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Property/DIY

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Original poster

is now a good time to buy

14 replies

theftb · 16/10/2013 14:57

my sister was planning to buy first house at the end of next year, but at a push she has enough deposit to start looking now. The news says about a housing bubble, and 10% rises over the next year, so she is now wondering wether to buy now in case she is priced out of her market, any thoughts..........

OP posts:

CarlaBrooni · 16/10/2013 14:59

Who's going to be able to pay 10% more for a house next year when hardly anyone can buy one just now?

Once interest rates go up it's going to be very nasty.

Lizzylou · 16/10/2013 15:13

It really depends on area I think.

PastaBeeandCheese · 16/10/2013 15:35

lizzy is right. It depends on the area.

worldgonecrazy · 16/10/2013 15:41

I think it's a good time to start looking at options and working out budgets. No one truly knows what is going to happen in the housing market. What I would advise is that your sister looks at what repayments would be at different interest rates - would her mortgage be manageable at 7%, 9% etc.

BrownSauceSandwich · 16/10/2013 15:53

Hang on while I dust off my crystal ball...

No, seriously, I think you're right to wonder. I reckon we're already seeing prices crank up just because people expect them to go up... If she goes for it now, she'll be competing with all the others trying to beat the bubble, which may or may not happen, or certainly may not last.

To be honest, you could drive yourself insane trying to predict the housing market. Maybe it's better to just stick with the original plan and save up a bigger deposit.

What a profoundly unhelpful post!

BrownSauceSandwich · 16/10/2013 15:54

Just to clarify... I'm saying MY post is unhelpful!

PastaBeeandCheese · 16/10/2013 16:13

Mind you, prices aside it is likely rates will stay low for a few more years so a good time to get through the initial pain on a mortgage when the amount you pay in interest is so high compared to when the capital loan begins to reduce.

specialsubject · 16/10/2013 17:42

if she is in London and the south-east, prices are rising as always. In many other areas they are stable.

have a look on rightmove or similar at what places ACTUALLY SELL FOR. A lot of these stupid-journo articles talk about asking prices. In my neck of the woods the two are very different.

RedHelenB · 16/10/2013 18:12

The plus point of buying sooner is that she will be mortgage free sooner. We bought as soon as we could ( thanks Grandma for giving is the deposit as a wedding present!) & now I am almost 4/5 through my mortgage in a house I will never have to move from unless I choose to.

WhataSook · 17/10/2013 11:11

theftb can you please confirm what area your sister is thinking of buying in? If it's London/SE it's going to get a different response to the rest of the country...

Bluegrass · 17/10/2013 11:23

I think if you are buying a house to live rather than as an asset to speculate with you just have to buy when you are ready - timing the market is more luck than judgment.

As for who will have the money to buy if prices go up - all that happens is that people have to adjust their expectations. They try to stick to the same budget but they have to look for somewhere smaller or in a less desirable area. I could weep if I thought about what my budget could've bought a year or two ago, but I didn't have the money then, so I have to accept what it will buy me now.

iseenodust · 17/10/2013 11:35

Area is more specific than just London/ SE. Property in good parts of Birmingham selling like hot cakes, no time for second viewings. Not such nice parts I don't know.

Original poster

theftb · 17/10/2013 13:04

area is within about 30 mins drive of cambridge, but not cambridge as horrendously expensive, has 155k to spend.

OP posts:

homeseeker123 · 17/10/2013 16:08

I totally agree with Bluegrass. Buying a house is a choice of lifestyle. A big decision that will have a ripple effect on every other decision in our lives.
You are ready to buy when you have a reasonably clear understanding of your needs and wants and believe they are going to stay constant in a foreseeable and likely future. (No one has a crystal ball).

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