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.

Have you spoken to a financial advisor? Mortgage advisor? Were you hoping for a crash and buy outright? No mortgage? In your shoes I would buy, not using all £500k, get mortgage rate at the lowest rate that you are likely to ever be able to get and I would consider investing in a small buy to let too.

In South east house prices are stable, I’m sure where you are they are too.

I’m not a buy to let kind of person so wouldn’t do that

@flopseyR72

I’m not a buy to let kind of person so wouldn’t do that

what's a buy-to-let "kind of person"?

Only wait if you can afford to loose. If prices keep going up you’ll be in a worse position and folks here telling you to wait aren’t going to be giving you any money for shit advice.

Basically only gamble what you can afford to loose. And it is a gamble as no one knows what will happen to prices.

@flopseyR72

Was looking to see if anyone new what was happening in the market really. I follow the news but it’s all over the place and seems laden with vested interests

No one knows what is going to happen. By waiting you are just prolonging your anxiety.

If you wait 12 months and the market has increased again you will regret it. If you buy now, with a good deposit and a stable job, you will not regret it.

I remember your post about this from a couple of months ago. You seem quite fixated on not buying a house that has gone up in value and therefore 'giving' your money to the seller when you don't think the house is worth that much.
If you are looking to buy and stay long-term you can either buy now and take advantage of the stamp duty holiday and start putting your money into your house rather than a rental property.
Or, you can wait and see if a potential house price crash would outweigh what you would save on stamp duty and bring house prices down to a level you feel is more acceptable. I don't have much knowledge of the area you're looking at but from what previous posters have said, it may not be hugely affected by a crash.
I think stop obsessing over the perfect time to buy and just buy. If you're in it for the long term your house value, in your area, will recover eventually if it drops after you buy.

what's a buy-to-let "kind of person someone prepared to take on the responsibilities of being a landlord I would imagine. It isn't for the faint hearted.

Not for flats without gardens it isnt. Our London flat has been on since March. And yes I've dropped the price.

Not having been able to sell it has badly affected my mental health. I dont sleep.

@flopseyR72

My job is not at risk I’m in nhs

What do you do in the NHS that allows you to save 500k?

As I recall, you’re paying £2k a month in rent. A £250k mortgage would be around half that. You’re absolutely bonkers if you think continuing to rent is a good idea, either that or you like lining someone else’s pocket.

You might as well set fire to a hundred tenners every month.

I don't feel that we're in a better position having bought a property at all. In fact I wish we'd never bought it. As it is we're stuck here and can't live where we actually want to live because we can't sell it.

I live in a commuter town just outside London. Houses are going really quickly here.

My guess is people from London(this has always happened, we did, but lockdown helped more people make the decision in one go) are buying here for more garden/space. The people selling here are probably moving deeper into the countryside for more space/garden.

If you don't want to buy, don't. If you do better make your mind up and get on with it. South Manchester prices are booming - 4/5 bed period detached in the

You can't predict the future. I was told not to buy after the Brexit vote, if I'd done that I'd still be renting. You have a secure job, don't borrow beyond your means, ensure you have appropriate insurances and fix long enough to ride out the next few years. Yes the economy is about to rock, but as someone once told me you can;t take a mortgage out expecting financial stability for the next 20-30 years. Borrow what you can afford, it's a home first, investment second.

If you see something you like and you can do the above, I really wouldn't try your luck waiting for a crash, it may never happen, if it does it can be hard to get a mortgage.

@Alsohuman Oh I don't know? 2k per month is 24k per annum. I can see house prices dropping by more than 24k for a 700k house. in my area, london zone 3, house prices have dropped by 15-20% from 2017 due to brexit. I was previously priced out but suddenly was able to buy because of this. I wonder how it would drop in the worst recession in 300 years.

Either way, she can buy. But she may save a bit of money by waiting. Its a very good position to be in. A FTB might be more cautious and buy now because there is no prediction whether you can get 85% LTV next year as mortgages seem to be getting harder and harder to get.

If you find a place that you want to live in and can afford the repayments then you should buy it.

People are getting up the ladder while they can - stamp duty holiday (not to be sneezed at, my son recently saved £15k on SD), and lots of people working from home are getting out of the city and getting more space/home offices etc. I think there will be a very quiet time, but not for a while yet.

I would move out of London and buy a house somewhere else and a holiday home in cash! I am not going to lie I am well jel of your deposit! We moved in March and you could buy our house almost 3 times over 🤣🙈

2k per month is 24k per annum

So you think house prices are going to fall £2k a month for ever?

@HoneysuckIejasmine

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.

But you lose your job and you're stuck with a bigger mortgage? And more outgoings??

FWIW, local markets don't all respond the same way but simplistically on an aggregate basis, unless you suspect the effects of COVID will be to make more potential buyers richer than poorer (I don't) or unless you suspect asset inflation in response to QE like post-2008 (It's a possibility) then medium term prices might reasonably be expected to be lower. Homeowners wanting to sell traditionally try and ride out downturns though some will be forced sellers.

Long-term, it's possible COVID will have less effect on residential unless there is mass conversion of commercial property and/or massive, persistent economic depression.

Local markets might differ - some estate agents and press talk of a flight from cities towards larger houses with gardens for those with families who are able to telecommute.

Don't expect this view to be welcomed as, unsurprisingly, IME estate agents and homeowners get very passionate about talking up the market and respond badly to people expressing opinions to the opposite. I've not heard a sound argument for how COVID will make more potential buyers richer than poorer, even taking into account stamp duty holidays. If QE supports asset price inflation then there's a question about how long this could be sustained.

Good luck, OP, and well done for saving that much.

Ah there is your problem right there.You are confusing estate agent with someone with authority.More rightly you should have said it was a lying bullshitting salesman.