Would you buy a house now there is a Covid-19 pandemic?

newbridge

If you feel your income is secure, buying would still be better than renting in long term. But make sure you don't buy at the prices advertised a week or older. Market is changing and you don't want to pay the peak prices.

MoneySeeker1

I'd do so if my income was secure. Not sure if my income wasn't secure is what it boils down to.

I'd be taking the precaution (if I needed a mortgage) of checking out what the current level of help is from the DWP towards mortgage interest if unemployment hits. I remember the era when I felt safe to buy because I knew all mortgage interest would be paid and that was for however long it was needed and paid right from the outset.

 In this day and age, then I'd want to check out the WAY less generous provisions these days (and I have a feeling that probably the state of play is something along the lines of not having the mortgage covered for some months and, once they do cover it, I believe I'm right in thinking the DWP only hands the money over as a loan - not giving it out as a grant, as previously).

jimmyjammy001

No chance, the economy is collapsing around us, even the government pumping record breaking billions of pounds in is not helping, there's emergency rate cuts down to 0% by all countries, a recession is basically guaranteed, even if your job is secure, others are not and may be forced to sell bringing down prices, if you have a small deposit that means negative equity straight away and impossible to remortgage later on, I think we are all about to find out just how much housing has been in a bubble, just going back 3-4 weeks ago everyone was saying coronavirus was a joke and there was nothing to worry about and now look at today and everything that has changed. Bailouts left right and centre, social distancing, borders closing down, list goes on. 

OldMusicGuy

We're buying a house (new build). Put the reservation fee down on March 13th and plan to complete asap. We are cash buyers in rented and want to get out of rented. Not prepared to wait around for a magical "price crash" that won't happen. What will happen is that the supply of properties will dry up as the market completely slows down, so choice will be even more limited than now. We got a good deal on our new build as were in a strong position and the developer clearly wanted to guarantee some cash flow. We will be living in it for (hopefully) 20 years so no worries if the market is flat for a while (which is the most likely outcome IMO).  

lockstock27

captaindough said:

I am in the process of buying. Application has been accepted, I have no idea what will happen but fear purchasing this property for a price that was at a recent peak that could cost considerably less in months to come...this throwing me into a negative equity situation.

I am by no means an expert on the economy and housing market so apologies in advance if my fear is not warranted. 

I was too young to fully understand the ‘great recession’ of 10 to 15 years ago, I think poor lending criteria played a fairly big part in that hence the effect it had on the property market. Will this crisis have a similar effect?

I am also concerned about this. We have just about sorted a completion date with all parties in the chain and now i'm unsure whether to back out. I begrudgingly went for the house at the price (The wife loved it, it has been refitted BUT I still thought it was overpriced) given the current situation it could drop significantly. The house we are selling is providing us with enough equity to complete this move... But this move could tap us there if we drop into negative equity.

andycorleone

Having 10-15% cash saved in the bank to buy property is a position that many would love to be now. That is why many give you superficial answers here.

A recession is imminent and therefore a decrease in property prices. This is difficult to understand because it has happened very quickly, but in about 2 months everything would be clearer. There is no doubt that the collapse of the economy will be really high in the months to come. Brexit alone was a very risky scenario. now with the incompetence showed by Boris during this crisis what can I say? 

in just a week time thousands had lost their jobs and many more to come. The Chinese investor (owners of half of London propeties)  wants their cash back.  Many older people will die. etc..  What does that mean? Many properties put on the market for a quick sale at very good prices. 

If you don't understand that, maybe is because you're already trap on a mortgage paying an overvalued property or you're one of those people who are normally walks on the street like this Corona thing is nothing and will disappear ins a few weeks. 

Unless you don't mind that with the money you can buy now in just a few months time you will get a lot more for you cash. Don't sign anything now there is no rush really.