Is it a good time to buy for FTB?

tony_baduk

We're both FTB and are thinking of buying a new home, is this a good time to buy?

What's the best rates going for mortages?

I'll be happy to provide further info if needed.

going2die_rich

I'd personally say wait 6 months for interest rates to drop and for house prices to drop further. I don't think you'll see a huge drop as most people will just sit tight and not sell if property prices go down, but for a first time buyer even a few hundred is a lot.

Do you have a decent deposit? Could you afford a mortgage now?

Something else to bare in mind is that when the economy does slow down, is your job safe? As when the economy slows down their are bound to be job cuts everywhere. You don't want to find you get a mortgage only to lose your job a few months down the line due to you being "expendable" compared to other staff. Obviously you can lose your job anytime but it's less secure when the economy is on a downwards turn.

tony_baduk

going2die_rich wrote: »

Do you have a decent deposit? Could you afford a mortgage now?

We have around 8k saved up and a bit more legal fees, surveying etc.

Will the mortgage interest rate drop? Sorry I'm not too familar with rates etc.

wayoflife

that is an impossible question to answer with 100% confidence. However I think they will drop at least once by the end of this year... with the credit crunch people, like you and me simply cannot afford to get on the ladder and this would lead to a crash, which the government (the people who are really making the money from property) do not want.

They will fall by the end of this year, prices will do the same

tony_baduk

Thanks guys for your help.

VFR-Rider

Interesting question... I'm in the same boat... but I am currently choosing not to buy with the added bonus that my deposit is going up faster than I've seen any house price increases in a long time

King_Of_Fools

My prediction (for what it is worth) is that you would be better off waiting at least a year to buy a house. Most people are predicting that house prices will be down at the end of 2008 (they have already been falling for the last 4 months).

movilogo

If you can afford your mortgage (allowing for interest can go up till 7% or so) and don't consider your home as investment (i.e. you'll just buy house to live there) then it is always good time to buy now!

More you speculate, more you become confused.

VFR-Rider

movilogo wrote: »

<snip>then it is always good time to buy now! <snip>

I have to disagree with this! I'm in no way saying now is a bad time to buy either.

My take on it is you are in no way looking on this purchase as an investment then there is no reason not to buy... however since you have asked the question then I would assume (yes I'm aware the implications of assuming anything these days!) that there is a financial implication? If so then many would say that it is not right to buy yet...(equally there a a few that say buy now as property only goes up!).

I think the best course of action would be as Movilogo says... if you can afford the property (only you know this & can account for interest rate hikes), and want the property then why not buy.
However you must make that choice knowing that in 6 months time it may be worth* less than you paid it may also be worth* more.


* Okay all this talk on property prices/ what homes are worth. It's really quite simple guys. A property (or any other item for that fact) is worth exactly what someone is willing to pay, this could be more or less than any historical evidence based on all number of factors, however the fact that credit is less available will mean that there will be less buyers available (alledgedly, personally I have not experienced this).

P.S.
Huge apologies for the entirely too large footnote!

Trollfever

there a a few that say buy now as property only goes up

Do they still exist?

VFR-Rider

Trollfever wrote: »

Do they still exist?

Of course... a lot of them still drive green Mini's round here