Should First Time Buyers Wait

MrDT

THSHARIF wrote: »

I have been looking for 2 years a 3 bed houses simlar to this are giong for 150kminimum in surrondings areas, this house is on the border line of one of the most expensive areas in birmingham.

i dont plan on selling this house for atleast 5 years, i dont think people will drop thier prices that much in years time, they will hang on to them until prices start rising again

From what you're saying here, and the fact that your family would most likely be far happier in a larger and better located property I'd say go for it to be honest. Kinda going against the grain of this board, and as I'm hoping for prices to drop further into my range - advising people to buy is counter productinve to my personal aims, but in your position I would most likely see the purchase through and be happy in my new family home... Good luck either way

daunker

I'm about to complete (hopefully) too. I think now is a decent time to buy. You are able to negotiate 10-20% discounts on the property value which means were the market to drop you've still probably got a decent price.

I'd just make sure that once you get it you look to reducing those mortgage repayments by overpaying ASAP and putting any excess cash into doing it. Once you have paid off 20% of the mortgage or £19560 the mortgage repayments will be equivalent to renting, and you'll be in a nice area until you do manage that.

Provided you can meet the new mortgage repayments (and can overpay) I'd say go for it, quality of life is very important.
Good luck let us know how you get on.

boinging_2

daunker wrote: »

I'm about to complete (hopefully) too. I think now is a decent time to buy. You are able to negotiate 10-20% discounts on the property value which means were the market to drop you've still probably got a decent price.

Provided you can meet the new mortgage repayments (and can overpay) I'd say go for it, quality of life is very important.
Good luck let us know how you get on.

You are negotiating against an asking price not a value. The marketing dropping means asking prices will fall. I would be very worried about looking at a saving versus an asking price and thinking this will protect me against falls in prices.

To the OP - why not rent a better property? I praise the idea that you will overpay and rent out then become a landlord, no doubt having this as a pension. This is the reason the prices are about to go "Bang", everyone thinking property is an easy way to make money or a nest egg.

daunker

If you look up historic sale prices you can see the sale "value" and how that differs from the asking price, provided you base your offer as 10-20% lower than previous sale values I feel you are well protected from a downturn in the market.

That said there are some properties I would avoid, new builds and a lot of flats which have been built in the last decade for one. Location is key, put a low offer in, take advantage of the fear in the markets and buy in a good area.