Bad time to buy a house???

Windofchange

Crashy_Time said:

The majority of the public don`t have a "diverse portfolio of investments", they either have a large debt on a house they hope doesn`t fall in value, or hope to get a payout on a house they bought long ago and hope it doesn`t fall in value, not the smartest investment approach IMO.

Does it ever occur to you that people aren't buying houses for investments? The vast majority of people I would say are simply buying because they would rather own somewhere than rent / be homeless. That is the case with us - safe place near good schools to raise a family and have some security for later in life / something to pass to our children. If the price goes up over the next 25 years as I suspect it will then great, but that was so low down the list of reasons for us when it came to putting an offer in. 

OP - the decision to buy a house is personal to you, and there is probably never a good / bad time, but simply the right time. We've just exchanged on our purchase, and are planning to stay in this house into retirement / forever. What house prices do in the interim is of very little interest to me unless of course something like ill health or death forces us to sell up. So what do you do? Wrap yourself up in cotton wool and never come out of the basement - life is a game of chance. If the right house is there now and you can afford it, get on with it. Whatever may or may not happen in the future will happen. All you can be certain of is the here and now. 

Aaghh321

@Windofchange couldn't agree more. I've moved 6 times in 5 years through living abroad and returning back to the UK again. Can't wait to have a place to call my own where I'm not at the mercy of a landlord and to be able to live rent/mortgage free when I get to retirement.
OP if it feels right then it probably is... there's no magic sign that says this is a good time or not but having the security of your own place is priceless.
Negative equity isn't a real issue unless you actually need to sell for some reason.

[Deleted User]

Crashy_Time said:

Sapphire said:

LukeSlocombe said:

Years of saving means I am finally ready to buy my first home. What should be exciting times are currently filled with fear of falling in to negative equity if house prices begin to fall following the effects of Covid-19 & Brexit.

My question is should I buy now and if not when are the house prices predicted to fall?

I've been through crashes myself and they had no impact on me. I remember a time when there were rows of estate agents' signs along streets in London, and at one time some people just gave up on their properties and moved out. And London, for example, was a place where you would definitely not want to live within the living memories of some … 

You just buy what you can afford, in the best area you can afford, making sure you do not overspend, then sit tight through any crashes. 

Yes, but you didn`t know the economy would tank when you bought though, it is more or less a given that we are in the worst recession in living memory now? Buying now, even if the bank plays along because you have a big deposit, is probably quite reckless unless you are getting a really good deal?

Why do you post so much about house prices crashing? Are you hoping for a crash?

TheCheerleader

Aaghh321 said:

Negative equity isn't a real issue unless you actually need to sell for some reason.

What??! It’s a huge issue when you come to remortgage! Terrible advice.

MysteryMe

Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.

Crashy_Time

holyrottweiler said:

Crashy_Time said:

Sapphire said:

LukeSlocombe said:

Years of saving means I am finally ready to buy my first home. What should be exciting times are currently filled with fear of falling in to negative equity if house prices begin to fall following the effects of Covid-19 & Brexit.

My question is should I buy now and if not when are the house prices predicted to fall?

I've been through crashes myself and they had no impact on me. I remember a time when there were rows of estate agents' signs along streets in London, and at one time some people just gave up on their properties and moved out. And London, for example, was a place where you would definitely not want to live within the living memories of some … 

You just buy what you can afford, in the best area you can afford, making sure you do not overspend, then sit tight through any crashes. 

Yes, but you didn`t know the economy would tank when you bought though, it is more or less a given that we are in the worst recession in living memory now? Buying now, even if the bank plays along because you have a big deposit, is probably quite reckless unless you are getting a really good deal?

Why do you post so much about house prices crashing? Are you hoping for a crash?

Yes, as is half the country by this point.

Crashy_Time

Aaghh321 said:

@Windofchange couldn't agree more. I've moved 6 times in 5 years through living abroad and returning back to the UK again. Can't wait to have a place to call my own where I'm not at the mercy of a landlord and to be able to live rent/mortgage free when I get to retirement.
OP if it feels right then it probably is... there's no magic sign that says this is a good time or not but having the security of your own place is priceless.
Negative equity isn't a real issue unless you actually need to sell for some reason.

Most people with any experience of renting know that that isn`t down to your landlords though?

Crashy_Time

blue_max_3 said:

Crashy_Time said:

Highly unlikely. There is no gamble in pointing out the obvious, the economy is a debt laden mess, and we are seeing in real time how it responds to serious economic events, not scare stories dreamed up by EU VI`s. The most instructive thing from the Brexit vote for HPI worshippers though should be that people were told property would drop 40%, and they went ahead and voted for it! Some people really can`t or won`t see the obvious it seems?

My point was regarding you being right. If a drop is recorded, we need to be clear about your prediction. All properties dropping 10%? 20%? 40%? Some? A few? What timescale? 
There is potential for a significant drop. But the property market is a fickle madame. There are significant savings being hoarded away. That in itself is presenting a problem. But there are plenty of people ready to jump on board after even a minor drop.
I do think there will be areas where the local community are dependent on one or two major businesses. If they close, there is likely to be a significant impact on the towns.
Conversely, there are thriving towns with diverse populations. I think these will weather the storm rather better.
Property is still one of the best assets to hold (if your home) as part of a diverse portfolio of investments.

"Savings" are being looked at more closely now it seems......
https://www.thetimes.co.uk/article/nationwide-cracks-down-on-deposits-from-bank-of-mum-and-dad-qgtgpsrt2?wgu=270525_54264_15964548218606_b8f062fd3a&wgexpiry=1604230821&utm_source=planit&utm_medium=affiliate&utm_content=22278

RelievedSheff

MysteryMe said:

Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.

It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 

RelievedSheff

Crashy_Time said:

holyrottweiler said:

Crashy_Time said:

Sapphire said:

LukeSlocombe said:

Years of saving means I am finally ready to buy my first home. What should be exciting times are currently filled with fear of falling in to negative equity if house prices begin to fall following the effects of Covid-19 & Brexit.

My question is should I buy now and if not when are the house prices predicted to fall?

I've been through crashes myself and they had no impact on me. I remember a time when there were rows of estate agents' signs along streets in London, and at one time some people just gave up on their properties and moved out. And London, for example, was a place where you would definitely not want to live within the living memories of some … 

You just buy what you can afford, in the best area you can afford, making sure you do not overspend, then sit tight through any crashes. 

Yes, but you didn`t know the economy would tank when you bought though, it is more or less a given that we are in the worst recession in living memory now? Buying now, even if the bank plays along because you have a big deposit, is probably quite reckless unless you are getting a really good deal?

Why do you post so much about house prices crashing? Are you hoping for a crash?

Yes, as is half the country by this point.

You must live in a different half of the country to everyone else!!