First time buyers, nightmare??

Question

After looking into buying our first house found out repayments on a mortgage would be £750.00 a month on a average price house, so looks like going to stay renting... and maybe keep on renting to see in the next few years if there is going to be a correction in the housing market, on sites on the internet they say prices of houses will go down over the next 4 years, makes you wonder if we are on the verge of another house crash?? the prices are astronomical at the moment.. what do you think??

Answer 1

I'm going to give you ,the best advice you will ever get. pay it what ever you have to do.get your first step on that ladder.

Answer 2

Owning your own home is such an English obsession. Do you really want to work your self to death to buy a pile of bricks?. We don't live forever and I can't see how house prices can keep on going up pricing themselves out of the market. There are no first time buyers coming into the market, which means people will not be able to move. Nothing has a value unless you have a buyer. Houses are too expensive and markets do crash. You can be in a very good position renting, have a good life style that you can afford rather scrimping and saving to pay extortionate rates of interest on something that you may never own. Daft.

Answer 3

Take it from an ex-estate agent - there won't be a crash that will make that much difference. The prices will rise by another 7-10% next year and possibly the year after so if the market crashes you would do better to buy now - get into the market.

Renting is dead-money, get a deposit behind you and look around, there are always bargains but you'll have to work hard to find them. I live in Norfolk where prices are pretty mad compared to wages - and my sis just bought a 4 bed ex-local authority semi, with a 1/4 acre garden for £110k. She could let that for around £900-1000 per month and buy something smaller for herself. But it took loads of time and effort, chasing and crazing.

Answer 4

You need a place to live whether you buy or rent. If you are looking to stay in a home for the next 20-30 years, buy. You will get tax credits and a feeling of security. You may want to consider buying a foreclosure because there are alot of people out there facing hardships that can no longer afford their homes but make darn sure you won't be one of them. Don't buy what you cannot afford no matter what the bank says. Live within your means. Nobody knows the future of the housing markets so live for today but keep your eyes on tomorrow. The house prices may be up but the interest rates are low. Who can guarantee that your rental amounts won't increase? If you find the right home at the right price, buy it. What good is it to put your money into someone else's pocket for renting??? You don't build equity that way. If you cannot afford to buy the home, don't buy the home. Shop around. Check into estate sales, foreclosures, for sale by owner, and whatever you can to get a decent home at a decent price. Offer lower than listed price until you get a seller. If they don't accept, move on.

Answer 5

It's not really an answer but I have (for now) already given up trying to buy a house in the UK. It's disgusting how houseprices have risen. Just found out that the house I am renting for GBP 370 a month was bought by my landlord for exactly 18.000 pounds 4 years ago. Off course she is entitled to make profit on her investment but this is ridiculous and beacuse of people and companies like that. House prices soar and harworking people like me and yourself just can't buy a normal decent home. Anyway just think that with interest you would be probably paying your house twice at the end of the run it soothes the thought of keep on renting untill we can somehow buy a new property for a better price.

Answer 6

There is nothing wrong with buying of course, but there is also good value in renting. There are a lot of extra costs that go along with buying so be careful and it's always a good idea to get a lawyer also so you don't make a key mistake.

Answer 7

The idea of everyone owning their own home is relatively a new one, when I grew up in the fifties most people rented, as they still do in most of continental Europe, it's the norm there. Now, you buy a house, it costs more to buy than rent, you have to pay all the maintenance bills, who gets the benefit, not you. your Kid's maybe, when YOU die! SO, if you CAN'T afford it, don't beat yourself up, rent, and have a good standard of living, You only have one life, don't spend it making Building Society's and estate agents rich! Be Happy! I own my own home, I have two children, one rents and one owns their home, both are happy!

Answer 8

NIGHTMARE FOR FIRST TIME BUYERS
HOUSE prices in the district will rocket on the back of the local Area Plan with first time buyers set to really feel the pinch.
New builds in rural parts of the area will be virtually wiped out following the publication of the Banbridge and Newry and Mourne Area Plan.
And according to one local estate agent this will drive up the value of existing properties across rural parts of the district.
"There is already a restricted supply of properties in the area," said Quentin Boyce of Shooters Estate Agents.
"But this Area Plan will further exacerbate an already overheated market.
"House prices have already been rising considerably in recent months without showing signs of slowing down.
"Now with the Area Plan it is inevitable prices will go up again.
SQUEEZE
"First time buyers will certainly be feeling the squeeze."
Local councillors have reacted angrily to the contents of the Area Plan.
The Council's Director of Development Liam Hannaway said the extension of the green belt would mean virtually no new build would be possible in countryside areas of Banbridge.
"Councillors are extremely angry at the green belting of the countryside and the affect this will have on rural families," said Mr Hannaway.
"Any land that was left for building in the countryside has been virtually wiped out and it will now need exceptional circumstances for new build to be allowed in rural areas."

Answer 9

it is a proven fact that houses are the most secure investment one can make. It depends where u get your information as the halifax says it is due to rise. if you want my advise, i would say get on the property ladder if you can. property will always yield good returns. if the mortgage is to high you could always go interest only for a few years.

Answer 10

who are you trying to get a mortgage with?
Have you thought about moving to another part of the UK where house prices are less??