Is now really a bad time to buy?

onetimeatponycamp

It's rather disappointing how this thread has degenerated. Not particularly useful for the OP, or others who are wondering the same thing.

onetimeatponycamp

Miranda25 said:

TonyMMM said:

Nationwide are raising minimum deposit to 15% for FTB ....says something about where they think house prices are headed.
https://www.theguardian.com/business/2020/jun/17/nationwide-triples-minimum-deposit-for-uk-first-time-buyers

How about help-to-buy scheme? It is clearly said 5% deposit, 20-40% equity loan and 55-75% mortgage. So for somebody who wants to buy it is still 5% deposit.
https://www.helptobuy.gov.uk/

HTB relies on HTB specific mortgages. I would have thought that lenders will continue to offer them due to the government security (as surely from the lender's point of view it is 75% or 55% LTV), but it would be interesting to get the input of the brokers here, or others more knowledgeable. 

On the other hand though, HTB prices are inflated, so I guess in that sense higher risk? I was going to buy HTB, when I felt reasonably confident that prices could at least remain the same, if not go higher - I accepted that I was over-paying at the start, but felt that the loan would still allow me to build enough equity to make it all worthwhile. However now I feel it's too much of a risk.

csgohan4

onetimeatponycamp said:

It's rather disappointing how this thread has degenerated. Not particularly useful for the OP, or others who are wondering the same thing.

Still good for popcorn and entertainment generally from the usual suspects. The world is in a crisis and some people want to take advantage of it

CinderKona

I’ve just been called by the estate agents who now want to move to the exchange stage of a house I put an offer in at the beginning of March. I am having big second thoughts now as prices seem to lowering and a huge recession and job cut bubble coming. My deposit is a third of the price.

wksd

Densol said:

MobileSaver said:

Densol said:

 Ive been carefully watching the market for almost a year
lots reduced as well or coming back on the market that were previously sold.

What's the area so we can all take a look at all these reduced properties?

Places are coming onto the market at less than they would have previously been marketed. 

Prices are reducing as can be seen on the link
Some are now coming back onto the market. 

Because I am watching a VERY specific area for my FTB son, Im going to notice slight adjustments to the market. Not huge prices crashes. Im not a lunatic believing that already, but there are definite downwards adjustments. I know you bought very recently and dont want to believe prices are reducing but that is what seems to be happening. 

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E5950&insId=1&sortType=1&minPrice=180000&maxPrice=240000&minBedrooms=2&radius=0.5&googleAnalyticsChannel=buying

So for example 2 bed flats in this area were being marketed around the £220-240k mark. They are now coming on around £205 ish or just not selling 

Chafford Hundred is increasingly becoming an undesirable area though. High crime rates, plenty of people on the local FB groups warning you to stay away and a high rate of disadvantaged children in schools. They are also MAJORLY struggling to fill teaching jobs and as a result the schools are suffering despite being considered in the 'fringe'.

csgohan4

CinderKona said:

I’ve just been called by the estate agents who now want to move to the exchange stage of a house I put an offer in at the beginning of March. I am having big second thoughts now as prices seem to lowering and a huge recession and job cut bubble coming. My deposit is a third of the price.

You can certainly lower the price, it's your future house, what would you do if they don't accept, are you going to walk away.What ever you do, ensure you won't have regrets in the years to come.

tom9980

CinderKona said:

I’ve just been called by the estate agents who now want to move to the exchange stage of a house I put an offer in at the beginning of March. I am having big second thoughts now as prices seem to lowering and a huge recession and job cut bubble coming. My deposit is a third of the price.

The thing you need to weigh up more than any other is How much is my housing going to cost me during my lifetime? renting is good if you are not in settled employment and move around a lot and it will be cheaper than moving and buying each time, but if you are settled and have good solid employment then buying can be better. Sit down and work out rent projections, mortgage costs, repair costs, moving costs for various scenario's and weigh up the pro's and con's of each. Do remember a mortgage eventually gets paid off and rent continues until death.

Miranda25

onetimeatponycamp said:

Miranda25 said:

TonyMMM said:

Nationwide are raising minimum deposit to 15% for FTB ....says something about where they think house prices are headed.
https://www.theguardian.com/business/2020/jun/17/nationwide-triples-minimum-deposit-for-uk-first-time-buyers

How about help-to-buy scheme? It is clearly said 5% deposit, 20-40% equity loan and 55-75% mortgage. So for somebody who wants to buy it is still 5% deposit.
https://www.helptobuy.gov.uk/

HTB relies on HTB specific mortgages. I would have thought that lenders will continue to offer them due to the government security (as surely from the lender's point of view it is 75% or 55% LTV), but it would be interesting to get the input of the brokers here, or others more knowledgeable. 

On the other hand though, HTB prices are inflated, so I guess in that sense higher risk? I was going to buy HTB, when I felt reasonably confident that prices could at least remain the same, if not go higher - I accepted that I was over-paying at the start, but felt that the loan would still allow me to build enough equity to make it all worthwhile. However now I feel it's too much of a risk.

Why do you think HTB prices are inflated? You pay for NEW properties.
Also read this threat: 

Using Help to Buy Equity Loan to hedge the potential price crash?

It might be helpful to you?

RelievedSheff

CinderKona said:

I’ve just been called by the estate agents who now want to move to the exchange stage of a house I put an offer in at the beginning of March. I am having big second thoughts now as prices seem to lowering and a huge recession and job cut bubble coming. My deposit is a third of the price.

You are putting down a big chunk of money for the deposit so negative equity isn't going to be a problem for you.

If this is to be a long term home any short term losses in value will over the years be regained.

You have not exchanged yet so you are free to renegotiate the price or walk away. You need to make your mind up now what you want to do. Where will you live if you don't complete this purchase?

onetimeatponycamp

Miranda25 said:

onetimeatponycamp said:

Miranda25 said:

TonyMMM said:

Nationwide are raising minimum deposit to 15% for FTB ....says something about where they think house prices are headed.
https://www.theguardian.com/business/2020/jun/17/nationwide-triples-minimum-deposit-for-uk-first-time-buyers

How about help-to-buy scheme? It is clearly said 5% deposit, 20-40% equity loan and 55-75% mortgage. So for somebody who wants to buy it is still 5% deposit.
https://www.helptobuy.gov.uk/

HTB relies on HTB specific mortgages. I would have thought that lenders will continue to offer them due to the government security (as surely from the lender's point of view it is 75% or 55% LTV), but it would be interesting to get the input of the brokers here, or others more knowledgeable. 

On the other hand though, HTB prices are inflated, so I guess in that sense higher risk? I was going to buy HTB, when I felt reasonably confident that prices could at least remain the same, if not go higher - I accepted that I was over-paying at the start, but felt that the loan would still allow me to build enough equity to make it all worthwhile. However now I feel it's too much of a risk.

Why do you think HTB prices are inflated? You pay for NEW properties.
Also read this threat: 

Using Help to Buy Equity Loan to hedge the potential price crash?

It might be helpful to you?

I have been looking at HTB properties for 2-3 years. Yes they are new (or in some cases a new conversion), but as soon as you move in they are no longer new. It's like driving a brand new car off the forecourt - the moment you move in it's not worth what you paid. You wouldn't be able to sell it on the open market for what you bought it for at that time. The whole point of the scheme is the reliance on property values going up. 

Anyway, I have done a LOT of research and thinking about the scheme, am confident I am aware of the pros and cons, and have made a decision that is personal to me. From reading your posts it doesn't seem like you know that much about the scheme so I was trying to help, but if that doesn't fit with what you want the answer to be then no problem, I wish you well.