Buying a flat, is it stupid?

flatmate

Hi

I'm in the middle of buying my first flat which is a one bedroom GFF with garden and parking in Southend. I managed to get 5k off the asking price so 120k and had a 10% deposit saved up got a half decent job in the city so not in a bad position.

However all I keep seeing on the news is house price crises and friend telling me they are holding off buying until prices bottom out (god knows how they think they will predict when it will or has bottomed). SO am I making a bit of a mistake?

People have also told me that they think I should have tried getting more off the asking price (although I did try 118 which was rejected) or I should try getting somewhere bigger with more bedrooms etc.

I'm not getting cold feet just wondering if I'm making a potential boo boo, I can't really pull out in any case at home there are 5 of us in a two bed house so I need to get out lol.

fc123

I'd suggest renting for 12 months. Rugged toast has a thread
http://forums.moneysavingexpert.com/showthread.html?t=931351 which has some opinion in it.
Rent isn't dead money (in the short term) just paying for a service. A poster called Iveseenthe light seems convinced that Scotland is 'different'...try a search for some of his posts.
I woyuldn't rush in right now unless absolutely neccessary (say you have kids and need to be near schools etc).

dopester

I've got a 4 letter word for you.

R E N T

Bf109

Yes. Its stupid.

flatmate

Erm now I'm slightly worried lol

fc123

It's really quiet on this board tonight. Check out your thread tomorrow night as the daytime people will post on this. Be prepared for the odd fierce remark but don't worry about it....everyone is trying to be nicer at the moment...MSE Andrea asked them to.
Potter around a few threads tonight as I'm sure there ahave been some similar Q's to yours recently.

FaTB

The way I see it is that the only way prices are going for the next couple of years at least, is DOWN !!

So why buy now, when you can buy cheaper in a year or twos time ?

Also you can be saving a bigger deposit, and earning interest on that deposit, further reducing the mortgage you'll require in the future.

I think anybody who buys in the current climate must be insane !!

fc123

Have a look at the sister board above 'House prices' as all the economic stuff on that but lots of it easy to understand.
I've found it really helpful.

The_Prince_3

flatmate,

Please avoid making the worst decision of your life.

DO NOT BUY.

If you were moving up the mythical 'ladder', with plenty of equity and buying a bigger home for the needs of your family - I could understand, just.

But a first-time buyer in the market for a one-bed flat? £120k? Seriously, you would be mad.

Go and look at flats (or houses) for rent in the area, find your favourite and negotiate the rent down, down, down.

Then, save as much as you can every month - ISA's, high-interest accounts etc. Enjoy the monthly news that house prices are falling and sleep soundly every night whilst enjoying your life.

Keep hold of the details for the flat you are looking at buying and in a few years compare it's price with similar on the market. And realise what a wise decision not buying was.

wymondham

yep, stupid.

flatmate

Cheers for all the opinions and advice so far.

I looked at rentals before I put the offer in and they have gone sky high in the area, not just because of the current climate but also a new uni in the town. The flat above the one I'm in the process of buying is currently up for rent (and they wont negotiate) but has no garden or off street parking and is up for £20 less than what its going to cost me a month in repayments.....

I think I need to sit down and look at the economics of it all and see what position I'd be left in if I was to live there 5 years and prices drop 10, 20, 30% and compare it to renting etc. Why can't everything be easy lol