First time buyer - is it a good idea to wait to buy first home with a predicted market crash?

Sarah1Mitty2

aoleks said:

london21 said:

3% 5 years fixed are non existence at present.

 aoleks said:

yes, now is probably the time to buy, if you can secure a mortgage for around 3%. fix for 5 years and you'll be laughing.

by the time this is all gone, you'll have acquired a substantial amount of equity and will have been protected from wild fluctuations in the market over the next 2-3 years.

I said around 3%, that's up to 3.99%. there are currently such deals, subject to a large enough deposit.

It will be a very large deposit by now.

lookstraightahead

jonnydeppiwish! said:

I would say it comes down to whether you’re willing to paying off someone else’s mortgage, rather than your own, in case the market goes south.

I know where I’d rather put my money.

I think it's more someone else's mortgages or interest that goes to the lender. Not much between them at the moment. What is much worse is repossession / defaulting / negative equity.

where are you putting your money with negative equity?

SuseOrm

lookstraightahead said:

jonnydeppiwish! said:

I would say it comes down to whether you’re willing to paying off someone else’s mortgage, rather than your own, in case the market goes south.

I know where I’d rather put my money.

I think it's more someone else's mortgages or interest that goes to the lender. Not much between them at the moment. What is much worse is repossession / defaulting / negative equity.

where are you putting your money with negative equity?

Negative equity is absolutely irrelevant unless you are forced to sell.  Given the majority of roles are at least hybrid now the only reason in the past where I’ve actually been forced to move house is been due to jobs simply wouldn’t happen these days those factors have been removed

SuseOrm

Sarah1Mitty2 said:

jimbog said:

Sarah1Mitty2 said:

jonnydeppiwish! said:

I would say it comes down to whether you’re willing to paying off someone else’s mortgage, rather than your own, in case the market goes south.

I know where I’d rather put my money.

As long as you remember that you can walk away from someone else`s mortgage but not your own

where then would you walk to?

Sarah1Mitty2 said:

 many landlords probably don`t even have a mortgage it isn`t really a helpful comparison in my opinion

its a moot point. The money is still in the landlord's bank account

You have to stop thinking of property as a "bank account", that is how people get into financial trouble.

So completely ignoring the question where would somebody go to then if they were walking away from their landlord‘s mortgage ?  Is that a moot point as well ? 

lookstraightahead

SuseOrm said:

lookstraightahead said:

jonnydeppiwish! said:

I would say it comes down to whether you’re willing to paying off someone else’s mortgage, rather than your own, in case the market goes south.

I know where I’d rather put my money.

I think it's more someone else's mortgages or interest that goes to the lender. Not much between them at the moment. What is much worse is repossession / defaulting / negative equity.

where are you putting your money with negative equity?

Negative equity is absolutely irrelevant unless you are forced to sell.  Given the majority of roles are at least hybrid now the only reason in the past where I’ve actually been forced to move house is been due to jobs simply wouldn’t happen these days those factors have been removed

I was talking generically, not about your own situation. 

Most people don't stay in one house for ever - lots have or want to sell. Moving area, marriage breakdown, job relocation to name a few. Negative equity certainly is relevant unless you stay in the same house in the same street in the same town in the same job .... 

and the majority of jobs are not hybrid. Some industries are. 

Cheesy77

Posted this on another thread but my take:

You've got to expect at least a pause in the market and probably a fall in prices to some degree. It's impossible to predict how much as things are moving on a daily, hourly even, basis. 

However, I think any fall would not be standard across the whole country e.g. all houses and flats will fall 20%. It's not that simple. 

I read an interesting article yesterday (link below) that explains London is particularly exposed to the potential for a significant fall. A much higher property price to income ratio, meaning people have stretched much further than average. Fewer people will be able to afford to do so now. This situation will also be applicable to other parts of the south east where prices are much higher. Yes wages are higher but the ratio of income to property price is the key factor. 

Other parts of the UK may see more modest falls or levelling out. 

It's impossible to know for sure.

https://www.telegraph.co.uk/property/house-prices/why-london-will-hardest-hit-mortgage-crisis/

Sarah1Mitty2

SuseOrm said:

lookstraightahead said:

jonnydeppiwish! said:

I would say it comes down to whether you’re willing to paying off someone else’s mortgage, rather than your own, in case the market goes south.

I know where I’d rather put my money.

I think it's more someone else's mortgages or interest that goes to the lender. Not much between them at the moment. What is much worse is repossession / defaulting / negative equity.

where are you putting your money with negative equity?

Negative equity is absolutely irrelevant unless you are forced to sell.  Given the majority of roles are at least hybrid now the only reason in the past where I’ve actually been forced to move house is been due to jobs simply wouldn’t happen these days those factors have been removed

Or want to re-mortgage, for most people it is the last place they ever want to be.