If you were a first time buyer would you rethink buying now? We are desperate to move out of our current rental before our new baby needs her own room but really concerned about rising interest rates and the possibility we’ll lose money if we buy now and the market takes a downturn in the next bit.
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Would you rethink buying now as a first time buyer?
trrk · 04/08/2022 10:25
Tessasanderson · 05/08/2022 16:48
If you dont mind me asking. Ignoring the chance of the house value changing. Have you accounted for, say your household bills going up drastically over the next few years? Food, utilities, fuel etc?
The value of the house now and in the future is, as you hinted pretty much irrelevant to you.
MrFirstTimeBuyer · 05/08/2022 16:25
I'm about to buy our first house, jumping straight to a 4 bedroom house we plan to live in for many years. Therefore I'm not really concerned about the short term changes in house prices.
With inflation at 10 percent, house prices will inevitably go up over time.
happinessischocolate · 05/08/2022 18:05
With inflation at 10 percent, house prices will inevitably go up over time.
How do you work that out?
Surely if inflation is high then people will struggle to pay the rent and the mortgage and are more likely to default ?
Plus they're now predicting 20%
MrFirstTimeBuyer · 06/08/2022 08:00
I am in a lucky position to have a substantial disposable income left even after paying the mortgage, so even a significant increase in prices wouldn't be a big issue.
And if they rose so extremely as to impact me, there'd be riots on the streets by then, so it's not really something I focus on.
Tessasanderson · 05/08/2022 16:48
If you dont mind me asking. Ignoring the chance of the house value changing. Have you accounted for, say your household bills going up drastically over the next few years? Food, utilities, fuel etc?
The value of the house now and in the future is, as you hinted pretty much irrelevant to you.
MrFirstTimeBuyer · 05/08/2022 16:25
I'm about to buy our first house, jumping straight to a 4 bedroom house we plan to live in for many years. Therefore I'm not really concerned about the short term changes in house prices.
With inflation at 10 percent, house prices will inevitably go up over time.
CharlieChalkface · 06/08/2022 13:35
I would try and get a fixed rate mortgage now if you can. Interest rates are rocketing up, the longer you leave it the more expensive your mortgage will be. Unless you are able to increase your monthly savings at the same rate as inflation you will soon find your saved deposit will not get you as much house as you could have had if you’d got on the property ladder sooner. Always better to own your own home sooner and be paying it off than renting. Rent money is just money down the drain every month.
MidnightMeltdown · 07/08/2022 13:38
@happinessischocolate
But you need to remember that with inflation expected to reach 15%, the value of cash is also going down
Presumably OP has a decent deposit saved, which is safest invested in an asset. If there's a blip in the housing market then it will be temporary, but any loss in the value of cash will be permanent.
MidnightMeltdown · 07/08/2022 14:12
@oiltrader
Nothing better to invest in that your home. It's ridiculous to pay rent when you can pay. Rents are rocketing too!
MidnightMeltdown · 07/08/2022 13:38
@happinessischocolate
But you need to remember that with inflation expected to reach 15%, the value of cash is also going down
Presumably OP has a decent deposit saved, which is safest invested in an asset. If there's a blip in the housing market then it will be temporary, but any loss in the value of cash will be permanent.
wonderstuff · 07/08/2022 19:46
High inflation does lead to higher interest rates, but it also means the value of your loan decreases more quickly. I would absolutely buy now, but I would factor in being able to afford at least a 1% interest rate rise, even if that meant moving further out. Cambridge is pricey but moving towards Peterborough is presumably still much cheaper?
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