Help - time to buy???

miss_kitty_5

Hi,

Can anyone give me advise on whether now is the right time to buy or waiting?

Cut long story short, getting a good deal on a flat - no deposit but also, no savings and having to repay the deposit back to relative.

However, can save up a good deposit in a year in a half....not sure what to do!!

Help!!

beingjdc

It depends what you mean by a good deal!

And where in the country, and how long you plan to live there, and how the mortgage costs will compare to renting, etc etc.

Personally I'd say if your deal is 20% off the price those flats were going for last Summer (say 30% in Leeds or Manchester, 40% in Thamesmead), and you intend to live there for at least 7 or so years, or if you moved you could rent it out and cover or nearly cover your mortgage, it's probably worth it.

If it's not that good, I'd keep saving. But you have to work out what's right for you.

Davesnave

Agree with all the above & would just add to factor in the security of your job. Looks like things will be a little less rosy on the employment front shortly.

miss_kitty_5

Thanks for the reply, not sure what you mean? I would have 95% mort for this flat in Scotland, however if I save, I could have more than 10% - would this be enough in 2 years or would it be best to buy? Baring in mind, to afford it I would need to take it out over 35 years to get on the property ladder, but after 2 year fixed rate this can go down significulty, couldn't it? At present, still staying with parents.

IveSeenTheLight

beingjdc wrote: »

It depends what you mean by a good deal!

And where in the country, and how long you plan to live there, and how the mortgage costs will compare to renting, etc etc.

Personally I'd say if your deal is 20% off the price those flats were going for last Summer (say 30% in Leeds or Manchester, 40% in Thamesmead), and you intend to live there for at least 7 or so years, or if you moved you could rent it out and cover or nearly cover your mortgage, it's probably worth it.

If it's not that good, I'd keep saving. But you have to work out what's right for you.

Quite a repsonsible reply.
You really have to look at your specific market area.
In general, prices have shown a very small drop each month for the last 5.
Some areas are still rising, others have larger drops.
No-one knows the future, everyone here will be speculating.

A good question when buying a flat is how long you envisage staying there.

If you are young and envisage staying in the city centre for maybe 10 years, then if you buy now and prices do drop, there is a very good chance that they would recover and surpass the price you paid for it.

Even if the price is lower, then actually this means that buying a larger house will mean there is less difference between your flat and the house.

Look at your area, but if you plan to be in for 5-10 years, the concern at the moment over house prices may not affect you

i would be concerned a little however that you say no deposit and no savings but you would have to pay back the deposit to a relative.

In this case, I don't think you are ready to buy as you have no experience of housing costs and have not been able to save any money for the deposit.

Go rent for 6 months to a year, learn the costs of living and then re-investigate the affordability of buying

miss_kitty_5

Ps - dont think the employment factor would be a problem, just not sure if I would make a profit whilst saving up not buying or get a better deal, in 2 years with the money saved. Thanks.

IveSeenTheLight

miss_kitty wrote: »

Thanks for the reply, not sure what you mean? I would have 95% mort for this flat in Scotland, however if I save, I could have more than 10% - would this be enough in 2 years or would it be best to buy? Baring in mind, to afford it I would need to take it out over 35 years to get on the property ladder, but after 2 year fixed rate this can go down significulty, couldn't it? At present, still staying with parents.

Ok, now I think this thread is a joke.

If you are to have an amortization period starting at 35 years with no deposit (or deposit and debt to relative) and no savings

Dont do it, walk away and save some more

miss_kitty_5

I have been thinking that but think would it be better to repay her, interest free or the banks? I can afford it just..I would imagine staying there for 3 years + (at least that way I will be on the property ladder??)

LilacPixie

miss_kitty wrote: »

Hi,

Can anyone give me advise on whether now is the right time to buy or waiting?

Cut long story short, getting a good deal on a flat - no deposit but also, no savings and having to repay the deposit back to relative.

However, can save up a good deposit in a year in a half....not sure what to do!!

Help!!

Depends on where in Scotland. What size flat, what cost??

The !!! has literally fell out of the luxury/executive type flats in most major scottish cities. The fact you would need a 95% mortgage over 35 years makes me think spend the next 2 years saving and see what happens. I personally thing property in scotland (especially flats) won't crash thru the floor but i do think prices will stay pretty much as they are for the next 2-3 years.

IveSeenTheLight

miss_kitty wrote: »

I have been thinking that but think would it be better to repay her, interest free or the banks? I can afford it just.....I would imagine staying there for 3 years +

Dont do it, walk away.
I still don't think this post is genuine but the fact you have presented shows you can't afford it.

You say you can afford to repay your relative, however you would need to have a 35 year mortgage to afford the payments.

Go rent for a year, save some money and then re-look at the situation

miss_kitty_5

One bedroom flat is Scotland - Yes this post is genuine. And i'm a first time buyer, so i'm unaware of the rates etc but I am aware of what I would need to pay out and this would be my priority. I'm just needing advise to whether getting on the property ladder now to buy a one bedroom flat would be the best time to due credit crunches (I have good credit ratings) or wait until I save (but 1) - woudl this be more difficult to get a flat and 2) would you need more than a 10% deposit??