Currently living rent-free with my parents - should I buy or wait until a "better" time?

MobileSaver

Gycraig said:

lookstraightahead said:

Gycraig said:

lisyloo said:

Gycraig said:

Personally I can see houses dropping as people stop moving due to higher interest rates. I know it’s a small sample but loads of my family and friends where looking at houses but now are redecorating and sticking. 

If I was sat on a healthy deposit banking 1.5k a month I wouldn’t be buying a house in current turmoil tbh. Mortgage for the house I wanted has gone from 650 to 1150, nah thanks 

I think you are saying there will be a lack of buyers.
Doesn't this also mean a lack of sellers.

So stagnant and uncertain.
I think the risks are to the downside but not sure that lower prices automatically follow.

Maybe not but I just don’t see where people are going to pull another 4-500 a month from on top of quickly escalating energy bills as well. 

Add another 3-400 a month on the lower end mortgages, add another 1-200 a month to energy bills and suddenly couples on 40-50k are walking away from the 200k + houses they would happily have bought 6 months ago. 

Personal opinion but I lived with my wives parents while we saved a deposit, saving similar figures, if they was happy for me to stay and market was how it is now I’d probably stay another year or so see what happens. Buying a house that is potentially about to drop a lot using a mortgage with the highest rates seen in years doesn’t sound appealing 

Banks stress tested to these amounts. The mortgage rates are average at present.

it's not appealing, but no one should see their property as a money tree - it's to live in. House ownership has its ups and downs, it's just that no one has experienced 'normality' for years. It's been madness out there, with sellers just plucking prices out of thin air and buyers bidding way over and paying silly amounts. Something had to give. 

There is a massive difference between my bank stress testing me up to a 1200 pound a month on my mortgage and me and others actually wanting to pay that. 

You may not want to pay that but most people will prioritise paying for a roof over their head above paying for many other non-essential things.

Gycraig said:

Plenty of people I know who where ready for “the next step” are now staying where they are. Only time will tell but I don’t see how it’s gonna be sustainable long term to have these interest rates / energy prices before everything crashes around us.  

It would appear that people you know are not representative of the general public. The latest official housing stats are out and just last month 100,000 people bought a house which is roughly the same number who bought a house every month for the last ten years.

It always amuses me when people predict "everything crashes around us" rather than the more likely and more obvious that prices will probably just stagnate, going up a little and down a little over the next few years.

Gycraig

MobileSaver said:

Gycraig said:

lookstraightahead said:

Gycraig said:

lisyloo said:

Gycraig said:

Personally I can see houses dropping as people stop moving due to higher interest rates. I know it’s a small sample but loads of my family and friends where looking at houses but now are redecorating and sticking. 

If I was sat on a healthy deposit banking 1.5k a month I wouldn’t be buying a house in current turmoil tbh. Mortgage for the house I wanted has gone from 650 to 1150, nah thanks 

I think you are saying there will be a lack of buyers.
Doesn't this also mean a lack of sellers.

So stagnant and uncertain.
I think the risks are to the downside but not sure that lower prices automatically follow.

Maybe not but I just don’t see where people are going to pull another 4-500 a month from on top of quickly escalating energy bills as well. 

Add another 3-400 a month on the lower end mortgages, add another 1-200 a month to energy bills and suddenly couples on 40-50k are walking away from the 200k + houses they would happily have bought 6 months ago. 

Personal opinion but I lived with my wives parents while we saved a deposit, saving similar figures, if they was happy for me to stay and market was how it is now I’d probably stay another year or so see what happens. Buying a house that is potentially about to drop a lot using a mortgage with the highest rates seen in years doesn’t sound appealing 

Banks stress tested to these amounts. The mortgage rates are average at present.

it's not appealing, but no one should see their property as a money tree - it's to live in. House ownership has its ups and downs, it's just that no one has experienced 'normality' for years. It's been madness out there, with sellers just plucking prices out of thin air and buyers bidding way over and paying silly amounts. Something had to give. 

There is a massive difference between my bank stress testing me up to a 1200 pound a month on my mortgage and me and others actually wanting to pay that. 

You may not want to pay that but most people will prioritise paying for a roof over their head above paying for many other non-essential things.

Gycraig said:

Plenty of people I know who where ready for “the next step” are now staying at where they are. Only time will tell but I don’t see how it’s gonna be sustainable long term to have these interest rates / energy prices before everything crashes around us.  

It would appear that people you know are not representative of the general public. The latest official housing stats are out and just last month 100,000 people bought a house which is roughly the same number who bought a house every month for the last ten years.

