A worried first time buyer!

Jimuth

emujuice wrote: »

I want to garden, and I want to have a home for my future kids. I'm sick of waiting!!!! I can't help but think that a lot of the people saying wait haven't rented in a long time, if ever, or they're just not the 'homey' type who don't care about how their home looks. Just a thought!

Perhaps a lot of people on here for one reason or another haven't been able to save up enough or don't want to spend £300,000 getting a 2-bed box. If you're sick of waiting, then fair enough, go buy an overpriced home, but this site the last time I looked was about money saving - and advice to wait until house prices correct is ermmmmmm moneysaving.

Why do these discussions get so defensive so quickly!

andys15

Cant agree with much of that. You cant say this is a money saving site, when people are praying on house crashes to get on the ladder, when it is guys who have only recently bought in the last year who will be screwed. I thought money saving was saving money by shopping around, putting away savings in the best banks, getting great deals on mortgages, NOT wishing some poor folk are going to lose there houses, so you can gain, swoop in and brag about how you have saved 40% on a house.
Last I looked this was a forum about house buying. I am a FTB and just because I can now afford to buy dont get on your high horse saying I should be grateful as other ftb are not in my posistion. I have had to work and make sacrafices to be in my position, no holiday in 7 years, a crappy car etc etc.

Rabiddog_2

there's a big difference on here between those who look at housing as a place to live, and those who look on it as an investment. I would say it is the wrong time to buy, unless you really want to, and have a nice fixed mortgage which is easily affordable, but equally it is great to have your own place. Most of us cannot afford to look on a house as an investment as many other factors come into the equation of when, what and where you buy. Those with two or more properties obviously have a different view as they can buy where they most assuredly would not live. And remember the housing market is like an vast ocean liner, it takes years to change direction, and when it does nothings gonna stop it (barring negative interest rates from the banks). Buy if you wish, with your eyes wide open.

Bosworth

andys15 wrote: »

A valid point, but what kind of advice is buy in 2 years.

I don't think people are saying "wait for 2 years". Just wait 3 months, 4 if you can, 5 if you can hang on. The direction the market is taking will be utterly clear by then.

I think everyone is agreed prices aren't rising, so what's the risk of waiting a couple of months vs. the risk if prices fall 30%?

Think about what you could afford if prices fell 30%.
Worth waiting a fraction longer for?

Zammo

Rabiddog wrote: »

there's a big difference on here between those who look at housing as a place to live, and those who look on it as an investment.

YAAAAWWWNNNNNN.

Gangstabird

Actually I agree with Jimmuth, Save. Then if you decide not to buy you will have a nice nest egg to blow Lol. Seriously, save and save as much as you can as you will get preferable interest rates at the very least. Good luck.

exiled_2

Jules73.
You said you didn't buy a house in 2000 because you thought prices would drop. Based on historical earnings/HP ratios, houses were undervalued in 2000 (about 3 times salary). Now you believe it is a good time to buy when the same ratio is about 7 and well above the historical average. Do you really think you are the best person to be giving out advice on the correct time to buy property when you are basically freely admitting you don't have a clue about the property market.

andys15.
you say "I bought my first house in 1999 for £45000 and at the time it was 3 times my wage, I then sold that and rented due to work. In the years that followed I couldn't afford a house so I didn't get one. Now I am getting a £240000 house which is again 3 times my wage."
According to your post you earn £80,000 a year. That would place you well within the top 10% of earners in this country, you earn over 3 times the average salary for a man in full time employment. In the southeast of england that $240000 would buy you a 3/4 bed house. Nothing special. Do you think that a person earning £80K a year should be living in an little bit better than average house. If you are very risk adverse and don't want to buy at a high multiple then that is very sensible but with a salary like that you can ride out any downturn in the market as long as you remain employed. The same is not true of the vast majority of this country.
You also say "But to be honest I am getting bored with this crash now, all the hype is becoming old news and my attitude has changed to sod it. ". Do you honestly think that is a good agrument. You are bored with this crash, SO, I am bored with paying tax but it doesn't make any difference.
you also claim to be a FTB but admit previously to having bought a house, are you the best person to be giving advice when you don't seem to know if you are a first time buyer or not.

VICKY_KIDDER. If you want to buy then buy, its your choice, But don't complain that life is unfair if you face financial difficulties in a few years time.
My advice is NOT to buy as all the historical data, the path the american property market has followed, affordability measures, economic forecasts, inflationary pressures point to a economic downturn. All this points to the strong chance of house price falls and much higher interest rates in the next 2 or 3 years. You might have a fixed rate deal but they only last for a few years. Many people will tell you things will be alright in a year or two but these tend to be the same people who a year ago said there would be no downturn in the market.
Many people on this forum are telling you that if you wait a couple of years then you can buy the same property a lot cheaper. That is most likely going to be true, however in 2 years time it will most likely be much harder to obtain a mortgage and you will have to pay a higher interest rate. In my opinion if you wait 2 or 3 years then you could still be paying a similar amount in monthly repayments; you won't be paying 50% less. Why wait then? well if you buy now using a 150K mortgage you might have a repayment mortgage of £950 a month. If you wait a few years then you might buy the same property for £110K, however the interest rate maybe 3% higher so you might have a repayment mortgage of £1150. If you buy now for a 150K then in a few years time when you come off your fixed rate you would still have to go on to the 8% rate and that would mean a monthly mortgage of £1500. The figures I have given are not meant to be 100% accurate but to just give you a flavour of what you could expect. As the economic outlook is so uncertain you have more to lose by buying now. Interest rates change over time, the amount you paid for the house always stays the same.
I believe house prices will drop significantly but I am not interested in talking the market down. The more people like you to continue to buy near the top of the market then the steeper the fall will be and that suits me fine. I am posting my opinion because the standard of advice you have received on a thread is appalling.

Capricorn_One

Bf109 wrote: »

What always amazes me is that when people are told how much they will have to pay up front then they are shocked SHOCKED! at how much money they will need.

Hello! Like £150,000 isnt a lot of money? remember the amount you are going to have to repay? And double that for the interest!

If you think £20k up front is a lot, have you even considered the remaining £300k?

I think people have lost the ability to comprehend how expensive a house is in this country. The price is astonomical!

And it's not even a great country to live in!

andys15

exiled wrote: »

.
andys15.
According to your post you earn £80,000 a year. That would place you well within the top 10% of earners in this country, you earn over 3 times the average salary for a man in full time employment. In the southeast of england that $240000 would buy you a 3/4 bed house. Nothing special. Do you think that a person earning £80K a year should be living in an little bit better than average house.


Yes I do believe I should be living in a better than average house,

You also say "But to be honest I am getting bored with this crash now, all the hype is becoming old news and my attitude has changed to sod it. ". Do you honestly think that is a good agrument.

This is not a debate, it is a fact about my feelings, I have changed my mind so many times about buying the house. In the end I have decided to take the plunge.
you also claim to be a FTB but admit previously to having bought a house, are you the best person to be giving advice when you don't seem to know if you are a first time buyer or not.

According to most mortgage lenders I am a FTB as I have not had a mortgage for so many years. Hey if you are better qualified to deem me not a FTB then technically I am not one.

Thanks for your wise words though. I look forward to your reply

Alleycat

Sorry, just flicked through. Not got experience in finance etc, but just now is so not the time to buy or even in the next 12 months as you have put in your OP. We are in a similar boat, similar income (though assume you don't also live in London). If it helps, we are sitting tight. Moving in to private rented from my folks (before OH is committed for manslaughter) for about two years, let the market settle. Decide what its going to do and then we may buy. If you can, wait aned see what happens.