Is it stupid to buy a house right now?

Scotbot

The market is not behaving as expected, right now asking prices in my area are going up not down. It is a tale of 2 halves, some are going to lose their jobs and be in a right mess but equally many people in secure jobs are  much better off at the end of the month as they have nothing to spend it on. This is a 'problem' I am hearing repeatedly as many of my friends are key workers. Yes there are secure jobs out there and personal savings rose by £16 billion in April. Who knows what will happen going forward, this is an unprecedented situation and the forecasts are all over the shop.
Personally I expect a downturn in prices but not the crash some would like.  I  don't think housing is a good short term investment  but if you like a house, plan to stay in it long term and can afford it now is as good a time as any to buy.

Crashy_Time

Scotbot said:

The market is not behaving as expected, right now asking prices in my area are going up not down. It is a tale of 2 halves, some are going to lose their jobs and be in a right mess but equally many people in secure jobs are  much better off at the end of the month as they have nothing to spend it on. This is a 'problem' I am hearing repeatedly as many of my friends are key workers. Yes there are secure jobs out there and personal savings rose by £16 billion in April. Who knows what will happen going forward, this is an unprecedented situation and the forecasts are all over the shop.
Personally I expect a downturn in prices but not the crash some would like.  I  don't think housing is a good short term investment  but if you like a house, plan to stay in it long term and can afford it now is as good a time as any to buy.

Actual sold prices and transactions are all that really matter, asking prices are just for comedy value in many cases now. Most people never had much in the way of savings to start with, and people who complain of nowhere being open so they can spend are unlikely to be heavy savers anyway. A few nurses with money left over at the end of the month because things are shut won`t really be enough to bail out the economy/housing market, that runs entirely on how much the banks are willing to lend, and the appetite for borrowing, I would suspect a lot of people will now be borrowing a lot less than they had planned to.

Unicorn_cottage

Remember never listen to Crashy types. I blocked him ages ago apparently as the legend goes he never bought a house and is still waiting.

Crashy_Time

Unicorn_cottage said:

Remember never listen to Crashy types. I blocked him ages ago apparently as the legend goes he never bought a house and is still waiting.

So your Mantra should really read - "Have less debt - except for houses" ?

dani17

if it is a long term project go for it. I think no one can answer for the short/mid term. we already observed a lot of surprises during this crisis. It is even possible that we observe a price increase in the coming 3 months. It is a big mess an no one understand.

Crashy_Time

Looks like there will be less places to spend money after today`s news?

Scotbot

Crashy_Time said:

Looks like there will be less places to spend money after today`s news?

There's  a company called Amazon that is open 24/7 sells stuff from all over the world and you don't  have to leave your bedroom to shop there. No petrol costs, no parking fees, and cheaper prices thanks to no physical stores to pay for. You should try it. Of course it's  really bad news if you manage a retail mall.

jimbog

Not 'stupid' if it is the right decision for you in your circumstances at this moment

jimbog

Unicorn_cottage said:

Remember never listen to Crashy types. I blocked him ages ago apparently as the legend goes he never bought a house and is still waiting.

He did. He sold up in the 1990s anticipating a crash to pre-1990s levels. Is still waiting 

Davesnave

jimbog said:

Not 'stupid' if it is the right decision for you in your circumstances at this moment

This is it in a nutshell. You know your circumstances, so ought to be able to judge the suitability of the house for long term occupation and your likely ability to pay for it. None of us can do that for you. Everyone's life includes an element of uncertainty, but that's not necessarily a reason for following 'jam tomorrow' doctrines. For some, tomorrow never comes.