Excited! But what will happen tomorrow?

seabiscuit_2

Snooze wrote: »

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

Im intrigued by this advice. Looking at the last recession as a basic started guide. House price in my area barely moved. I remember looking at a website with prices on it and I seem to remember no house price lost more than 25%.

Now I know this is no guide for what may or may not happen now. But when you think how much prices have gone up since then it makes a no brainer.

If you are buying to live in for the duration, then it seems odd to pay a higher rent than buy with a lower mortgage.

My parents bought their last house in the early 70's. They were told they were mad to buy it at the top of the market. They paid 7000. Whose to say what is mad.

Thing is, inflation means that eventually house prices will recover, and will increase.

The losers in this are those who have to move, get a 100% mortgage and overpay for their house. For them I have sympathy.

The BTL who lose out, I have no sympathy for as it was them who drove the market so high to start with

carolt

Appreciate you want to move - but why not rent elsewhere?

Not quite clear why you view the only alternative to renting a !!!!!! council flat to be buying an overvalued property in a market that is blatantly crashing?

I rent privately, have kids - so do lots of other people. Why can't you? You can pick your area and you don't get dreadful neighbours.

And best of all, the most you can ever lose is the cost of your deposit....

Plus you save the (not insubstantial) difference between the cost of monthly mortgage payments and your rent; contrary to what seabiscuit claims, rent is far cheaper in nearly all areas.

Sorry, can't see why you feel you need to rent now, or that buying in the current market is desirable/something to be thrilled about.

I'm not buying now because I don't like reading headlines several times a month telling me how much the value of my house has gone down and how much money I've lost.

2.5% in 1 month - how much are you going to lose in a year?????

If you can't buy because of the credit crunch and unavailability of mortgages, that should be telling you something. Banks haven't stopped lending because they're moody or it's the time of the month or something; they've stopped because they know there is a very large chance they will lose money; as prices fall, if they have to repossess your house, they won't be able to sell it for anything like what you paid for it. I don't want to buy until prices have fallen sufficiently that's not a risk. Once prices have bottomed out, banks will want to lend again; that's their business, that's how they make money. Until then, remember - there's a damn good reason banks don't want to give you a mortgage.

puddy

firstly, i assume that the op is buying a 'home' for herself and her children, not an investment. that is more valuable to her than what may or may not happen with house prices.

we also dont know and its none of our business how long a period her mortgage is over, therefore, all the people saying she'll still owe 90k in 10 years time are making a big assumption. she might be taking out a 15 year mortgage for all you know.

thirdly, over the course of 10 years, any falls now, will I believe have evened out, but thats just my opinion.

why should she continue renting (even if she moved to privately rented property), when she has the means and desire to have something that is hers, that she owns, that her children can identify with as home

i say good luck and well done, and the minute you walk through the doors with your own keys, you'll burst into tears at the emotion of it (thats what happened to me anyway!)

TT1_3

Good luck VWJO, hope you love your new place.

I hope all those waiting around predicting a HUGE crash are happy counting their money when they buy their cheap houses. If there is a big crash (which there won't be :dance: ) all the best houses on the street will immediately go up for sale for peanuts won't they :rolleyes2

Before i go, i've got a time saving tip for everyone. Has nobody noticed how neverdespairgirl just goes around all the threads thanking the doom and gloom merchants for their doom and gloom posts, without actually contributing anything? Very, very sad!
So, click to see whos thanked and you'll get the general jist of the post straight away without having to read it!

***TT1 sits and waits for the doom and gloom merchants to mention repossessions***

Reds-on-Sea

jenner wrote: »

firstly, i assume that the op is buying a 'home' for herself and her children, not an investment. that is more valuable to her than what may or may not happen with house prices.

we also dont know and its none of our business how long a period her mortgage is over, therefore, all the people saying she'll still owe 90k in 10 years time are making a big assumption. she might be taking out a 15 year mortgage for all you know.

thirdly, over the course of 10 years, any falls now, will I believe have evened out, but thats just my opinion.

why should she continue renting (even if she moved to privately rented property), when she has the means and desire to have something that is hers, that she owns, that her children can identify with as home

i say good luck and well done, and the minute you walk through the doors with your own keys, you'll burst into tears at the emotion of it (thats what happened to me anyway!)

I agree People that choose to buy now aren't bad people. I don't understand why people take it so personally. If someone is in a position to buy, then fair enough. Someone on here said there's more to life than money, well that's the way I see it too. And the money that people do have is theirs to spend as they please. Nobody here is silly enough to deny that the market is falling, (though by how much seems to be a matter of discussion) and we've all taken this into account when buying. You may deny that buying, as opposed to renting doesn't make sense, but would you all call a rich man dying of dehyration 'stupid' for paying £2 for a £1 bottle of water?

geoffky

The best thing is these people are lucky as they have been warned but what about the people who are doing no research what so ever and are walking blindly into the biggest wealth lesson they will ever have.

