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Dear All,

I have been a member of this forum for a couple of years now, and things have moved on. We've had a new baby boy last week, and our landlord has sold the 1-bedroom flat we're renting. So I think it is time to buy, with various factors like needing a bigger home, and getting some security to begin our lives with our new baby. I'm 26 and renting has not been a pleasant experience for me.

A friend of a friend has their house for sale for £159,950 - You can view the property here on RightMove

http://www.rightmove.co.uk/viewdetails-120...pa_n=1&tr_t=buy

I had a look on Net House Prices, and property hasn't really sold much in the last year, but the last 2-3 years shows a different story. Beginning with 2000, a sale at £94k, then in 01, circa £120k, '03 is circa £134k ish, '04 saw £140k and I think the best price was £157k in '05. So relating those figures to the current mini peaks and trough's the HPI plateau is experiencing we can safely say the house is priced at it's highest valuation.

My initial thoughts are £137k, however my 'property developer' friend tells me £142/3 is more on the mark for the market. I feel between my valuation, and the vendors 'top-end' valuation that they'll probably go for £155k or £150k as a base minimum if push came to shove and they wanted to get rid. Another added part that i feel is worth mentioning is that the person selling seemed keen to mention that the interior is really good. My instincts on that tells me they're somewhat trying to justify the cost of the house.

I am going to view the property tomorrow - and will not make an offer, firstly because it will probably offend them - but secondly, I have seen better properties in respects to no. of rooms, garden length etc. for the same money.

I can borrow circa £105k based on a 3.5 times income multiple, however i know 'they' will lend £135k without too much trouble. I have £5k cash, which gets me close to this £140k figure, but i'm still £20k off the mark.

My focus is to buy within the next 10 months. Hanging on for this elusive crash is soul destroying, and I really do need to start living. I think the steam is slowly getting out of the housing market, and will draw prices down, but i don't see any acpoloclytic (typo) crash...

In addition, my friend tells me it's the right time to buy - my boss will say i'm earning more to secure the mortgage - i had to do it, so did my dad.. etc. My bro bought his £130k house 2 years ago, now his made £30k and buying a £200k house, on IO mortgage, and a salary considerably less than mine.

I feel the right decision for me is to buy, but buy a house where i can see myself living in for 10+ years, purchase something i can afford 2% interest rate hikes. I can afford £850pcm for a repayment mortgage - i take home just under £1800 a month. That affords me £150k on 4.7% fixed rate repayment with no tie-in. 6% IR calculations take me to a top-end of £1100, which would be a worst-case scenario.

I would appreciate any thoughts, advice or genuine wisdom on where I am at now, in my decision making process. This really is a case of I know waiting will likely pay off - but i can't afford to wait and perpetually put things on hold to the detriment of my family's well-being for the benefit of £20k - and that's realistically what i feel gains will be in a slow drawn out correction - with various government inventions to make sure that HPI goes down on slow-release and not with a bang.

BR Lewis

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As you now have a baby, thats the main thing in your life now, good luck!

If your jobs pretty secure, and youre not overstretching, and the property is OK, then if i was in your position then i would buy

Looks like a solid house with a garage to me...

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I do understand really I do, all I can say is we made a very rash house related decission 5 weeks after our 3rd child was born and we have lived to regret it.

Can you sit back and reflect for the next 10 months, put yourself in a very good position and then decide when all the excitement of the new baby calms down a bit.

Congratulations BTW

Edited by terrified

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Rooms are a reasonable size for that type of propery. Decent second bedroom size, and the kitchen looks nice and clean. What would worry me is the playing field could be developed on later down the line.

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Oh - i now feel really broody! I have my orders and i'm allowed no more! Comgratulations on your new baby.

We are renting, and if you must buy, do think about schools and secondary schools, amenities now. This may sound rash, but you don't want to be stuck in negative equity, and realize you can't move to a school's catchment area. We nearly bought when i our oldest was three - how pleased am i that we didn't. Renting could be good for that very reason, and if house prices did fall, you would then be in a better position. But like someone on here said - if it really feels right to buy then go on and do so , if you've covered all your bases, then go for it and i wish you luck.

