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giesahoose

Been Looking Now Close To Buying

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I have been saving for a deposit for a few years and now have almost 2 years net income.

Found a flat I like needs some work but have a 15% deposit and cash to decorate.

Mortgage rate is less than 2% which means the interest payment is going to be less than half my current rent, on a smaller place in a worse area.

If interest rates stay low for a few years I would be nuts not to buy but I cant be sure what they are going to do.

Prediction is next move will be even more of a cut.

Big decision time coming up, any thoughts?

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Nah my rent is 15% lower than comparable places and hasn't shifted for 5 years.

Mortgage rates are just crazy low. You can borrow 200k for less than 400 a month!!

Teaser rates have gotten people into trouble in the past.

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Nah my rent is 15% lower than comparable places and hasn't shifted for 5 years.

Mortgage rates are just crazy low. You can borrow 200k for less than 400 a month!!

That's interest only I take it?

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Yeah the interest part of it.

As I have been saving on top of my rent I have been looking at the interest as being the equivalent as rent.

Out of interest do u folk own? Been renting for over a decade now and am finally in the position to get somewhere I really like that is in all the "affordability" targets I set myself.

Going to be might annoyed if the whole thing collapses as soon as I buy lol

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Yeah the interest part of it.

As I have been saving on top of my rent I have been looking at the interest as being the equivalent as rent.

Out of interest do u folk own? Been renting for over a decade now and am finally in the position to get somewhere I really like that is in all the "affordability" targets I set myself.

Going to be might annoyed if the whole thing collapses as soon as I buy lol

I bought (upsized) 2.5 years ago. Partly on the calculation that, compared with renting a similar place, locking in the low mortgage rate for 5 years was effectively a 10% discount on the price.

It is of course a calculated risk, what prompted me was that in the area I bought (Croydon) prices had significantly lagged behind surrounding areas and seemed due for a catch up. Together with the discount referred to above I thought the odds favoured purchasing now.

Where about are you thinking of buying.

However since then prices have moved up and if I was in a similar position today I would sit tight, as the downside now seems much larger and upside correspondingly smaller. In fact based on financial risk alone I should probably sell to rent but couldn't face the hassle involved or get it past the wife.

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I have been saving for a deposit for a few years and now have almost 2 years net income.

Found a flat I like needs some work but have a 15% deposit and cash to decorate.

Mortgage rate is less than 2% which means the interest payment is going to be less than half my current rent, on a smaller place in a worse area.

If interest rates stay low for a few years I would be nuts not to buy but I cant be sure what they are going to do.

Prediction is next move will be even more of a cut.

Big decision time coming up, any thoughts?

Fix for five years and continue to save as much as possible.At end of five years pay a big chunk off the capital.If interest rates have shot up it will at least stop you being skinned.If they havent,pay off,re-fix for five years and repeat.

I think interest rates are going up,by quite a lot starting next year as i think the great deflation is over.Just my opinion though.

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I found the lower the interest rate on offer the more stringent they are with lending.

First direct at 1.89% 2 year fix took nearly 4 weeks just to get an offer in principle. at 2.8 times my earnings. with a 30% deposit.

The delay cost us the house in the end. Really terrible company.

other companies will throw money at you if you can frost a mirror. Offer in principle in one phone call.

My view is that if your sensible borrow less than 3-3.5 times earnings, and have a 20-30% deposit and a stable job. Then go for it.

have maybe £5k of physical gold stashed away. As insurance.

If something bad enough happens to crash houses, then your gold will go through the roof. certainly sterling would be trashed in a UK HPC.

that way your happy. Either your housing bet pays off. Or it doesn't. and then your gold with gift you a fresh deposit (or house outright)

Edited by jiltedjen

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Mortgage rates are just crazy low. You can borrow 200k for less than 400 a month!!

And therein lies the crux of the property ponzi bubble

You can borrow 500k for less than the £1000 average rent.

Youd be a fool not to.

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And therein lies the crux of the property ponzi bubble

You can borrow 500k for less than the £1000 average rent.

Youd be a fool not to.

Big question is, are you crazy if you do. Or crazy if you don't.

Place your bets now!!

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Big question is, are you crazy if you do. Or crazy if you don't.

Place your bets now!!

As long as you can sell it next year without worry for what you paid for then the ponzi keeps getting fed. At the moment there is no sign that rates will rise ever..

But as you say its a gamble ( a bloody big one)

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As long as you can sell it next year without worry for what you paid for then the ponzi keeps getting fed. At the moment there is no sign that rates will rise ever..

But as you say its a gamble ( a bloody big one)

https://www.youtube.com/watch?v=I530sPVQSc8

The rent on the equivalent flat just now is just under 40% higher than the mortgage would be. I would never want to rent out a flat as I think it's imoral but I hope it's a sign of what its 'value' is.

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I've just viewed a property with a list price of £110K. It's a proper dump but has massive potential. I have £25K deposit and I earn £1.5K a month net. Have offered £95K and am awaiting the vendor's response.

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I've just viewed a property with a list price of £110K. It's a proper dump but has massive potential. I have £25K deposit and I earn £1.5K a month net. Have offered £95K and am awaiting the vendor's response.

