Buy now or sit tight a bit longer?

[travelingtortoise]

After years of thinking I wouldn't be able to get a mortgage in the UK as a resident of Spain, I've just found out it IS possible.

So I've been looking at properties to let out as AirBnB when I'm out of the country, and as a place to use as a base when I come back to the UK for a couple of months per year (I want to spend a bit more time around family).

But with everything that's going on with mortgage rates right now, would it be mad to buy this year?

Should I sit tight a bit longer and hope things get better by the spring?

I’d wait it you can, which it sounds like you can.

I've always given the advice that the best time to buy is now.

If it's the right time for you, you can afford it and it's a long term home or long term investment, then go ahead now.

Property markets are really only predictable in hindsight and there are forums full of bitter people who 'waited for the crash' who sat back and watched property become completely unaffordable.

We are sitting tight and would actually rather our cheap rent than a mortgage right now with rates the way they are. They’re saying things will look different in 2025

You'd be unwise to buy a holiday home in the UK in the next two years. Prices are falling and regulations are increasing. Tax will probably also increase as the government struggles to fund benefits.

@travelingtortoise “would it be mad to buy this year?”

Yes, you would be mad to buy a house in the UK you don’t need, at the moment.

You’ve just stated a complete oxymoron. If house prices are completely unaffordable then they have to correct to become affordable otherwise no one can afford them.

You've perhaps missed the significant point which I stated in that post - If it's the right time for you, you can afford it

Of course it's the right time, as I stated, if you can afford it, if you can't afford it then you buy something within your means, save more, or wait and 'hope'.

My choices have always been to buy what was within my means at the time I wanted to buy, especially investment wise. Being proactive, in my experience, has paid dividends.

Interesting replies - thanks!

I can 'afford it' in that I've got a reasonable deposit and could cover the cost of mortgage payments through the holiday lettings.

I just don't want to tie myself into something that costs far more than it has to when, as you're saying @mobear, it's not something I NEED, more just something I feel would be a meaningful step forward for me.

I am rubbish at waiting so I’d buy now.

@travelingtortoise I’d definitely wait in that case. If it were going to be your main residence I’d say go for it, it will level out in the end, but to buy an additional property you don’t need at the moment feels risky, and I suspect you’ll get better value in the not too distant future.

I sold my flat a few weeks ago. We bought a house and I’d held onto the flat for years but it didn’t seem a wise thing to do in this market as I didn’t need it. However I won’t be selling my house because we do need it, and I’m happy to ride the wave on that one.