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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To buy a house now, pre Brexit?

57 replies

firstworldproblem18 · 28/11/2018 13:07

Having a disagreement with family members about this.

I’m currently renting, and have been for 2 years since separating from my ex. Our divorce came through earlier this year, and I am now in a position to buy a property.

Family members have told me that it would be stupid to buy now, and to wait until the outcome of Brexit is known, presumably to see the impact on the housing market.

I am a single mum with 2 kids. Renting is costing me 24k a year. Our rental house is lovely, but we aren’t allowed to decorate, and it’s part furnished, so I have to tell the kids to be careful of furniture that isn’t ours (in particular a leather sofa) etc. It is a lovely house, but we aren’t really allowed to make it more homely. It doesn’t feel like home. ExH has stayed in the marital home.

I really want somewhere to call home. My rental runs out in August next year which might sound like ages away but it means I’d have to find aomewhere by May (assuming a 12 week completion) and I don’t know when the Brexit stuff will be resolved but have March in mind, so it leaves me no time at all to find a house

AIBU to buy something now, if I find a house I like, and is reasonably priced in the current market conditions?

OP posts:
NoTeaForMe · 28/11/2018 14:09

But if there’s a price crash then my house will also go down in value - so does that change whether I should buy now or not?

FuzzyGreyClouds · 28/11/2018 14:34

Where in the country are you?

In the SE houses that in 2017 were easily selling for 275, are now struggling to get 225. I know a couple of EA and they have said it's going down further.

I don't know what it's like in the rest of the country though.

AdamNichol · 28/11/2018 14:39

BarbarianMum
I've been in negative equity. I had to try and sell in 2008 to move to another part of the country. The disaster you've depicted is predicated more on the loss of income than the relative buoyancy of the housing market.

It also depends where in the country. There are occasional dips in the South East, but it doesn't last nor collapse. Sold our place 18 months ago, had a selection of offers and the easy potential to rent if it fell thru. Not the case where my parents live.

But to re-iterate, if you're looking proper long term, the ups and downs of the short term will be weathered. If you're mortgage and chain free, you should be able to negotiate from a huge position of power to get the property you want - and probs to greater effect than brexit effects (especially as it may well just rumble on for ages yet).

NoThankyouHun · 28/11/2018 14:44

Do it! You're going to be mortgage free so completely unaffected by brexit in terms of interest rates etc. If there's a housing crash etc it won't effect you either unless you'd need to sell at some point soon after moving in. Do it. Can't believe you're considering not to. There's always a brexit type thing around the corner, if you kept waiting for the next "event" to blow over you would never buy and £2k per month is a massive waste of money in rent.

MakeAHouseAHome · 28/11/2018 14:48

We bought a month ago. We genuinely didn't even feel Brexit was a factor. We will be in the house for 8 to 10 years.

DragonflyInn · 28/11/2018 14:57

The Brexit uncertainty is making prices low (at least is some areas) now. For a chain free buyer in a strong negotiating position you could do well. There’s an argument that if the Brexit deal all goes through ok things may stabilise and perhaps it won’t be quite such a buyers market in 6 or 12 months. Of course without a crystal ball no one knows - yes there’s a risk house prices could tumble. But you’re in a great position in terms of risk - no mortgage and looking for a long term home. Personally I’d go for it now.

FuzzyGreyClouds · 28/11/2018 14:58

Sold our place 18 months ago, had a selection of offers and the easy potential to rent if it fell thru.

The EA I know would love the market they had 18 months ago.

Satsumaeater · 28/11/2018 15:10

I'd definitely buy now. Especially with no mortgage to worry about.

If we end up with no deal (unlikely I think) we could end up with galloping inflation in which case having your money in property rather than cash would be a good idea. However, I do think May's deal with go through despite all the MPs' posturing, because there isn't a choice.

Jocasta2018 · 28/11/2018 15:20

In your position I would start looking now! You’ve got time on your hands to find somewhere you really like, you’re a cash buyer & at the moment it really is a buyers’ market. The fact you bring no chain means you can negotiate a decent price. Plus you’re paying someone else’s mortgage by renting...

newyorkartist · 28/11/2018 15:52

There's always a brexit type thing around the corner

God, I hope not!

Yulebealrite · 28/11/2018 15:56

You are losing all those thousands a month to counterbalance house price falls. I'd prioritise your comfort and needs as a family now. Prices will rise quickly again when Brexit is sorted anyway, so if there is a drop it will only be a temporary drop.

NameChanger22 · 28/11/2018 16:07

Under normal circumstances I would say definitely buy. But right now, no way would I buy a house. Just wait a year, prices aren't going to go up, that's for sure. You will be really mad with yourself if your house is worth half what you paid for it in 3 years time.

