Buy now or wait to see what a new parliment brings?

[Dillie]

We are in the process of buying/selling a house, just had ours valued and made a healthy return on a 10year investment

But I do have a niggle about the general election and what a possible hung parliment or a new party will do to the interest rate/mortgage market.

So do I get things moving now? Or wait a few months to see what the markets do?

A friend of mine has had hers on the market for a few months, but the viewings have dried up due to the election, and the uncertainty surrounding which way the vote will go.

Where is a crystal ball when you need it!!

Any thoughts?

Um, isn't it a bit late to be thinking? Or are you thinking of selling tomorrow and completing Thursday morning?

hey, I'm having the same thoughts as you. We had an offer accepted on a place a week or so ago, at a scarily high price (though in line with the generally high prices in our area ). I do think there could well be a real price drop over the next year or so, though probably it will take quite a few months rather than kicking in just after the election.

against buying now: if we buy now we'd "lose" money (on paper at least), or if we hold off buying and wait till the dip, we'd save money.

in favour of buying now: (1) if prices do drop, then supply will dry up too, so there will be little to buy (and we are fussy!) (2) don't really want to rent for another year (3) we wouldn't intend to move for several years anyway, so in theory that should give time for the market to recover. oh yes and (4) there might not be a price drop.

overall as you can tell I'm leaning towards buying now! probably influenced by the fact I'm feeling a bit "nesty" though.

I read today that interest rates are likely to stay at 0.5% for the next few years. Worst case scenario would be a hung parliament where rates may 'rocket' up to 3.5%.

We are buying atm partly because we have to or we lose our home (we currently rent it & LL selling up) and partly because of the low rates.

I think things are selling quickly if they are in good order/in a desirable area but sticking if overpriced or needing lots of work.

I am curious to know why interest rates will stay at 0.5% for the next few years. Could you link to the piece? I was under the impression that the current rates were unsustainably low.

can I hijack to ask lala if she is still trying to rent her place out for a short while?

oh and to add I thought interest rates were on hte up too

do the maths from 0.5 to 1% a 100% increase in payments, from 0.5 to 1.5 a 200% increase from 0.5 to 2% a 300% increase (although it's not like that in reality I know)

I think you have to do what is right for your family and not think about the money (as long as you can afford the repayments).

We sold at the bottom and have been renting for just over a year. Although I'm fairly convinced prices will fall over the summer I've been wrong about everything up until now. We would buy at the moment if the right house came on the market but that's the trouble.

There is so little to choose from that any decent house in a decent catchment goes within days. We were gazumped last September and lost to sealed bids in November but haven't seen one house since that we would even think of offering on.

Whilst supply remains so low there is little reason to suspect prices will go down in the very short term - even if they aren't a true reflection of their value 'under normal market conditions'.

I think what I'm trying to say is buy now, because it's what your family need, but don't be upset if you lose money on it!

Fruitstick - that is the most sensible thing I have heard in a long time !

lalalonglegs - that link is here uk.news.yahoo.com/21/20100502/tuk-house-prices-will-increase-by5-6323e80_1.html

Surprised me too as I thought rates were ridiculously low - having been a saver for so long now!!

fruitstick - agree with you 100% - it's all madness but life has to go on....

Thanks for that minty - cebr seem to be hedging bets a bit: rates would stay the same but could got up in the short term and might hit 3.5%...

daysoftheweek - thanks for asking, we rented it out pretty quickly in the end (estate agency told us we wouldn't be able to as we only wanted to move for six months but we got tenants within three weeks and they are paying more than EA guide). Can't wait to move back again, drove past today and it is sooooo much nicer than where we are.

I'm with fruitstick with an almost identical scenario. Houses come up so rarely that I wouldn't try to play the market. If the right house comes up we'll buy it - we'll be in it for 20-30 yrs so we don't care if prices go down afterwards - well we would but we wouldn't dwell on it...much!

My Dahling husband holds to the view that the areas that depend heavily on state sector employment i.e. SW and uuuup Noooorth will suffer a considerable drop in house prices; the SE commuter belt won't budge and the prices there will start steadily creeping up.
One tends to agree...
We shall see.....

Hello Nosey - shall we just move in together! I'm sure if we club together we could get something mighty fine

I've just checked rightmove and there are 23 new properties on the market in our search area in the last 24 hours. 12 of these are either price reductions or sales that have fallen through (or both). Of the 5 of these over £250k, 4 were relistings

Until recently, daily averages were about 5 or 6 new properties in total.

Will see what tomorrow brings.

What fruitstick says. We sold at the bottom, and then completed in Feb this year on our current house (after going into rented).

We went to sealed bids 4 x last summer and lost - where we are the lack of supply is driving prices up ridiculously. Whilst interest rates remain low no-one is in any rush to sell - it's not like the end of 80s recession where interest rates were in double digits.

I think sell and buy if it's thr right thing to do for your family- chances are you will make money over another 10 - 20 years anyway, but even if you don't you and your family will have had the home that you want/ need.

Right - it looks like I am taking my own advice and we have offered on a house.

It's a lovely old victorian house in need of modernisation but ticks all our boxes.

We have made an offer 10% under and will go to 5% under. I have a feeling that it will go for the asking price though but that would be too much for us financially, given the amount of work it needs.

But if we get it, we will never need to move again until the kids leave home.