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When to buy a house?


Loki

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In a rental at the mo.  I have enough for a healthy deposit in the south, but as a keen follower of the Credit Reflation thread I'm now very uneasy about committing to a purchase.  But then, if we actually get a slow grind down over decades, it might work out OK compared to trying to pay a mortgage in a depression.

Not after advice as such, but perspective! What would you do?

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Not much choice for me.

Renting.

Not much of a deposit.

Refuse to play the perpetual debt game.

For us to buy needs house prices at a level that's related to local wages, inheritance and some investments to pay off so that we can buy with minimal borrowing.

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40 minutes ago, Loki said:

In a rental at the mo.  I have enough for a healthy deposit in the south, but as a keen follower of the Credit Reflation thread I'm now very uneasy about committing to a purchase.  But then, if we actually get a slow grind down over decades, it might work out OK compared to trying to pay a mortgage in a depression.

Not after advice as such, but perspective! What would you do?

How many people? Kids? Job?

I recommend walking away from South. Let it burn.

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It depends...........how secure is your job?  Do you have children? etc etc.  I would keep looking and if you can find somewher you like enough to buy it then go for as long-dated mortgage you can get and just do it.

There does seem to be a "grind down" in prices in the south but you could wait for years for what seems to be more reasonable.  Also you may find your morgage payments are actually less than what you're paying in rent.  However you need to factor in improvements/maitenance etc.

What many forget to factor in is that in the end you have a place you own (freehold if possible) with no debt and will be able to live when you're retired instead of forever having to pay rent.

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Buying a house is like having children, getting a dog or changing job to something you enjoy -- there is never actually 'a best time'.  Just get on with life and do stuff.

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There are always plenty of reasons not to buy, I remember I committed to buy my first flat just before 9/11, I was so tempted to pull the plug when it happened cause it really felt like a game changing moment. In the end I went ahead and thank goodness I did given how mental prices went afterwards...

as above, your job security and family situation are the main thing. If you do go for it, buy the one you love the most (within your budget) and lock in a cheap low rate mortgage now for as long as you can and be disciplined with paying it down ahead of schedule,

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1 hour ago, Loki said:

In a rental at the mo.  I have enough for a healthy deposit in the south, but as a keen follower of the Credit Reflation thread I'm now very uneasy about committing to a purchase.  But then, if we actually get a slow grind down over decades, it might work out OK compared to trying to pay a mortgage in a depression.

Not after advice as such, but perspective! What would you do?

Also South and sufficient deposit. Not buying as I don't see any upside. My rental is similar to IO mortgage on the same house, so I'll wait, maximise LISA and then commit in 5 years or so, or try to find a job where I can work from home and buy almost outright somewhere cheaper

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21 minutes ago, Sugarlips said:

buy the one you love the most (within your budget) 

No such house. Our budget isn't enough for a shit hole at £250k. SE. So it's pointless earning more to borrow more to "afford" a slightly less shittier shit hole.

Gotta go past £400k where I am for a worthwhile long term family pad.

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7 minutes ago, Noallegiance said:

No such house. Our budget isn't enough for a shit hole at £250k. SE. So it's pointless earning more to borrow more to "afford" a slightly less shittier shit hole.

Gotta go past £400k where I am for a worthwhile long term family pad.

Leave the South.

Serious.

Let companies try running with oaps doleys n migrants.

 

1 hour ago, janch said:

It depends...........how secure is your job?  Do you have children? etc etc.  I would keep looking and if you can find somewher you like enough to buy it then go for as long-dated mortgage you can get and just do it.

There does seem to be a "grind down" in prices in the south but you could wait for years for what seems to be more reasonable.  Also you may find your morgage payments are actually less than what you're paying in rent.  However you need to factor in improvements/maitenance etc.

What many forget to factor in is that in the end you have a place you own (freehold if possible) with no debt and will be able to live when you're retired instead of forever having to pay rent.

Depends on what you think is forever.

In 10 years tine, 50% of people 65 n older will be dead.

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Whereabouts in the country are you @spygirl?

Looks like others are in a similar situation...it sucks frankly.

Luckily I have no dependants/ties to the south.  It's just where I happened to grow up.

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2 hours ago, Sugarlips said:

as above, your job security and family situation are the main thing. If you do go for it, buy the one you love the most (within your budget) and lock in a cheap low rate mortgage now for as long as you can and be disciplined with paying it down ahead of schedule,

If things carry on as they are, that will prove to be the winning option.  How much more will get thrown at housing (And the franken-conomy) to keep things 'normal'?

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1 hour ago, Loki said:

Whereabouts in the country are you @spygirl?

Looks like others are in a similar situation...it sucks frankly.

Luckily I have no dependants/ties to the south.  It's just where I happened to grow up.

North east coast.

I travel around though.

I really cant grasp whst the south has to offer anyone who works for their money.

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2 minutes ago, spygirl said:

North east coast.

I travel around though.

I really cant grasp whst the south has to offer anyone who works for their money.

Sometimes, the weather! 

