Is it stupid to buy a house right now?

blue_max_3

The can has been kicked down the road with the extension of the furlough scheme. We'll have to wait until next year, to really see the impact of all this. Some might be putting their property on the market before things get worse, some may be forced to, but the majority will likely be ok for the near future.
However, there are discounts to be had now and that means you probably have more chance of getting the property you have your eye on. In a rising market, it's much more difficult.
The old adage of 'one in the hand is worth two in the bush' comes to mind.

Crashy_Time

Splatfoot said:

Crashy_Time said:

Splatfoot said:

Moxley said:

Why is there a certain faction on here that takes it completely as read that homeowners are all desperately afraid of a price crash? I bought my home two years ago, and intend to live here for at least another decade. It makes zero difference to me whether prices go up or down in that time, as long as I continue to earn enough to keep paying my mortgage.

The HPC gang make the mistake of thinking everyone else is as obsessed with prices and getting the best deal possible as they are.

To the OP, I just echo the advice of others on this thread. As long as you feel secure in your ability to keep paying the mortgage, and expect to want to live there for a decent amount of time, it’s absolutely not silly to buy right now.

Exactly. As long as it's not just a short term property. I bought not long before the last crash and have certainly not lost. If I'd been renting for the last 13 years though, that definitely would have been around £160,000 down the drain. As well as the money aspect, there is also the security aspect. Being able to decorate, personalise and make a house a home without fearing in a few months time, you might have to leave. That's worth a million. 

Actually it isn`t, and most people don`t move rental every few months, that is just a myth people with big mortgages peddle to make themselves feel better.

Also, I didn't say every few months.  I said a few months after decorating. Being in somewhere for 5 years and having to move when your kids are settled, is even worse.

 I thought renters were not allowed to decorate, according to many posters on here anyway? The key thing about making up narratives about renting, or anything else for that matter is to stick to one believable narrative, otherwise people see it for what it is....made up nonsense from people who want you to do what they did.

Crashy_Time

blue_max_3 said:

The can has been kicked down the road with the extension of the furlough scheme. We'll have to wait until next year, to really see the impact of all this. Some might be putting their property on the market before things get worse, some may be forced to, but the majority will likely be ok for the near future.
However, there are discounts to be had now and that means you probably have more chance of getting the property you have your eye on. In a rising market, it's much more difficult.
The old adage of 'one in the hand is worth two in the bush' comes to mind.

Second wave seems nailed on now, people are just not going to obey distancing rules for much longer it seems, the government will be in trouble if they have to backstop wages next year as well, and with Brexit rumbling on could we see emergency rate hikes to protect the currency?

blue_max_3

Crashy_Time said:

Second wave seems nailed on now, people are just not going to obey distancing rules for much longer it seems, the government will be in trouble if they have to backstop wages next year as well, and with Brexit rumbling on could we see emergency rate hikes to protect the currency?

The economy is hugely complicated, but I think most commentators believe interest rates will be pretty stagnant for some time to come. Second wave? Maybe. Not sure we are done with the first just yet.
Brexit is lost in the crescendo. 
I've a dog in the fight. I have money burning a hole in my pocket, but haven't found anywhere just yet. I am watching the market daily and have for months now. I have yet to spot a solid trend. Some stuff sticks around, some is discounted (likely from optimistic pricing) and some sells relatively quickly. 
My only advice to others is know what you want and be ready to pounce when you see it. I have too many variables at the moment.

Crashy_Time

blue_max_3 said:

Crashy_Time said:

Second wave seems nailed on now, people are just not going to obey distancing rules for much longer it seems, the government will be in trouble if they have to backstop wages next year as well, and with Brexit rumbling on could we see emergency rate hikes to protect the currency?

The economy is hugely complicated, but I think most commentators believe interest rates will be pretty stagnant for some time to come. Second wave? Maybe. Not sure we are done with the first just yet.
Brexit is lost in the crescendo. 
I've a dog in the fight. I have money burning a hole in my pocket, but haven't found anywhere just yet. I am watching the market daily and have for months now. I have yet to spot a solid trend. Some stuff sticks around, some is discounted (likely from optimistic pricing) and some sells relatively quickly. 
My only advice to others is know what you want and be ready to pounce when you see it. I have too many variables at the moment.

Yes and no. When people stay indoors and stop spending, or the cheap credit dries up, the economy comes to a halt, pretty simple and pretty brutal really? Not sure why anyone would be in a desperate rush to buy property right this minute, it just isn`t that necessary for most people, because most people are already housed somewhere.

blue_max_3

Crashy_Time said:

Yes and no. When people stay indoors and stop spending, or the cheap credit dries up, the economy comes to a halt, pretty simple and pretty brutal really? Not sure why anyone would be in a desperate rush to buy property right this minute, it just isn`t that necessary for most people, because most people are already housed somewhere.

