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Original poster

Is it a good or bad time to buy a new home?

49 replies

Hellobye · 30/04/2017 22:10

I have seen a house I want to buy but it is at the highest price I am comfortable with. I keep thinking of worst case scenarios eg post-brexit crash or world war 3 (don't laugh) and how it will affect house prices.

Will I be stuck with a house I can't sell in the future? Is it a good or bad time to buy? If I don't buy now I am paying extortionate rent so I know it is probably sensible to invest my money now. All the what ifs, what ifs are going through my mind. Please reassure me!

OP posts:
scoopmuckanddizzyrollytoo · 30/04/2017 22:12

Me too!! Will watch with interest 😁

PaintingByNumbers · 30/04/2017 22:14

we are selling and buying bigger. mortgage rate fixed at really low rate. house big enough for us for years, or could even rent out a room. we'll always need a place to live anyway. fingers crossed!

Lalunya85 · 30/04/2017 22:15

People kept warning us that we were buying at the top of the market (highest prices and everything would nose dive) three years ago.
That didn't happen! It worried me, but I asked myself: if the worst happened, would I be ok living in this house forever (or a good 10 or more years at least).

If the answer to that question for you is yes, then I think you should go for it.

Riderontheswarm · 30/04/2017 22:17

I've no idea if it is a good time to buy but if world war 3 breaks out you won't be worrying about your house.

BabyHamster · 30/04/2017 22:23

Everyone said we were buying at the top of the market three years ago, house has gained £80k in value since then...

As a general rule though, lalunya's advice is right. If you can see yourself living there for at least another ten years it's probably not a bad move.

MyCalmX · 30/04/2017 22:29

I had a thread a few days ago about next step. My only advice would be buy a home you can 'grow' in to. We have a big 2 bed house in London, 2 dd so they can share. We have decided to stay in London at the mo as we don't want to increase mortgage or move out of London.

A work colleague of dh is buying a 2 bed flat in Tooting for nearly £ 600,000...that just blows my mind.

Original poster
Hellobye · 30/04/2017 22:32

Hmm I'm not looking at it as a 10 year home. I am likely to want to downsize within that time. I was thinking more like 2-3 years depending on what happens in my personal life.

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JanetBrown2015 · 30/04/2017 23:02

Lalunya's advice is correct.

If just for 2 - 3 years then do check things like whether the stamp duty is worth paying just for that period if you will have to pay an awful lot of it because it is a higher value property and make sure you don't take out a mortgage with penalties if you have to sell within 2 - 3 years. Don't assum owning over 2 - 3 years will result in any increase in price at all. We have had ups and downs since I first bought in 1984 - sold our last house at loss even but as I'll own a house until I am over 90 probably it doesn't really matter, it's a home, not a source of cash.

Original poster
Hellobye · 30/04/2017 23:22

Yes I have concerns about it losing value but I am paying £1000 pm in rent so I figure Im losing money anyway.

OP posts:
MyCalmX · 30/04/2017 23:24

Not for 2 years, your stamp duty won't even have been repaid. That's nuts Confused

Original poster
Hellobye · 30/04/2017 23:28

Yes but what about my £12 grand a year rent!

OP posts:
NotDavidTennant · 30/04/2017 23:36

You really need to sit down and work out the numbers.

Would the mortgage be cheaper than your current rent? What costs will you incur in buying the house (certainly a few grand at least)? How much will you have to spend on repairs and refurbishment after you move in? How much equity will you build up over 2-3 years?

namechangedtoday15 · 30/04/2017 23:47

Rent of £1k per month is £24k over 2 years and presumably as a tenant you have no responsibility as to the upkeep of the property (roof, boiler - the big expenses).

Sit down and look at the numbers of buying - do you think that the cost of buying + interest on a mortgage + upkeep & maintenance + selling expenses + rise in market will be more than £24k? If so, its worth considering. Here I would suggest it's definitely worth buying - even.for a short period. Prices published today say 17% growth in a year. But you have where you are and look at the numbers carefully.

EssentialHummus · 30/04/2017 23:50

I asked myself: if the worst happened, would I be ok living in this house forever (or a good 10 or more years at least).

We've just bought on this basis.

GardenGeek · 30/04/2017 23:50

This reply has been deleted

Message withdrawn at poster's request.

Quickieat2 · 01/05/2017 03:20

Personally I'd wait to see how the market is post election. Better to buy low when prices have dropped. If prices drop that is.

For example if property devalues by 20% (worst case?!). On a house of 200k, that's a 40K loss in value. Also moving costs (selling and buying) of £15k total. Making 55k

Quickieat2 · 01/05/2017 03:24

Can you buy the flat you'd like to downsize to and rent it out.

Wait for the election first.

Brexit killed the market where we were.

Quickieat2 · 01/05/2017 03:26

Continuing ....

55k loss plus all the mortgage payments you make annually.

Original poster
Hellobye · 01/05/2017 06:14

Very small mortgage so yes it would be less than 24k (rent) in two years.

Good point about downsizing now but I can't find anything suitable and I have been looking for months. The few I have seen have been snapped up straight away and sold at higher than the asking price and it's all very stressful to be involved in. This will be a house at the top of my budget but is brand new and available now and I like the convenience of that.

I can't think of anywhere I would like to settle for ten years although that is a good way of looking at it.

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Kee88 · 01/05/2017 06:22

In a similar position. Also wanting to buy. We will be in this house for a long time.
We can definitely grow into it. This house we have seen and like is big.

Pros- mortgage would be cheaper than rent. Interest rates are low. Can get a good 5 year fixed rate. The market is pretty slow round here at the moment which puts us in a good position.
Cons-I'm worried what's going to happen post brexit and election.

PaintingByNumbers · 01/05/2017 07:39

brand new will always be overpriced. you are exposed to a bigger risk of losing money selling in a few years time than if buying an older property. always worth comparing the price per foot to see if it is good value compared to older properties.

chickpeaburger · 01/05/2017 08:06

Madness IMO to buy something for 2-3 years. You need to live somewhere. You need to pay for living somewhere and from what you said your rental sounds ideal.

I suspect you don't know how much it costs to buy, maintain and then sell a house.

chickpeaburger · 01/05/2017 08:08

Brand new! On dear. Definitely not a good idea. You'll pay double the amount of what you are paying for rental if you are buying and selling a new house within 2 - 3 years.

Original poster
Hellobye · 01/05/2017 08:23

I am only renting as I sold my house six months ago and it was complicated at the end so I know exactly what is involved in buying and selling and how the costs mount up.

I am also a single parent so all maintenance is up to me or I have to pay for it!

I had a very small mortgage so it doesn't feel right to be paying so much rent.

With buying a new house I am paying for convenience I know that. The house is sitting there ready whereas my area is popular and houses are snapped up at above the asking price and I have had a few disappointments. I could be in the new home in six weeks whereas it could be months before I find anything else and actually complete in my area.

Thanks for your comments. They are making me think.

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LizzieMacQueen · 01/05/2017 08:39

Depends if it is new on a growing development or more of a one off.

It's not in a place beginning with D is it?