To buy or not...and if so what to offer?

[HateSponge]

Have found a lovely house (not my forever house, but nice all the same!) - ok area, VERY close to schools etc and am trying to decide if I should seriously think about buying now, and if so, what to offer, advice appreciated!

The house is on with several agents, 2 have it up at £200k, the 3rd one is offers over £175k. I've checked the price of houses in the same street, you cant really compare directly because its a different style to the others (& I think a bit bigger) but they were selling for £150k in 2002, and £200k in 2006.

I have up to £20k to put towards a deposit, and have been told (by a friend who is a mortgage advisor) I can definitely get a mortgage for £150k.

If I don't buy now I will stay renting, but that costs me nearly £1k a month, so I cant see I would be much worse off with buying - but is it a good idea?

Also what to offer? I have still to view it (I've seen the outside by driving past! and the interior photos on rightmove) but if I like it as I think I will, should I still be offering less than the asking price? The offers over £175k is confusing me!

I would love to get it for £150k but could pay £175k. I'd not want to pay any more due to stamp duty.........

As you have less than a 20% deposit you won't get the best mortgage rates at the moment. Looking at your figures I can't see that a mortgage would be cheaper than your rent, either, plus you would then have the costs associated with ownership. Also consider that base rates will not stay this low.

It's not your forever house, either, you say. And it's an 'OK' area.

If you do really want it, you have to ask yourself how you'd feel if you bought it for £175k and a couple of years down the line found it was worth £150k (ie. having wiped out your deposit). If the answer is you wouldn't really mind because you're happy to stay there, then fine.

I do understand the longing to buy somewhere (I share it!), but it sounds to me a bit like your impatience is overriding some important things.

thanks - mortgage advisor friend assured me my mortage would probably be about £1000, or 'slightly' more - however I havent seen anything in writing to that effect yet! (friends )

I do have to move from current rented house in next 6 months anyway, and don't relish prospect of another 12 months or more in a house that doesnt feel my 'own'.

For the money I have right now, its probably as good as I can get though I would hate for the price to drop below what I paid, which is why - if I like it as much as I think I will - I'm thinking of offering £150k, and maybe walking away if not accepted.

I should add I do have another house with my ExP which won't be sold for another 2-3 years minimum (long story) but when it does I should get at least £100k from the sale if prices dont fall much more, but I can't face waiting until then before buying.....

if only I had a crystal ball

Would appear that the drops are still happening, don't buy yet you'll kick yourself (or I'll kick you) for wasting your money.
You will be better off when you are paying £500 a month for your mortgage instead of a thousand.

www.nationwide.co.uk/hpi/historical/Feb_2009.pdf

so who said that house prices rose in January when it would appear according to Nationwide they dropped?

Twas Halifax. They reportedly 'changed their methodology' again . Be interesting to see what they say this time.