Hope it works out for you

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Well i recently negotiated a decent discount on a property to purchase few months back, taken off market, solictors instructed, only to find i have been gazumped. Greedy scumbag vendors, seen it all now, the bubble is going to infinity and beyond

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I have been saving for a deposit for a few years and now have almost 2 years net income.

Found a flat I like needs some work but have a 15% deposit and cash to decorate.

Mortgage rate is less than 2% which means the interest payment is going to be less than half my current rent, on a smaller place in a worse area.

If interest rates stay low for a few years I would be nuts not to buy but I cant be sure what they are going to do.

Prediction is next move will be even more of a cut.

Big decision time coming up, any thoughts?

Right...so lets get this right....with prices now as some sort of bubble peak and having read this site...you're going to buy a house ?

Mortgage rates of 2% are available for people willing to give banks 40% deposits.

"If interest rates stay low for a few years I would be nuts not to buy but I cant be sure what they are going to do"

Interest rates are low....prices are sky high.

"any thoughts?"

Yes, you're a troll.

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Nah my rent is 15% lower than comparable places and hasn't shifted for 5 years.

Mortgage rates House prices are just crazy high low. You can borrow 200k for less than 400 a month!!

You can borrow as much as you like...you still need to pay the mortgage off.

Good luck.

Go buy a house, we all need a good laugh here.

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No I am not a troll.

I have been following and contributing to this website for a decade as this user and "dude where's my house" which stopped working.

I am looking for opinions and laying out my own personal situation.

Your opinion is that you wouldn't buy. Fair enough. I am currently on the fence but leaning towards buying. I am not saying this to wind anyone up and I have laid out the raw numbers above to show why I am considering it.

It's all down to the interest rates over the next 5 to 10 years.

It would require the mortgage rate to be 6% for the mortgage to cost the same as the rent on the same place would be.

I would LOVE prices to drop and to be able to buy somewhere cheaper and I have been wanting this to happen. It hasnt yet. I am looking at the information I have available and I don't see anything pointing to a spike in interest rates. So I am close to moving from rent to buy.

I think this is pretty much on topic for this forum.

Feel free to lay out your position and why you don't think renting is still the way to go.

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You can borrow as much as you like...you still need to pay the mortgage off.

Good luck.

Go buy a house, we all need a good laugh here.

Don't think most will be paying off their mortgage anymore, it'll just be a rolling debt put into your estate, or passed on to your children. Japan has intergenerational mortgages - we've achieved the same with the Bank Of Mum & Dad. Next step would be to legislate the ability to pass the mortgage to your children as some sort of ineritance tax repreive providing a discount for hard working families etc etc...

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giesahoose - People on this site will tell you all sorts of things through political dogma. Unfortunately, none of them can effect any change (who knows maybe some Treasury officials who can't buy houses are actually on here).

The reality about buying a house to live in is that you aren't going to be around forever, and if you want a place to call your own in a reasonable timeframe and you have a plan to attempt to pay off the mortgage then you should just do it. As you say, you would be paying more in rent and would not have the satisfaction of ownership. Ulimately, no one can make this decision for you. You'll never catch the bottom of the stock market or the bottom of the housing market. The very fact that this site exists and is so active proves there is tremendous demand to buy any dips in the market. Don't think of it as an investment, you only have one life (that you remember!) what do you want to do in the remaining time within the confines of the system that you have to work with.

Before anyone else says it - yes I too would like the world to be fair and everyone to have a house at a reasonable cost. I would dearly love it if our politicans pandered to the population rather than elitist interests and global corporations. But from what I see, humans are in love with "things" and "money" they don't see past the system or have a long term view, most are basically animals and do as they are told. In that environment we just have to get on being serfs and live our lives and enjoy the moments that give you a sense of delight (not talking about huge mortgage debt for this one)

Edited by katchytitle

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I am also wavering. My wife saw a 4 bedroom detached house for sale for a "reasonable" price of £360k. We drove round to have a look and the agent was doing an open day. Turns out the property was rented out and the landlord is selling it and another slightly bigger one 4 doors down. It fits our needs perfectly. I have been waiting for a decent correction since 2009 and I'm sure there will be one some day but how long do we wait especially now our 2 children are in school. I've come to the conclusion that as long as we are happy with the house and are happy to stay there then we can live through a crash.

I put in an offer this morning of £345k and stressed we are renting and can move quickly. Agent got back to me saying they have received offers for the asking price and above from buyers in a similar position to us. I pulled out. It's a sellers market in East Herts.

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I am looking in Scotland.

If I go on a variable rate u can switch to fixed at any point so plan to track the 5 and 10 year fix rates and switch if they start creeping up.

Personally I would refuse to part take in the ponzi and get a cheap place so that I lose less money if it all goes t*ts up. Perhaps a 20k flat in cash and try to haggle a bit. Spend time indoors sleeping, eating, watching TV and checking the stock market in the internetz. Find a nice country walk, go jogging, join a leisure centre, go jogging etc.

With the rest of the money save it and keep saving and try to make it work for you, which is hard with low interest rates I know, but if you put your money into a house of higher value you would be in a worse position if / when rates go up.

Our situations are quite different so it might not apply, perhaps you need to stay in one location due to work. Perhaps my post is ignorant anyway and the 20k price I gave actually means you'd be in an area like the "Buckfast Triangle" or something.

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