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Is buying a house a good idea?

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  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    You should hold on until landlords start selling up, see where that takes the market.


    https://www.property118.com/attt-national-media-article-landlord-wanted/
  • shirlgirl2004
    shirlgirl2004 Posts: 2,983 Forumite
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    Crashy_Time wrote: »
    You should hold on until landlords start selling up, see where that takes the market.


    https://www.property118.com/attt-national-media-article-landlord-wanted/

    Some are still buying and others are moving properties into Ltd companies so don't expect to see the crash you're hoping for.
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    shirlgirl2004 wrote: »
    Some are still buying and others are moving properties into Ltd companies so don't expect to see the crash you're hoping for.

    Totally agree, because section 24 is being phased in it will not cause a sudden rush of properties to market.

    To OP most mortgages are 25 years, but I would say the sooner you can get on the market the better so your not paying rent... It is easier to buy with a partner and remember it is likely your earnings will increase as you get older... There is a chance at some point in the future there could be a crash and if you time it perfectly you could be in a hugely beneficial place, however you would need to accurately guess when a crash is coming and when the bottom is. The only way to do this is with hindsight, anyone that tells you anything else is lying... My advice is buy when it suits you, just make sure you are sure you don't need to move any time soon and that if rates were to increase you can still afford your mortgage.

    A decent company pension (Especially final salary) is worth a massive amount, wish my pension was better as its pretty poor, its the main reason I got into BTL.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    shirlgirl2004 wrote: »
    Some are still buying and others are moving properties into Ltd companies so don't expect to see the crash you're hoping for.


    Why is a prominent landlord website being so vocal on social media etc. against the tax then in that case?
  • jimbog
    jimbog Posts: 2,113 Forumite
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    CarbonImage wrote: »
    Remember that whilst getting a mortgage is serious and something a lot of people aspire to, it doesn't completely take away your flexibility. If you change your mind you can always sell the house and spend all the equity on living in Thailand for 6 months.

    You are also not at the mercy of a landlord who can ask you to leave with just a couple of months notice
    Gather ye rosebuds while ye may
  • pinknsparkly
    pinknsparkly Posts: 542 Forumite
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    These are my thoughts:

    1. how much money do you have in emergency savings other than your HTB ISA? Because don't forget that you can take money out of a HTB ISA if necessary without penalty. You can't do that with a LISA
    2. what price property would you be considering buying? (i.e. is it under the £250k out-of-London limit that you can use a HTB ISA for?)
    3. how likely are you to stay put in Bristol for a reasonable length of time? If for less than 5 -10 years, then buying may not be the best plan for you anyway. Do you require/desire the flexibility to move to another city/country for a job?

    If I were in your situation, I would consider keeping my money in the Help To Buy ISA at the moment, for the following reasons:
    - you can withdraw the money without penalty if you need the money in an emergency or decide not to buy and to use the money for something else instead.
    - if you want to buy a property for less than £250k, then you will get the same bonus from either ISA
    - if you decide that you definitely DO want to buy a property, then you can at a later date transfer your HTB into a LISA.

    Really consider the pros and cons of buying a property. Several years ago I was in a position to buy, but elected not to as I wanted the flexibility to move if necessary. This turned out to be the absolute right decision as my now husband moved in with me after completing his PhD and was completely unable to get a job (doing anything, shop work, bar work, graduate work). Having the ability to look for alternative work/study options without the complications of a mortgage to take into account made what could have been a majorly stressful situation only quite stressful instead!
    MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/2023
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    jimbog wrote: »
    You are also not at the mercy of a landlord who can ask you to leave with just a couple of months notice


    No, you are at the mercy of global credit markets and rising interest rates. FAR scarier IMO, especially if your mortgage debt is a large one :eek: MUCH easier to rent another place than to get yourself out from under a massive debt pile in a rising interest rate environment ;)
  • shirlgirl2004
    shirlgirl2004 Posts: 2,983 Forumite
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    Crashy_Time wrote: »
    Why is a prominent landlord website being so vocal on social media etc. against the tax then in that case?
    I'd have thought that was fairly obvious; have you never heard the term vested interest?
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    shirlgirl2004 wrote: »
    I'd have thought that was fairly obvious; have you never heard the term vested interest?


    But if as you said avoiding/offsetting this tax was just a simple matter of becoming a Ltd co. or raising rents then why would people bother shouting about it on Facebook or petitioning Parliament? The answer of course is that many landlords won`t be able to avoid the tax by these means.
  • jimbog
    jimbog Posts: 2,113 Forumite
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    Crashy_Time wrote: »
    many landlords won`t be able to avoid the tax by these means.

    This is true. So up goes your rent :o
    Gather ye rosebuds while ye may
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