To Buy or Not to Buy...

#1
Its a simple question....would you buy your first house now or wait a little longer and see what happens.

Any opinions gratefully received please.
 
#2
Prices are going down, so i'd wait... either that or estimate where the market bottom out for the properties you're interested in and don't offer above it.
 
#3
It's not a simple question. Are you wanting to know if ARRSErs think the housing market will drop further in price?

We also don't know your financial obligations/earnings/location of where you want to buy.

Many factors dictate the housing market.....most of all location. Eg...many areas have seen a decline in house prices, in my area, they haven't (yet?)....the market has slowed, and it is definately a buyers market....so a bargain may be on the cards?
 
#4
As Smudge points out there are a lot of unkowns, but in principle if you can a afford the finance, with a bit in hand, b can actually get a mortgage, c can find something you consider worth the price you will have to pay, and d can be pretty certain you will not have to sell unless you want to for about 5 years, then purchase may be worth considering.

House purchase is a long term investement and commitment, and unless you will own some 25% of the equity shouldnot be considered if you may have to sell in a year or so. It can and for most does pay of, despite a divorce the present mrs maxi and I own our house outright so only have to pay out council tax an utilities bills, but it took me about 35 years to get to that point.

You will have to guess for yourself when the price is right for the house you want.
 
#5
if you want to lose tens of thousands of pounds, go right ahead!

i just don't understand what the hell could be compelling some people to consider buying properties in the current climate, forget it!
 
#6
Bikini_Black said:
if you want to lose tens of thousands of pounds, go right ahead!

i just don't understand what the hell could be compelling some people to consider buying properties in the current climate, forget it!
Do you own a house?
 
#8
smudge67 said:
Bikini_Black said:
if you want to lose tens of thousands of pounds, go right ahead!

i just don't understand what the hell could be compelling some people to consider buying properties in the current climate, forget it!
Do you own a house?
From original post........would you buy your first house?

As for buying now its about paying what you think it is worth. Ask the estate agent about repos, vendors that might be after a quick sale and properties with the least viewings that have been on the market for a while don't be afraid to offer well under the asking price.
brettarider has a place for sale.
 
#9
maxi_77 said:
House purchase is a long term investement
Actually, unless you are trading in property, house purchase is no more an investment than purchasing food. It merely provides shelter in the same way that food sustains the body, and cannot be liquidated without replacing it with another form of shelter, albeit recognising that some capital gain may be made.

Your proposition, widely held, and now proved to be fools gold, is what has nearly brought the global economy to its knees. The mantra of equity withdrawal has to be proved equally hollow - it has allowed householders to increase their debt, all of which has to be paid for from income, and reduced their future standard of living immeasurably.

House price falls have hardly started yet, they are likely to fall by 50% from peak to mirror long-term trends (and may overshoot this mark), and there is nothing anybody can do to affect this process. The sooner house prices fall back to sustainable levels, and stabilise, the better - it is not until this point is reached that assets will be able to be properly priced, thereby allowing liquidity and credit to be restored.

The answer to the original question is therefore a resounding NO. Don't be fooled into thinking that there are property bargains out there and you must take advantage of them - they are merely minimal price reductions - bargains will only appear once the market has fallen in excess of 50%.
 
#10
Erm was gonna sell me house ...... but..............dunno OI enigma wanna buy it?? :lol:
 
#11
Yes, but when the property market falls by this 50%, then it is no longer cost effective for developers to build new houses.

Even though prices are going down, labour rates and materials certainly are not. The rising costs of fuel, agregates, land fill and a host of taxes are not reflected in the current climate. So this means fewer developers will be building and ultimately there will be less housing stock on the market.

In our society, UK especially we have a growing population, now the old adage Supply and demand will come in to play. If there are not enough houses to satisfy the demand then the prices will increase and hopefully go towards kickstarting the economy.

It is true to say that the cost of houses has been exceptionally high the past few years, this more or less brought about by high loan to value deals and low interest rates. The current climate has seen a massive switch by the lenders and high LTV's are harder if not impossible to come by, or they will have a very high rate attached to them which puts buyers off.

If the interest rates go down, we will see more people in a position to buy in the market place. The true value of a house is the price you pay. The 2 bed semi may well be £250k on the agents books but if it goes for £200k then this is its true value.

Going back to the original statement that houses will fall by 50% may well be true although I would say 20-30% is more realistic dependant on area. As an example if you have 1 house on the market and 100 people interested in it, then it is fair to say that the value of the house will increase to a point where only 1 person is able to afford it. Simple supply and demand basics.

This will mean there are 99 other people wanting this type of house. In most areas there are only a few types of house with a specific customer requirement, so when these other 99 people stomp around looking for it, there is invariably a price increase to reflect the person who can afford it which has a knock on effect and properties start to move across the board.
Once we are in a market where supply and demand is strong, the 50% drop in prices will soon make way to a quick increase and I'd expect to see house prices rise by 20% quite easily within a 24 month period.

It may well take a few years to get back to todays prices, but dependant on the area and the demand I think that we will see last years house prices a reality again within 3 years across the board, and in areas like London, home counties South west (these are places Im familiar with) there is likely to be an increase in property value exceeding last years prices before this time.

Just my 2pence worth.

EXsigs.
 
#12
Ok buy now and save the stamp or wait 6 months (save your ass off ) and then buy for less than the stamp you did not pay 6 months ago.

