To be worried about buying a house

[blondieblonde]

We're currently renting and have a small deposit saved. My DH wants to buy a house but I am worried the market will suddenly collapse and we will be left with negative equity. AIBU?

Negative equity is only an issue if you need to sell during a down turn in the market. If you have a 15% deposit and buy wisely then you are unlikely to fall in to negative equity any way. Yanbu but any time you buy is a risk, we bought at what people thought was the bottom of the drop, it dropped further but I have no idea if we could have been in negative equity as we had no interest in selling. We've now got about 30% equity in our home.

Also, if your next move would be a more expensive house, remember it is likely to fall in value similarly, a big saving for you (because eg 10 percent of 500,000 is bigger than 10 percent of 200,000). My cousin bought a house right at the peak in 1991 - he ported their mortgage (in negative equity) twice, then prices eventually rose and wiped the negative equity out.

Interest rates will be rising in the next 12-18 months for sure: the Bank of England has held back and held back but the base rate is only going to go up. If you're in a position to buy and fix, I'd do it sooner rather than later but that's just me...

The market wont collapse, it might stagnate but it wont collapse.

There's still under-supply in the market. How can it collapse?. People have been waiting for a collapse since 2008.

Surely it depends where you are buying.

Just buy as soon as you can. Bricks is the best investment in the uk. I bought when I could, downsized from london last year and retired in my 40s.

Just buy anything you can afford asap.