House prices What is going on?

[flopseyR72]

I am looking to buy a house. Have been waiting since before lockdown. I’m in rented so not selling.the estate agent has just told me the marker where I am Greater London east ( golden triangle Loughton Chigwell to Epping and brentwood) is going crazy. I just don’t understand why people don’t seem to care about a imminent economy recession coming. Does anyone think I should just buy now or wait. I’ve been waiting a long time and wasting money on rent.

Tbh people might be getting in whilst their house is worth something, stamp duty holiday and a job. If you needed to upsize, now's the time before your asset loses value and you lose your job and are stuck in a too small home. If you don't move again you can ride out potential negative equity until things recover.

I think its a combination of the stamp duty thing, and people realising their houses don't work if they're at home all the time so wanting bigger gardens etc. Also - some people have obviously suffered financially in this, but some have saved a fortune - we haven't paid childcare or gone out for a few months, so have been able to clear credit card and save up quite a chunk.

If your industry isn't affected - or indeed has benefitted - it's not such an issue.

It’s just the prices here are so expensive . I’m buying on my own so it’s really depressing. I’m not selling and have a cash deposit.

I just don’t know if I should just buy or wait but waste money on rent

In your position I'd wait to see if there's a crash but tbh the Lomdon property market usually weathers crashes better than most areas

You have nothing to lose by buying now.

No stamp duty, you can afford it, you won’t waste anymore on rent. What’s the down side?

This is my personal opinion, I’m not an expert by any means, but for me it depends on how big your deposit is and if you plan on selling soon.

If you have a large deposit then I would wait, as prices are almost guaranteed to come down, if you have a 10% deposit and can’t increase it quickly then I personally would buy now if you’re in a secure job and don’t plan on moving soon, as it’s unlikely imo if there is a big crash that you’d be able to buy with your 10% deposit (prices would need to halve for a 10% to become a 20% deposit for example). Only a few lenders are giving 90% mortgages now, in a recession there will probably be none and only cash buyers or those with large deposits will be able to secure mortgages, and for your 10% deposit to become a 20 or 30% one there would need to be a reduction of 50% and more in property prices, which seems a tad unlikely to me (although others on here are adamant it will happen).

A surveyor I work with said a similar thing - the market is crazy at the moment.

For comparison

We sold during the 2008 crash

We lost £18,000 on the selling price - but made £50,000 profit overall - house recently sold for £100,000 more than they paid us but did a huge extension.

Next house we got a reduction of £35,000 on the asking price, so over all we aren’t losing out.

Current price we would make £160,000

Upshot, if you intend to stay for a while you have nothing to lose long term

I have a large deposit 500k

I am not selling, this is savings from work not equity so I’m over protective of loosing it

Oh Your waiting for a crash so you can buy cheap... I bet you won’t be hoping for a cash when you’re selling.

You will only lose if you move quickly long term you won’t

Di you mean 50k? If not why on earth havent you bought something? That's bonkers. What exactly are you trying to buy?

I would wait tbh, with a large deposit you won’t find it a problem getting a mortgage even in a crash and you will probably get a bargain!

I expect the reality is different and the estate agent is talking tosh as usual. If you go on Rightmove you can see even nice flats languishing on there for months

I would definitely wait. Especially if your job is at risk.

I think you need to be prepared for not many properties coming up when there is a crash - as sellers will wait. Banks usually sell defaulter properties via specialist auctions which you may not get sight of. That may leave you with a really narrow range to choose from, plus with reduced mortgage availability.

If I were you I would buy now while there are more properties available.

500k I haven’t bought because I was thinking of relocating. And my partner was selling his business. And now My relationship has broken down so buying in my own. Then lockdown happened

What size of house or flat are you looking to buy? Are you and your agent able to isolate which types of homes are particularly going crazy price-wise and go around that? For instance, if semi detached 2 bedrooms are going nuts, are you able to stretch to a 3-bedroom and get more for your money, etc.?

My job is not at risk I’m in nhs

4 beds with a garden preferably

Buy now

With that money buy now. Do you need something that big?

You’ve got £500k in the bank and you’re paying rent? That’s utter madness.