Anybody buying now as there is no stamp duty is a mug.

Every and I mean Every society, bank, newspaper state - THE PRICES WILL BE GOING LOWER.



EVEN IF THE DONT DROP YOU WILL STILL HAVE THE CASH YOU SAVED.

IMHO.
 
#13
I have just reserved a house in the SE (to be build by Christmas) listed at £325k for £265k and got the carpets thrown in. since it is a new build I will have no qualms about gazundering prior to completion if the prices drop considerably.

uqfegd

pp
 
#14
Ok. the house is not for an investment. Its going to be my home. I currently rent and am secure here for as long as I wish ( been here 3 years already waiting for this to happen). However, watching what is now going on in the world, I am more interesting in hearing others opinions. I am now beginning to come down on the side of hang on for another 6 months.

Georgian property sounds good but I dont think at that price its down in the South! :D
 
#15
A friend of mine started warning about high property prices a long time ago! His favourite comment about buying is something like "if you like the house and you can see yourself living there for the rest of your life, and you can afford it, then buy it and don't look at the headlines ever again"!

I think he may be right.

However, for most people right now, if you don't have to buy, then sit on your hands. Research the market, save hard at the best rates you can find, and think about what you want. Then visit all the agents, auctions etc and watch what is going on.

Most people don't think about buying a house; they either grab for the first one they see, or they visit no more than half a dozen, and then are surprised when it floods in heavy rain or the sky overhead is full of aircraft on a Sunday afternoon.

The property experts visit dozens, if not hundreds of houses. So, do the same. Keep notes in a format that is indexed and easily retrievable. If you want to live in a particular area, walk the streets. Are they quiet at 2300hrs on Saturdays? Does the primary school round the corner block the roads at 0900 and 1500hrs? Look at Google Maps and the Internet. Know your market!

After all that, you will be ready to pounce on the right house at your price - and you will be ahead of everyone else. But all the old rules about location, and the worst house in the best street, are still good!

Easy? :D

I'll think about buying property when I see the Hassidic Jews back in the auction rooms, and they have been conspicuous by their absence over the last five years.

Litotes
 
#16
pombsen-armchair-warrior said:
maxi_77 said:
House purchase is a long term investement
Actually, unless you are trading in property, house purchase is no more an investment than purchasing food. It merely provides shelter in the same way that food sustains the body, and cannot be liquidated without replacing it with another form of shelter, albeit recognising that some capital gain may be made.

Your proposition, widely held, and now proved to be fools gold, is what has nearly brought the global economy to its knees. The mantra of equity withdrawal has to be proved equally hollow - it has allowed householders to increase their debt, all of which has to be paid for from income, and reduced their future standard of living immeasurably.

House price falls have hardly started yet, they are likely to fall by 50% from peak to mirror long-term trends (and may overshoot this mark), and there is nothing anybody can do to affect this process. The sooner house prices fall back to sustainable levels, and stabilise, the better - it is not until this point is reached that assets will be able to be properly priced, thereby allowing liquidity and credit to be restored.

The answer to the original question is therefore a resounding NO. Don't be fooled into thinking that there are property bargains out there and you must take advantage of them - they are merely minimal price reductions - bargains will only appear once the market has fallen in excess of 50%.
I understan your point on the investment point, but many people do realise the built up capital in their house later in life either through equity release or by trading down, something I have just done to become mortgage free.

My suggestions on buying now were in no way based on the suggestion that the market had bottomed out but on the purchase being percieved as good value to the purchaser. As for the likely loss in prices whilst some may hit 50% I suspect this will not be the average as the lack of purchasers is not through lack of underlying demand rather through lack of finance options. The level of price falls is very varied accross the country with some areas showing prices stable. Round my way developers are still building and even starting new sites, their financial advisers are obviously working from a different crystal ball to yours.
 
#17
There are lots of good reasons to buy a house and an equal number to not. Debt is one of those things that come along with it. If you understand what your getting into; read your loan papers, don't trust the guy getting commission off of them, have a reasonable plan to afford/keep/manage/grow the asset, and feel comfortable taking on the added responsibilities of such an undertaking then go do it. Debt is evil when you don't understand it and don't care. Otherwise it’s simply another tool in life.
 
#18
Have been following the market avidly for the last couple of years, as I'm sure most squaddies rapidly approaching the 22 year point do. I find myself seriously considering pulling out of an offer at the moment.

Average price for the postcode at peak was approximately 172K.

2 years ago the property sold for £137K

Went on the market after a repossession for 125K in June.

I offered 107K a month ago, and still despite pressure from the estate agent the mortgage firm holding the property have not come to a decision. This is becoming more and more frequent, (according to the agent.) It seems the adverse lenders are repossessing and not being happy about being left to hold the baby once realisation sets in about how much they are losing.

As for a mortgage, every vendor approached is more than happy to throw money around still, once you have at least a 10% deposit. This is balanced against the situation that in 12months time I should have enough, combined with gratuity to buy outright, especially if the market goes the way most people seem to be predicting.
 
#19
Checkout the repos market in 6 months time
 
#20
The £325k south coast house that I was getting at £265k with carpets is now down to £265 + 5% deposit paid + stamp duty paid + white goods + carpets. That is effectively £265 000 - £13 250 - £7 950 = £243 800 which is a 25% reduction on the original asking price + the carpets and white goods.

However I am still holding out for further reductions before signing on the dotted line.

uqfegd

pp
 

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