Bad time to buy a house???

eidand

Getting_greyer said:

Now is a great time to buy.  For me.

for me as well

Scotbot

idkwhattosay said:

I'm really confused with all these threads about house prices. You either buy a house for yourself to live in or as a business investment. If you're buying for yourself then any time is the right time to buy, because you'll make it your home and you'll want to live there probably for the rest of your life. 

Not if you are a FTB. Many buy 1 or 2 bedroom properties then look to buy the forever family home as the next purchase. If you are only looking to be in the property for a couple of years it is worth considering whether the cost of buying and selling outweighs the cost of renting and any subsequent fall in property prices.  

It's  a tough call,  given the current market prices should be dropping but they are going up thanks to govt intervention. 

RelievedSheff

Scotbot said:

idkwhattosay said:

I'm really confused with all these threads about house prices. You either buy a house for yourself to live in or as a business investment. If you're buying for yourself then any time is the right time to buy, because you'll make it your home and you'll want to live there probably for the rest of your life. 

Not if you are a FTB. Many buy 1 or 2 bedroom properties then look to buy the forever family home as the next purchase. If you are only looking to be in the property for a couple of years it is worth considering whether the cost of buying and selling outweighs the cost of renting and any subsequent fall in property prices.  

It's  a tough call,  given the current market prices should be dropping but they are going up thanks to govt intervention. 

I'm not so sure that's the case anymore. First time buyers seem to be skipping a step or two nowadays and are not working up the ladder like they used too. Many just jump in with their first home being what would traditionally have been a second or third step up the ladder.

Scotbot

RelievedSheff said:

Scotbot said:

idkwhattosay said:

I'm really confused with all these threads about house prices. You either buy a house for yourself to live in or as a business investment. If you're buying for yourself then any time is the right time to buy, because you'll make it your home and you'll want to live there probably for the rest of your life. 

Not if you are a FTB. Many buy 1 or 2 bedroom properties then look to buy the forever family home as the next purchase. If you are only looking to be in the property for a couple of years it is worth considering whether the cost of buying and selling outweighs the cost of renting and any subsequent fall in property prices.  

It's  a tough call,  given the current market prices should be dropping but they are going up thanks to govt intervention. 

I'm not so sure that's the case anymore. First time buyers seem to be skipping a step or two nowadays and are not working up the ladder like they used too. Many just jump in with their first home being what would traditionally have been a second or third step up the ladder.

Yes I  have seen that happening more. A consequence of high SDLT ( pre recent holiday) making short term moves unprofitable I assume. 

RelievedSheff

Scotbot said:

RelievedSheff said:

Scotbot said:

idkwhattosay said:

I'm really confused with all these threads about house prices. You either buy a house for yourself to live in or as a business investment. If you're buying for yourself then any time is the right time to buy, because you'll make it your home and you'll want to live there probably for the rest of your life. 

Not if you are a FTB. Many buy 1 or 2 bedroom properties then look to buy the forever family home as the next purchase. If you are only looking to be in the property for a couple of years it is worth considering whether the cost of buying and selling outweighs the cost of renting and any subsequent fall in property prices.  

It's  a tough call,  given the current market prices should be dropping but they are going up thanks to govt intervention. 

I'm not so sure that's the case anymore. First time buyers seem to be skipping a step or two nowadays and are not working up the ladder like they used too. Many just jump in with their first home being what would traditionally have been a second or third step up the ladder.

Yes I  have seen that happening more. A consequence of high SDLT ( pre recent holiday) making short term moves unprofitable I assume. 

I don't know the reasoning but it does seem to be happen more now.

The developers on the estate that we are on are offering a home for everyone from small two bed semis and terraces to large five bed executive houses. The small two beds do seem to be quite popular and are sold pretty much as soon as they are released for sale but we have also noticed that a lot of the larger homes are also snapped up by first time buyers, perhaps due to the Help to Buy scheme. We have neighbours who are first timers who have jumped straight in and bought a four bed detached family home.

Scotbot

I live on an estate of 3 to 4 bed houses that is 50 years old and "tightly held".Very popular because of school catchment area.   Common for properties to come on to the market because the owners have died or gone into care homes. Kitchens, bathrooms and decor all dated. Usually snapped up by young couples who then renovate, large plots so easy to extend.  You can't get a builder to quote  round here for love nor money.

RelievedSheff

Scotbot said:

I live on an estate of 3 to 4 bed houses that is 50 years old and "tightly held".Very popular because of school catchment area.   Common for properties to come on to the market because the owners have died or gone into care homes. Kitchens, bathrooms and decor all dated. Usually snapped up by young couples who then renovate, large plots so easy to extend.  You can't get a builder to quote  round here for love nor money.

The existing estates around here are much like that which is partly why these new builds are proving so popular in my opinion.

Crashy_Time

lisyloo said:

Crashy_Time said:

lisyloo said:

Crashy_Time said:

RelievedSheff said:

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. 

And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?

I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

https://www.nationwide.co.uk/about/house-price-index/headlines

The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.

Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.

Hundreds of thousands in mortgage debt is paid off in 25 years (or less if you can manage it). Renting is perpetual. The argument for mortgage vs rent is a racing certainty. The debt also goes down in nominal terms but of course you know all that.

They won't need te revenue soon. Not sure if you've heard but we took debts in 1835 for slave reparations and paid it off in 2015.

This debt is exceptional but it will be long term.

No I don't think it can be indefinite but I do think it can be quite long term as above (google it if you don't believe it).

You don't have to become "so" invested to pay mortgage rather than rent. It's a plain and simple equation.

You don't have to become an economist you just need to make sensible decisions so that you can pay for your own home instead of paying rent to a landlord.

After a while you don't need to hope as you own equity in a house an then a whole house. That's not hope it's an asset.

As I've provided evidence of 180 year government debt, what is your evidence for the limits of monetary policy?

But they raised other revenue and created other bonds during this time to keep the country solvent? How do you think stamp duty and other tax raising relates to these "slave bonds", can you give a detailed answer please, not just wild generalisation. The idea that UK government doesn`t really need revenue soon is interesting, why bother with stamp duty etc. at all in that case? The idea that someone should plunge into negative equity at the start of the biggest recession in living memory because of some obscure and historical gov. bond that wasn`t paid off for many decades (there are plenty of other examples) is not the best financial planning IMO.

Crashy_Time

RelievedSheff said:

Scotbot said:

I live on an estate of 3 to 4 bed houses that is 50 years old and "tightly held".Very popular because of school catchment area.   Common for properties to come on to the market because the owners have died or gone into care homes. Kitchens, bathrooms and decor all dated. Usually snapped up by young couples who then renovate, large plots so easy to extend.  You can't get a builder to quote  round here for love nor money.

The existing estates around here are much like that which is partly why these new builds are proving so popular in my opinion.

Nothing to do with HTB then?

[Deleted User]

Crashy_Time said:

RelievedSheff said:

Scotbot said:

I live on an estate of 3 to 4 bed houses that is 50 years old and "tightly held".Very popular because of school catchment area.   Common for properties to come on to the market because the owners have died or gone into care homes. Kitchens, bathrooms and decor all dated. Usually snapped up by young couples who then renovate, large plots so easy to extend.  You can't get a builder to quote  round here for love nor money.

The existing estates around here are much like that which is partly why these new builds are proving so popular in my opinion.

Nothing to do with HTB then?

Please stop.....

It is getting rather annoying.