It cost me 50 thousand pounds of hard earned money for me to learn my lesson in the last crash because thats what i owed as shortfall after i lost the house

.Ten whole years it took me to pay back and i never wish to be or will i be in that position ever again just because of a few bricks and morter.

I never thought it could happen to me as i thought my job was safe at the time but hey you never know whats around the corner(unless your warned)

so to all you people buying now i would really take a long long look at the market and you will find all is not well and if the economy reacts to the markets well you might find your self on the list of not wanted anymore
If you are you will find that the banks are no longer your friend.and your home that you thought was your castle will quickly become your prison cell.....

Helga14

Hope your new home is full of joy and happiness. Don't do what I did and be terrified to make a hole in the wall for ages in case I got it wrong. It is a really exciting time for you and well done for surviving the stress that is buying property.

It sounds like you are a fairly secure position and have thought about the step you are making as a long term move. You may have got a really good deal or you may be just fair price either way you are going to get a home.

I brought a shared ownership flat in 2006 and brought some more of the flat a few weeks ago. In theory according to my lenders I now have a fair bit of equity in my flat but none of the price rises and falls really matter to me i have to renegotiate your mortgage or sell. I know i don't plan to have a family for a few years, my job is fairly secure, i'm saving money now. I have a fixed rate fixed for another 3 and a half years so i know i can afford the mortgage.

topbargainhunter

vwjo wrote: »

Evening All........ we've had our offer accepted, survey/valuation done, mortgage agreed, now we have to go see the solicitor tomorrow with a cheque for our deposit and stamp duty!

Am I right in assuming that we will suggest a date for completion to our solicitor tomorrow, and that the completion date will be the same as the contract exchange date?

I'm so knackered with the whole thing, I've completely lost track of where the process takes us next!

It's odd how only about 2 people actually answered your question, and the others just decided to slag you off for buying a place. I thought someone on these message boards was supposed to move answers that didn't stick to the subject? Anyway, good on you for buying your own place, better the money goes on your own house than some landlords pocket, I am selling my flat, or trying to, and one person who wants to buy it told me she had worked out that she'd spent £78,000 in rent so far on a grotty bedsit and was gutted.

One person keeps on saying your house will be £2.50 in a few years time, get real, how old are you? In the last massive crash of the early 90's everyone I knew had negative equity, but the prices are at least double now what they were then. My flat has quadrupled in value since '96. Even my eldery relatives who bought houses 50 years ago paid at least a grand.

If you're buying a house to live in long term, and not to make profits like most people seem to be, then go for it. I am buying a house, which I love because I want to live there, not for what it might be worth in 5 years, I'd rather pay to live in my own place than some rented place.

By the way the same doom mongers on TV going on about the housing market crash say rents are set to soar because no one can get a mortgage anymore. It'll be interesting to see if that turns out to be true.

Muppit_2

I know a lot of people waiting till the time is right, prices are at their lowest, and I agree I think the housing market will drop 20% and thats generally a good thing for the health of the country. However, I still think you can get good deals now if you put in low offers, people shouldnt be put off buying until the newspapers tell them its "ok" again - by that time it might be too late.

We have actually been able to attempt (havent completed yet!) to purchase a very nice place for a modest price. I think the price will fall in the next few years but we got a chunk off the asking price already, so I think the seller has already taken half the hit, and we will take the rest. If you are currently a homeowner, you will take a hit regardless - you own a home, if your renting, you take a hit every month anyway.

When the prices do bottom out, property prices will be cheaper, indeed. Investors will start to snap up more propertys, and there will be more competition to buy those properties, which will lead to a very quick upturn in the market at some point. At that point, people will be reluctant to take decreased offers, as now is the case, and some genuine FTBers will miss the boat.

Some areas have risen in price this year, I think there is crazy competition to live in the best areas. Again, I do think on the whole, the UK housing market will correct over the next 2-3 years, maybe even 30%, but if you know the risks and accept these potential losses before you buy, like this poster seems to have done, then I would agree that this is a good time to buy for him.

neverdespairgirl

TT1 wrote: »

Has nobody noticed how neverdespairgirl just goes around all the threads thanking the doom and gloom merchants for their doom and gloom posts, without actually contributing anything?

I haven't noticed that, as I post quite a lot as well. Perhaps you should read more carefully?