It always amuses me when people predict "everything crashes around us" rather than the more likely and more obvious that prices will probably just stagnate, going up a little and down a little over the next few years.

Aren’t people buying a house now still likely to be on 2% ish mortgage offers ?/ likely to have offered a fair amount of time ago on the property ?. 

People may still move but it will be to cheaper houses in general, people buy based on a Monthly payment not the house price generally. 

Personal opinion if I had ops situation I wouldn’t be rushing out to buy houses now. I can’t see any reason for houses to rise I can see plenty of reasons for them to fall. 

May change when people come off fixed rates but my mortgage is 450 a month which will go to 670, a month the house I wanted to buy was 680 a month on old interest rates it will now be 1150. Just can’t see where most of the population are gonna get nearly double the mortgage payments from on a 200k plus house. While likely going into a recession. 

jimbog

Never underestimate what people will do to keep their own roof above their heads (part time job, lodgers, cutting out everything but the essentials).  

Many would find living with the in-laws as less than acceptable 

Remember, the cost of living crisis is affecting those who rent too

MobileSaver

Gycraig said:

MobileSaver said:

Gycraig said:

There is a massive difference between my bank stress testing me up to a 1200 pound a month on my mortgage and me and others actually wanting to pay that. 

You may not want to pay that but most people will prioritise paying for a roof over their head above paying for many other non-essential things.

Gycraig said:

Plenty of people I know who where ready for “the next step” are now staying at where they are. Only time will tell but I don’t see how it’s gonna be sustainable long term to have these interest rates / energy prices before everything crashes around us.  

It would appear that people you know are not representative of the general public. The latest official housing stats are out and just last month 100,000 people bought a house which is roughly the same number who bought a house every month for the last ten years.

It always amuses me when people predict "everything crashes around us" rather than the more likely and more obvious that prices will probably just stagnate, going up a little and down a little over the next few years.

Aren’t people buying a house now still likely to be on 2% ish mortgage offers ?/ likely to have offered a fair amount of time ago on the property ?

Possibly, who knows? Don't forget that a third of all property purchases are for cash, no mortgage involved and these people are happily putting their money where their mouth is.

Gycraig said:

People may still move but it will be to cheaper houses in general,

Where are all these cheaper houses going to come from?

MEM62

Seandlee24 said:

My main question/concern is, should I continue living at my parents, saving c.£1.5k per month and building a larger deposit whilst I "wait out" the current situation, in the hope that house prices and interest rates begin to drop in the first half of next year, or look to buy a property as soon as one comes up that I like the look of, knowing that I'm potentially overpaying in terms of both prices and potentially interest rates for fixed period? 

Unless you have a crystal ball how do you know what the future holds?  If you can get on the property market now, I would argue that you need a good reason to delay.  One thing is for sure, interest rates and house prices are unlikely to fall at the same time.    

Sarah1Mitty2

Seandlee24 said:

After 5 years living in London, I moved back in with my parents (near Manchester) in order to save the final portion of my deposit.

At present, I have about £40k saved and earn a decent salary, so getting a mortgage for the kind of properties I'm looking at won't be an issue. For a 35-year mortgage, my monthly mortgage will be around £1,200 (approx 35% of take-home pay). 

My main question/concern is, should I continue living at my parents, saving c.£1.5k per month and building a larger deposit whilst I "wait out" the current situation, in the hope that house prices and interest rates begin to drop in the first half of next year, or look to buy a property as soon as one comes up that I like the look of, knowing that I'm potentially overpaying in terms of both prices and potentially interest rates for fixed period? 

Worth saying, I'm looking for answers from a financial viewpoint. There are clearly the obvious social/cultural/expenses benefits and drawbacks of living with parents/moving out - I'm lucky in that I get on relatively well with my parents. 

Thanks in advance!

Unlikely that interest rates will drop by much, rates are rising globally now, house prices will obviously drop with the new mortgage rates, SKY this morning saying "8% to 18%" price drop predicted.

Sarah1Mitty2

Gycraig said:

lisyloo said:

Gycraig said:

Personally I can see houses dropping as people stop moving due to higher interest rates. I know it’s a small sample but loads of my family and friends where looking at houses but now are redecorating and sticking. 

If I was sat on a healthy deposit banking 1.5k a month I wouldn’t be buying a house in current turmoil tbh. Mortgage for the house I wanted has gone from 650 to 1150, nah thanks 

I think you are saying there will be a lack of buyers.
Doesn't this also mean a lack of sellers.

So stagnant and uncertain.
I think the risks are to the downside but not sure that lower prices automatically follow.

