Buy now or wait?

[Major Geek]

OK I am out now, got decent job, lump sum is in the bank and first pension payment due on Monday.

Currently renting a nice house but its costing me nearly a grand a month.

I am in a good position to drive a hard bargain, with a big deposit and no chain to get a place of our own.

But do I look now and buy sooner or wait and see what happens to the housing market and buy later?

 

[laboratoryqueen]

Personally I'd look at the upcoming housing auctions or ask specifically for reposessions to buy if you were thinking of going for sooner.

The way the market is at the moment I wouldn't go out for anything that's in the main stream as it's still far too unstable. Yes you may be paying out about a grand a month in rent, but in a lot of cases, a mortgage isn't much cheaper.

 

[uber pikey]

If you look at the housing market thinking I should wait until it drops then go for it, however you should put in your mind that once you buy you house and it becomes your home then it doesn't matter what you payed for it as long as you appreciate it.
Hope this helps.

 

[gemarriott]

I'd buy now, every mortgage payment you mae now is one less when you finish wor altogether.

 

[chiefy]

however you should put in your mind that once you buy you house and it becomes your home then it doesn't matter what you payed for it as long as you appreciate it.
Hope this helps.

Best advice here so far....

There a lot of things to think about, currently you are losing a grand a month, throwing it away on somebody else's house, but....... there are many people whose home value is dropping by that and more so I wouldn't worry too much. Unless you are planning on going into property development (bad timing if you are) look for something you want, can easily afford and plan on living there for a while, if you do this nothing can go wrong. As you say you currently have the bargining power to get a good deal and not being in a chain have the time to find a home that you really want.

 

[uber pikey]

Thanks for that little lift(you are like a little pack of tic tacsDT_Xtremez_31, Spending a grand a month as you are is exactly what Gem said- unecessary.
To be able to pay for a mortgage is a step in the right direction and you should look at the home that suits you and not the market.

 

[laboratoryqueen]

I do agree with paying that much in rent is bad, you are paying out for someone else to have a mortgage in all reality.

Buy a house while it's just started dropping is also going to waste money, you get something now but six months down the line it's made a dramatic loss in value. It's making the choice of pay someone elses mortgage and have nothing to show for it or get your own and risk paying more than it's worth.

 

[gemarriott]

Thanks for that little lift(you are like a little pack of tic tacsDT_Xtremez_31, Spending a grand a month as you are is exactly what Gem said- unecessary.
To be able to pay for a mortgage is a step in the right direction and you should look at the home that suits you and not the market.

what you say makes sense. My house would cost a mint down South however it is about £100,000 here in Rotherham. Wouldn't bother me if it was worth more or less to be honest, we like it.

 

[chiefy]

Wouldn't bother me if it was worth more or less to be honest, we like it.

The most important thing.

I bought my first house, signed the deeds on my 18th Birthday, I've owned dozens of houses. One market crash and one divorce later I'm no better off for it but we now live in a house that we really love and admittedly our mortgage is insignificant.

You never know what life is going to throw at you tomorrow, so living (regardless of whether you own) somewhere where you are happy (financially or mentally) matters more than worrying about what it's worth compared to the Jones'

 

[laboratoryqueen]

I guess that side does make the difference. I'm not planning on settling in this house, it was bought to get on the property ladder. Bought it just before property round here went scatty so sitting with a mortgage for less than 30k but owning a house of about 100k, I'd certainly not have liked to of done it the other way round.

 

[uber pikey]

LQ, I am not having a go but this is about MJ buying a HOME and not what you could get out of your next sale(this probably looks worse than I mean).
As for buying a house in Rotherham, well thats another matter....DT_Xtremez_42:

 

[Ex-Bay]

Personally I'd look at the upcoming housing auctions or ask specifically for reposessions to buy if you were thinking of going for sooner.

Agreed, but try and find a house you want to live in and enjoy.
I've been in this house for 25 years. It's multiplied its 'market value' by at least 5 fold but I'm in no rush to sell. Maybe when I'm a little more infirm, but not yet.

 

[gemarriott]

thing to remember if you are buying a house to live in for any length of time is that the current fall in prices will reverse and as soon as the recession is over prices will rocket back to current levels and probably higher still. Only those buying for development or as short term investments need to watch out for burning fingers.

 

[Ex-Bay]

I think it's worthy of note that the mortgage money supply is starting to rise. Surely the house prices will follow soon?

 

[Shugster]

I would hang on for a year and see where things are then.

In a worst case a house will cost the same as today, (although I doubt it very much).

Even if the Economy doesn't take a nose dive, (unlikely but possible), houses are seriously overpriced now and people can't afford them. Even if they could getting a Mortgage is quite difficult at the moment.

IMHO prices will drop by about 10% over the next 12 months, (No official figures to back that prediction, just a gut feeling).

Keep saving your pennies, and hang on a year then look at the market again.

 

[laboratoryqueen]

LQ, I am not having a go but this is about MJ buying a HOME and not what you could get out of your next sale(this probably looks worse than I mean).
As for buying a house in Rotherham, well thats another matter....DT_Xtremez_42:

It's fine, I get what you're aiming at and granted if you are planning on this being your lifelong home then once you have the house, how the market fluctuates after that matters not, potential profit doesn't come into it.

What does come into mind is how much you would be paying on a mortgage if you bought a house valued at 100k than if you bought the same house six months later valued at 30k.

 

[needsabiggerfuse]

The old adage of 'Buy at the time of maximum depression' is true. If you have the wherewithall to bargain, go for it. By the way, there are plenty of 'professionals' out there who will, in the current climate, slit each others throats for your business, e.g. solicitors.

In my case, a stagnant market, the seller had moved out and bought his new place on a bridging loan (yikes!), interest rates at 15% and me 'first time buyer' with 100% mortagage plus savings in his pocket. I couldn't believe it when our initial offer was accepted. Within a year things had turned around on the property front, suddenly this sleepy hollow became 'fashionable' and I was sitting on a paper profit of 75%. Twenty three years down the line and we're still here in 'our home'.

 

[Shugster]

thing to remember if you are buying a house to live in for any length of time is that the current fall in prices will reverse and as soon as the recession is over prices will rocket back to current levels and probably higher still. Only those buying for development or as short term investments need to watch out for burning fingers.

They will increase with time. But I wouldn't say rocket up.

It'll be a very slow rise to begin with slowly gathering momentum until we see another 'bubble'

And as you point out, if you're there for quite some time it doesn't really matter what goes on to certain extent.

 

[gemarriott]

It's fine, I get what you're aiming at and granted if you are planning on this being your lifelong home then once you have the house, how the market fluctuates after that matters not, potential profit doesn't come into it.

What does come into mind is how much you would be paying on a mortgage if you bought a house valued at 100k than if you bought the same house six months later valued at 30k.

there is no way a 100,000 house will drop to 30k unless there is an earthquake. Worse case scenario is 10% in a year.

 

[uber pikey]

It's fine, I get what you're aiming at and granted if you are planning on this being your lifelong home then once you have the house, how the market fluctuates after that matters not, potential profit doesn't come into it.

What does come into mind is how much you would be paying on a mortgage if you bought a house valued at 100k than if you bought the same house six months later valued at 30k.

I am glad you saw it without malice and for major geeeeeek you need to sit down with mrs MG(if there is one!!!) and think what is right for you now..
Dont take this the wrong way either, but you need to wipe the preverbial and make your own decision even though there are very strong oppinions on this thread, dont rely on others mate as I wouldn't want you to be swayed by the wrong advice no matter how much they/I was trying to help.