To buy or not to buy

Cocobeans101

We recently sold our own house. The house we were going to buy fell through. I'm currently renting a friend's house. It's fine but very small for us. It's also quite a noisy area. We can continue to rent for the foreseeable future and the rent is reasonable.

I'm hell bent to buy again but my husband wants to hang on. He thinks we should wait. That house prices are going to plunge next year. In the mean time we are spending rent albeit reasonable and living in very cramped conditions.

If no deal brexit falls through, will house prices plunge in your opinion? Should I just quit moaning and wait and see? How long though do you wait?

voluntary

If you want to wait, then wait until the next recession plus 1-2 years. Ideally you wait for a global economic downturn which may happen this year or in 5 years time and then wait for prices to stop going down. Buy in the second or third quarter after the prices start going up again to be sure it's not any dead cat bounce.

Much easier to do if you're talking about 2nd or 3rd property you own. Speculating like that on your home is a next level of gambling

keno-daytrader

The thing about bubbles is they go much higher and much longer than people think. :eek:

hurikane

You're pretty much gambling here. What if prices go up? What if you lose your job. What if one of you get sick? Personally, I wouldn't have sold without having another house. I suppose you sold anyway to avoid being in a chain?

Cocobeans101

Well the house we were buying needed a lot of work so we had always planned to rent. We were very close to signing on the new house but without going into details there was something a bit fishy with the vendor so we decided to pull out last minute.

We have a good bit in the bank for our next house and that's why my husband feels like we can strike a great deal. I think he feels like there will be a return of 2007 crash. I think a recession is on the way but is that to the say the house market will completely collapse again?

AlmightyCushion

I can definitely see house prices dropping (especially in Dublin, it's already happening in areas of Dublin) but I can't see them dropping anywhere near as much as after 2007. I think you're talking in the region of less than 10% and that could be over a period of a few years. Saying that, I also thought we'd get the much discussed soft landing so what do I know.

If the house you can afford now is a good house in a good area and will suit you if you were stuck there for the next 10ish years then I say go for it.

Brego888

Cocobeans101 wrote: »

That house prices are going to plunge next year. In the mean time we are spending rent albeit reasonable and living in very cramped conditions.

Houses prices may stay stable for the next 5 or 10 years too. Nobody knows.

pearcider

Wait until Brexit is cleared up anyway. I think we are in a manic credit bubble but it has been going on for 20 years bar one massive correction. So it may go another 20 years but I doubt it. Yeah my grandad might be healthy today but he’s not going to go on another 20 years. There are limits. At the end of the day the ECB have deeply negative interest rates so we may get negative interest rates on mortgages soon. You are essentially paying the banks now to keep your savings. We truly are in never never land. Maybe a house is safer than cash in the bank. I do know 330 grand for a one bed in Leopardstown is not a good deal.