If you’re considering buying your first home or just moving for the 10th time! You’ll want to read this first and find out when is the best time to buy a house!

Interesting, there aren’t a huge number of first-time buyers in the market at the moment, and as a Mortgage Adviser, I find that crazy. Why? Because interest rates are ridiculously low and house prices are stable. There are always going to be people looking to upsize, downsize, and move to new areas, but the first time buyer market is quiet.

I’m sure there is an element of uncertainty, but house prices are so robust, I wouldn’t even be worried about Brexit. Just look back to the 2008/2009 crash. Yes, house prices came down a bit, but not nearly as much as I thought they would or perhaps should!

One thing that experience has taught me is not to predict house prices. You'll almost always get it wrong. Click To Tweet

Here’s one thing I am confident about…

House prices aren’t going to skyrocket anytime soon.

Not because of the economy. As I said, I’ve stopped trying to predict — I’d rather deal with facts and what I see in the market — but because lending criteria are tighter than they’ve ever been in the past.

Historically, anyone could borrow anything they wanted. Looking back, it was just crazy. It made it easy to buy, which increased demand, and created rampant house price inflation.

Prices are now restricted by the capacity of how much someone can borrow. Click To Tweet And this is critical for stable house price growth, as prices are in part linked to wage growth.

Yes, you’ll still get people selling up in more expensive areas, moving to the country, and buying somewhere for much less money. This can skew the local markets in terms of average earnings to average house prices.

On the other hand, the market is shifting away from everyone being a property speculator and making easy money. So prices are likely to remain stable. So if you’re a first-time buyer or looking to move house, forget about predicting the market and waiting for the perfect time.

If you need a new home and you have the money, go and buy one. And if you don’t know what to do or how to do it, go and ask a professional mortgage broker. They’ll advise and guide you.

What I find frustrating is that lots of first-time buyers try to time their first home purchase for when prices are rising. But when you think about it, this is crazy. You should buy when things are either falling or flat. I know why they do this. It’s because they fear being left behind and or hear their friends buying or making money from house price inflation.

They see prices rising and hope their new purchase will increase in value quickly. I get it. That may or may not turn out to be true, but either way, it’s a narrow-minded approach. Why? Because there are many other factors to consider when buying a home. Interest rates, your personal finances, and finding the right property for you and your family. And most importantly, you need to forget about the property being only an investment. Sure, it will probably still do well over a long time, but you need to think about your first home as exactly that. A home, not an investment. Trying to chase the market often means neglecting these factors.

Instead, here’s a simple way to determine the best time to buy a home:

Buy when you want a place of your own.

If you can also time it when house prices are stable and interest rates are low, then great, but none of these should be your main driver.

The most important thing is that you can afford the mortgage and you've planned for it correctly. Click To Tweet It’s that simple. You don’t have to try and predict when prices are going to rise. You don’t have to predict when interest rates will change. It’s all irrelevant. If you can buy when interests rates are low, house prices are stable, and if you get a fixed rate mortgage, then maybe right now is a perfect time.

If you have any questions, please do not hesitate to get in touch.

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