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Opinions about buying now or waiting

59 replies

wendyredredrobin · 16/02/2009 16:11

I'm fed up of being in rented - 15 months now and was meant to be temporary. A house has come up which looks ok and has a bit of potential for extension etc. We have been waiting 15 months for a house to come up in the catchment area which we like - they just haven't!! We are picky i.e. no main road, detached, 4 beds etc and there aren't that many of that type of house in our town, lots of semis and lots of main roads.
We are arranging a viewing - if we like it should we buy?

OP posts:
VinoEsmeralda · 16/02/2009 16:16

If you intend to stay there for at least 5-10 years I would buy the house if it is what I was looking for.
Even would consider buying it and it wasnt perfect but close to deadline for school papers...

We are going to in the next month (fingers crossed!)

noddyholder · 16/02/2009 16:22

We bought at the end of last year after 15 months renting too.I found it unbearable living with someone elses stuff and the standard for the £ was shocking.BUT I negotiated vwery hard and it was a seller who had a portfolio of property and knew he had to geet rid of it.Also the agent advised him to take our low offer too so we are happy with what we got.Find out how much the house sold for and when and work out what you think you can pay for it now good luck x

SweetCheeksLovesSweetTalk · 16/02/2009 16:27

What are the lastest predictions? Is the market set to bottom out soon?

catMandu · 16/02/2009 16:27

fwiw I would buy now in your position. I don't think prices are going to get much cheaper and they may even start to slowly rise soon. They went up by 6% in January.

JimmyMcNulty · 16/02/2009 16:45

CatMandu, where on earth did you get that figure from??!!

The market set to bottom out soon? At the start of the worst recession in 60 years? With unemployment rising? When all the major lenders are forecasting significant further drops? When lending has massively contracted and unlikely to return to previous insane salary multiples etc?

In answer to the OP - no reason not to buy now, but only if you can get it at a price you are happy with and can afford when interest rates go back up.

noddyholder · 16/02/2009 16:52

jimmy is right A recession and esp a house price crash don't recover in a year or two.We are looking at 5 plus years at least to get back to 2007 prices If we do.Prices did not go up in January

nkf · 16/02/2009 16:53

Is it expensive? Don't overpay. Good luck.

nat22 · 16/02/2009 17:04

If it the house you really want and it will be a home for the medium /long term than go for it. Lets get back to remembering houses are homes and not quick win investments

lalalonglegs · 16/02/2009 17:07

I wouldn't buy a house that wasn't in the right catchment area and pretty close to perfect. Chances are you will feel just as compromised there as you do in your rented house. Why not change rented if you don't like current house?

iirc, there was more "activity" during January but it is far too early to say whether this has led to higher prices or even whether that activity will lead to more completions. Doom and gloom in economy means it's unlikely that house prices will pick up significantly in near future.

HeadFairy · 16/02/2009 17:11

We're about to buy, our estate agents have told us they've had more enquiries in the last month than they've had in the last year. Things are definitely starting to bottom out here in London. I think we may have two more months of price falls, but no more. Other parts of the country may have a few more as there's usually a bit of a lag behind London. I would say if you are in a position to buy now, and it's the right house, I would do it. Don't bother if you're doing it for any other reasons.

catMandu · 16/02/2009 17:36

Ok, so my memory isn't great, but they did rise

1.9%

Don't forget that we are not at the beginning of house prices lowering, it's been happening for at least a year already.

SweetCheeksLovesSweetTalk · 16/02/2009 18:18

I'm planning on moving in 2013 and I'm praying prices have risen to 2006 prices by then, what are the chances?

noddyholder · 16/02/2009 18:22

sweetcheeks that sounds a good plan

JimmyMcNulty · 16/02/2009 19:33

If prices are higher at the end of 2009 than they are now (especially in London) I will eat my maternity knickers.

JimmyMcNulty · 16/02/2009 19:36

I've posted this before, but it's worth posting again:

The shape of bubbles

Even in the midst of the last crashes there were months when there was an uptick, before normal service was resumed downwards.

JimmyMcNulty · 16/02/2009 19:41

Sod it, no, I'll go with minimum 10% lower.

catMandu · 16/02/2009 19:53

Ok Jimmy lets agree to meet back here in a year and I'll bet you that prices are higher than they are now. Just for fun, of course .

JimmyMcNulty · 16/02/2009 20:04

Deal. So what will you eat if they aren't?

noddyholder · 16/02/2009 20:07

The trend is downwards and the figures look like this time as the bubble was bigger the fall will be sharper.i think in total 40% is likely if not more for ridiculous increases.I have made money developing sivce 1996 and am currently jobless because of this.I don't think i will renovate anything until at least 2012 on the advice of agents bank dudes accountants and other more experienced property buffs

catMandu · 16/02/2009 21:14

how about walnuts - honestly I really really hate walnuts - you?

if pushed, I'll go with liver.

jeanjeannie · 16/02/2009 21:46

I'm with Noddy - reckon it's going to get worse...worth being proved wrong though - just to see the maternity knicker feast!

I was in neg equitity back in the early 90s and it's a much more grave economic state now than back then. I don't see how they can go back up soon, unless banks start to lend 4x (and more) on salaries and take less than 10% deposits...and that's not going to happen.

I wouldn't buy unless it was a dream property, that ticked all the boxes AND was just for a home and not an investment. Make sure it's in the catchement you want as many fee-paying parents are now thinking of sending LOs to a good state school instead meaning out of catchment places are going to be as rare as hens teeth!

DamonBradleylovesPippi · 16/02/2009 21:53

if you like the house, it is in the area you want and you can afford it at current price then what are you waiting for? in order to save 5grand (say) you would risk someone elses snatching it and you having to stay in the rented accomodation that you so hate.

Sorrento · 17/02/2009 12:52

When the so called experts go bust you've got to believe the only way from here is down.
www.dailymail.co.uk/news/article-1147582/Location-Location-host-Phil-Spencers-property -firm-goes-bust.html

Hold onto your deposit, there is one thing worse than renting it's watching your money disappear down the drain every month, knowing there's nothing you can do about it now.

SweetCheeksLovesSweetTalk · 17/02/2009 13:04

"watching your money disappear down the drain every month" AKA renting

Sorrento · 17/02/2009 13:16

When prices are dropping by 10% per year renting is by far the cheaper option actually.
Think about it you make money when you buy something not when you sell.
Therefore if you pay £250k for a house and it depreciates by 10% you've lost £25k. To rent a house of similar size here you'd pay about £1k, so £12k a year.
You still have your deposit earning some interest and you're not paying the interest part of the mortgage which on £207k is £948 per month.