Right time to buy?

[Lawson 10]

Is it the right time to buy a house??

 

been looking to buy a house seen a few im going to look at but looking at mortgages there so complex, i was going to fix but some of the rates are shocking!!

 

any suggestions for a first time buyer, buying on my own welcome

 

 

cheers

 

P.S i do have a deposit

[kimba 10]

Im not sure id like to keep tabs on this thread too.

By 1 person ive been told yes its a good time to buy then another no

[L00b 441]

£0.02: there's never a right or wrong time, it's all down to your particular situation. What is certain is that, as you're an FTB, you're not in a chain and therefore 'at the top of the food chain' so to speak (you don't depend on selling your own, meaning you can complete quick and for sure). For the rest, what is 'right' for your particular set of circumstances could be 'wrong' for the next guy/gal.

 

Lower house prices, higher mortgage rates vs higher house prices, lower mortgage rates, then factor in size of deposit needed to get the mortgage you require (fix/variable, rate X or Y).

 

Of course, what you also have to bear in mind as well is that, if hyperinflation starts (and chances are it will sooner or later), your deposit money is going to devalue quite fast (not that it'll be making much babies atm if it depends on std APR anyway), wherein there is an argument towards putting in 'into stone' ASAP before it looses too much intrinsic value.

 

All horses for courses.

 

I'm actually looking to buy myself, but I can't see myself doing so until another few months at least, unless the BoE starts ratcheting the base rate up again / hyperinflation starts in earnest.

[Danny_Boy 10]

Is it the right time to buy a house??

 

been looking to buy a house seen a few im going to look at but looking at mortgages there so complex, i was going to fix but some of the rates are shocking!!

 

any suggestions for a first time buyer, buying on my own welcome

 

 

cheers

 

P.S i do have a deposit

 

A lot of people are now considering buying property as prices are pretty low and there are some very good deals out there especially on reposessed property some people are still waiting for prices to keep falling, January saw house prices rise by a small amount but as previously discussed that could just be down to people waiting until after Christmas to buy which happens every year. If you have a good deposit and you find a house you like at a price that seems reasonable then yes its the right time to buy but if your just looking at getting a cheap house then dont rush into anything as the property is going to be your home regardless of how cheap you get it you have to live there.

 

If you want advice or have any questions regarding mortgages just send me a PM, I am an independent mortgage advisor and can get you free no obligation quotes from the whole of the market.

[GrannyGranny 10]

Go and have a chat with a mortgage advisor, either independent or at your local bank/building society. You don't have to take any of their products but you will have more understanding of mortgages. You can always search on the comparison sites for the best deals. There are some IFA who will not charge a fee for organising your mortgage as they get a fee from the lender.

[Tomataheeed 10]

Of course, what you also have to bear in mind as well is that, if hyperinflation starts (and chances are it will sooner or later), your deposit money is going to devalue quite fast (not that it'll be making much babies atm if it depends on std APR anyway), wherein there is an argument towards putting in 'into stone' ASAP before it looses too much intrinsic value.

 

All horses for courses.

 

I'm actually looking to buy myself, but I can't see myself doing so until another few months at least, unless the BoE starts ratcheting the base rate up again / hyperinflation starts in earnest.

 

Just a question - why do you think high inflation is possible in the short term? Most commentators seem to be concerned with deflation. Energy costs are starting to go back down again, and are a significant contributor to the standard inflation calculations...clothes, food, petrol even may go down, as well as lots of more luxury items like big TVs, cars etc dropping in price. What are the drivers out that you think are going to cause not just high inflation, but Zimbabwe style hyper inflation? And when? 6 months, 12? 24?

[L00b 441]

Just a question - why do you think high inflation is possible in the short term?

 

Call it gut call, all unscientific that it may be.

 

So far, we appear to have been through every stage/characteristic of the '29 crisis in fast-forward fashion (perhaps that's the stragey pursued, mind: don't let it fester, force the economies faster through the mill, hoping that they come back the other side in similarly faster fashion ). Hyperinflation being one of them, there's no reason to suppose we won't be going through that one as well. Note that I didn't put a timescale on it. And I doubt it would reach Zimbawe-style 1000s of %s.

 

Energy costs are starting to go back down again, and are a significant contributor to the standard inflation calculations...

 

Granted, they are a significant contributor to the standard inflation calculations. However, I don't think they're "starting to go back down". There may be an ongoing (favourable) readjustment after the usual Russo-Ukrainian spat insofar as gas in concerned, but it's likely only temporary and, at the pump, I noticed it's started to creep up again. Here and on the Continent. Granted, it's not back up to £1+ per liter.

 

clothes, food, petrol even may go down, as well as lots of more luxury items like big TVs, cars etc dropping in price.

 

Food and petrol are slowly getting back up, here and throughout the Eurozone. Don't know about clothes.

