: »

Rent is effectively dead money. Every month that goes by is a month towards purchasing a property that you would make your home.

This is too simplistic a view. Each situation should be analysed on its own merit.

E.g.do you think there is a chance you might move in a few years? There are many parts of London where stamp duty alone would easily cover the cost of 2+ years of rent. If you think there's a chance of you moving in the next few years, even if property prices stay flat, then I'd argue renting can make a lot of sense.

If you think you want to stay long term in the same property, have you run some numbers to compare:

the cost of renting less what (realistically little) income you can get from investing the deposit money

vs

the cost of buying: interest payments, fixed upfront payments, stamp duty, plus/minus capital appreciation?

Note that principal repayments are NOT a cost as that's money you are repaying to yourself.

For example, there can easily be quite a few situations where, if property prices remain flat (not impossible), then it takes quite a few years before buying becomes cheaper than renting.

I am not saying I have a crystal ball, of course; I am just saying that speaking so generically is useless.

SouthLondonUser

OP, do you have the funds to carry out all the necessary work? Have you budgeted for delays and extra costs? Have you budgeted for the extra cost of paying rent and mortgage at the same time while works are being carried out?