When you shouldn’t buy a house

There may be many times in life when you are wanting to buy a house and get a place of your own. However, there are times when this may not be the wisest decision, such as now.

At the moment we are undoubtedly in the middle of the fastest house price crash in living memory. The price of property is falling daily which begs the question, why buy something now that will be cheaper in 6 months or a years time?

Credit is also harder to come by. Even if you did want to buy, there is no guarantee that you will be eligible for a mortgage. Even buyers with a sizeable deposit are being turned down due to imperfect credit scores. This brings to mind the recent plight of a buyer with a 50% deposit that was refused a mortgage due to one missed credit card payment 12 months previously. The banks are having a tough time themselves and are only lending to people they deem to be the lowest risk.

We are unmistakably in a recession, you can hardly pick up a newspaper or turn on the news without hearing about companies going into administration and job losses. Is your job secure? You should make sure that it is before you commit to buying a house. Many people are finding themselves with a new mortgage and a sudden loss of employment, this can only lead to their properties being repossessed.

Even if you do want to buy now, plan carefully and do your homework, you may regret it if you don’t.