Is it a good time to buy for FTB?

greenstick

Depends if you are spending money on rent.

You need to think about how much cheaper the properties in your intended area may be in 6-12 months time, and offset that "loss" against the amount of rent you will spend in that period.

My advice...Start looking. If you fall in love with a house, buy it. If not, keep looking.

itsgototstop

tony_baduk wrote: »

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.

I'm a home owner and not looking to sell, however I do watch asking prices in my neck of the woods, I would wait a few months at least, prices here have dropped (west london) and there is not the frenzied competition ie sealed bids there was a few months ago. Even a 5% drop is alot of money on a flat or house.

Plus interest rates may fall...

Wouldn't buy now unless you have to

firsttimetom

It always amazes me when I hear people - supposed 'experts' - saying that now is a good time to buy. Rightmoves last HPI data release is a good example as they said exactly that.

It is not just a bad time to buy but it is the worst time in the last 15 years or so to buy for the following 3 reasons:

1. House prices are only fractionally lower than they were at the peak. meaning that House prices have only been higher than they are now about 4 months ago. Many are still on the market expecting to fetch those peak prices.
2. We are past the peak and on the way down, peoperty will only get cheaper from here (for the foreseeable future)
3. Mortgage rates are as high as they have been for 15 years or so again. And dispate the promse of more rate cuts, many lenders have actually RAISED the interest rates on their mortage products.

So you can buy now, but you'll be paying a large mortage on an overpriced house that will fall in value substantially. You could be in negative equity for years and unable to move or sell becuase of this.

King_Of_Fools

greenstick wrote: »

You need to think about how much cheaper the properties in your intended area may be in 6-12 months time, and offset that "loss" against the amount of rent you will spend in that period.

You also need to factor in the interest paid on a mortgage. In my experience (and backed up by recent research) the mortgage interest would be greater than the rent on an equivalent property.

Gorgeous_George

Prices may fall less rapidly than many predict (but not me).

If they fall slower than the credit dries up, you may find that the house is cheaper but less affordable or even unaffordable. Therefore, you may not find a better time to buy.

I wouldn't buy if I was a FTBer.

GG

Bf109

I have to concur that it depends on your present circumstances.

We are FTB and are seriously considering buying but this is only because we have a very large deposit and would be taking out a mortgage of between 45 to 70% LTV at no more than 2x our combined income. Plus we wont buy a place without a substanital reduction from the ask in the first place.

Therefore, we can get the best mortgage deals and have little chance of getting into negative equity.

MAYBE we could get something cheaper in 12 months time - but who knows. I have been calling the peak for years now and the market has defied all reason. I do think prices will drop now but I have thought that before so many times that now, I just dont know.

SquatNow

It all depends on how much money you want to lose.

dannyboycey

tony_baduk wrote: »

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

No.


..........

SquatNow

My answer was better.

jedk

No - you'll be very sorry if you do. But by the time you find somewhere and arrange a mortgage that will have become pretty obvious. The reason - BIG falls and soon.