Covid 19 - Should I pursue with my house purchase?

iestyn19

In the process of selling house and buying bigger, more expensive house in the South East. I have a secure job (for now) but borrowing more money (£260,000 with a deposit of around £60,000) and payments will be higher. House I am buying needs work and I have the savings to do it. The house is closer to work, my kid, and to an area I would like to live. 
I know it is very hard to answer these questions with any kind of accuracy. But I am hoping to collect some advice to help me make my decision:

1. Is this the worst time to buying a house and stretching myself financially? Are we heading for a long recession?
2. Are there any benefits to holding off and staying where I am for a while? Or am I just delaying? I am thinking about house prices here, interest rates, potential government stimulus (stamp duty incentives etc) that might be introduced after the crisis.
3. What would be the potential risks of moving mid crisis, just before a potential collapse? Is it probable that the market will face significant drops and end up with negative equity?
4. Is a request for a price reduction on my purchase justified at the moment? I could ask for some money off but I understand I then risk losing the house all together
5. What is the potential outlook for the housing market? How likely is it that after the crisis there might be backed up demand that might result in recovery? I don't want to hold off on the house I want only to next year be faced with increased competition and higher house prices.

Thank you very much for your input

timeism0ney

Very much crystal ball questions. 

Are you even able to progress your purchase at the moment? Because if not, then it might be worth waiting until you can, first. 

franklee

iestyn19 said:

In the process of selling house and buying bigger, more expensive house in the South East. I have a secure job (for now) but borrowing more money (£260,000 with a deposit of around £60,000) and payments will be higher. House I am buying needs work and I have the savings to do it. The house is closer to work, my kid, and to an area I would like to live. 
I know it is very hard to answer these questions with any kind of accuracy. But I am hoping to collect some advice to help me make my decision:

1. Is this the worst time to buying a house and stretching myself financially? Are we heading for a long recession?
2. Are there any benefits to holding off and staying where I am for a while? Or am I just delaying? I am thinking about house prices here, interest rates, potential government stimulus (stamp duty incentives etc) that might be introduced after the crisis.
3. What would be the potential risks of moving mid crisis, just before a potential collapse? Is it probable that the market will face significant drops and end up with negative equity?
4. Is a request for a price reduction on my purchase justified at the moment? I could ask for some money off but I understand I then risk losing the house all together
5. What is the potential outlook for the housing market? How likely is it that after the crisis there might be backed up demand that might result in recovery? I don't want to hold off on the house I want only to next year be faced with increased competition and higher house prices.

Thank you very much for your input

I see your concerns but I thought all discussion of house prices has been banned here while the Debate House Prices board is closed, see the message at the top of that board.

Crashy_Time

timeism0ney said:

Very much crystal ball questions. 

Are you even able to progress your purchase at the moment? Because if not, then it might be worth waiting until you can, first. 

Good advice.

Thrugelmir

Your sale and purchase are unlikely to progress at any speed, if at all. There's plenty of time before  you need to decide whether to commit to either. 

iestyn19

Everyone is ready to go and all looking to exchange and complete end of this month

Looking forward to extra wisdow reg my questions....

Comms69

To answer your questions, house prices are generally expected to fall. The market will be saturated come September.
Oct-Feb considered the worst time to sell.
That doesnt really mean anything if this is a 'forever home'. 

Thrugelmir

iestyn19 said:

Everyone is ready to go and all looking to exchange and complete end of this month

You must know something that we don't. 

GDB2222

I don’t think anyone can answer your questions as you put them. But, most people would agree that this is a very risky time. It’s entirely possible that house prices will tank. London and the SE are expensive compared to other parts of the country and house prices have been looking fragile for the last year or two. I’d say there’s considerable downside potential, whilst I would be surprised if prices rise much.

Of course, the government might stimulate the market, but I’d have thought that they would prefer to spend money elsewhere. 

Comms69

GDB2222 said:

I don’t think anyone can answer your questions as you put them. But, most people would agree that this is a very risky time. It’s entirely possible that house prices will tank. London and the SE are expensive compared to other parts of the country and house prices have been looking fragile for the last year or two. I’d say there’s considerable downside potential, whilst I would be surprised if prices rise much.

Of course, the government might stimulate the market, but I’d have thought that they would prefer to spend money elsewhere. 

Hope not, i'm looking forward to picking up a bargain next spring