Buying advice

[likeamother]

Sorry if this has been covered recently. Have searched and read some interesting theories about the property market but I haven't found anything covering buying at the moment.

Really interested in some thoughts, particularly from anyone in the know on property buying, especially at the moment.

I'm separating from my H and was house hunting when lockdown happened. I still need to buy (obviously once I'm able to view again), a mortgage will be loads cheaper than renting and I want a permanent home for me and the kids.

My worry is I was only just doing it by the skin of my teeth anyway, and as I'll essentially be a first time buyer now, I don't want to pay over the odds if the arse falls out of the housing market in the next year.

Do you think people looking to sell are mindful of this too in terms of being realistic about what to sell for? Would I be foolish to pay near asking price at the moment?

There's a house online with O.I.R.O £200k, around 13k over my budget anyway, but was considering as it was asking for offers and it seemed about 10/15k over what people have been selling for in the area anyway. Now I'm wondering if I'd be silly to pay my maximum if prices are likely to drop? OTOH, if someone markets their house for around 200K is it ridiculous to think they might sell for 180k? (Which would be reflective of a 10% house price drop this year.)

Does anyone have any experience/thoughts? The buyers aren't buying on, and they purchased it 10 years ago for 110K, should that be a factor.

Thank you, am chronically stressed about the future right now!

@Wildwood6 Thank you, this is so helpful. My mortgage payments will be quite small so not sure if 10% will make much difference compared with a shorter repayment period. However, this calculator is great, will go through it as combined with the low interest rates now, it could work out better which I hadn't considered before.

In every market some people still need to move and you sound like you are in that category. Just be very aware you are in a strong buying position and look for a property that hopefully you would be happy to have as your forever home. If you are not planning to move again for decades what is happening in the short time (next 5 yrs) won't make any difference. Perhaps also look for a property that has been fully updated and doesn't need any work so you won't need to find that money in the future.

If its much cheaper than renting it is obviously the best financial decision for you, as long as you can comfortably afford a mortgage and hopefully have a secure job. Also the emotional security of having your own home and the reduction of stress that entails is so important.

In our current home we would also like to do a modest build and then don't plan to move for at least 20 years. In the current situation it has turned out to be a good choice as we are in a neighborhood where we share some resources together and still have a big garden, so plan to have beehives, chickens and a greenhouse etc, if the economy really does nosedive. It seems to be time to batten down the hatches.

As long as you can comfortably afford your mortgage, have a secure job and don't plan to move for decades you are in a perfect position to buy. Housing is clearly a hedge against inflation and over decades your pay will rise and your mortgage will become less of a % of your income. You can pay any extra you make down toward the principal and pay your mortgage loan off earlier.

@Womanlywiles thank you for taking the time to give such thoughtful and reassuring replies. I'll take all of this on board, and yes I think I do need to still buy (for many reasons!) but will be mindful of what I buy and how much I spend.

Your local set-up sounds lovely. Fingers crossed there won't be a complete nosedive, but nice to know you have the option of creating your own resources should you need to. A beehive in the garden sounds both cool and daring!

Before making an offer find our what position the sellers are in.
We're in the middle of selling at the moment, haven't exchanged yet. If our buyer lowers their offer we'll just stay put. We took a lowish offer from a proceedable buyer.
You need to find out how motivated people are to sell it you can.