Recession - buy now or wait?

[chem1st 10]

This is a little one sided.

If the price falls over the next 6 months by more than you would pay in rent then you'll loose out, although I'd expect that a fall of that magnitude is quite unlikely at the moment.

 

Plus the extra money you could save in that time would mean you would need a smaller loan and could possibly qualify for a loan at a lower rate of interest. Saving you money that you would have otherwise paid in interest in the long run.

[DaisyBoo 10]

im trying to buy a house at the moment, im finding it very difficult as there is alot of competition for houses in my price range. i think the prices have gone up recently and there are more people looking than there are houses for sale.

 

very very annoying and stressful!!

[jomarch 12]

As both a buyer and seller recently in Sheffield and Nottingham I can offer the following observations:

 

Sheffield does seem to have taken its time to catch up with other parts of the country- it has taken until very recently for house prices in the city to drop. My experience with estate agents has been that they are still holding out for offer wars, even when the market is obviously slow. The result is that sellers are starting to drop prices, but only because they were advised to go high in the first place. Also, because it is a buyer's market houses are not expected to get the asking price, and peope will make silly offers to see how far the seller will drop. I have done this myself- and everyone I know who has bought recently has done the same.

I have found Nottingham to be much cheaper than Sheffield, and there are some amazing bargains to be had- I'm now living in one!

Equally, as a seller I feel frustrated that no one is even looking at my house in Sheffield (which is far from a hovel!) and I would be willing to go well below the asking price but no one is even trying.

As to whether it is the right time to buy well that depends on whether you want a home or an investment. I still believe that location is everything but buying a house just to make money is probably a thing of the past- so think about whether the house is what you want, and there should be no need to compromise too much. There will be more than enough properties to view and you may, like me, be spoiled for choice.

As a seller I'm finding it depressing reading some of the comments about waiting- if you can get a mortgage then buy as soon as possible- house prices are always relative. If prices go up then you make money but also have to pay higher for your next property, and vice versa.

Don't try to play the market, the rules seem to be changing all the time!

[Lynchee 10]

As both a buyer and seller recently in Sheffield and Nottingham I can offer the following observations:

 

Sheffield does seem to have taken its time to catch up with other parts of the country- it has taken until very recently for house prices in the city to drop. My experience with estate agents has been that they are still holding out for offer wars, even when the market is obviously slow. The result is that sellers are starting to drop prices, but only because they were advised to go high in the first place. Also, because it is a buyer's market houses are not expected to get the asking price, and peope will make silly offers to see how far the seller will drop. I have done this myself- and everyone I know who has bought recently has done the same.

I have found Nottingham to be much cheaper than Sheffield, and there are some amazing bargains to be had- I'm now living in one!

Equally, as a seller I feel frustrated that no one is even looking at my house in Sheffield (which is far from a hovel!) and I would be willing to go well below the asking price but no one is even trying.

As to whether it is the right time to buy well that depends on whether you want a home or an investment. I still believe that location is everything but buying a house just to make money is probably a thing of the past- so think about whether the house is what you want, and there should be no need to compromise too much. There will be more than enough properties to view and you may, like me, be spoiled for choice.

As a seller I'm finding it depressing reading some of the comments about waiting- if you can get a mortgage then buy as soon as possible- house prices are always relative. If prices go up then you make money but also have to pay higher for your next property, and vice versa.

Don't try to play the market, the rules seem to be changing all the time!

 

Bold -

 

I agree totally. I'm from Nottingham but have lived here for 2 years and want to buy here but the asking price for many of the properties I've looked at seem overinflated. I looked on Rightmove to compare similar properties in Nottingham as suggested by someone on here, and as I suspected, I found them to be much cheaper. Pity I don't want to live there anymore

 

Where abouts is the property you're selling? I'm willing to compromise on a few things (2 beds rather than 3), but I really need to be able to walk into town so I'm fairly limited to certain areas.

 

Good luck with selling, I hope you find a buyer (or at least a few viewers) soon!!

[jomarch 12]

Thanks Lynchee- I was doubtful about moving to Nottingham and thought I would miss Sheffield but I have been surprised how much I really love it here and no hills!

The house I'm selling is in Wadsley and so probably too far from town for you, but it is a lovely area and has good bus and tram links as well as being handy for Hillsborough. You would be very welcome to have a look!

