Wait or buy it now

Shirley21

I am a first time buyer and I have been saving for many years in order to buying a property in London. However, things appears to go crazy this year with lots of overpricing property and bidding wars.

I now can afford to buy a property value at £350k and I have been looking around for two three months so far. 

I feel really tired and frustrated now. I previously made an offer on a property but someone made a higher offer very soon after my offer. To be honest, even the estate agent originally said that my offer was fair and I can get the property. It looked like people are very crazy, adding much over asking price. Of course, I don’t think it is worth to go that further so I didn’t go into a bidding war and just keep looking for other properties. 

I really don’t know what to do. I have already compromised so many of my requirements and I haven’t seen any properties which I really like. However, when I looked at those sold last year, I saw quite a lot properties that perfectly met my requirements, at least more than 5 or 6 meet my requirements. There are currently only less than 20 properties which are on sell in my preferred area and it looks like there is a significant high demand than supply. 

I am not sure whether I should compromise more and buy a one or wait for the one which I really like to be on the market. But my concern is really whether the price will keep rising in the future which will make it more impossible to buy. I'd love it go back to the level even as last year’s price level. Why there is much less properties on sale at the moment. Really need advise on it and thanks a lot. 

BTW, my rent is quite cheap now and my current living environment is quite nice. I am currently living on my own because the landlord didn’t find any other tenant to move in but I quite want to have my own flat sooner.

I keep telling myself don't get too many emotion in buying a property but now I feel quite worried whether the house price will keep rising. Any thought on this? 

RelievedSheff

Nobody knows what is going to happen to house prices. Anyone that says any different is a liar!

Only you can decide when is the right time for you to buy a property.

paulj2021

there are properties in your price range in London, I suppose it’s a matter of what you’re prepared to compromise on, such as size, garden, location, train and tube stations etc. For example there are two bed end terrace houses with gardens in zone 5 for that price (I know because I’m selling one!)

tdawber

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

RelievedSheff

tdawber said:

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

That depends how long you want to keep throwing money at rent.

The sooner you buy your own place and start paying down your mortgage the closer you get to being mortgage free.

But and it is an important but you do need to be happy with the place that you buy.

Greymug

RelievedSheff said:

tdawber said:

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

The sooner you buy your own place and start paying down your mortgage the closer you get to being mortgage free.

If you never buy, you'll always be mortgage free.

RelievedSheff

Greymug said:

RelievedSheff said:

tdawber said:

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

The sooner you buy your own place and start paying down your mortgage the closer you get to being mortgage free.

If you never buy, you'll always be mortgage free.

You will never be rent free though.

With a mortgage, you will eventually be mortgage free.

You pay your money and take your choice. Pay rent forever or pay a mortgage for 25 years and live mortgage free there after.

Shirley21

RelievedSheff said:

Nobody knows what is going to happen to house prices. Anyone that says any different is a liar!

Only you can decide when is the right time for you to buy a property.

Thanks for your response! This is actually what I am thinking about as well. I just think that I am thinking too much, especially with the current uncertain market. 

Shirley21

paulj2021 said:

there are properties in your price range in London, I suppose it’s a matter of what you’re prepared to compromise on, such as size, garden, location, train and tube stations etc. For example there are two bed end terrace houses with gardens in zone 5 for that price (I know because I’m selling one!)

Which area are you talking about? Quite keen to know it. Thanks!

Shirley21

tdawber said:

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

I know what you meant. There are of course advantages and disadvantages for both renting and buying. Personally I would prefer to buy one as you would finally have your own property with both rent free and mortgage free. 

Mickygg

Greymug said:

RelievedSheff said:

tdawber said:

It’s hard to think of moving being a positive move if you are comfortable renting at the moment. Why should you compromise in buying something else if you are happy where you are now…. Big quandary ☹️

The sooner you buy your own place and start paying down your mortgage the closer you get to being mortgage free.

If you never buy, you'll always be mortgage free.

Sure with renting you’ll be mortgage free, you’ll have more flexibility, easier to move, no worries on repairs.

However with renting you will be paying off someone else’s mortgage instead of your own, could be told to go when you are settled, difficult to decorate, unable to plan with certainty, will have to pay rent for rest of life, unable to add value ( or if you do it’s lining landlords pocket), having no asset later in life, capital appreciation. 

Yes in the UK we are obsessed with owning a house but there are valid reasons to support this. 

If you can find a property now that suits, I would buy, if you can’t then wait. I certainly wouldn’t rush into buying over fear of being priced out, that is where very expensive mistakes could be made and regretting a purchase.