Concerned about house prices dropping - should I buy or wait

Sarah1Mitty2

jj_43 said:

its already worth less than your offer, you have stated strong reasons why its not the right time for you. 

Yes, that really brings home the reality of the situation we are in. The less debt you start off with the better off you will be longer term.

pptdgc

Ramouth said:

If I were you I would create a spreadsheet to look at various scenarios and calculate total costs.  I.e. A, buy now on good rate for 5 years house prices stagnate = x capital in property - cost of mortgage.  B, buy now on good rate for 5 years property prices fall by 10% = x capital in property - cost of mortgage.  C, don’t buy now, buy in 2 years time at 6% rate house prices haven’t fallen = x capital in property - cost of mortgage - rent.  D, don’t buy now, buy in 2 years time house prices have fallen by 10% = x capital in property - cost of 2 years rent - cost of mortgage.  

You can test out various predictions for house prices and interest rates to see in which sceanarios you would be better off and then have a think about which you feel are more likely to occur.

Personally I prefer to own than rent as I like the certainty so may be biased but would not be surprised to find that continuing with your purchase comes out quite well in many cases.

Thank you, great advice. I'm going to create this tonight and see how it looks in terms of total costs.

Sarah1Mitty2

Yes the spreadsheet idea is a good one, you will see things more clearly then.