Good luck with your search too and hope you do find a bargain somewhere.

[siwid 12]

I think people who are waiting are doing so because they feel that houses are massively overpriced at the moment. I'm not looking for an investment at all but at the same time I want as small a debt as possible for the next 25 years and while house prices appear to be falling my deposit is getting bigger every month. So why rush?

 

Jomarch - If you're willing to go way below your asking price and nobody is coming to view your property then why not lower your asking price to entice the viewers in?

[Cyclone 10]

Bold -

 

I agree totally. I'm from Nottingham but have lived here for 2 years and want to buy here but the asking price for many of the properties I've looked at seem overinflated. I looked on Rightmove to compare similar properties in Nottingham as suggested by someone on here, and as I suspected, I found them to be much cheaper. Pity I don't want to live there anymore

Can either of you give a few examples. I'm surprised, the (average) figures suggest that Nottingham is no cheaper.

 

Where abouts is the property you're selling? I'm willing to compromise on a few things (2 beds rather than 3), but I really need to be able to walk into town so I'm fairly limited to certain areas.

How far are you prepared to walk? What about the tram?

[Cyclone 10]

I think people who are waiting are doing so because they feel that houses are massively overpriced at the moment. I'm not looking for an investment at all but at the same time I want as small a debt as possible for the next 25 years and while house prices appear to be falling my deposit is getting bigger every month. So why rush?

Presumably you're dropping £500/month on rent though, are house prices falling at £500/month? And every month you get older is one month older you'll be when you reach the end of that 25 years.

[siwid 12]

I'm saving more than I pay in rent each month. At just 4% interest the amount of extra money you end up paying back to the bank over 25 years is huge. To be honest even if prices don't drop at all I'll ultimately be paying less back to the bank if I have a bigger deposit, even taking into account the rent I'm paying in the meantime. If prices fall then that's just an extra bonus but looking at the economy, land registry reports and general market in my area it seems quite likely that will be the case.

 

Don't get me wrong, I wouldn't pass up my dream house if it appeared on the market at a reasonable price but I'm also in no rush to burden myself with a huge 25 year debt!

[d71146 10]

I'm not saying they're all hovels, I'm just saying the ones that have been have also been expensive. I'd happily buy a hovel if it was a bargain, and then do it up, but I'm not prepared to pay over the odds just because the area is considered to be good. I always check what a property sold for on Zoopla and often find the seller is being greedy as they're asking for way over what they paid.

 

Another thing that annoys me is this (it speaks for itself!!) http://www.rightmove.co.uk/property-for-sale/property-32242420.html

 

I believe that Estate Agent speak could be 'nice lived in' property in a nice location.

[jomarch 12]

Siwid- I have already reduced the price but honestly expect to be offered around 20 grand below the price anyway, but no one is offering anything. I know a lot of people who have bought and sold properties both in Sheffield and outside recently, and they have all offered well below the asking price until both parties agreed on a much reduced sum. For example two sellers have sold for almost thirty grand below after trying to sell for two years or more. The benefits of this is that you get to sell your house, but also when buying on you do the same- we got nearly ten grand off our current property which was very cheap anyway, and my sister got twenty grand off the house she bought. There is a knock on effect which benefits everyone.

Of course, I am considering reducing my house price again, but I'm not going to give it away and, as I said, no one is even coming to look. Other propertiesin the area are not selling either and if they do, you don't know how much they got.

I still think buyers are being too cautious- look for properties that have been on the market for a long time and go in there with a low, low offer- you may be surprised what you get!

[Cyclone 10]

I'm saving more than I pay in rent each month. At just 4% interest the amount of extra money you end up paying back to the bank over 25 years is huge. To be honest even if prices don't drop at all I'll ultimately be paying less back to the bank if I have a bigger deposit, even taking into account the rent I'm paying in the meantime. If prices fall then that's just an extra bonus but looking at the economy, land registry reports and general market in my area it seems quite likely that will be the case.

 

Don't get me wrong, I wouldn't pass up my dream house if it appeared on the market at a reasonable price but I'm also in no rush to burden myself with a huge 25 year debt!

 

If you've run the numbers and you think it makes sense then I can't really argue.

Presumably though, whilst ever you're increasing your deposit it will end up saving a huge amount on the total repayment, that's the nature of any cash available early in the life of a mortgage, it saves a lot.