Postive thread about buying now!

war-roses

Reading your message was quite amazing. i am in exactly the same position - toddlers/grandparents and all that. This is the right time for me too. Good luck with your move. x

Scabs

Everybody is different and everyones situation is different, however if I were giving my own advice to a FTBer I would say wait.

The Nationwide stated in October 2007 that the AVERAGE house price was £186,044, just 7 months on in April 2008 they stated the AVERAGE house price was 178,555.

This is a drop of £7489 in 7 months and tomorrow it is expected to drop again. If you don't mind being in negative equity or you can honestly say you can afford to lose over 1 k a month then go for it.

I know people have different wants and needs but please dont mortgage yourself to the hilt if you can help it. I think the original OP can probably afford it but FTB'ers just wait and see.

poppy10_2

danksybaby wrote: »

im a FTB and will have a 10% deposit by august at which i hope to buy a house and i am no moron

Are you sure?

poppy10_2

halia wrote: »

In order to rent a decent place with a nice garden, close to some schools etc and nr to jobs they would have to pay rent which is at least DOUBLE the mortgage interest on a similar place they bought.

I call bullcrap on this one. Show me any area in which renting a place costs double what the mortgage interest would be on a similar property, and I'll give you my entire STR pot.
P.S. I don't have an STR pot, btw.

danksybaby

poppy10 wrote: »

Are you sure?

Absolutely positive thanks.

you dont know me do you.so keep stupid opinions to yourself.....

brit1234 i have spoke to quite a few independant mortgage advisors and they have agreed that the press are scaremongering.if you are in a stable situation and can afford the repayments then dont be scared by what people are saying about drop in prices....im sure theyll go back up
and all mortgage lenders i have had checks with were willing to accept 10% deposit on a £115,000 house. so i have no worries.

no wonder people arent selling their houses if buyers are listening to what people like you are saying.

poppy10_2

danksybaby wrote: »

i have spoke to quite a few independant mortgage advisors and they have agreed that the press are scaremongering

LOL!:rotfl::T

So you ask an independent mortgage advisor if prices are going to crash.

He has two options
1) Tell you that prices are going to fall. You get scared, and decide not to buy. He gets no commission and goes home crying to watch Top Gear in his pants.
2) Tell you that everything will be fine. You go ahead and buy, he gets his commission cheque and spends it on fine wine and hookers

Now, how "independent" do you think he will really be?

I think the debate about whether you are a moron or not is pretty much settled. :beer:

neverdespairgirl

pickles110564 wrote: »

Last time the dip lasted no more than 3 years and look how high it went.

On the average house price, you would have had to wait about 10 years if you had bought in 1989 for the house to be worth the same in real terms. Not 3 years!

halia

Caffca wrote: »

Despite all the doom and gloom about the economic climate and the "passionate" stances that members of both the HPC and HPI cliques take, I am buying a house (looking to complete end of June). I realise that house prices could/will in all likelihood drop over the next year or so and who knows after that. I won't predict how much (my crystal ball being at the repair shop) and to be honest I don't really care that much.

I want a place of my own again (over a year living with family is not ideal when you've lived away for 20 years). I didn't sell my last place to "cash" in before the bubble burst (I didn't know it would happen) I sold simply because I had the option of volunatary redundncy with a good package and decided that I wanted to move back to my home town to be nearer family.

I've put down a deposit of 35% and my mortgage is 2.9 times my income. I don't have any debts and will still have a savings pot after fees equivalent to 65% of my gross annual salary (or 85% of take home pay). I don't intend to move - ever! Apart from the last move to the crematorium by which time I really won't give a damn what's happening to house prices!

I can very comfortably afford the repayments for the 10 year fix that I have and I intend to overpay as well during this time. I also looked at what happened if interest rates rose to 10/15% when I came out of the fixed period and although it might be a bit tough - I could still afford the repayments and living expenses - I did these calculations based on my current salary so not even taking into account any pay awards over the coming years. And the monthly mortgage payments on the repayment mortgage are about the same if not less than to rent an equivalent property in this area.

Yes, life circumstances may change and I may have to sell up before I die but I can't live my life based on uncertain / unpredictable factors that may or may not result in me losing some money / equity.

Life is for living, it comes with risks and no certainties apart from taxes and death (as the saying goes). To me, the benefits of having my own place again far outweigh any potential risks that life / home-ownership may throw at me.

Good luck and enjoy your own home!

MrSafeGaz

danksybaby wrote: »

Absolutely positive thanks.

you dont know me do you.so keep stupid opinions to yourself.....

brit1234 i have spoke to quite a few independant mortgage advisors and they have agreed that the press are scaremongering.if you are in a stable situation and can afford the repayments then dont be scared by what people are saying about drop in prices....im sure theyll go back up
and all mortgage lenders i have had checks with were willing to accept 10% deposit on a £115,000 house. so i have no worries.

no wonder people arent selling their houses if buyers are listening to what people like you are saying.

You don't have to know anything about you, the opinion is still valid. You said you are going to buy in August with a 10% deposit, thats all you needed to say. I just don't understand, even if it is press scaremongering, if it drives prices down then why on earth would you buy in a falling market? Waiting another month could save you a good few grand and the same the next month.

Again, it's just the mindset that people have around property. All logic goes out the window. I don't care if it's affordable for someone to buy right now, I don't care that if someone buys now that in the long run the value will rise again. What I care about is that waiting for an extra 6 months or so to sound out a falling market could potentially save you thousands (maybe tens of thousands) of pounds. Lets be honest, for the majority of FTB's it is not going to be too much of a problem to hold off buying for 6 months.

happywarmgun

danksybaby wrote: »

brit1234 i have spoke to quite a few independant mortgage advisors and they have agreed that the press are scaremongering..

Still giggling at this. They may be 'independent' from given institutions - but they certainly are not indendependent from needing people to believe it's OK to take out a mortgage now (so that they can still pay their own)!