| Question on buying first property (so we're pretty ignorant) 11:03 - May 23 with 3291 views | The_Flashing_Smile |
Is now the worst time ever to buy (as some have been telling us) or is this a bit of an over-reaction? We've found a place we like but some are telling us to wait, as interest rates are so high and a property market crash is coming. But we've heard this before, is anyone ever really sure? I've heard conflicting reports. |  |
| Trust the process. Trust Phil. |
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| Question on buying first property (so we're pretty ignorant) on 22:51 - May 23 with 683 views | Cotty |
| Question on buying first property (so we're pretty ignorant) on 11:42 - May 23 by textbackup |
Can’t wait forever for the right time, or you’ll get to 40 and still be renting.
Take the step and get on with it |
My guess is he’s pushing 50 these days! |  | | |
| Question on buying first property (so we're pretty ignorant) on 09:10 - May 24 with 589 views | itfc_bucks |
We bought nearly nine years ago now, through help to buy, and were told that it was the wrong time, the crash was coming and we'd do well to escape negative equity and all those other doom and gloom issues.
Fast-forward 7 years from our initial investment, we overpaid our mortgage by whatever we could spare each month, bought out the government assisted portion by remortgaging and subsequently took our lovely chunk of equity and cashed in the increase in property values more broadly and moved to our lovely new house in a quiet little village in a the back end of beyond.
The kids are now in a school that is streaks better than the previous one (honestly, the previous should have been twinned with a Korean prison camp, the kids were basically feral), I've made a great little WFH office, built a summer house, got a garden bigger than a postage stamp and great countryside views.
My advice, for what little it's worth is get on the ladder. |  | | |
| Question on buying first property (so we're pretty ignorant) on 09:49 - May 24 with 571 views | fab_lover |
Given the population of the UK and the housing shortage, a "crash" that affects all house prices is unlikely. If you're looking to buy your first house I assume it's towards the bottom end of the market, a first home or flat is always going to be desirable, larger properties possibly less so.
My advice for what it's worth is:
- 5 if not 10 year fixed rate mortgage. Possibly 10. The security of knowing exactly what your biggest monthly bill will be is immense;
- do everything you can to over-pay the mortgage during the fixed term. Even a couple of thousand a year will make a big difference to how much debt you are in for how long;
- buying a house takes forever, every time I've done it it's like the solicitors are doing it for the first time. Allow 6 months and if it's less than that, you're laughing;
- consider paying for a "proper" survey. The free ones from the mortgage company are worthless, it's a big asset you're buying, if the survey finds any issues it will more than pay for itself;
- try and avoid "falling in love" with a property. There will be others, set financial limits and stick to them;
- given all the associated costs (lawyers and stamp duty) try and stay in the house for at least 5 years, think about that when you're moving;
- check the neighbours out, even knock on the door and introduce yourself;
- follow your instincts. If something feels wrong, walk away.
Wishing you the best of luck. |  | | |
| Question on buying first property (so we're pretty ignorant) on 09:56 - May 24 with 567 views | The_Flashing_Smile |
| Question on buying first property (so we're pretty ignorant) on 22:51 - May 23 by Cotty |
My guess is he’s pushing 50 these days! |
How very dare you. I'm really, really, REALLY late 20s
(49). | |
| Trust the process. Trust Phil. |
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| Question on buying first property (so we're pretty ignorant) on 10:01 - May 24 with 559 views | clive_baker |
| Question on buying first property (so we're pretty ignorant) on 09:49 - May 24 by fab_lover |
Given the population of the UK and the housing shortage, a "crash" that affects all house prices is unlikely. If you're looking to buy your first house I assume it's towards the bottom end of the market, a first home or flat is always going to be desirable, larger properties possibly less so.
My advice for what it's worth is:
- 5 if not 10 year fixed rate mortgage. Possibly 10. The security of knowing exactly what your biggest monthly bill will be is immense;
- do everything you can to over-pay the mortgage during the fixed term. Even a couple of thousand a year will make a big difference to how much debt you are in for how long;
- buying a house takes forever, every time I've done it it's like the solicitors are doing it for the first time. Allow 6 months and if it's less than that, you're laughing;
- consider paying for a "proper" survey. The free ones from the mortgage company are worthless, it's a big asset you're buying, if the survey finds any issues it will more than pay for itself;
- try and avoid "falling in love" with a property. There will be others, set financial limits and stick to them;
- given all the associated costs (lawyers and stamp duty) try and stay in the house for at least 5 years, think about that when you're moving;
- check the neighbours out, even knock on the door and introduce yourself;
- follow your instincts. If something feels wrong, walk away.
