House Buying

[TanyaWWW]

Now is good

I'm still proceeding with the purchase of my first investment property - even if the bank rate dropped tomorrow it'd take a while to filter through to high street banks dropping the rates on their mortgage products

There was talk of Brexit causing a 18% drop in house prices - but I believe it wasn't a 18% drop from where prices are today, but expecting prices to be 18% less than they would've been if we remained. Big difference there.

You can pretty confidently assume we're not in a massive tv-renovation-show-fuelled boom like the lead up to 2007, so I think it's a decent time to buy, just don't over-extend yourself. Best of luck

[Mordac]

Last heard, Suity was sorting the radiator pipes out.

Euphemism?

[d000hg]

Nobody knows.

If you are looking to buy as an investment, maybe hold tight.

If you are looking for a home to live in for a significant time - go ahead but get a mortgage you could still afford if rates went up.

[eek]

I'm still proceeding with the purchase of my first investment property - even if the bank rate dropped tomorrow it'd take a while to filter through to high street banks dropping the rates on their mortgage products

There was talk of Brexit causing a 18% drop in house prices - but I believe it wasn't a 18% drop from where prices are today, but expecting prices to be 18% less than they would've been if we remained. Big difference there.

You can pretty confidently assume we're not in a massive tv-renovation-show-fuelled boom like the lead up to 2007, so I think it's a decent time to buy, just don't over-extend yourself. Best of luck

You seriously think there is any upside left in house prices in this country...

House prices down south bear no resemblance to what the local market can sanely afford to pay.

And the market is going to become saner as the tax relief changes are implemented between 2017-21 assuming that they don't go the whole hog and decide to allow no tax relief on loans on residential property*.....

* from an interesting drink last week with my friends in HMRC newcastle...

[MrMarkyMark]

* from an interesting drink last week with my friends in HMRC newcastle...

[MrMarkyMark]

Last heard, Suity was sorting the radiator pipes out.

Is that some of the new tech as being implemented on his new BPM system?

[Mordac]

You seriously think there is any upside left in house prices in this country...

House prices down south bear no resemblance to what the local market can sanely afford to pay.

And the market is going to become saner as the tax relief changes are implemented between 2017-21 assuming that they don't go the whole hog and decide to allow no tax relief on loans on residential property*.....

* from an interesting drink last week with my friends in HMRC newcastle...

You might to keep quiet about that sort of thing...

[eek]

You might to keep quiet about that sort of thing...

HMRC have shedloads of contractors up there. They are also very into agile...

Plus I do like warning / scaring people so if the worst does happen I can say told you so....

[TanyaWWW]

Yup

...and even if prices stagnate or drop the rental returns are good enough to generate a tidy little profit margin



Which brings up a good point - vik845, if you were forced to move, would the rental cover the mortgage and bills? Pretty impossible in London, but achievable elsewhere. Worth a thought.

[mdhd]

Just to add to this, here's simple maths for you:

House Price: 300K
LTV: 80%
Interest Rate 1: 3%
Interest Rate 2: 2.5% (if BoE drops interest rate to 0%)

Over 2 years (which is likely to be your deal/fixed rate period) option 1 will cost you £1465 more than option 2.

And if you wait for option 2 for let's say 2 months, you will already lose more than £1465 in rent. And not to mention you'd be paying £553 towards your repayment each month. So the difference is really negligible.

In simple terms, if you are looking to buy-to-live then go ahead and do it.

Interest rates may well come down, but not by much. BOE base rate is already very low and may come down .25% in the near future. I don't think this is going to make much difference to your mortgage rate really, as rates are already very low if you have a reasonable deposit. Don't think the market will crash, but may move downwards slightly. Too many factors to know your situation., such as where are you looking to buy / type of house etc. Also, don't forget that until you exchange contracts you are not tied to anything (if iin England or Wales, Scotland is different). If the market moves down significantly in your area before you exchange (usually 8weeks+ in England / Wales) you can always change you offer based on market movements.

Whether it's a good time or not depends on you and your preferences. Personally I would prefer to buy my own place than pay rent to someone else. In the long term, chances of your property being worth less than you pay for it is very slim. Another way to look at it is how much would it cost you to rent / buy a similar place. If it isn't a massive difference surely it's better to buy than rent (as long as you don't buy a money pit), as you will be paying off the principal rather than rent to someone else?