buy or rent?

[Steve]

In the current economic and property climate, which is the best option? Buying, or renting with a view to buying in the future when prices reach their lowest? I am a first time buyer, 22 years old.

I dont want a mortgage on a property currently worth £80,000, that will be worth only say £60,000 in a years time (though we dont know how far and quickly prices will fall???)

Then again, I dont particularly fancy throwing away £475 a month (the flat i want is brand new, 2 bed, 1st floor, close to town centre and a KFC lol)

Any advice?

Mortgage repayments using a quick calculater, £60,000 over 30 years = £400/month, so per month there isn't much in it. (I could scrape together the rest of the cash as a deposit or whatever)

 

[breezer]

its not that easy.
The main problem seems to be finding some one that will lend you the money in the first place.

Its also why some estate agents are going under, people want to move but cant get new mortgage, so estate agent gets no commision for selling house

 

[slick50]

I think there might be just a few other people around the planet asking the same question .......

 

[BOB D.O.L.E]

I

 

[Trazor]

The fact that you are young is to the good, ignore the doom mongers and buy your flat.
You will be paying more out in rent, so its a no brainer.
The average cost of a house 30 years ago was about £13,500, you could probably have bought your flat for £8000.
Ups and downs happen, over 30 years it will come good.

 

[BOB D.O.L.E]

The fact that you are young is to the good, ignore the doom mongers and buy your flat.
You will be paying more out in rent, so its a no brainer.
The average cost of a house 30 years ago was about £13,500, you could probably have bought your flat for £8000.
Ups and downs happen, over 30 years it will come good.

 

[GaryMo]

and you will see shortly the massive fall in house price eg. £150k house will be £65k in 12 month.

Doubtful, unless the property was massively over valued in the first instance.

 

[BOB D.O.L.E]

and you will see shortly the massive fall in house price eg. £150k house will be £65k in 12 month.

Doubtful, unless the property was massively over valued in the first instance.

 

[Trazor]

Absolute Rubbish over 12 months at £500 a week this comes to £6000
the house price fall will treble this at the very least, just stick your feet up and sit back and enjoy the rise and fall of the estate agent.

And that £6000 is lost for ever, your £4800 mortgage payments will reduce your debt.
Use the extra £1200 yearly, to further reduce your mortgage.

Think long term.

 

[snico]

you will see shortly the massive fall in house price eg. £150k house will be £65k in 12 month.

Not a chance.....house prices may drop a bit more yes, but nothing in the region you have said!

 

[BOB D.O.L.E]

[

 

[Deleted member 105431]

House prices and the economy are going down fast, over the next 20 years they will rise again but at the moment I'd rather invest in Icelandic banks than property. LOL.

 

[BOB D.O.L.E]

hjh

 

[breezer]

house price will go back up, but as i said try and get the money first.

 

[snico]

you will see shortly the massive fall in house price eg. £150k house will be £65k in 12 month.

Not a chance.....house prices may drop a bit more yes, but nothing in the region you have said![/quot


Looks like all the property investers and estate agents are on here tonight
dont be be fooled by these people

He that has ears (to LET) him ear
He that does not Tuff.

I'm not a property investor, but my brother is an independant financial advisor......a very good one at that. He told me about the drop in house prices last september, when prices where still on the rise....its a good job I listened to him. Interest rates are expected to be about 3% after xmas which will help mortage borrowers a lot.

If I wanted information on the current house price situation, I would not listen to a property investor or estate agent!

Do you honestly believe that prices are going to fall a further 50%+ in the next 12 months........I dont think so