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Dear All,

I have been a member of this forum for a couple of years now, and things have moved on. We've had a new baby boy last week, and our landlord has sold the 1-bedroom flat we're renting. So I think it is time to buy, with various factors like needing a bigger home, and getting some security to begin our lives with our new baby. I'm 26 and renting has not been a pleasant experience for me.

A friend of a friend has their house for sale for £159,950 - You can view the property here on RightMove

http://www.rightmove.co.uk/viewdetails-120...pa_n=1&tr_t=buy

I had a look on Net House Prices, and property hasn't really sold much in the last year, but the last 2-3 years shows a different story. Beginning with 2000, a sale at £94k, then in 01, circa £120k, '03 is circa £134k ish, '04 saw £140k and I think the best price was £157k in '05. So relating those figures to the current mini peaks and trough's the HPI plateau is experiencing we can safely say the house is priced at it's highest valuation.

My initial thoughts are £137k, however my 'property developer' friend tells me £142/3 is more on the mark for the market. I feel between my valuation, and the vendors 'top-end' valuation that they'll probably go for £155k or £150k as a base minimum if push came to shove and they wanted to get rid. Another added part that i feel is worth mentioning is that the person selling seemed keen to mention that the interior is really good. My instincts on that tells me they're somewhat trying to justify the cost of the house.

I am going to view the property tomorrow - and will not make an offer, firstly because it will probably offend them - but secondly, I have seen better properties in respects to no. of rooms, garden length etc. for the same money.

I can borrow circa £105k based on a 3.5 times income multiple, however i know 'they' will lend £135k without too much trouble. I have £5k cash, which gets me close to this £140k figure, but i'm still £20k off the mark.

My focus is to buy within the next 10 months. Hanging on for this elusive crash is soul destroying, and I really do need to start living. I think the steam is slowly getting out of the housing market, and will draw prices down, but i don't see any acpoloclytic (typo) crash...

In addition, my friend tells me it's the right time to buy - my boss will say i'm earning more to secure the mortgage - i had to do it, so did my dad.. etc. My bro bought his £130k house 2 years ago, now his made £30k and buying a £200k house, on IO mortgage, and a salary considerably less than mine.

I feel the right decision for me is to buy, but buy a house where i can see myself living in for 10+ years, purchase something i can afford 2% interest rate hikes. I can afford £850pcm for a repayment mortgage - i take home just under £1800 a month. That affords me £150k on 4.7% fixed rate repayment with no tie-in. 6% IR calculations take me to a top-end of £1100, which would be a worst-case scenario.

I would appreciate any thoughts, advice or genuine wisdom on where I am at now, in my decision making process. This really is a case of I know waiting will likely pay off - but i can't afford to wait and perpetually put things on hold to the detriment of my family's well-being for the benefit of £20k - and that's realistically what i feel gains will be in a slow drawn out correction - with various government inventions to make sure that HPI goes down on slow-release and not with a bang.

BR Lewis

Go for it!

A few tips

1. Do not go for an IO mortgage - make sure its repayment, otherwise its like renting off the bank.

2. If you are not embarassed by your offer, then it is too high.

3. Prepare a list of critical things the house must have, then rank them in terms of importance to you 1-5. Each time you view a property you can score each house. This will guide you with a bit more science as opposed to emotive issues.

Good luck

astos

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Many congratulations on the baby. For what its worth, I don't think this type of house looks particularly bad value on a national level. How far is it from the station? Would you have a decent journey to work from the location?

As a 26 year old graduate I'd say its worth taking a bit of a risk on future earnings growth. Although I'm firmly in the bear camp I can understand you wish to buy. Best of luck with whatever you decide.

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In addition, my friend tells me it's the right time to buy

And if all your friends told you to jump off a cliff, would you....

