Is now a good time to move house?
Discussion
Seriously thinking about moving house at the moment - found the ideal property and the Estate Agents are falling over themselves the last couple of days to market our 'perfect' property.
It's all come about a bit quick and I'm not yet sure whether to go for it or not.
So is now a good time with regards to interest rates (large mortgage required), property prices rising/falling, general market conditions?
It's all come about a bit quick and I'm not yet sure whether to go for it or not.
So is now a good time with regards to interest rates (large mortgage required), property prices rising/falling, general market conditions?
I'd say the prospect of a recession is now an odds on bet but ultimately it depends on your personal finances.
If its your dream home and you can cover the mortgage at say 50% higher interest rates (not that I think they will move neccesarily) then why not.
If its the house you are going to die in equity or lack of isnt really a concern.
If its your dream home and you can cover the mortgage at say 50% higher interest rates (not that I think they will move neccesarily) then why not.
If its the house you are going to die in equity or lack of isnt really a concern.
I'd agree with Plottloss. If there is a recession then your mortgage will likely get cheaper (I think). However, the resale value of your home would probably fall so if your ernings are particularly recession-sensitive then you should be careful not to overstretch. Worst case scenario would be to get in a situation where you couldn't meet the mortgage and also couldn't bail out.
It's a gamble either way, but Plotloss is on the money. If you're moving up and stretching yourself, you're taking a risk. House prices are stagnant right now, and during the uncertainty leading up to the election will probably have stalled completely. You might be able to get a bargain from someone who hasn't managed to get any serious viewers in the last month or two.
On the other hand the market might need a readjustment to get restarted, or might drop if the planned council tax review is as bad as some have suggested. Recession would also prompt a slide. In any of these cases, you will usually do better to hold off moving up the ladder until prices come down.
There have been record numbers of private bankruptcies in the first quarter of this year so if that trend continues it might also be worth looking at the auction market, or for reposessions.
Edited to add: just re-read your post, and realise that you have already found your dream home. Given the above now is the time to strike a hard deal, but you should appreciate that it might take some time to shift your home, so you might need to work hard to hold on to the property you've found.
>> Edited by Tuna on Wednesday 11th May 14:05
On the other hand the market might need a readjustment to get restarted, or might drop if the planned council tax review is as bad as some have suggested. Recession would also prompt a slide. In any of these cases, you will usually do better to hold off moving up the ladder until prices come down.
There have been record numbers of private bankruptcies in the first quarter of this year so if that trend continues it might also be worth looking at the auction market, or for reposessions.
Edited to add: just re-read your post, and realise that you have already found your dream home. Given the above now is the time to strike a hard deal, but you should appreciate that it might take some time to shift your home, so you might need to work hard to hold on to the property you've found.
>> Edited by Tuna on Wednesday 11th May 14:05
Valuable advice from all. We'd only be taking a 50% mortgage on the property, so even if there is a downturn, we have some backup. Mortgage will actually be the same as now, but over 20 years so unless there's a drastic change of circumstance, it should be OK.
Interesting comment of the election - the house has been for sale for a number of weeks but we were only the 3rd viewer, but they've had 5 more since the weekend - perhaps things are picking up? It's in a very popular village location and should be sought after.
Sounds like they'll take a good deal too and are off round the world so chain free. House (barn conversion)has a double garage so I'm happy
What tips can you offer for weighing up pro's & con's?
Interesting comment of the election - the house has been for sale for a number of weeks but we were only the 3rd viewer, but they've had 5 more since the weekend - perhaps things are picking up? It's in a very popular village location and should be sought after.
Sounds like they'll take a good deal too and are off round the world so chain free. House (barn conversion)has a double garage so I'm happy
What tips can you offer for weighing up pro's & con's?
Project the interest rate up to say 15% on the amount you are likely to mortgage and see whether it looks affordable. If you plan to stay long term then there is no real issue as the market has it's peaks and troughs.
We made sure when we moved the end of last year that our income could sustain a hike in interest rates up to about 15% after that we'd start worrying!
We made sure when we moved the end of last year that our income could sustain a hike in interest rates up to about 15% after that we'd start worrying!
We've been looking at houses for a while now but haven't been in a position to actually do anything about it until this month.
There have been a number of really decent peoperties on the various agents books for much longer than one would expect. One in particular caught our eye about 4 months ago but we didn't expect it to be available still as it's in a great area and really well maintained - it hasnt' sold and we've had an offer accepted on it. Which is nice.
Looks to me as though the market is pretty slow right now. Particularly here in London where prices are rediculous.
There have been a number of really decent peoperties on the various agents books for much longer than one would expect. One in particular caught our eye about 4 months ago but we didn't expect it to be available still as it's in a great area and really well maintained - it hasnt' sold and we've had an offer accepted on it. Which is nice.
Looks to me as though the market is pretty slow right now. Particularly here in London where prices are rediculous.
It depends where you are! My house is actually going on the market tomorrow!!!! We are not moving anywhere and not buying another house but it seems that if the price is right houses do sell, reality and realism are the watchwords at present. Overpriced houses simply do not sell and from a buying perspective you have to be cheaky. As far as the long term is concerned as long as you can afford the morgage in the worse case sceneario there is no reason not to move...
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