Should I buy a house now?

[Whattodo1233]

just looking some advice. My partner and I are first time buyers. We have an offer of 130k accepted on a house, 10k above asking due to bids. (Needs some renovation and renovated properties on the street have been up for 140-160k recently) With current mortgage rates we would be paying 6% interest on a 95% LTV.

We currently rent privately and a move would mean we would be in an area we want to be, close to family as opposed to where we are now being further away. We would also have some childcare support.

my issue is due to interest rate, mortgage would be higher than current rent by approx £250 a month however aware this could go up at anytime.

mortgage offer is for 5 year fixed. Is this is a silly move in current climate?

If its a house you could stay in long term then I'd go for it. I wouldn't if you are going to grow out of it quickly and will need to move on. I think the whole moving up the property ladder will become a thing of the past so I'd buy something you can live in long term
The other thing to consider is renovation costs. Costs are crazy at the moment and if you are paying trades to do work then you will very quickly get through the money and end up spending a lot more than you would if you'd paid more for a renovated house
If the work is more cosmetic and you're happy to do it yourself over time then it sounds like a safe bet

Another thinking you should go for it. You're currently paying someone else's mortgage who won't hesitate to increase your rent when they can/need to.

You'd be better off paying towards your own home and doing some renovations will help to safeguard against price drops too.

If it's affordable and you are planning on it being a long term home I'd go for it. Whatever house prices do, in the end, you'll own it, rather than paying rent forever. Little point trying to time the market. After all it's primarily a home, not an investment vehicle. And there is a lot of value in security and being in a good area near family that you can't translate to ££.

My only concern would be the renovation side, and it turning into a money pit. If it's just a lick of paint and new carpets I'd not be bothered, but anything structural I'd want a good safety net of cash behind me for when it inevitablely goes over budget!

I would say it is worth buying provided you have had a full survey so at least have a good idea of any expenses it may hold that can't be delayed. It doesn't happen often but some houses can be a money pit.

Don't forget there are disadvantages to owning a property:
The price can go down and you can get yourself into negative equity.
Cost of maintenance and repairs
Cost of mortgage can go up
In a bad market it can take a very long time to sell
Stamp duty
Building projects can end up costing you twice what you planned and take twice as long

The big advantage of renting is it gives you complete flexibility, you can move around easily with minimal cost.

@Echobelly

In the 90s they fell 35 percent
We bought here for 75k (although surveyor said 90k). It was on the market for 120k and hadnt been dropped since height.

Not saying it's similar, but they have fallen further in the past.

And we had to clear negative equity to move plus raise a new deposit and costs.

Tough times