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wait for one more year. your baby will not know any different. children are astonishingly resilient. your partner should rejoice in your worry that now may not be the time to buy.

i could buy now and every nesting instinct in me tells me to. every member of my extended family laughs at my husband's and my decision not to get back into the housing market....

i remember my neighbours in 1999 trying to sell a two bedroom house because they had another baby and were in deep debt. their despair still haunts me.

in my very humble opinion, try to get a 12 month tenancy, enjoy the lack of council tax and boiler repair bills, chill.. enjoy your baby.. go on holiday...

god bless

ellen

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Thanks for the responses. I think there maybe a school beyond the park/field outside the front of the house - but it's definately something for me to consider as a key point in the decision making process. I have to define my requirements against my budget very closely, and make it a rational decision based on objective points and not emotive decisions as a previous post mentioned.

Someone asked about a baby in a 1-bed flat. For a new born, it's not too bad, it's doable, but you really need another room for when they're 12 months plus - a one-bed flat is very cramp living as a couple - let alone a small family. The flat being sold has probably happened to force the situation that i've been pondering about for all my time on this board - should I buy a house.

Thanks for congratulations on the baby, i think the birth has brought about a determined focus to get a home - I guess it's a nesting instinct as well - it's a shame that the timing coincides with an over inflated housing market - but that isn't changing, nor can i change it - so i have to move on what is there and make the right decision at this point in time. The letting agency have a 2 month break clause to serve notice, after 10 months that is, however i have just renewed in April, so theoretically they can serve the 2 months now - i'm not entirely sure yet, but at worst, 2 months i have - or at best, 10 + 2 months :s. If that's the case I think i'll continue to rent cheap and poise myself for a purchase early next year.

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Thanks for the responses. I think there maybe a school beyond the park/field outside the front of the house - but it's definately something for me to consider as a key point in the decision making process. I have to define my requirements against my budget very closely, and make it a rational decision based on objective points and not emotive decisions as a previous post mentioned.

Someone asked about a baby in a 1-bed flat. For a new born, it's not too bad, it's doable, but you really need another room for when they're 12 months plus - a one-bed flat is very cramp living as a couple - let alone a small family. The flat being sold has probably happened to force the situation that i've been pondering about for all my time on this board - should I buy a house.

Thanks for congratulations on the baby, i think the birth has brought about a determined focus to get a home - I guess it's a nesting instinct as well - it's a shame that the timing coincides with an over inflated housing market - but that isn't changing, nor can i change it - so i have to move on what is there and make the right decision at this point in time. The letting agency have a 2 month break clause to serve notice, after 10 months that is, however i have just renewed in April, so theoretically they can serve the 2 months now - i'm not entirely sure yet, but at worst, 2 months i have - or at best, 10 + 2 months :s. If that's the case I think i'll continue to rent cheap and poise myself for a purchase early next year.

well chosen...can you not move to a 2 bed place?..it's fun to move and you will have space for the adoring grandparents to stay...have a look at the renting section..i bet you can bag a bargain for the next 12 months

ellen

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Guest Guy_Montag

Congratulations on the baby, here are my thoughts:

1. I wouldn't buy off a friend of a friend, if you buy a lemon it may make it difficult for your friend, if your friend's friend feels ripped off ditto.

2. I plan, when I buy, to view lots of properties, & offer "subject to survey" at 30% (maybe 20% after a drop) under on lots of properties until someone bites.

3. i, like everyone else here, cannot say what's going to happen to house prices over the next year. Like most people here I want a crash, but I've wanted a crash for years now & it hasn't happened - you can wait a year, but prices may have rise another 10% by then.

Good luck whatever you decide, I hope it works out for you.

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we've just found out we're expecting our first child, yet it has made me even more determined NOT to buy. fortunately my better half has a degree in economics and understands the situation with the current housing market and so i am not being pressured into anything, but apart from that we're well and truly priced out. i've been to the bank and they will lend me the money - indeed to buy the equivocal house would require a mortgage of over 4 times our combined income but it would cost me an extra £200 a month to service that loan compared to renting a similar property, and i am not prepared to put myself in any sort of financial hardship with a baby on the way. you may say, and i do indeed hear you, that with a child i would want the extra security of ownership. frankly it doesn't matter that much to me, and maybe i am fortunate to have that attitude. one thing i am not prepared to do though is to create a situation where my infant child is forced to go without simply because other people believe that their houses are worth more than common sense suggests that they should be, particularly when the dynamics of the market suggest that current prices are unrealistically high and unsustainable.

i would never say to someone 'don't buy!' because like anything in this life you have to believe that what you are doing is the right thing for yourself at the time. if it's right for you go for it. myself, i believe that i am happy in my rented house, and that by the time my child is ready to start school i will have been able to buy a house for a fair price without overextending myself.