Wishing you the best of luck. |
Sound advice Fab and I don't disagree with you and others advocating long term fixed deals, but I would also say check out the early repayment fees if you did want to redeem the mortgage before the end of the fixed term for whatever reason, and be comfortable with those. We don't like thinking about breaking up with partners and that sort of stuff but it does happen and the £ involved in getting out of some long term fixed deals can be significant. |  |
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| Question on buying first property (so we're pretty ignorant) on 10:04 - May 24 with 555 views | The_Flashing_Smile |
| Question on buying first property (so we're pretty ignorant) on 21:27 - May 23 by WicklowBlue |
Some good advice in this thread Dollars! Let me add my 2 cents/pence from an Irish perspective.
Ultimately if it is cheaper to pay a mortgage than rent the same property then you buy!
- Property is an asset that you own and can inject value into. Renting is lost money you don't own it.
- Do think long term, is the property going to suit you over 10+ years. Dare I say consider kids etc? Buy a place you can see yourself living in for a decade or more.
- Stress test your finances, if interest rates increase X amount over 5 years what does that look like?
- Now is a great time to fix with interest rates on the rise.
- Keep some cash in reserve as a buffer, don't got all out drain your reserves.
- What are your job prospects like? Over the years ahead do you see a path to increasing your earnings above inflation?
If helps here is my experience: (also my ask to Gav would be a rich text editor  )
- I bought at the top of the peak in 2008 in Ireland. Prices were nuts!!! 100% mortgage approved and then withdrawn from the bank. (Keep the LTV as low as possible) The bank withdrawing saved me...
- During the crash things were super tough had to renegotiate some personal loans and credit cards. Impacted my credit score but I had a house over my head that was the priority.
- The value of my house in 2009 was below half of what I paid for it. Absolutely sickening and negative equity was crazy over here. However over the years I'm now in positive equity. Once again showing property is a long term investment.
The property market in Ireland is again nuts( has been for my 47 years old n this planet). Rents are through the roof, simple economics is supply versus demand.
Askaboutmoney.com (no affiliation) a fabulous site over here in Eire. Check out others in the UK.
In short as others have said, if you can buy something that works for you for 10+ years go for it! |
A few have said in this thread that it should be a long term investment/home for life. To be honest, whilst I'm not buying as an investment, I don't see this as our for-life home either. It doesn't have a private garden for starters, which I see us having in a few years, and if we start a family we'd probably want something bigger.
So the rough plan in my head would be to upsize in say 5 years if things don't go drastically wrong. It's just a case of getting on the ladder now, with a decent place in an area we love, but without stretching ourselves too much either. Basically we can't afford much bigger in the area we want, right now, so I still think on balance, from what people have been saying in this thread and IRL, that we should still go for it. | |
| Trust the process. Trust Phil. |
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| Question on buying first property (so we're pretty ignorant) on 10:08 - May 24 with 544 views | Pinewoodblue |
| Question on buying first property (so we're pretty ignorant) on 10:04 - May 24 by The_Flashing_Smile |
A few have said in this thread that it should be a long term investment/home for life. To be honest, whilst I'm not buying as an investment, I don't see this as our for-life home either. It doesn't have a private garden for starters, which I see us having in a few years, and if we start a family we'd probably want something bigger.
So the rough plan in my head would be to upsize in say 5 years if things don't go drastically wrong. It's just a case of getting on the ladder now, with a decent place in an area we love, but without stretching ourselves too much either. Basically we can't afford much bigger in the area we want, right now, so I still think on balance, from what people have been saying in this thread and IRL, that we should still go for it. |
Go for it if you can afford it. Money paid on a mortgage turns into bricks and mortar; money paid in rent is lost forever. |  |
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| Question on buying first property (so we're pretty ignorant) on 10:10 - May 24 with 540 views | clive_baker |
| Question on buying first property (so we're pretty ignorant) on 10:04 - May 24 by The_Flashing_Smile |
A few have said in this thread that it should be a long term investment/home for life. To be honest, whilst I'm not buying as an investment, I don't see this as our for-life home either. It doesn't have a private garden for starters, which I see us having in a few years, and if we start a family we'd probably want something bigger.
