Q:We're both FTB and are thinking of buying a new home, is this a good time to buy?
What's the best rates going for mortages?
I'll be happy to provide further info if needed.
No.
……….
We are FTB and are seriously considering buying but this is only because we have a very large deposit and would be taking out a mortgage of between 45 to 70% LTV at no more than 2x our combined income. Plus we wont buy a place without a substanital reduction from the ask in the first place.
Therefore, we can get the best mortgage deals and have little chance of getting into negative equity.
MAYBE we could get something cheaper in 12 months time – but who knows. I have been calling the peak for years now and the market has defied all reason. I do think prices will drop now but I have thought that before so many times that now, I just dont know.
If they fall slower than the credit dries up, you may find that the house is cheaper but less affordable or even unaffordable. Therefore, you may not find a better time to buy.
I wouldn't buy if I was a FTBer.
GG
It is not just a bad time to buy but it is the worst time in the last 15 years or so to buy for the following 3 reasons:
1. House prices are only fractionally lower than they were at the peak. meaning that House prices have only been higher than they are now about 4 months ago. Many are still on the market expecting to fetch those peak prices.
2. We are past the peak and on the way down, peoperty will only get cheaper from here (for the foreseeable future)
3. Mortgage rates are as high as they have been for 15 years or so again. And dispate the promse of more rate cuts, many lenders have actually RAISED the interest rates on their mortage products.
So you can buy now, but you'll be paying a large mortage on an overpriced house that will fall in value substantially. You could be in negative equity for years and unable to move or sell becuase of this.
What's the best rates going for mortages?
I'll be happy to provide further info if needed.
I'm a home owner and not looking to sell, however I do watch asking prices in my neck of the woods, I would wait a few months at least, prices here have dropped (west london) and there is not the frenzied competition ie sealed bids there was a few months ago. Even a 5% drop is alot of money on a flat or house.
Plus interest rates may fall…
Wouldn't buy now unless you have to
You need to think about how much cheaper the properties in your intended area may be in 6-12 months time, and offset that "loss" against the amount of rent you will spend in that period.
My advice…Start looking. If you fall in love with a house, buy it. If not, keep looking.
Of course… a lot of them still drive green Mini's round here
Do they still exist?
I have to disagree with this! I'm in no way saying now is a bad time to buy either.
My take on it is you are in no way looking on this purchase as an investment then there is no reason not to buy… however since you have asked the question then I would assume (yes I'm aware the implications of assuming anything these days!) that there is a financial implication? If so then many would say that it is not right to buy yet…(equally there a a few that say buy now as property only goes up!).
I think the best course of action would be as Movilogo says… if you can afford the property (only you know this & can account for interest rate hikes), and want the property then why not buy.
However you must make that choice knowing that in 6 months time it may be worth* less than you paid it may also be worth* more.
* Okay all this talk on property prices/ what homes are worth. It's really quite simple guys. A property (or any other item for that fact) is worth exactly what someone is willing to pay, this could be more or less than any historical evidence based on all number of factors, however the fact that credit is less available will mean that there will be less buyers available (alledgedly, personally I have not experienced this).
P.S.
Huge apologies for the entirely too large footnote!
More you speculate, more you become confused.
They will fall by the end of this year, prices will do the same
We have around 8k saved up and a bit more legal fees, surveying etc.
Will the mortgage interest rate drop? Sorry I'm not too familar with rates etc.
Do you have a decent deposit? Could you afford a mortgage now?
Something else to bare in mind is that when the economy does slow down, is your job safe? As when the economy slows down their are bound to be job cuts everywhere. You don't want to find you get a mortgage only to lose your job a few months down the line due to you being "expendable" compared to other staff. Obviously you can lose your job anytime but it's less secure when the economy is on a downwards turn.