...or perhaps not buying a house after all

[ciphergoth]

...at least for a while.

Met up with babysimon at BU last night. He made a *very* persuasive case that now is not a good time to buy. Various folk made the opposite case, but his was backed up with detailed quantative historical data. I'm sore about it, but I'm convinced. It's sad but at least it means I'll be able to get a rather better property for the same money when the crash comes.

Just spoke to an investment advisor, who said if I was only investing for a year or so and then hoping to buy property, I should put my deposit in bonds. I'll also of course put the maximum I can into an ISA. It'll keep 'till I need it.

So I guess I'm looking to rent once again... but we're not in a hurry.

Comments

Re: Renting vs mortgage

[babysimon]

I think the very best one TO buy is the very low interest rates available now

In the US, most mortgages are 25/30 year fixed, right?

In the UK, almost all mortgages are variable or fixed for a few years at most. Yet people are still paying twice as much for property because current interest rates have halved. When rates go up again, these people will be hurting badly.

Re: Renting vs mortgage

[webcowgirl.livejournal.com]

15 or 30 fixed are very popular, interest rates currently are 5.125%/5.5% (I stopped looking at them daily so I'm not sure). I would never get into an adjustable rate mortgage - but I've got the option not to. They really could be deadly.

Current low interest rates have allowed property prices to creep up in the US because people can still pay the same per month for a house as they would have when rates are higher. Is that what you're saying is happening in the UK, too?

Re: Renting vs mortgage

[babysimon]

Yes.