The economy has dried up. There is more damage to be done though. But as Rishi Sunak stood there and said 'we can't help everyone' and I'm one of those who has been abandoned. Haven't had a dime out of this situation.
But we self-employed are a resilient bunch and used to relying on ourselves.
Actually, riding this depression is not a time to be holding currency. They are printing money and devaluing it at an alarming rate. You really need to invest in something tangible. Like gold or property. Then it won't be linked to a dwindling resource like money.
So, there is the case for purchasing property, despite the potential for a reduction in value. Long term, it will be better than cash in the bank.
As a holder of cash, I can tell you I don't feel at all comfortable.

Crashy_Time

blue_max_3 said:

Crashy_Time said:

Yes and no. When people stay indoors and stop spending, or the cheap credit dries up, the economy comes to a halt, pretty simple and pretty brutal really? Not sure why anyone would be in a desperate rush to buy property right this minute, it just isn`t that necessary for most people, because most people are already housed somewhere.

The economy has dried up. There is more damage to be done though. But as Rishi Sunak stood there and said 'we can't help everyone' and I'm one of those who has been abandoned. Haven't had a dime out of this situation.
But we self-employed are a resilient bunch and used to relying on ourselves.
Actually, riding this depression is not a time to be holding currency. They are printing money and devaluing it at an alarming rate. You really need to invest in something tangible. Like gold or property. Then it won't be linked to a dwindling resource like money.
So, there is the case for purchasing property, despite the potential for a reduction in value. Long term, it will be better than cash in the bank.
As a holder of cash, I can tell you I don't feel at all comfortable.

Property "value" is inextricably linked to money and debt, without that it`s value is shelter, and in a world where the currency has collapsed you won`t be safe in your house any more. The way to ride out this mess is diversification and the avoidance of big debt, otherwise if you believe things are really going Pear Shaped you should be looking to buy the type of home that features in New Lives In The Wild.

blue_max_3

Crashy_Time said:

blue_max_3 said:

Property "value" is inextricably linked to money and debt, without that it`s value is shelter, and in a world where the currency has collapsed you won`t be safe in your house any more. The way to ride out this mess is diversification and the avoidance of big debt, otherwise if you believe things are really going Pear Shaped you should be looking to buy the type of home that features in New Lives In The Wild.

I disagree. The bigger the debt you have, the better off you will be if you can service that debt.
I believed that in the mid eighties, when I bought my first property and still believe it now. I don't currently own, but have considerable wealth through being an owner during that time.
In your version of armageddon, cash won't be much use either!

Crashy_Time

blue_max_3 said:

Crashy_Time said:

blue_max_3 said:

Property "value" is inextricably linked to money and debt, without that it`s value is shelter, and in a world where the currency has collapsed you won`t be safe in your house any more. The way to ride out this mess is diversification and the avoidance of big debt, otherwise if you believe things are really going Pear Shaped you should be looking to buy the type of home that features in New Lives In The Wild.

I disagree. The bigger the debt you have, the better off you will be if you can service that debt.
I believed that in the mid eighties, when I bought my first property and still believe it now. I don't currently own, but have considerable wealth through being an owner during that time.
In your version of armageddon, cash won't be much use either!

 My version of "armageddon" is that rates will rise before they allow a major currency to collapse, that will be armageddon for big debt holders. The only big debt most people have is for a house, and in a scenario where being able to service that debt is even a question people need to ask themselves, things will be so bad that the value of that house will be falling, putting them into negative equity if not repossession/bankruptcy. The best thing for people who can easily service debt and/or put up sizeable deposits is to wait for cheaper property with a lower debt load. You are banking on the PTB being able to backstop everything all the time, I think that is a dangerous assumption to make.

blue_max_3

Crashy_Time said:

 My version of "armageddon" is that rates will rise before they allow a major currency to collapse, that will be armageddon for big debt holders. The only big debt most people have is for a house, and in a scenario where being able to service that debt is even a question people need to ask themselves, things will be so bad that the value of that house will be falling, putting them into negative equity if not repossession/bankruptcy. The best thing for people who can easily service debt and/or put up sizeable deposits is to wait for cheaper property with a lower debt load. You are banking on the PTB being able to backstop everything all the time, I think that is a dangerous assumption to make.

I think this has to be my final comment in this thread as it has been derailed enough.
The government is a debtor and wants interest rates low to mitigate their debts (ever increasing).
Not sure what the PTB is, but I'm not expecting anyone to bail me out.
I've made more money through property ownership than I have ever earned. That simple fact gives me confidence that it's my best hope going forward.