Excited! But what will happen tomorrow?

Zammo

andys15 wrote: »

Answer me this zammo. A house I could afford 4 months ago has now come down in price by 20%, but I can no longer afford it, because of the mortgage rates. so you think that a house falling in value by 50% will be easily affordable. dont answer me by saying you have a big deposit, not everyone will have

If that's the case then nobody else will be able to afford them either and prices will drop even further.
:beer:
And by the way my deposit isn't big, it's absolutely huge.

A win win scenario I'm sure you'll agree.

:money:

Snooze

seabiscuit wrote: »

I'm interested what all these doom mongerers are going to do when their rent goes thro the roof as a result of the higher interest rates. The local rents where we are are still higher than our mortgage and I do wonder how anyone affords it anymore.

Well it doesn't affect me as I don't rent my main house. I rent a room in a house for when I'm on business down South but it's reasonable for the area.

Bottom line is that now is not a good time to be buying if you don't need to move. From the figures you've quoted I'm gonna take a guess that the house you're buying is about £100k and you're putting down 10% (?) so if you go through with this, in 2,3,4,5,6,7,8,9,10 (?) years time when the market bottoms out, you're going to be paying off a mortgage of £90k on a house that will then be worth £2.50.

Take the advice or leave it - your problem at the end of the day, not mine.

Rob

Almo

The attitude of some on this board of 'you're all !!!!!! heads if you don't listen to me' is so off putting.

I'm sitting on the fence as to whether the market will fall, stay static or whatever, but if you really strongly believe it will fall then couch your advice in nicer terms. No one is going to listen to someone telling them how stupid they are, so if you want people to listen to you, why not post the same message in a more constructive way? If you don't want people to listen to you, why post? This isn't aimed at anyone in particular, I'm just sick of seeing people having their dreams shot down in the cruelest way possible. Before anyone replies saying that they're trying to help, yes I can see that you think you are, but by being aggressive your message is not getting through.

I agree with Barnaby Bear, sometimes, it's not solely an economic decision. Whilst no one wants to see buyers get their fingers burnt by buying in a falling market, people have to live their lives, and may choose not to spend the next 10 years living in an increasingly expensive rental somewhere.

dopester

Almo wrote: »

I agree with Barnaby Bear, sometimes, it's not solely an economic decision. Whilst no one wants to see buyers get their fingers burnt by buying in a falling market, people have to live their lives, and may choose not to spend the next 10 years living in an increasingly expensive rental somewhere.

Maybe consider this (PDF):

If we look at the gains and losses to an average first-time buyer in each year for the past 40 years, we find that there have been some terrible years to buy.Those who bought at the peaks of bubbles made spectacularly negative returns.

Almo

I don't disagree dopester. You've highlighted my main point perfectly - you presented your point in a factual, unaggressive way. So, I took the time to read, reflect and agree with your point. Successful all round . I've learned something and you've had the pleasure of giving your advice.

I do think though, that in ANY market, there will be (a minority of) people who manage to buck the trend. I do also think that there are those who have to jump in at whatever time is right for them. I've been thinking about this: buy now, face potential negative equity. Provided (and that's a big IF) people have done their sums, and can afford rate rises, you need to ride out the storm. Yes there will be many who can't do this but some will be able to. The alternative is to sit tight, and pay increasingly higher rents, AND hope to save enough for a deposit during that time.

What I'm trying to illustrate, and perhaps not doing very well, is that we don't always know the circumstances of those on this board. Some posters give generic advice about the supposed stupidity of buying now. Then, when they are challenged about how they will buy at the bottom of the market, they respond that they're alright, they've got a huge deposit. Do you see how this is somewhat illogical? You can't give general advice on the one hand, and specific examples on the other.

I dislike the way that people jump on others and call them stupid. They're seeking advice; give it nicely.

sealady

Give the OP a break! How exciting buying a house. He did not ask for advice where it was a good time to buy or not so don't offer.

Just because you've made your money during the "high season" with your 3 houses and your mortgage being paid by the poor people who cannot get on the property ladder and now you are wondering how you are going to continue screwing those who rent by pushing up the rents to pay off more of your mortgage don't make life miserable for everyone else!

Kavanne

Good luck vwjo! There was about 1.5wks between exchange and completion for us, but only because we were awaiting some money from MiL so had to delay a little. Solicitor said he needed 5 days between exchange and completion to get mortgage company to release funds

Good luck in your new HOME. I don't care if my home is worth less than I paid for it in 5 yrs time, because I have a roof over my head and I am making it beautiful and my own (new paint, replacing carpets, putting my stamp on it) instead of some dingy furnished place or an unfurnished place you don't want to invest too much in because it's not YOURS.

maryotuam

Although it might be a more sensible move to sit tight now and wait for a couple of years before buying a property, another consideration is that we never know what fate can throw at us unexpectedly. Every day is precious so, for some people, the quality of life increase they will get from living in their own place might tip the balance and make buying now rather than later a more rational decision.

For example people with children who wish to move to a better area or acquire an extra bedroom or garden A year or two can be a long time in a child's life. Also people who have pets who face restrictions when renting. Or the onset of chronic illness might mean the ability to get a mortgage in the future disappears.

However I agree that for most people waiting at least a year will drastically reduce the price they will pay for any property.

barnaby-bear

dopester wrote: »

Maybe consider this (PDF):

Yep for the *average* FTB there have been good/bad years to buy.... 1992 great year to buy.... the fact I was 17 with only a saturday job paying £2 an hour - bit of an obstacle.... :rolleyes:

People have personal circumstances, yep two years down the line it might be cheaper financially but if this guy/lady has teenage kids on a rough estate a lot can happen between 12 and 14 or whatever, if you are in rented and have to move because the economic situation means LLs selling up etc if those kids are doing exams - more disruption, kids don't feel settled. How much would you pay to give your kids what you felt was the best most settled start or is it a case of knowing the cost of everything but the value of nothing. How much is the value of your kids not getting robbed/stabbed or reducing your kids contact with bad influences that mean they may turn into robbing little chavs?

barnaby-bear

andys15 wrote: »

here here

excellent post well said.

Nobody thanked me though