Is a recession a good time to buy?

Adly812

If you’re looking to purchase without a mortgage then I would say yes this is an excellent opportunity to be cheeky with your offer and take advantage when the house prices will slowly start to lower. 

If you’re looking to buy with a mortgage I would factor in job security and watch the interest rates within the next few months and How the market Is moving 

Crashy_Time

Angela_D_3 said:

Crashy_Time said:

zv13424 said:

As someone who has jointly spent £20k in rent in the last 2 years I don’t feel now is a bad time to buy for us.
Out mortgage payments are going to be £250 less a month, we have no intention of selling quickly to make a profit - for us it’s a “forever home” or at the least a 10 year+ property.  

Negative equity didn’t really enter my head as we found a property we can easily afford and avoid continuing to throw money at our rented property.

What happens if interest rates are forced up from record lows? (I think the BOE would certainly need to have their hand forced by a crisis to raise rates, but I think the FED is increasingly uncomfortable with super low rates)

You think ?   You don't know though do you, none of us knows what goes through their frankly biazzar minds and decission making processes.   The one thing I do KNOW though is debt forces people to go to work.   Feeling invested stops people from thinking !!!!!! this the worlds gone mad I'm taking my (house deposit) savings and going to actual live instead.   That's the last thing the government wants on mass.  They will do simply anything to keep the fear installed 

The debt as social control thing is well established, you are right there, the top players make decisions that keep their money system alive, super low emergency interest rates for too long don`t bode well for that system, whatever the mortgage debt lovers on the internet might say about monthly payments (they want others to take the debt load of course because they have paid off their mortgages in many cases)

Angela_D_3

Crashy_Time said:

Angela_D_3 said:

Crashy_Time said:

zv13424 said:

As someone who has jointly spent £20k in rent in the last 2 years I don’t feel now is a bad time to buy for us.
Out mortgage payments are going to be £250 less a month, we have no intention of selling quickly to make a profit - for us it’s a “forever home” or at the least a 10 year+ property.  

Negative equity didn’t really enter my head as we found a property we can easily afford and avoid continuing to throw money at our rented property.

What happens if interest rates are forced up from record lows? (I think the BOE would certainly need to have their hand forced by a crisis to raise rates, but I think the FED is increasingly uncomfortable with super low rates)

You think ?   You don't know though do you, none of us knows what goes through their frankly biazzar minds and decission making processes.   The one thing I do KNOW though is debt forces people to go to work.   Feeling invested stops people from thinking !!!!!! this the worlds gone mad I'm taking my (house deposit) savings and going to actual live instead.   That's the last thing the government wants on mass.  They will do simply anything to keep the fear installed 

The debt as social control thing is well established, you are right there, the top players make decisions that keep their money system alive, super low emergency interest rates for too long don`t bode well for that system, whatever the mortgage debt lovers on the internet might say about monthly payments (they want others to take the debt load of course because they have paid off their mortgages in many cases)

They do bode well.  They achieve the governments exact aim of making debt an attractive proposition.  I have cash and I have debt and i'd increase the debt right now before i'd touch the cash because if it goes pear shaped the debt will be written off and I can start again in 6 years with the cash.   Debt transfers the risk 

zv13424

Crashy_Time said:

zv13424 said:

As someone who has jointly spent £20k in rent in the last 2 years I don’t feel now is a bad time to buy for us.
Out mortgage payments are going to be £250 less a month, we have no intention of selling quickly to make a profit - for us it’s a “forever home” or at the least a 10 year+ property.  

Negative equity didn’t really enter my head as we found a property we can easily afford and avoid continuing to throw money at our rented property.

What happens if interest rates are forced up from record lows? (I think the BOE would certainly need to have their hand forced by a crisis to raise rates, but I think the FED is increasingly uncomfortable with super low rates)

5 year fixed rate currently.
But also, myself and my partner are in very secure well paid industries. Our monthly mortgage payments are less than 10% of our monthly take home salary. We could deal with an increase in interest rates.
That alone wouldn’t be enough to put me off buying a house I wanted. 

As I said, it’s less a month than we pay in rent, interest rates may change but not maxing out affordability. 

All those “what ifs” wouldn’t change my decision to move from renting to ownership. 

Mickey666

Speaking as someone who has had mortgages at 8% rising to around 12% I know exactly what would happen - the market adapts and basically carries on as normal because people will always need somewhere to live.  Double-figure interest rates didn’t stop people buying houses in the past so why would it in the future?  Whatever the prevailing market conditions may be, people will always need somewhere to live - THAT’S the key driving force for the housing market.  Everything else is secondary.

Crashy_Time

Angela_D_3 said:

Crashy_Time said:

Angela_D_3 said:

Crashy_Time said:

zv13424 said:

As someone who has jointly spent £20k in rent in the last 2 years I don’t feel now is a bad time to buy for us.
Out mortgage payments are going to be £250 less a month, we have no intention of selling quickly to make a profit - for us it’s a “forever home” or at the least a 10 year+ property.  

Negative equity didn’t really enter my head as we found a property we can easily afford and avoid continuing to throw money at our rented property.

What happens if interest rates are forced up from record lows? (I think the BOE would certainly need to have their hand forced by a crisis to raise rates, but I think the FED is increasingly uncomfortable with super low rates)

You think ?   You don't know though do you, none of us knows what goes through their frankly biazzar minds and decission making processes.   The one thing I do KNOW though is debt forces people to go to work.   Feeling invested stops people from thinking !!!!!! this the worlds gone mad I'm taking my (house deposit) savings and going to actual live instead.   That's the last thing the government wants on mass.  They will do simply anything to keep the fear installed 

The debt as social control thing is well established, you are right there, the top players make decisions that keep their money system alive, super low emergency interest rates for too long don`t bode well for that system, whatever the mortgage debt lovers on the internet might say about monthly payments (they want others to take the debt load of course because they have paid off their mortgages in many cases)

They do bode well.  They achieve the governments exact aim of making debt an attractive proposition.  I have cash and I have debt and i'd increase the debt right now before i'd touch the cash because if it goes pear shaped the debt will be written off and I can start again in 6 years with the cash.   Debt transfers the risk 

Property transactions and mortgage approvals are way down from when rates were 5% though?

Crashy_Time

Mickey666 said:

Speaking as someone who has had mortgages at 8% rising to around 12% I know exactly what would happen - the market adapts and basically carries on as normal because people will always need somewhere to live.  Double-figure interest rates didn’t stop people buying houses in the past so why would it in the future?  Whatever the prevailing market conditions may be, people will always need somewhere to live - THAT’S the key driving force for the housing market.  Everything else is secondary.

People didn`t have Biggest Bubble in History size mortgages when you paid 12%.