FTB - advice needed please.

cfar

Firstly, I know this has been asked so many times but I just can't find the answers.

Me and my partner are currently at the early stages of buying a property we love. It's a non traditional build in a great location. We haven't spent any money yet as were waiting for a few things with the valuation to be tidied up (advisor says it is all ok though)

Obviously with the current situation is it safe to continue with the purchase? A few positives and negatives;

+ We both have secure jobs and wages
+Low interest rates

- incoming recession will almost certainly put us straight into negative equity
-we could buy more for our money in a few months.

We have yet to instruct a home buyers report, do you think this will take into account the economy with the valuation? 

What is your advice please great people of MSE.

buythedip

If you really love it then scoop it up. I can’t imagine there’s any edge in trying to time the market, despite what people tell you. 

cfar

buythedip said:

If you really love it then scoop it up. I can’t imagine there’s any edge in trying to time the market, despite what people ,you. 

Thanks for your reply. Yeah we do but it's a huge financial decision for us . I'm hoping the chancellor's recent input will calm any massive depression.

buythedip

And protecting people's home payments (rent or mortgage) will help alongside job guarantees, low rates etc. I guess it depends what you mean by "safe" in the OP If it's a house you both love then I imagine you'd be less sensitive to changes in price up or down. 

MovingForwards

Unless it's a 100% mortgage, highly doubtful, you will not be straight into negative equity.

Negative equity is only a potential problem if you wanted to sell and owed more on the mortgage than it would be sold for, plus your savings.

If you like the property, your life is stable, then carry on, you want a roof over your head.

davidmcn

cfar said:

We have yet to instruct a home buyers report, do you think this will take into account the economy with the valuation?

There won't yet be reliable evidence of any adverse effect on prices, but I think surveyors are generally adding a health warning to valuations that prices may be affected in the near future.

anonymous12124

cfar said:

What is your advice please great people of MSE.

Don't buy yet - wait a few weeks to get a better understanding of how the economy. Hyperinflation is inevitable with the money he's promised to employers and there will be a knock on effect. It's possible that we get another drop in interest rates and mortgages will be more difficult to obtain.

This much we can be sure of, house prices will drop - we just don't know how much and how fast. So given it'll be the biggest thing you'll probably buy in your lifetime, I would strongly advise you wait until everyone knows more about the recession.