Is now a good time to buy for FTBs

[Deleted User]

tbo127 said:

It’s hard to know if you buy and then you’ll regret it a couple of years later. 

But that's the very life we live, everything we buy/do is a gamble, it's about seeing it through and making adjustments to the thing/situation as we go.

strawb_shortcake

I live and work near Bristol, from talking to colleagues I'd hate to be trying to find somewhere to rent now. Rental properties going to the highest bidder. Over £1k a month for a 1 bed flat - no thank you.

To rent somewhere now which is adequate for my family and going further afield I'd be looking at £1800 minimum to get something suitable. 

I had a £50 a month increase to £503 when remortgaging in January. I'd struggle to get a single room for 1 for that money. 

Mstty

I priced up our cheapest flat we rent up.

Realistically it's worth maximum £150k. 

With a 10% deposit I ran a five year fix for the £135k over 25 years and it came out between £809-£900 and after 5 years that will have paid off £30k of the mortgage rather than that going to the LL

To add more weight to the argument buy don't wait the current going rate for said flat is over £1000 a month.

It's a financial no brainer imo for those sitting on the fence wondering whether to buy now or wait unless they are still living with mum and dad.l waiting for the sweet spot in the market just before it rises again.

Ksw3

Naturally a lot of people on mse will be viewing property ownership etc through the financial commitment. Buying a house is rightly or wrongly for most people more than an investment. 

For many years house buying was security. If you got on the ladder, in most circumstances you could stay on it. 

Buying a house might now might make the most sense financially but what price would you pay to know you wouldn't have to move your children to another school, receive your 4th S21 in 7 years, have pets, know if your boiler breaks its within your control to fix. People want agency and security and some people will pay for the privilege. 

jimbog

the reality is that for many moving back in with parents, becoming a lodger or moving into a 'cheap' rental (if any exist I shudder as to their condition) is simply not something to aspire to

Dustyevsky

jimbog said:

the reality is that for many moving back in with parents, becoming a lodger or moving into a 'cheap' rental (if any exist I shudder as to their condition) is simply not something to aspire to

It's too simplistic to see moving in with parents temporarily as a bad move. One of ours + husband has been with us for a year, but it's not exactly like being stuffed in the back bedroom. They have a couple of rooms + bathroom and as much or more space than many studio renters. Like many younger people, they spend a lot of time travelling for work or for social events, so they aren't under our feet. Sofa surfing at weekends is 'normal' for them, too. I'd hate it, but I'm old!

Because we live rurally, and the young folk were renting in Bristol previously, the rent they give us is peanuts in comparison. They've also had a chance to sample life in the sticks. The jury's still out on whether they want to relocate near here, or perhaps to one of the other places they travel to, all with different pros, cons, and price structures. If they'd purchased in our village a year ago, it would have been more of a commitment, and of course, being a marginal area, prices have already fallen here.

I'm aware our situation's not the norm. We have more space and flexibility than most, and our kids have plenty of options, but a pause at present is not necessarily a bad thing.

moneysaver

spoovy said:

tbo127 said:

It’s hard to know if you buy and then you’ll regret it a couple of years later. 

But buying a house isn't a "couple of years" arrangement, it's more like a couple of decades. Over that timescale it's very unlikely you'll regret it. 

Let's put it to the test. Are there any mortgage-free homeowners on here who wish they were still renting instead? 

I have been mortgage free for 19yrs since I was 44 year old. Been great for me, all those years of extra money to save. I am now looking to move & buy another house which will be a cash purchase +house sale because of the last 19yrs of being mortgage free. ( I did rent for a number of years before buying but managed to get on the ladder)

Moneysaver

Sarah1Mitty2

Mstty said:

spoovy said:

tbo127 said:

It’s hard to know if you buy and then you’ll regret it a couple of years later. 

But buying a house isn't a "couple of years" arrangement, it's more like a couple of decades. Over that timescale it's very unlikely you'll regret it. 

Let's put it to the test. Are there any mortgage-free homeowners on here who wish they were still renting instead? 

No, and that's the thing here owning a house and mortgage rent free is the idyllic place most would like to be. Hopefully still in full time employment enjoying all that extra money to spend and plan for the future and enjoy.

All these "don't buy" commentators on the board just don't get that.

The reality is that if you listened to that advice in the last few years you are now looking at very high monthly costs to service the debt, many people won`t be thinking about the idyllic future in 30 years when they have paid the house off they will be stressing over the monthly costs and cutbacks they now need to make, really not worth it for basic accommodation IMO, much better to wait until interest rates do their work of bringing down prices.

Sarah1Mitty2

Dustyevsky said:

jimbog said:

the reality is that for many moving back in with parents, becoming a lodger or moving into a 'cheap' rental (if any exist I shudder as to their condition) is simply not something to aspire to

It's too simplistic to see moving in with parents temporarily as a bad move. One of ours + husband has been with us for a year, but it's not exactly like being stuffed in the back bedroom. They have a couple of rooms + bathroom and as much or more space than many studio renters. Like many younger people, they spend a lot of time travelling for work or for social events, so they aren't under our feet. Sofa surfing at weekends is 'normal' for them, too. I'd hate it, but I'm old!

Because we live rurally, and the young folk were renting in Bristol previously, the rent they give us is peanuts in comparison. They've also had a chance to sample life in the sticks. The jury's still out on whether they want to relocate near here, or perhaps to one of the other places they travel to, all with different pros, cons, and price structures. If they'd purchased in our village a year ago, it would have been more of a commitment, and of course, being a marginal area, prices have already fallen here.

I'm aware our situation's not the norm. We have more space and flexibility than most, and our kids have plenty of options, but a pause at present is not necessarily a bad thing.

Good points, but even someone in a back bedroom at their parents paying minimal rent is financially well ahead of someone who is stuck with mortgage debt and rising rates for a house they might not even want to live in long term?