Is it unwise to buy a house at the moment when everything feels so uncertain?

[KissMeLikeYouMissMe]

I'm in a position to buy a house. I can currently afford the bills and the mortgage on my own.
Bf would eventually move in so we would have both our wages although he works in aerospace manufacturing which feels like quite a dangerous sector at the mo......if he did loose his job I could cover the bills with my salery although it would be tight.

Is this stupid or better to own a small property than rent?

That's what we have decided. We are saving up as much as possible and waiting for the inevitable finacial crash to see what effect it has on house prices to buy.

Yes it's better to own. Of course it is. So many people miss out because they are always waiting for the crash, and end up renting for ever, because prices spiral away from them. There is no such thing as an inevitable crash and it could easily go the other way.

Don't hold your breath - what's this "inevitable" financial crash, hey? And it's always better to buy rather than rent, especially at the moment with sky high rents.

If you can afford to buy a house that you are confident you'd be happy to stay in for 5 years minimum then yes, I would think you should buy.

I think we're on the same page, bluntness

The problem with saving British currency right now is that a no-deal Brexit could lead to a massive devaluation of the pound that would be more stark than the likely accompanying property crash. So people saving and waiting for the property crash may find their savings massively devalued. I would maybe therefore buy a home, at least you then have something to hold on to even if prices crash.

We have bought other currencies which is another option.

We are buying now because a house we love was for sale and we feel ready to buy. I’d rather pay of the mortgage than rent and it will in fact work out cheaper than our rent so not worrying.

The reality is the British government will do what it can to protect the economy. Even the financial think tanks are not predicting a crash. Growth is still predicted. Yes there is uncertainty and that's led to caution, a slow down and in some places a small slump, but usually a slow down leads to less people wishing to move, and as such less supply and then demand outstrips it and prices increase again.

Who knows what will happen, but I think saying there will be an inevitable crash could ultimately cost someone big, and forever if they wait about for something that never happens and prices get away from them. It's a huge risk.

Buying now and prices do crash, very unlikely but they will recover, they always do, so unless you want to move quickly, then buy. Either way has a risk but the risk is much reduced if you buy rather than hold off.

@Bluntness100 the British Government are hurtling toward a no deal Brexit which is not a way to protect the economy. Even arch Brexiteers are moving their savings and business HQ’s off shore because they know what is coming in the medium term. The Governor of the Bank of England has said that no deal will lead to a very sudden and noticeable economic adjustment. In those circumstances it is risky to save Sterling.

Martin Lewis was talking this morning with regards to locking in mortgage rates now because in the last 6 months they have risen from under 1% to 2% deals and he expects them to rise again so that might be worth considering.

thanks for the advice. The house is a bit small for our needs but I would like the security of owning my own home. Have been left money in my grandparents will so it's now or never really with buying.
I'm just concerned about rising interest rates and if I lost my job......I have a permanent contract at work so some safety there but I'd be one of the first to go in my department if there were cuts.

Make sure you have insurance.

I would buy. If there is a crash the people won't be selling but sitting tight.

My family member bought 10 months ago - quite possible more expensive than if they'd waited 6 months...but now there is nothing on the market they want.

If you go on to a fixed rate you don’t need to worry about rising rates for that set period. Mine expires in 2 years probably not great timing but it is what it is.

And as others said house price rise and fall, mine has dipped, risen, dipped a little and risen making a difference of around £35k but if I’m not selling at the time it makes no difference and agree during a crash people tend to ride it out. With tenancy fee ban coming in rents may also rise slightly to cover the costs the landlords will be met with.

Off topic, but if you are funding the deposit it may be worth looking into a Cohabitation Agreement when your boyfriend moves in. If he eventually becomes a joint owner (say if you ever want to re-mortgage) then look into a Declaration of Trust to protect your contribution. You may be risking half your inheritance if not.

We fixed our mortgage for five years last year because I wanted security re interest rates over this next few years. If you won't have savings do look at redundancy insurance etc. it's worth it for peace of mind and a lifesaver if you end up needing to use it.

Thanks, these are all really great bits of advice which I will look into. Very useful!

I agree with all TheCorrections' points, but probably not with her conclusion that you should buy a house now. (Not saying she's necessarily wrong, it just seems too risky to have any investments in £ beyond a couple of months' living expenses.) Better put the money in a € account then see where we are in a few months. Has your BF looked into his employment prospects abroad?

If you look at the latest RICs survey on residential property, it’s just been released. They expect rents to rise due to a shortage of buy to let landlords.

This is because of the new tax rules and less people investing in property to let out and selling off portfolios. House prices have dropped mainly in the south, London in particular and North is holding up mostly.

Which area are you looking to buy?

And yes insurance!

I think it's always better to buy than rent if you can afford it. That said, we are hoping to move to somewhere a bit bigger in the not too distant future but have decided to stay put for now in case prices drop (partly because it'll be cheaper for us to "move up" if prices drop, as the difference between this house and a bigger one could be £50k rather than £80k if they both dropped to the prices they were 5 years ago).

(I realise a drop like that is purely hypothetical and gave no idea how likely it is, but hopefully you get my point)