Maybe not but I just don’t see where people are going to pull another 4-500 a month from on top of quickly escalating energy bills as well. 

Add another 3-400 a month on the lower end mortgages, add another 1-200 a month to energy bills and suddenly couples on 40-50k are walking away from the 200k + houses they would happily have bought 6 months ago. 

Personal opinion but I lived with my wives parents while we saved a deposit, saving similar figures, if they was happy for me to stay and market was how it is now I’d probably stay another year or so see what happens. Buying a house that is potentially about to drop a lot using a mortgage with the highest rates seen in years doesn’t sound appealing 

Yes, but it is a classic mistake many people make in property cycles supposedly.

Gycraig

MobileSaver said:

Gycraig said:

MobileSaver said:

Gycraig said:

There is a massive difference between my bank stress testing me up to a 1200 pound a month on my mortgage and me and others actually wanting to pay that. 

You may not want to pay that but most people will prioritise paying for a roof over their head above paying for many other non-essential things.

Gycraig said:

Plenty of people I know who where ready for “the next step” are now staying at where they are. Only time will tell but I don’t see how it’s gonna be sustainable long term to have these interest rates / energy prices before everything crashes around us.  

It would appear that people you know are not representative of the general public. The latest official housing stats are out and just last month 100,000 people bought a house which is roughly the same number who bought a house every month for the last ten years.

It always amuses me when people predict "everything crashes around us" rather than the more likely and more obvious that prices will probably just stagnate, going up a little and down a little over the next few years.

Aren’t people buying a house now still likely to be on 2% ish mortgage offers ?/ likely to have offered a fair amount of time ago on the property ?

Possibly, who knows? Don't forget that a third of all property purchases are for cash, no mortgage involved and these people are happily putting their money where their mouth is.

Gycraig said:

People may still move but it will be to cheaper houses in general,

Where are all these cheaper houses going to come from?

Further down the housing pyramid ? When I was a first time buyer I bought a nice 2 bed for 138k at current rates I would have probably bought a 80k house and done some work or something, the higher up the ladder you go the more these interest rates are a kick in the face. 

The next level of house for me is going to cost triple what my current mortgage is costing me. I can’t afford that comfortably and I don’t think many families can. I’m possibly wrong but I don’t see how energy bills can quadruple, mortgages can go up 50-60 percent and house prices stay the same or go up. 

Sarah1Mitty2

Gycraig said:

MobileSaver said:

Gycraig said:

MobileSaver said:

Gycraig said:

There is a massive difference between my bank stress testing me up to a 1200 pound a month on my mortgage and me and others actually wanting to pay that. 

You may not want to pay that but most people will prioritise paying for a roof over their head above paying for many other non-essential things.

Gycraig said:

Plenty of people I know who where ready for “the next step” are now staying at where they are. Only time will tell but I don’t see how it’s gonna be sustainable long term to have these interest rates / energy prices before everything crashes around us.  

It would appear that people you know are not representative of the general public. The latest official housing stats are out and just last month 100,000 people bought a house which is roughly the same number who bought a house every month for the last ten years.

It always amuses me when people predict "everything crashes around us" rather than the more likely and more obvious that prices will probably just stagnate, going up a little and down a little over the next few years.

Aren’t people buying a house now still likely to be on 2% ish mortgage offers ?/ likely to have offered a fair amount of time ago on the property ?

Possibly, who knows? Don't forget that a third of all property purchases are for cash, no mortgage involved and these people are happily putting their money where their mouth is.

Gycraig said:

People may still move but it will be to cheaper houses in general,

Where are all these cheaper houses going to come from?

Further down the housing pyramid ? When I was a first time buyer I bought a nice 2 bed for 138k at current rates I would have probably bought a 80k house and done some work or something, the higher up the ladder you go the more these interest rates are a kick in the face. 

The next level of house for me is going to cost triple what my current mortgage is costing me. I can’t afford that comfortably and I don’t think many families can. I’m possibly wrong but I don’t see how energy bills can quadruple, mortgages can go up 50-60 percent and house prices stay the same or go up. 

Well they can`t is the answer, most sensible people are fully aware that things have changed.

Sarah1Mitty2

jimbog said:

Never underestimate what people will do to keep their own roof above their heads (part time job, lodgers, cutting out everything but the essentials).  

Many would find living with the in-laws as less than acceptable 

Remember, the cost of living crisis is affecting those who rent too

Yes, but that is people already under mortgage debt, the thread is about someone putting aside 3k every couple of months because they are living rent free at home. No one in that position should be in any hurry to join the desperate race to avoid getting repo`d.