Would you save hard to buy now or wait?

[natalyna]

Put yourself in my daughter’s shoes. If you were a young couple in London, mid 20s. Would you save hard to buy a first flat now, or would you wait a few years?

1. Prices in London are falling,
2. Renting is significantly cheaper than buying due to high interest rates.
3. In a year or two, your salary is like to increase massively.
4. Might end up moving overseas with work.

But on the other hand, the earlier you get on the ladder, the earlier you build equity…. or so goes the wisdom…

I think I would rent and continue to save. As you say house prices are still falling and unless they know they are staying in London for a good few years then to be it’s a no brainier. Flats aren’t always easy to sell.

The London answer is different to the rest of the UK answer. Rent is dead money at least mortgage is a step closer to owning outright. Tough one but rent just to be flexible with jobs I would say.

Not London, but my son, in early 20s, has bought. Made sense, rather than renting. He plans to travel and rent it out this summer. Means he has a permanent base and feels settled when he's not got itchy feet.

Save hard to buy either end of next year or possibly by mid 2025. That's when I would aspect prices to have bottomed out, but it's finger in the air stuff predicting the market as we all know.

If renting is cheaper where she is, continue saving & wait to buy after her salary has massively increased. Especially is she might want to move overseas anyway.

I’d wait. If they might move abroad and need to sell with falling property prices they stand to lose out

Sounds like the answer to your question is the same for both scenarios - they need to save a deposit. Question is I guess how much fun are they prepared to miss out on to do it. For me I was single all through my 20’s and in no rush to grow up. The answer would be very different for a married young couple wanting a family.

Having not bought until I was nearly 40, I'd say buy now. She will never have this much disposable income again in all likelihood and rents won't stay low as landlords have to remortgage. At least she will have somewhere to come back to should she move abroad.

We are renting. Looking to buy
We have decided we will continue to save for the moment as there is not much out there atm and what is out there seems overpriced and interest rates are high.
Feel like we don't have a full choice of properties at the moment and don't want to buy something because it's the best of a poor selection

You had less disposable income in your twenties than at 40? My income had nearly trippled when I brought aged 41 compared to 21 year old me!

I wouldn’t but in London. Anywhere else in the country I’d say buy now.

One point: London is not a homogeneous market. Really depends where they want to be, as there are some areas that aren't in decline for various reasons.

3 kids later, yes, I for sure had more disposable income in my 20s. When the kids leave I'll have cash again!

I am planning to buy a flat in London next year. Different situation as I have no plans to move abroad though, so even if prices drop further it's still better for me to buy now, as I'd have no plans to sell again any time soon. But I've been saving for a deposit for years already, I want to feel more settled, be on the housing ladder and get out of rentals.