To buy a house or not buy a house - ADVICE NEEDED PLEASE!!!!!!!!?
Hi, my bf and I are looking to buy a house this year - but aren't sure whether now is the right time or not. We are currently managing to save about £500 a month - our rent is £500. Would you wait for a while and continue saving up for a deposit (we'll have about £10k come October 2008) or would you go for a house now? If prices keep falling and interest rates keep rising, would it be foolish to buy now and end up paying more for a house worth less?
Please help, we don't know what to do.
I think you're wrong Ozzy - why would it be a buyer's market when the prices are still going down? The best time to buy is while prices are at their lowest so the value of the house rises after you've bought it, not continue to fall!
- ozzy chik...Lv 51 decade agoBest answer
It is a buyers market when the housing prices go down...not up...
- Anonymous1 decade ago
I would rent for a while longer - although you're in a strong position and as has been said it's a buyers market. Spending £500 on rent for the next 6 months is £3,000 - you could easily get this back by haggling the price down. Regardless of what estate agents value a house at it's only ever gonna be worth what people will pay (or can offord) - always go in at least 10% below asking. If the market gets (even more) stagnant you could be cheeky and go 20%. Either way as long has you're not out of your comfort zone in the long term you should be fine.Source(s): common sense and ignoring estate agents :-)
- DarleneLv 44 years ago
Get "approval" for a loan from a lender. This is not the same thing as getting a loan. It just says that they will probably give you a loan once you have found a house you want. It is a good idea not to look for a house that is going to be more than 25% to 50% of your monthly income. A good way to guess what your mortgage payment will be is approximately 10% of the asking price of the house you are looking for (that would then include not only the mortgage loan, but taxes and insurance). Research which area you can find a three bedroom for the price you can afford and be sure to check into the schools. They have a lot to do with the value of a home/neighborhood--especially since you are wanting to start a family.
- VeritasLv 71 decade ago
I am going to cut to the chase, rent for six months, (at least) because house prices are under pressure and will probably remain that way for some considerable time, then re-consider. I have a lot of experience in playing renting off against buying, and I have been predicting this financial crisis for a long time. I think you know the answer, it's just that you need conformation. Make no mistake, house have become ridiculously over valued.
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- 1 decade ago
Bide your time. Prices have only just started to drop and only by an insignificant amount.
Ther is a very real chance that property prices will crash in the UK as they have in US and alot of Europe.
Gordon Brown is committed to no boom and bust but he has seen the boom and is having an enormous problem putting off the bust.
He has a hugefight with high interest rates and inflation but inflation is winning the arguement so the only answer is to keep interset rates high.
My advice would be to rent for at least another six months and watch the market closely.
I think if the crash happens then in about eighteen months time you will be able to pick up an affordable bargain.
Good luck and I hope my predictions are correct. [ I did predict the last one in the 90's]
- HugeLv 71 decade ago
Its too soon to buy, hold off until prices have bottomed out and remained static for at least three months and the mortgage availability situation improves. Follow the housing price indicators produced by the big BS like Halifax: http://www.hbosplc.com/economy/housingresearch.asp... What ever you do do not listen to Estate Agents they only ever want to talk the market up. Also, bear in mind that the pundits reckon that house prices may not bottom out until 2009. Until that time prices could drop by as much as 20% so make sure you do not offer the full asking price for any property you go for
- Anonymous1 decade ago
Your mortgage will be for around 25 years, or more.
During that time, interest rates will rise and fall many times. Consider this - during the Tory years, interest rates were commonly double digits.
As for when to buy, that's a gamble. I think the market is sure to fall, with prices so inflated, and mortgages increasingly hard to get. But when the mortgage is paid up in 25 or 30 years, what you paid today will be peanuts compared to the value of the house.
As for low price v high mortgage rate. The purchase price will be fixed, but if the interest rate goes up, and you can afford it, think how much spare cash you could have when it falls.
- 1 decade ago
normally i would say buy, but the news has been so bad the last few days i would now say wait and see. They are saying its going to be a very tough year. My daughter thought about it last year, and now is so glad she didnt as she would have been well over her budget. You have to remember, the more you can put down the less you have to pay in mortgage.
although it was a long time ago when we bought ours, we started by paying more than our council neighbours, then it leveled out, and now for years we have paid nothing, where they are still paying. but be careful not to over-extend yourselves.give it a year or so and see what the market is like then.
- 1 decade ago
keep saving:- more deposit=less morguage=less stress about interest rate
lower prices=cheaper house=less morguage etc.
buy when prices start rising again, get in early and grab a bargain, this is the single biggest investment you will make in your life so keep an eye on the market and be ready to go at a moments notice.
- 1 decade ago
Buying your own property is a good investment in the right location.
Your paying £500 per month in rent "dead" money don't you think with your £500 rent plus what your saving £500 that would cover your mortgage on a first time starter property.
But be sensible consider all your overheads and take on property you feel you can manage!
- RikounetLv 41 decade ago
These are tough decisions. If you plan on staying in the house for a long time (6 years is considered long these days), make a down-payment and build equity (so no interest-only mortgage please), then you should be fine with buying I guess. Unless the mortgage is going to cost you more than 1/3 of your income, then stay away.