Pre-approved for mortgage but wondering if now is the right time to purchase or hold off until 2023?

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bogartsqueen48

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Me and my partner are in the process of a mortgage application. We have been pre-approved and have a deposit on a new build. We have been granted the full amount of the HTB so it’s a new build we are looking at. While the new build is not in our desired location we had decided to go for it as there is not that many new builds around and we’re not getting any younger (both 43)
Now my partner has seen that there is another phase to be built in a more desirable location in 2023 and thinks we should hang on until then. I am worried that these new builds may not go ahead or not get completed due to the current cost of materials etc and the pending recession that seems to be looming. Also I don’t think the HTB scheme will still be available next year.

Any advise much appreciated

Thanks
 
Reminder: 12 Speculation about the future of House Prices is temporarily banned

Discussion of expectations for economy, home building, etc. is fine.
 
Not going to get involved in speculating, but your own personal needs are what should guide your decision. Regardless of your beliefs in what might happen in the future or not, you need to make decisions on what you need, and what is happening. If the future phase is in a location you prefer, and you are willing to take the risk of waiting, then wait. However, there is a planned .25 point ECB rate rise expected soon. Consider that also.
Also consider if you are happy with your current home - if renting, will your rent go up? If in some other arrangement (if you are HTB you are usually an FTB) will that last? Either way, you still need a home.
 
What is the purchase for? If the price of your house goes up or done for the next 10 years will it matter to you? How much are you paying in rent vs amount of money you could possibly save from a change in house prices or interest rates.

This is choice to buy very personal. People are generally early for some things, late for some things, and rarely just on time. You never notice when your on time but you always know when your too late.
 
Weigh up the pros and cons and consider what price bracket the 2023 houses may fall into and whether you would even get a mortgage ( try think of scenario of likely price, highest price etc)

Talk to lender in general terms to understand what the impact of rates rising will have on your borrowing capacity.

Can you keep in the game with current house for a bit longer without signing contracts?

You need to consider the risk of delays in other 2023 house, impact to loan (age, interest rates are a factor, any job move could delay things).
 
Don’t limit yourself to a new build just because of the HTB. It sounds like you are getting the house for €30k cheaper but actually HTB has artificially raised the price of new builds (because now purchasers can afford to pay 30k more).
 
Folks

We do not allow speculation on house prices.

And saying "I am not speculating on house prices" does not allow you to do so.

I have deleted the posts not related to the original question which has been answered.

Brendan
 
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