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Personally I am keeping the powder dry until Brext either happens or is cancelled. That event horizon does look like it is approaching so I don't consider waiting a few months more too much of a hardship. I was hoping for a "hard Brexit" but probably be May's deal "lite" so on we go.

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10 minutes ago, SillyBilly said:

Personally I am keeping the powder dry until Brext either happens or is cancelled. That event horizon does look like it is approaching so I don't consider waiting a few months more too much of a hardship. I was hoping for a "hard Brexit" but probably be May's deal "lite" so on we go.

Yes, it was the imminent arrival of whatever Brexit happens to be that got me thinking about it.  It will probably shake things up whatever happens.

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UnconventionalWisdom
4 hours ago, Noallegiance said:

No such house. Our budget isn't enough for a shit hole at £250k. SE. So it's pointless earning more to borrow more to "afford" a slightly less shittier shit hole.

Gotta go past £400k where I am for a worthwhile long term family pad.

My colleague has just bought at £350k plus and had a kid. House isn't special and needs a lot of work. We work for an sme and do good innovative things. He's a chemist who now builds Raman spectrometers. He is now tied to the company as there arent many other jobs about for his skills. They also know it. 

He used live in south Wales with his misses. Really can't understand why he didnt just go somewhere cheaper- science jobs tend to pay similar anywhere- need to entice people to move to areas that arent the south. 

They probably think they will make money on selling in a few years. 

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UnconventionalWisdom
4 hours ago, dgul said:

Buying a house is like having children, getting a dog or changing job to something you enjoy -- there is never actually 'a best time'.  Just get on with life and do stuff.

I like the outlook. The only issue is if you are buying a place that costs far too much and isn't someone you actually want to live. I looked to buy in the SE a few years ago and the offerings for what I could afford were so bad that I gave up on buying. 

Helped get me a pay rise when I was prepared to leave. I'm hoping they will stop printing and credit wont be as easy over the next few years.

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4 hours ago, Bear Hug said:

South and sufficient deposit. Not buying as I don't see any upside. My rental is similar to IO mortgage on the same house, so I'll wait, maximise LISA and then commit in 5 years or so, or try to find a job where I can work from home and buy almost outright somewhere cheaper

I would agree with this, not worth buying in the South as you need to work longer to afford the same property. Better to rent, save/invest, and then buy outright so you can retire earlier. I also look at prices in the South and think `if I had the money in my pocket would I pay that much for a pile of bricks?`....the answer for the South is always `No, I would rent for 6 months in the summer AND be able to afford to holiday for the other 6 months somewhere overseas that was warm!`

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1 hour ago, Loki said:

Sometimes, the weather! 

Bar extrene end of cirnwall, weather is not much better in South - theres onky 250 miles in it.

And the traffic is much much worse.

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8 hours ago, Loki said:

In a rental at the mo.  I have enough for a healthy deposit in the south, but as a keen follower of the Credit Reflation thread I'm now very uneasy about committing to a purchase.  But then, if we actually get a slow grind down over decades, it might work out OK compared to trying to pay a mortgage in a depression.

Not after advice as such, but perspective! What would you do?

 

Tricky one. I've been looking at houses recently myself. I think were at the top of the cycle prices wise so when look at places I'm factoring in eating a 10-20% drop. For me I'm only going to buy to get a leg up lifestyle and location wise - I don't really like the location where I am and it lacks certain facilities that I would like (like a big garage ...). I dont really want to move rentals as I might go to all the hassle only to kicked out of the new place in 6 months or whatever.

If I was happy with my rental I'd stay put i.e.if it was purely an economic equation.

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14 hours ago, goldbug9999 said:

 

Tricky one. I've been looking at houses recently myself. I think were at the top of the cycle prices wise so when look at places I'm factoring in eating a 10-20% drop. For me I'm only going to buy to get a leg up lifestyle and location wise - I don't really like the location where I am and it lacks certain facilities that I would like (like a big garage ...). I dont really want to move rentals as I might go to all the hassle only to kicked out of the new place in 6 months or whatever.

If I was happy with my rental I'd stay put i.e.if it was purely an economic equation.

50%+ drop in South.

20% drop in north, with poor liquidity.

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On 12/10/2019 at 18:55, spygirl said:

Bar extrene end of cirnwall, weather is not much better in South - theres onky 250 miles in it.

And the traffic is much much worse.

If the global warming thing is true, the North will become better than the South eventually.

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12 hours ago, spygirl said:

50%+ drop in South.

20% drop in north, with poor liquidity.

or no nominal drop in North, 30% drop in South but huge inflation on everything other than housing

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I wouldn't mind renting if it was cheap enough to make up for the fact you never own or have equity in anything.  But you get the worst of both worlds.

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7 minutes ago, Loki said:

I wouldn't mind renting if it was cheap enough to make up for the fact you never own or have equity in anything.  But you get the worst of both worlds.

All depends on which way the prices will go.  If down, then equity of the deposit is much better than watching equity evaporate in the house.

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