So confused. Buy now or wait to avoid overpriced house

[splashypuddles]

Keep reading this and that and this and that and don't know what to think.
Don't want to end up on high interest rates but don't want to end up on negative equity either.

It depends though doesn’t it ? If you can’t pay your rent and you’re tied into a contract or the market is such that you won’t be able to find another rental even at the same price never mind less you’re screwed, you’ve also got the removal costs on top, potentially getting rid of all of your furniture or putting it into storage if you’re downsizing. Will you pass the credit checks if you’ve missed a couple of payments ? Do you earn 30 times the monthly rent ?

lots to weigh up there’s no easy solutions on either side and it’s sensible to just look at all of the worst case scenarios and kind of pick your worst which is the best of a bad bunch ?

Good points, however I cant see the credit check thing on tenants lasting in a recession, many landlords will just need to get someone through the door, and take the chance that they keep paying. My point was assuming two people who can pay their way, one rents cheaply the other bought at peak and the price has now crashed, the second one cant walk away from their debt even in negative equity and may find moving difficult, the first one has no debt but has a monthly cost to meet each month.

In a recession credit check it is going to double down, not reduce given how difficult it is at the moment to get tenants that don’t pay out of properties if your claim in the landlords are going to be suffering financial difficulty they are going to be all the more picky as to who they let in through the door.

And given the number of tenants queueing round the block right now for properties, why is there going to be a sudden glut of them when they’re all unemployed due to the recession? The unemployed certainly won’t be buying property will they 🙄

I think landlords would prefer to sell at a loss rather than take on tenants that they fear may not be able to pay. When you sell at a loss, you know how much you are going to lose. When you rent to someone who could potentially not pay and refuse to be evicted and trash the place, you are looking at months of unpaid rent plus possibly tens of thousands in damage plus paying a mortgage on top of it. if the landlord owned outright, then its best to leave it empty rather than take on bad tenants.

I think that house prices would go down which would benefit those with equity and deposits. Renters with no deposit would have to move back home with family or pay very high rent amidst a decreasing supply of rental properties as landlords sell up. There is an argument that rental prices could suffer downward pressure because the renters simply can't pay; perhaps thats true, but a landlord certainly wouldn't take on a tenant who can't pass a credit check. Also if there is a lower supply of rental properties and more people who want to rent, that would apply upward pressure.

It depends though doesn’t it ? If you can’t pay your rent and you’re tied into a contract or the market is such that you won’t be able to find another rental even at the same price never mind less you’re screwed Well in our case (we rent) we wouldn't be because we would move to a cheaper area and rent there, we work remotely and our DC are home schooled.

You’ve also got the removal costs on top, potentially getting rid of all of your furniture or putting it into storage if you’re downsizing. Will you pass the credit checks if you’ve missed a couple of payments ? Do you earn 30 times the monthly rent ?* We earn significantly more than 30 times our monthly

lots to weigh up there’s no easy solutions on either side and it’s sensible to just look at all of the worst case scenarios and kind of pick your worst which is the best of a bad bunch ? imo renting is a safer bet than buying right now.

I think renting is a safer bet ATM for sure. When we started renting this place (which we pay £1700 pcm though, for comparison purposes we'd have been looking at £1800 pcm minimum for mortgage repayments before all this happened, and now significantly more), we were told we wouldn't be able to rent it unless one of us earned more than £54k (not combined income - one of us had to earn at least that). We earn more than double that combined so ought to be able to afford any rent increases. We have about 130k ready to go as a deposit but I'm not prepared to sink it all into a house right now, I want my money where I can easily get it, sorry.

Keep that wonga below the guarantee scheme, or better between 3 accounts in unrelated companies.

Yes we have it in separate accounts