So the rough plan in my head would be to upsize in say 5 years if things don't go drastically wrong. It's just a case of getting on the ladder now, with a decent place in an area we love, but without stretching ourselves too much either. Basically we can't afford much bigger in the area we want, right now, so I still think on balance, from what people have been saying in this thread and IRL, that we should still go for it. |
Where is it Dollers? | |
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| Question on buying first property (so we're pretty ignorant) on 10:20 - May 24 with 533 views | giant_stow |
| Question on buying first property (so we're pretty ignorant) on 10:10 - May 24 by clive_baker |
Where is it Dollers? |
I reckon Dolly's fallen for the wonders of Awesomestow. |  |
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| Question on buying first property (so we're pretty ignorant) on 10:24 - May 24 with 528 views | clive_baker |
| Question on buying first property (so we're pretty ignorant) on 10:20 - May 24 by giant_stow |
I reckon Dolly's fallen for the wonders of Awesomestow. |
I've heard Stowmarket called many things, but never that. | |
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| Question on buying first property (so we're pretty ignorant) on 10:27 - May 24 with 521 views | giant_stow |
| Question on buying first property (so we're pretty ignorant) on 10:24 - May 24 by clive_baker |
I've heard Stowmarket called many things, but never that. |
I've never been, other than through it on the train. Looks nice enough. I'm chatting abotu Walthamstow - no cathedrals, but I think we have a heliport in the Forest somewhere. | |
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| Question on buying first property (so we're pretty ignorant) on 10:32 - May 24 with 516 views | blue62 |
I think as others have already said, if you like the house, it's in the right location, you are going to be there for a few years and you can get a decent fixed rate for a few years, I'd prob do a 3 or 5 year fixed now. That way you at least know where you are for a while.
You only lose on a property if there is a crash and you need to sell up, otherwise, you just hang in there and prices will creep back up. I still think it is the best form of investment you can make.
Good luck with it all, but be prepared for hassles and solicitors that seem to take ages. |  | | |
| Question on buying first property (so we're pretty ignorant) on 11:33 - May 24 with 488 views | The_Flashing_Smile |
| Question on buying first property (so we're pretty ignorant) on 10:10 - May 24 by clive_baker |
Where is it Dollers? |
Crystal Palace, on our favourite road there (and slap-bang between 2 woodland walks). | |
| Trust the process. Trust Phil. |
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| Question on buying first property (so we're pretty ignorant) on 11:35 - May 24 with 484 views | clive_baker |
| Question on buying first property (so we're pretty ignorant) on 11:33 - May 24 by The_Flashing_Smile |
Crystal Palace, on our favourite road there (and slap-bang between 2 woodland walks). |
Very nice. I spent a number of happy years living in Streatham and Dulwich so know that area well. Go for it. | |
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| Question on buying first property (so we're pretty ignorant) on 11:38 - May 24 with 479 views | The_Flashing_Smile |
| Question on buying first property (so we're pretty ignorant) on 10:32 - May 24 by blue62 |
I think as others have already said, if you like the house, it's in the right location, you are going to be there for a few years and you can get a decent fixed rate for a few years, I'd prob do a 3 or 5 year fixed now. That way you at least know where you are for a while.
You only lose on a property if there is a crash and you need to sell up, otherwise, you just hang in there and prices will creep back up. I still think it is the best form of investment you can make.
Good luck with it all, but be prepared for hassles and solicitors that seem to take ages. |
Oh god the form filling takes forever. I mean who actually knows how much they spend on food and drink per month?! Everyone just guesses at that question surely? And there's stuff like the contact details of my landlord 3 houses ago. Absolutely no idea. I could happily strangle whoever came up with these forms - particularly as they don't seem to cater for ad-hoc freelancers. | |
| Trust the process. Trust Phil. |
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| Question on buying first property (so we're pretty ignorant) on 12:10 - May 24 with 455 views | sotd78 |
They don't make land anymore....so long term (25 years) it is logical to accept that property will not get cheaper. I think you have a period of time now when prices will not rise; they may fall a bit but what that usually does is it stops the listing of properties other than those that "have to sell". If you like the place; it has location (remember the adage location, location, location) and you can fix a reasonable mortgage rate for say 3 to 5 years then I think it is still sensible to buy. |  |
| Blue shirts/white shorts - sotd78 |
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| Question on buying first property (so we're pretty ignorant) on 13:27 - May 24 with 430 views | blue62 |
| Question on buying first property (so we're pretty ignorant) on 11:38 - May 24 by The_Flashing_Smile |
Oh god the form filling takes forever. I mean who actually knows how much they spend on food and drink per month?! Everyone just guesses at that question surely? And there's stuff like the contact details of my landlord 3 houses ago. Absolutely no idea. I could happily strangle whoever came up with these forms - particularly as they don't seem to cater for ad-hoc freelancers. |
Yup, know it well.
I last moved in August 2020 and getting a mortgage was a nightmare, all the lenders were being extra careful, and being a business owner they wanted 3 years of books and management accounts for the coming year. Then they wondered why turnover has decreased in a pandemic! | | | |
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