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I have to disagree, my 2 year old still sleeps with us and we have a 5 bed (rented) house, all they want is to be with you.

On a more serious/sensible note though make schools a top priority a good school (looking beyond ofsted) is worth a lot more than a study/garden/en suite imo.

Edited by terrified

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Dear All,

I have been a member of this forum for a couple of years now, and things have moved on. We've had a new baby boy last week, and our landlord has sold the 1-bedroom flat we're renting. So I think it is time to buy, with various factors like needing a bigger home, and getting some security to begin our lives with our new baby. I'm 26 and renting has not been a pleasant experience for me.

A friend of a friend has their house for sale for £159,950 - You can view the property here on RightMove

http://www.rightmove.co.uk/viewdetails-120...pa_n=1&tr_t=buy

I had a look on Net House Prices, and property hasn't really sold much in the last year, but the last 2-3 years shows a different story. Beginning with 2000, a sale at £94k, then in 01, circa £120k, '03 is circa £134k ish, '04 saw £140k and I think the best price was £157k in '05. So relating those figures to the current mini peaks and trough's the HPI plateau is experiencing we can safely say the house is priced at it's highest valuation.

My initial thoughts are £137k, however my 'property developer' friend tells me £142/3 is more on the mark for the market. I feel between my valuation, and the vendors 'top-end' valuation that they'll probably go for £155k or £150k as a base minimum if push came to shove and they wanted to get rid. Another added part that i feel is worth mentioning is that the person selling seemed keen to mention that the interior is really good. My instincts on that tells me they're somewhat trying to justify the cost of the house.

I am going to view the property tomorrow - and will not make an offer, firstly because it will probably offend them - but secondly, I have seen better properties in respects to no. of rooms, garden length etc. for the same money.

I can borrow circa £105k based on a 3.5 times income multiple, however i know 'they' will lend £135k without too much trouble. I have £5k cash, which gets me close to this £140k figure, but i'm still £20k off the mark.

My focus is to buy within the next 10 months. Hanging on for this elusive crash is soul destroying, and I really do need to start living. I think the steam is slowly getting out of the housing market, and will draw prices down, but i don't see any acpoloclytic (typo) crash...

In addition, my friend tells me it's the right time to buy - my boss will say i'm earning more to secure the mortgage - i had to do it, so did my dad.. etc. My bro bought his £130k house 2 years ago, now his made £30k and buying a £200k house, on IO mortgage, and a salary considerably less than mine.

I feel the right decision for me is to buy, but buy a house where i can see myself living in for 10+ years, purchase something i can afford 2% interest rate hikes. I can afford £850pcm for a repayment mortgage - i take home just under £1800 a month. That affords me £150k on 4.7% fixed rate repayment with no tie-in. 6% IR calculations take me to a top-end of £1100, which would be a worst-case scenario.

I would appreciate any thoughts, advice or genuine wisdom on where I am at now, in my decision making process. This really is a case of I know waiting will likely pay off - but i can't afford to wait and perpetually put things on hold to the detriment of my family's well-being for the benefit of £20k - and that's realistically what i feel gains will be in a slow drawn out correction - with various government inventions to make sure that HPI goes down on slow-release and not with a bang.

BR Lewis

Here's my advice:

1. You can buy that two bed rabbit hutch or you can wait another year or two and buy a bigger place for exactly the same money.

2. You can buy that two bed rabbit hutch or you can wait another year or two and buy the same place for less money.

So you have a baby and I'm sure you want to do the right thing. Rushing into home ownership in a time of so much uncertainty in the market is NOT doing the smart thing for your newborn. I feel for you and understand the pressure as we are currently trying for a baby and hate renting. But this decision WILL be one of the most important in your life. Fook this up and you'll regret it for a long time.

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Lewisheridan,

Congrats on the baby.

As for the house.....wait until you view one or two...and come back in a week with your impressions.

