Jump to content
House Price Crash Forum
Sign in to follow this  
jules25

Best Course Of Action For Hm Forces?

Recommended Posts

We are in Married Quarters with the Army and we have the obvious advantage of being in extremly cheap accommodation. I would love us to have our own home though and we have been waiting for this crash for two years, now I'm worried that we should be getting something whilst the rates are at their current level, we could afford more mortgage (fixed rate) now than we could in a years time, so even if the houses are cheaper, we might not benefit because we would have a smaller mortgage. I hope I'm making sense!!

The other option we have looked into is taking out a mortgage against our in laws house and then perhaps squirreling that away till the prices come down? I'm not sure what the tax implications of that would be or even if you are allowed to do that but I can't think of anything else!!

Any advice would be very much appreciated!

Jules x

Share this post


Link to post
Share on other sites

Jules,

I'm no expert, and the reason for my reply is mainly to bump your post which was posted on a particularly quiet day and may have been missed.

For what it's worth, I wouldn't dream of using in-laws property to mortgage. That could lead to a whole world of pain later!

If you can get fixed for the full term of the loan at a reasonable rate, and can comfortably afford it, and are secure in your profession, then maybe take the plunge.

However, my gut feeling is that we're about to witness falls at least as great as the last crash. You may get somewhere for half the price you've seen it advertised for today. OK, the interest might be higher later, but just think how much money you have to borrow now.....

Hopefully more knowledgeable posters will add their tuppence worth.

Share this post


Link to post
Share on other sites

I think the biggest problem with these types of posts is that predominantly you are asking people who believe there will be a crash and are now seeing very good signs that this is indeed close (if not already started - Q1 07).

The answers most likely will be

1. Wait prices will go down considerably and continue to save as much as you can

2. If you can afford it buy now on the longest fix possible

3. You must do what is best for you and your family

I will go with 3 but believe in 1, we will have to wait and see.

Whatever you do you must be confident in your decision as must your partner as this could seriously impact your financial future.

Lastly, I'm with Dubai, stay away from the in-laws property!!!

Good Luck.

Share this post


Link to post
Share on other sites
I think the biggest problem with these types of posts is that predominantly you are asking people who believe there will be a crash and are now seeing very good signs that this is indeed close (if not already started - Q1 07).

The answers most likely will be

1. Wait prices will go down considerably and continue to save as much as you can

2. If you can afford it buy now on the longest fix possible

3. You must do what is best for you and your family

I will go with 3 but believe in 1, we will have to wait and see.

Whatever you do you must be confident in your decision as must your partner as this could seriously impact your financial future.

Lastly, I'm with Dubai, stay away from the in-laws property!!!

Good Luck.

Agreed, what the OP is asking is for a view on future house prices and interest rates, which nobody can answer with confidence. The only possible advice must be based on gut feelings, and mine is to take advantage of the cheap married quarters while socking the cash you'd otherwise be spending on a mortgage away in a high interest account each month (or in gold--depends on your world view).

If you have pressing reasons to buy right now, then try to get somewhere where you'll be happy long-term, you don't want to be stuck in a location that isn't right and be unable to sell. And don't stretch yourself too far, of course. As for how long to fix ... I haven't got a clue. Rates might well need to rise quite a bit further, but will they?

Personally I wouldn't try to do anything exotic with the in-laws' house.

Share this post


Link to post
Share on other sites
We are in Married Quarters with the Army and we have the obvious advantage of being in extremly cheap accommodation. I would love us to have our own home though and we have been waiting for this crash for two years, now I'm worried that we should be getting something whilst the rates are at their current level, we could afford more mortgage (fixed rate) now than we could in a years time, so even if the houses are cheaper, we might not benefit because we would have a smaller mortgage. I hope I'm making sense!!

The other option we have looked into is taking out a mortgage against our in laws house and then perhaps squirreling that away till the prices come down? I'm not sure what the tax implications of that would be or even if you are allowed to do that but I can't think of anything else!!

Any advice would be very much appreciated!

Jules x

Jules,

We were in the same position and in the late 80's/early 90's thought we'd never be able to afford to buy.

We stayed in quarters, took advantage of the lower rental costs and saved as much as we could comfortably afford each month.

As it turned out, we bought in late '95, just under 3 years before I completed my 22 year contract.

Because we had saved we were able to put down a 25% deposit and take out a lower mortgage, in addition house prices had droppped by then.

I'd recommend you don't take out a mortgage against the in-laws house and squirrel the money away, the temptation to draw on the money could mean you end up with a mortgage, no house and no money.

Keep saving while you can and wait for prices to drop.

Good luck.

Share this post


Link to post
Share on other sites

If prices fall and IRs rise then you could end up having to pay the same monthly as now. However, you should have to borrow less and if you have the ability to overpay, you will clear the mortgage much quicker. The danger is that prices don't fall, but as we know, in 2005 they did fall, so I believe they will do again now.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.