To buy a house now?

[TinCanAlley2]

Ok so it's not so much AIBU but is DH BU to want us to buy a house now?
The plan before this shitstorm kicked off was to buy this time next year
We're in no rush to move so I want to wait a year and see how the land lies by then
DH thinks now is the time to buy as sellers will be desperate to sell and he can't see any reason the market will crash
We should wait right?

I had planned to buy in the autumn, I'm now planning to wait until at least this time next year. I don't think the market will completely crash, but it's likely that prices will drop, so I am hanging on.

He's arguing that if the market does crash then our house will be worth less but then so will the house we're buying so it makes no difference if we buy now or next year especially as we intend to stay in the next house for the foreseeable future
I'm struggling to come back with a counter argument , I just feel uneasy about it right now

Bump.

The bank of England is currently mulling over whether to introduce negative interest rates, which essentially means that savers will end up paying the bank to look after their money. If that happens property prices may rise as investors will be looking for other ways to make their money work (although interest rates have been derisory for years). Negative interest rates will obviously also hit the deposit savings of potential buyers. Coronavirus will only be a small part of the financial disaster that is going to unfold over the next few years.
I would say if you are in a position to buy, buy. If you wait for this or that condition to be right you may never actually move forward.

He’s right about your house dropping in value too. Depends how much you’re upsizing in value by. Most people are hanging on to see how the employment market reacts before taking on a bigger commitment.
How much is current propriety and how much will you new one be? How much do your mortgage repayments go up by?

We are still hoping to buy this year but we are hanging on until later in the year. We were originally supposed to be buying this summer.

@sst1234 our mortgage and mortgage payments will actually decrease due to us having a large deposit to put down which is totally separate from the equity in the house we are in now . I'd like to say we're lucky to be in this situation but I've only got the deposit due to the early death of a parent

OP sorry for your loss. The reduction in mortgage repayments is a an amazing advantage. You could be using this as leverage and selling your house now before prices do really take a hit and negotiate a discount on your next place too. Win win. Also with interest rates so low, unless you are in precarious employment, I can’t think of a better time for someone in your position to sell and buy.

The bank of England is currently mulling over whether to introduce negative interest rates, which essentially means that savers will end up paying the bank to look after their money.

What?! That's not true surely?

I would say it is worth a try. Stick your property on the market and see what happens.

@Truthpact I am no good at doing links, but google it. It was widely reported in yesterday's papers.

I think buying a house is like having children.

It's a huge commitment; there's never a 'right' time; and there are a million reasons not to.

But like with children, life can be much better for taking that leap.

I think if you are going to be in your next property for a long time I would go for it now, even if you go almost straight into negative equity it won't matter as you will be staying put for a long time.
If the market crashes/prices drop and then you decide to sell, you are going to struggle as banks will be very cautious about lending, especially to people with only a 10% deposit which is the norm now.
I'm looking to buy my first house but despite having a big enough deposit, for other reasons I can't move for 12-18 months, I'm worried I'm essentially going to miss the window to buy and the market will have crashed by then. Just got to hope that with a 20-25% deposit I will get a mortgage ok.

Trouble is there's not a lot on the market at the moment
I noticed a good number of properties disappearing from Rightmove and I don't think it was because they sold

What do you all think now of buying. we have a good cash deposit and are renting due to moving down the country . Prices are higher here ; we have put in an offer but I am getting cold feet thinking if we waited a few months we would get a better deal ...or just go for it and live in the house for 10 years in which case it should all balance out. But if we waited until next spring we may get a reductions of £15/20 000 on house prices due to unemployment and recession. That kind of reduction would greatly lessen our mortgage repayments What an outlook :-( . But interest rates are low so that is a positive plus the no stamp duty- all helps

Buy as soon as you are able to find a house you want and can afford. Waiting is a fool's game. There is no guarantee that prices will fall dramatically. Even if they do it won't necessarily make buying easier - falling prices mean stricter lending criteria and higher interest rates on mortgages.

If the Bank of England introduce negative interest rates (probably 50/50 chance at moment) this will eat into any deposit that is saved up but at the same time not benefit mortgage holders - banks have thought of this in their terms and conditions, their minimum rate is (for example) base rate plus 2 per cent, but if the base rate falls below 0.1% then their rate won't fall lower, i.e. minimum they will ever charge is 2.1%).

Plus if you are currently renting, every month is another £500-1000 down the toilet.