Give your head space to breath, make sure that you want to buy a house, not that you want space from the baby.

If youre smart you'll see that having a new baby is stressful...dont let it cloud your judgement either way, buying or renting.

Remember, decisions you make now will affect the little ones future too.

Let us know what you decide and how you get on.

Whatever you decide, I wish you the best...

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I considered renting but it's circa £800pcm for a 2-bed flat/1-bed house and I'm thinking, i would much prefer paying £850pcm on a repayment mortgage and a place i can really call home. £800pcm is £9600pa going to rent - again i would much prefer that repaying a repayment mortgage. Let's say I rent, in one year, I would need prices to fall by approximately 6% based on properties at £160k say.. and that's just to cover my loss, so in reality for it to be worthwhile in respects to a saving on property prices i would need a 10% fall in prices this year alone!

It's tough making a decision - such a waiting game... when do you jump in?

I'm going to sleep on this.. my brain is hurting again..

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I considered renting but it's circa £800pcm for a 2-bed flat/1-bed house and I'm thinking, i would much prefer paying £850pcm on a repayment mortgage and a place i can really call home. £800pcm is £9600pa going to rent - again i would much prefer that repaying a repayment mortgage. Let's say I rent, in one year, I would need prices to fall by approximately 6% based on properties at £160k say.. and that's just to cover my loss, so in reality for it to be worthwhile in respects to a saving on property prices i would need a 10% fall in prices this year alone!

It's tough making a decision - such a waiting game... when do you jump in?

I'm going to sleep on this.. my brain is hurting again..

Lewis

you may want to check out the BBC News thread tonight - the public are being prepared for falling house prices.

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I considered renting but it's circa £800pcm for a 2-bed flat/1-bed house and I'm thinking, i would much prefer paying £850pcm on a repayment mortgage and a place i can really call home. £800pcm is £9600pa going to rent - again i would much prefer that repaying a repayment mortgage. Let's say I rent, in one year, I would need prices to fall by approximately 6% based on properties at £160k say.. and that's just to cover my loss, so in reality for it to be worthwhile in respects to a saving on property prices i would need a 10% fall in prices this year alone!

It's tough making a decision - such a waiting game... when do you jump in?

I'm going to sleep on this.. my brain is hurting again..

It is tough...but I'm always slightly bemused by comparisons such as the one you illustrate above. They neglect to factor in:

service charges on a mortgaged property (not applicable to renting)

the additional premiums you would have to pay in house insurance (a much heaper insurance will cover renting)

the cost of furnishing your new home (inevitably you will buy things you wouldnt bother when renting...that lucury sofa, of that shiny fridge which now seems SO important...or is that just me!?)

upkeep and maintenance (the boiler, plumbing, roof tiles, the garden...not applicable to renting).

These things can add up to thousands and thousands of pounds per year..approx £4k by my reckoning.

Of course, this needs to be offset against any increases in the value of the porperty too.

And having said all that the emotional pull and 'massage' of owning a property probbaly cant be underestimated either. I'm buying next year because I am bored and fed up with renting. I've identified where I want to live and do not want to be moved on when the inevitable happens and my LL decides to sell the flat I am in.

Edited by DonnieDarker

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Lewis

you may want to check out the BBC News thread tonight - the public are being prepared for falling house prices.

Just finished reading it and feel like divine inspiration here... I'll see how this hand plays out - after that i'm all in to use poker parlance if i may.

(draws in deep breath)

Let's hope this is the begining of the short sharp shock the economy needs (praying)

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Looking at the land registry figures for "BASINGSTOKE AND DEAN", assuming I have the location right, the prices as of Jan-Mar are a fair bit cheaper than they were a year before. For a terraced property, the current average is about 161K, while last year they were about £170K. Semis have gone down by a lesser amount, but they are down from typical last year prices, and quite a bit down from late 2004 prices.

http://www.landreg.gov.uk/propertyprice/in...e/ppr_ualbs.asp

If I look for rentals, two bed flats in that area go for a maximum of £750pcm, and some go for as cheap as £625pcm. This is a fair bit less than your estimate of £800pcm.

Good luck with whatever you choose to do.

Billy Shears

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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