FuzzyGreyClouds · 28/11/2018 16:12

£2k is a lot of rent. Why so much, are you in London?

EskiVodkaCranberry · 28/11/2018 16:47

We just sold our house for more than asking price. If houses halve in value in a few years then you'll have bigger issues Hmm
If you bought now and your house dropped 20k in a year, you would've paid that in rent.
Money is one thing but personally I'd buy somewhere, feel at home, decorate, have a bit of stability
Whatever will make you happiest Envy

EskiVodkaCranberry · 28/11/2018 16:48

Wrong face Smile not Envy

Original poster
firstworldproblem18 · 28/11/2018 16:51

Money is one thing but personally I'd buy somewhere, feel at home, decorate, have a bit of stability

This is exactly how I feel. Unfortunately, my family focus on money...

OP posts:
Original poster
firstworldproblem18 · 28/11/2018 16:53

I’m in Bristol

OP posts:
Mosaic123 · 28/11/2018 16:54

I think you will get a bargain from someone that needs to move whereas you don't have to.

Start looking now as it always takes much longer than you think.

wafflyversatile · 28/11/2018 17:02

If you are looking for a long-term home, rather than an investment, or something you can wank over the thought of getting it £50k cheaper, or increasing in value by 400% then you may as well start looking now.

My home doubled in value in the space of 2 years, and is now worth 6 times what I bought it for, but so what? Everything else where I want/need to live has done the same. Some people might get excited about it but I don't get why.

If you can get a longish fixed rate to protect you from any interest rises over the next few years, which could be a little volatile, then go for it.

No one knows what is in the future, globally, nationally or personally so doing what suits your current and mid term predicted needs is as good a plan as any.

Confusedbeetle · 28/11/2018 17:04

One of the problems we have with Brexit is that things are slowing down because people are waiting to see how it pans out. This will take at least 5 years. If you are in a position to buy then do it

ladycarlotta · 28/11/2018 17:07

@firstworldproblem18 I’m in Bristol

I think perhaps that changes things? I might be being naive. I would say it's a more buoyant market here than it was even 18 months ago, and while I can't guess how Brexit will change things in the mid-term, Bristol seems to be on an upward trajectory in terms of desirability.

FWIW, we are just completing on a house, having watched the market climb and climb over the last two years before taking the plunge. So many people seem to be arriving from London. I don't know if it's a safe bet, but I didn't want to keep burning my money on rent, and we want a long-term family home that we'll be in for a long time. For me, it felt worthwhile to buy. No idea if we'll make a profit, but it ticks so many boxes for us in terms of space, location etc, we wouldn't need to move for a long time.

HopelesslydevotedtoGu · 28/11/2018 17:15

It depends what your own priorities are.

If you bought and house prices fell substantially in the few years after Brexit, would you be devastated, or would you figure that as you are mortgage free and not planning to move you can accept that the price has fallen?

Do you value being in an owned home a year or two earlier, or avoiding the risk of losing money?

No right or wrong answer. Personally I would hold on, but it's not wrong to make a different judgment if you have different priorities.

I don't think you should assume that house prices will rise to current levels again if they crash. There have been quite a few factors encouraging the current house prices, including government policies that pump them up as rising house prices were popular with voters. I think it's unlikely this will happen again (at least in near future) as governments increasingly need to attract Generation Rent voters.

Obviously it might happen again, but I wouldn't assume it would. If you want to buy somewhere now, are mortgage free and don't mind too much if the price doesn't recover, that's a reasonable decision, and it doesn't matter what other people think.

WhatdoImean · 28/11/2018 17:21

According to the Bank of England (just published), in the event if a worst case Brexit (Disorderly, no deal), house prices would be expected to drop around 14% (obviously there would be local variations - I would expect London to be worst hit for example).

On that basis, I would wait.... I am expecting some economic issues resulting from which ever Brexit we go for... as such, buying now would not be something that I personally would do.

That said.... you are paying so much in rent, is the saving caused by a price drop (IF ANY!!!) worth the excess you will be paying in keeping the rent going....

JuliaRobbers · 28/11/2018 17:23

A chain free cash buyer could get 10-12% off asking price NOW. Go for it. Nothing will come out of waiting, you'll probably get back your 24k of rent that would've spent by that time.

Mitzimaybe · 28/11/2018 17:38

The family members advising you to wait - are they putting money into the property? If yes, then I guess you have to take their opinions into consideration. If no, then you just do what is right for you.

Don't forget that as a cash buyer with no chain you are in a very strong bargaining position, too. You should get a good discount on the house you buy for that reason alone. Last time I sold, I accepted the lower of the two offers I had, just because it was a chain-free buyer.