Is now the right time to buy a house?

[Mikeegrini]

What? A new build is smaller? What if its bigger though? Bit of a strange statement really.

A new build is also in an area with crime rates and the like. You don't get to see what your neighbours are like with a new build or an existing house either. How you going to know that??

First hand. I had a new build. A 3 bed Semi, compare it with a lets say 1960's Semi big difference in size. I also mean by a new build nobody knows anyone. If you go to an area you know there are enough websites about that can go in detail about crime on that street etc. A lot of the houses / Flats on the one i was on were bought for the rental market. I had plenty of problems

There isn't a standard size is there for 1960's semis. There will be plenty of new 3 bed semis bigger than average and plenty smaller.

You are going of your one experience of a new build.

The average room size for a newly built property is smaller than that of an older property.

<a class="postlink" href="http://www.bbc.co.uk/news/uk-14916580" onclick="window.open(this.href);return false;">http://www.bbc.co.uk/news/uk-14916580</a>

And houses are getting smaller. The average UK home - including older and new-build properties is 85 sq m and has 5.2 rooms - with an average area of 16.3 sq m per room.

In comparison the average new home in the UK is 76 sq ms and has 4.8 rooms with an average area of 15.8 sq m per room.

 

[117 M34]

Is it best to be on a fixed rate or variable at the moment?

Currently on a 3.99% variable with the Halifax but I could fix it for 4 years at 4.39%.

 

[FantasyIreland]

Is it best to be on a fixed rate or variable at the moment?

Currently on a 3.99% variable with the Halifax but I could fix it for 4 years at 4.39%.

Its best not to be with the Halifax.

Bunch of c unts.

 

[davymcfc]

I hope so. Just had an offer accepted on a two bed terrace £162k

 

[BimboBob]

First hand. I had a new build. A 3 bed Semi, compare it with a lets say 1960's Semi big difference in size. I also mean by a new build nobody knows anyone. If you go to an area you know there are enough websites about that can go in detail about crime on that street etc. A lot of the houses / Flats on the one i was on were bought for the rental market. I had plenty of problems

There isn't a standard size is there for 1960's semis. There will be plenty of new 3 bed semis bigger than average and plenty smaller.

You are going of your one experience of a new build.

The average room size for a newly built property is smaller than that of an older property.

<a class="postlink" href="http://www.bbc.co.uk/news/uk-14916580" onclick="window.open(this.href);return false;">http://www.bbc.co.uk/news/uk-14916580</a>

And houses are getting smaller. The average UK home - including older and new-build properties is 85 sq m and has 5.2 rooms - with an average area of 16.3 sq m per room.

In comparison the average new home in the UK is 76 sq ms and has 4.8 rooms with an average area of 15.8 sq m per room.

We don't have a minimum square footage per adult like other countries do. It's why houses are bigger in places like the US and Sweden.

 

[Balti]

Square Metre Prices - RIP OFF BRITAIN Compared to Continent

Monaco €39,273
UK €24,252
Switzerland €12,610
Russia €12,227
France €11,229
Sweden €6,991
Finland €6,220
Italy €6,188
Luxembourg €5,669
Austria €4,567
Netherlands €4,234
Denmark €3,933
Czech Rep. €3,758
Ireland €3,750
Spain €3,630
Greece €3,536
Andorra €3,330

 

[Chancy Termites]

Square Metre Prices - RIP OFF BRITAIN Compared to Continent

Monaco €39,273
UK €24,252
Switzerland €12,610
Russia €12,227
France €11,229
Sweden €6,991
Finland €6,220
Italy €6,188
Luxembourg €5,669
Austria €4,567
Netherlands €4,234
Denmark €3,933
Czech Rep. €3,758
Ireland €3,750
Spain €3,630
Greece €3,536
Andorra €3,330

Great post.

Here's prices to earnings.

The bubble's been inflating again over the last 12 to 18 months so I'm sure that line's back on its way up. If I were a first time buyer I would definitely wait, at least until after the next general election in 2015.

 

[kinkysleftfoot]

Is it best to be on a fixed rate or variable at the moment?

Currently on a 3.99% variable with the Halifax but I could fix it for 4 years at 4.39%.

Stay on that variable........I have on mine and will do so for next few years at 1.49%

 

[kinkysleftfoot]

Wow I'm shocked at everyone saying "yes, buy a house now". Since the last Labour government destroyed the world financial markets they, and the current government, have been going out of their way to prop up house prices by keeping interest rates at unsupportably low rates, giving direct subsidies to new buyers and huge bailouts to lenders.

Make no mistake though, they can't keep it up forever. They will run out of our money to spend on the subsidies (well OK that happened years ago) and market forces will win the day eventually. Interest rates have to go up sooner or later and when they do, they could (and in my view probably will) rise very quickly indeed. Interest rates are only partly linked to the UK economy - they are influenced just as much, or maybe even more by other countries' interest rates and it looks likely that others, particularly the US, will be increasing theirs soon and ours will have to follow suit. If (when) inflation gets out of control, then they will have to go up substantially. All the subsidies to borrowers are being paid for by government borrowing anyway and one day we will have to bring our public finances under control.

So in a nutshell, now is the worst time to buy a house for a few decades. If you do, your mortgage payments are going to spiral out of control while the value of your house drops like a stone. Do you really want a £100,000 mortgage at 9% so you can live in a house worth £60,000?

Look at house price history over the last 50 years..........this includes several crashes, you will see that in general they double every 12-15 years

 

[stonerblue]

Wow I'm shocked at everyone saying "yes, buy a house now". Since the last Labour government destroyed the world financial markets they, and the current government, have been going out of their way to prop up house prices by keeping interest rates at unsupportably low rates, giving direct subsidies to new buyers and huge bailouts to lenders.

Make no mistake though, they can't keep it up forever. They will run out of our money to spend on the subsidies (well OK that happened years ago) and market forces will win the day eventually. Interest rates have to go up sooner or later and when they do, they could (and in my view probably will) rise very quickly indeed. Interest rates are only partly linked to the UK economy - they are influenced just as much, or maybe even more by other countries' interest rates and it looks likely that others, particularly the US, will be increasing theirs soon and ours will have to follow suit. If (when) inflation gets out of control, then they will have to go up substantially. All the subsidies to borrowers are being paid for by government borrowing anyway and one day we will have to bring our public finances under control.

So in a nutshell, now is the worst time to buy a house for a few decades. If you do, your mortgage payments are going to spiral out of control while the value of your house drops like a stone. Do you really want a £100,000 mortgage at 9% so you can live in a house worth £60,000?

what about a long term fixed rate mortgage?<br /><br />-- Sun Sep 01, 2013 10:57 pm --<br /><br />

I hope so. Just had an offer accepted on a two bed terrace £162k

i'm guessing you don't live round here...