First Time Buyer - buy now or wait?

lookstraightahead

spoovy said:

If you can afford to buy now, buy now; trying to time the market is a mug's game. Plenty of mugs will tell you otherwise mind.

What, it's only ever about affordability? A one bed house - will the op stay there long enough etc?

Not thinking, at least, is a mugs game.

im happy for you to call me a mug 🙂

snowqueen555

I'm in the same boat. For those who have recommended to buy a 2 bed or a house, this isn't affordable for many single people. I can only afford a 1 bed right now, also a FTB in my mid 30's and been saving for 8 years, despite working 2 jobs since 2020 the prices have outstripped any savings I've made so I am in a worse position now than before.

Depending on your situation OP, I'd look at how affordable the mortgage and bills will be, how long you are willing to wait and what LTV you have.

My calculations show that the high interest rates we may face next year will outstrip any sort of house price depreciation. 

warwick2001

When I bought my first house in 2007, I was getting paid £17,047 (funny the things you remember), I got a 5 year fixed mortgage at 5.49%, and I was paying £518 a month on the repayments. It was about 40% of my actual monthly income. I know this wouldn't be allowed nowadays due to affordability checks, but I'm using this as an illustration that times have been pretty bad in the past as well.

My point is, you either bite the bullet and buy a house, or you wait for a perfect time that will never happen. I went for it, and made sacrifices until things got better (when I moved house earlier in the year I got a fixed on 2.19%). 

I do not regret my decision, buying my own house was the best thing I ever did (other than marrying and kids, obviously....).

MalMonroe

Mabsa_guy said:

Hi all,

I am 37 years old and a First Time Buyer. I have saved enough over the last few years and managed to save enough for a good deposit - about 30% to buy a decent 1 bedroom house. 

I was keen to start looking around and buy in the next few months. However, with the recent developments, I am unsure on whether I should still go ahead or wait to see what happens. My main concern is that the interest rates will continue to increase and I am worried that if I wait 1 more year, the deals will be even worse. On the other hand, I am currently renting a nice place where I have a good deal and if I wait a few more months I will be able to save even more for a deposit.

If you were a FTB in my shoes - would you buy now or wait? 

Hi, I think if you feel ready, then go for it. You have a great deposit and even if, further down the line, you find that you need a larger place then hopefully you will be able to sell at a profit and move on up. 

I have always been a heart-over head person and think that if you really want to buy something now, then you should go ahead and do it. Have a look around and see if there's anything you really like. 

Unfortunately nobody can predict the future and yes, interest rates could well sky rocket but then later they could fall. Who knows? Nobody ever, unfortunately. I've bought and sold properties in the past but have never seemed to do things at the most profitable times. Thankfully I've never been in negative equity, so never felt that I lost out. 

If I were a FTB in your shoes, I'd have a good look and see what's out there. And then I'd think about how I really feel - you should get that intuitive thing - I hope that's not just me?  I've sometimes gone against my intuition in the past and it's not been good.

Go with your gut, basically and don't try to overthink things. You could be really happy in your new home. And I do hope that will happen, it's an exciting time! 

Sarah1Mitty2

Mutton_Geoff said:

A__L said:

I would try to get a 2 bedroom property in case I ever needed more space or wanted to rent a room out in future - or the entire property.

Renting out a whole property is a business, not a sideline to home ownership. The OP might want to decide if they wish to use their money to buy a home or start a business, the two are quite separate issues but this forum is full of wannabe and accidental landlords who end up losing money/suffering grief because they didn't view lettings as a business. 

Yes, don`t get into being a loanlord, just keep saving and observe the market, don`t rely on lodgers/tenants to pay your mortgage debt, that way disaster lies.

A__L

Mabsa_guy said:

boxer234 said:

Where are you living now ? I was renting and would have been paying £300 more a month plus I have two dogs and was getting nervous about finding another rental if needed.  

I live in a houseshare with one person in London zone 4 and I only pay £650PCM with all bills included, which I think is quite good. 

A__L said:

Are you in a position to buy a 2 bed? We are first time buyers who are waiting to see if we will get a mortgage approved on a 3 bedroom house. It is a scary time but I feel like if you want to stay in the property for a long time, depending on your situation, it may be worth buying now. But then it depends how long you are willing to wait as no one can predict the market.

If I was in your position and I could buy on my own and had the funds, I would try to get a 2 bedroom property in case I ever needed more space or wanted to rent a room out in future - or the entire property.

It might be a bit of a stretch but I could potentially buy 2 bed - I would have to look for somewhere a little bit further though but it might be worth it. Just for context, I currently live in East London but I am looking to buy in Essex (somewhere commutable to London - for example Basildon or Southend)

Essex is meant to be good for commuters. My partner and I live in North London and wanted to find somewhere here but it is so unaffordable so we looked in Hertfordshire instead and a little further out. It sounds like you have a great deposit and your current rental payments are really good. I would echo what another poster said and say go with how you feel. I'm itching to get onto the property ladder and I think if I was ever in a position to be able to buy on my own instead of rent I would just do it. Our rent here is more than double yours and we pay bills on top and just feel like we are wasting money right now.