Best time to buy for me?

Dank1984

Hello, myself and my wife are finally in a position to move homes. We currently have a terrace house with approx £100k equity (worth about £180k-£200k) and we’re in the market to upsize to a detached house, approx £300k-£400k. 

My question is, would now be the best or worst time to look to move? I’ve had many people tell me that I shouldn’t because the interest rates are so high. Granted they are and we could be paying anywhere from £300-£500 per month more than what we would expect to on a more pre interest rate hike level but I also need to factor in that house prices are falling and will “bottom out” towards 2024. Would the short term loss of paying an additional £500 per month (worst case scenario) for 2 years (shortest term when hopefully rates will improve) be beneficial in the long run if house prices drop by 10% as widely reported? A 10% drop on a £400k house (£40k) is huge in comparison to what we would pay extra in interest and a net saving of £30k is to be had. 

Of course many factors need to be considered. I presume interests rates will improve after 2 years and house prices will also improve.

Id be interested to hear your opinion on this because I genuinely think it’s a great opportunity to sell our home and move but would welcome other opinions. 

Thank you.

MFWannabe

The right time to move is whenever you feel is the right time to move 
It’s like waiting for the right time to buy, that’s when it’s right for you 
Dependant on area are house prices falling? Certainly aren’t falling around our area 
Also if house prices of properties you’re interested in are falling then is your house price also falling? 

mi-key

The best time to move is when you find a house you love, and can afford to do it.  Unless you are only planning on staying there a couple of years, then the costs all even out over the lifetime of the mortgage anyway.

I wouldn't bet on a 10% drop. Maybe for some properties and some areas, but not everywhere. £400K houses tend to have different buyers anyway, who aren't as effected by mortgage rate increases etc..  

They 'may' drop 10% by the end of 2023 but if they do everywhere, you will also lose £20K on your house, so you would only save £20K on a £400K house, which as far as the mortgage payments are concerned is pretty negligable. Also, they won't drop 10% tomorrow then sit there. You would have to wait until the end of the year to see the drop, and if it doesn't happen for the £400K houses, but does for yours, then you have lost £20K for no reason. 

However, lending rates are likely to stay around the same as they are now for at least the next few years as there won't be any drastic drops in the interest rate.