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Should First Time Buyer Buy A House In London Now?


newbiee

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HOLA441

Hi Guys,

I am a first time buyer looking in to buying a house in London(with tube access) but am very confused with all the media hype that house prices are rising and articles about dead cat bounce, high unemployment rate, etc.

To be honest, I can't really make out where the house prices are going.

I am in two minds

1. House prices are not gonna fall rapidly even if I wait for next 6 month to 1 year in LONDON. Even if they did, prices may fall for the bigger houses without tube access but not for smaller(2-3bed) houses and closer to tube stations because there is always a demand for such houses.

2. With high unemployment rate and low mortgage lending, its unlikely that house prices keep raising, as they are two major factors when buying a house.

I would really really appreciate if you could share your thoughts/opinion on house prices trend, would you suggest waiting or buy now.

Thanks in advance.

Kindest Regards

Raj

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HOLA442

If you're buying a long term family home then it won't make any difference if prices fall in the short term. If you do the maths and you can afford the repayments easily then why not get on with your life?

If it's an investment, well, who knows really what will happen.

I don't know the London market but imo the economic foundations are not their to support rising house prices. There are a lot of public sector employees in London who could be losing their jobs.

I wouldn't buy now myself as I think we've got some tough years ahead.

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HOLA443
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HOLA445
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HOLA447
Hi Guys,

Hi newbiee. Welcome to the forum. Please don't feed the trolls ;)

1. House prices are not gonna fall rapidly even if I wait for next 6 month to 1 year in LONDON. Even if they did, prices may fall for the bigger houses without tube access but not for smaller(2-3bed) houses and closer to tube stations because there is always a demand for such houses.

"there is always a demand for such houses" is not how the housing market works :( If it were true, then houses that no one wants should not have gone up in price during the bubble - dumps like Toxteth should not have being going up in price .

The housing market is irrational (that's just a fancy word for "mad")

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HOLA4410
Hi Guys,

I am a first time buyer looking in to buying a house in London(with tube access) but am very confused with all the media hype that house prices are rising and articles about dead cat bounce, high unemployment rate, etc.

To be honest, I can't really make out where the house prices are going.

I am in two minds

1. House prices are not gonna fall rapidly even if I wait for next 6 month to 1 year in LONDON. Even if they did, prices may fall for the bigger houses without tube access but not for smaller(2-3bed) houses and closer to tube stations because there is always a demand for such houses.

2. With high unemployment rate and low mortgage lending, its unlikely that house prices keep raising, as they are two major factors when buying a house.

I would really really appreciate if you could share your thoughts/opinion on house prices trend, would you suggest waiting or buy now.

Thanks in advance.

Kindest Regards

Raj

IME prices in the affordable category are not falling because the sellers are staying put.

Prices in the expensive category are tanking, but if you are in that category, I suspect that HPC is the wrong place for you to ask for help

tim

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HOLA4412

Honestly, you could have been a world famous economist and make excellent predictions, but you'd never have anticipated what Gordon Brown has done. I can't believe they're prolonging the bubble.

The only security is to take a price and a long fix on a mortgage (10 years). Anything else and it could go either way.

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HOLA4413

Sounds like the OP is a wavering property bull looking to justify their prospective purchase with folks at HPC. Is your income secure? Within reasonable multiples (i.e. 3.5x salary)? Can you stay there for the next 25 years (if need be)?

Admit it: you have already made up your mind haven't you? 'pwoperty only ever goes up' 'this is just a blip' 'just hold-on until prices rise again' etc. If you wanted a truly informed opinion on where, not just the property market but also the economy in general, seems to be going I'm afraid you have to get off your backside and Do Your Own Due Dilligence (DYODD) i.e. reseach for yourself.

I think what you will find is that house prices are the last thing you will need to worry about.

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HOLA4416
Decide for yourself is prices are going up or down. Your guess is as good as mine. Don't buy if your job looks iffy. Don't spend more than 30% of your income after tax on the repayment mortgage.

Even the job security is a guess at best these days. No job is secure... As much as I loathe insurance, I would also recommend mortgage cover (aka income protection).

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HOLA4417

This site used to be generally totally of the opinion that we were headed for a big crash. Now we have had a medium crash and nobody quite thought it possible that Brown would be so reckless with taxpayers cash just to prop up the ailing market today - a quick temporary fix that will be followed with a bigger one later. Quite how much later is unclear, or maybe he has pulled it off?

Now this site seems split 50-50 about which way the market is heading and if it is wise to buy today or later. Someone ought to do a poll. Me I can't decide either!

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HOLA4418
Hi Guys,

I am a first time buyer looking in to buying a house in London(with tube access) but am very confused with all the media hype that house prices are rising and articles about dead cat bounce, high unemployment rate, etc.

To be honest, I can't really make out where the house prices are going.

I am in two minds

1. House prices are not gonna fall rapidly even if I wait for next 6 month to 1 year in LONDON. Even if they did, prices may fall for the bigger houses without tube access but not for smaller(2-3bed) houses and closer to tube stations because there is always a demand for such houses.

2. With high unemployment rate and low mortgage lending, its unlikely that house prices keep raising, as they are two major factors when buying a house.

I would really really appreciate if you could share your thoughts/opinion on house prices trend, would you suggest waiting or buy now.

Thanks in advance.

Kindest Regards

Raj

Sure buy if you can afford to, your jobs are secure and you are looking to settle and stay living in it for a fair length of time and you are 110% sure it is where you want to live and settle...sure less is more and location is important...but don't be too disappointed if the the deposit you put down disappears via HPD. ;)

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