 

Re TVs, cars, etc. Have you seen or heard of many people buy large ticket items lately? I believe the same logic applied by very many to the housing market, currently applies to large ticket stuff: prices keep falling down, why buy that 42" plasma now when there may be another £100 off netx week/next month? Personally, I was looking at upgrading our TV this Xmas, did all the research, prices, etc, etc. Of all the models I'd selected, most of them have had on average -35% (online or bricks+ mortar) between end of November and now, and for some of the older models in the selection, they're already retailing at less than 50% of the original RRP at which they were first marketed about 1 year ago.

 

Same for houses. New builds especially. Some new builds we went to look at in S25 in October with an asking of £265-£285, are now at an asking of between £194-£184 with incentives, and still not shifting, with the builders in administration and desperate. Considering the location-location-location factor (would be hard-pressed to find a better spot in the area), when these are not shifting you know it's real bad, whether in the profession or not.

 

/Off Topicness

Edited February 10, 2009 by L00b

[Tomataheeed 10]

Call it gut call, all unscientific that it may be.

 

So far, we appear to have been through every stage/characteristic of the '29 crisis in fast-forward fashion (perhaps that's the stragey pursued, mind: don't let it fester, force the economies faster through the mill, hoping that they come back the other side in similarly faster fashion ). Hyperinflation being one of them, there's no reason to suppose we won't be going through that one as well. Note that I didn't put a timescale on it. And I doubt it would reach Zimbawe-style 1000s of %s.

 

 

 

I don't particularly heed commentators these days, it's getting hard to find one who's not following some form of agenda. Plenty of bulls, plenty of bears, and noone in the middle. IMHO.

 

 

 

Granted, they are a significant contributor to the standard inflation calculations. However, I don't think they're "starting to go back down". There may be a (favourable) readjustment after the usual Russo-Ukrainian spat insofar as gas in concerned, but at the pump it's started to creep up again. Here and on the Continent. Granted, it's not back up to £1+ per liter.

 

 

 

Food and petrol are slowly getting back up, here and throughout the Eurozone. Don't know about clothes.

 

Re TVs, cars, etc. Have you seen or heard of many people buy large ticket items lately? I believe the same logic applied by very many to the housing market, currently applies to large ticket stuff: prices keep falling down, why buy that 42" plasma now when there may be another £100 off netx week/next month? Personally, I was looking at upgrading our TV this Xmas, did all the research, prices, etc, etc. Of all the models I'd selected, most of them have had on average -35% (online or bricks+ mortar) since end of November and now, and for some of the older models in the selection, they're already retailing at less than 50% of the original RRP at which they were first release about 1 year ago.

 

Same for houses. New builds especially. Some new builds we went to look at in S25 in October with an asking of £265-£285, are now at an asking of between £194-£184 with incentives, and still not shifting, with the builders in administration and desperate. Considering the location-location-location factor (would be hard-pressed to find a better spot in the area), when these are not shifting you know it's real bad, whether in the profession or not.

 

/Off Topicness

 

 

Thanks for replying - interesting views.

 

My own view is that although Darling and GB are idiots, they'll probably get the inflation control about right....its probably relatively easy to pick the right rate. I would imagine that the big fear is deflation, and so they will be relatively comfortable with a bit of inflationary pressure.

 

What is interesting, which backs up your point, is the decision that GM and Ford took to raise list prices last week - incredible when you look at the car market.

[Bonjon 10]

Id buy now as prices are staring to go up again.

________

vapir one

Edited February 8, 2011 by Bonjon

[L00b 441]

Thanks for replying - interesting views.

 

My own view is that although Darling and GB are idiots, they'll probably get the inflation control about right....its probably relatively easy to pick the right rate. I would imagine that the big fear is deflation, and so they will be relatively comfortable with a bit of inflationary pressure.

 

Welcome

 

My fear is that they would fail to control inflationary pressure through rate management, just the same as they failed to control cashflow (re-)financing for SMEs through rate management. Sort of in a "yo-yo fashion", if you will, but between extremes.

 

What is interesting, which backs up your point, is the decision that GM and Ford took to raise list prices last week - incredible when you look at the car market.

 

They don't have a choice: factories (and everything upstream) at a standstill, 2nd hand cars falling in value faster than you can look at windscreen prices, factory car parks upon factory car parks already piled high with new cars that aren't shifting. Where is the added value going to come from? How to make themselves look better to financiers? Increase your stock value, is how. Probably won't work long-term of course, but it may appease shareholders awhile.

[A4e Client 10]

Id buy now as prices are staring to go up again.

 

Are they? ARE THEY REALLY?

[Tomataheeed 10]

They don't have a choice: factories (and everything upstream) at a standstill, 2nd hand cars falling in value faster than you can look at windscreen prices, factory car parks upon factory car parks already piled high with new cars that aren't shifting. Where is the added value going to come from? How to make themselves look better to financiers? Increase your stock value, is how. Probably won't work long-term of course, but it may appease shareholders awhile.

 

 

All this would suggest slashing prices. Some manufacturers/dealers have been offering BOGOF deals. I cannot understand why GME and Ford Europe are raising prices....yes I understand the pound has fallen in value and they are having to pay more for components impored into the UK assembly plants, but cars are build all over Europe...hardly any are built in the UK any more.