Might pull out of house purchase - housing market looking ever more fucked

[Jessiedog]

Chris,


From all your posts on this thread, there is little doubt in my mind that you should go ahead, buy your home and enjoy living there.


Enjoy!




Woof

 

[Spion]

No, I'm renting at the moment. I just meant I haven't lost or gained any value on the purchased property until I come to sell it.

Aye, sure. What I'm saying is if item X was £10 at noon tomorrow and I knew it'd be £5 by 6pm, I'd hang on and that'd be £5 in my pocket that otherwise wouldn't be

 

[Sadken]

Yeah but you can play that game forever. We got our place at about 30k under the valuation of other houses in the street because it had been rented out for a few years. It all boils down to what you want - an investment or a home. If it's the latter, go for it now, there already cheaper than they were and you can knock 10-15k off just about any asking price atm.

 

[ChrisFilter]

Aye, sure. What I'm saying is if item X was £10 at noon tomorrow and I knew it'd be £5 by 6pm, I'd hang on and that'd be £5 in my pocket that otherwise wouldn't be

Oh yeah, completely. In an ideal world I'd hang on for a couple of years.

 

[aqua]

we bought ours just over a year ago now - we're still pleased we did - it's our home and we have no plans on moving for years. In addition our mortgage is the same as our rent was - so not buying seemed a no brainer to us

 

[Kanda]

In an ideal world I'd hang on for a couple of years.

What's forcing you to buy now?

 

[ChrisFilter]

What's forcing you to buy now?

Right place, right time. Can't stay living where we are now, driving us mad. The other option is to rent. To rent a place of the standard we're buying would cost more than the mortgage and it's only going to get worse. Also fed up of renting. If we bought in 2 years that's up to about £28k that's gone nowhere and done fuck all.

Not considering all of the emotional reasons, of course.

That said, it's taken 6 months of intense thought to reach that conclusion.

 

[rutabowa]

Aye, sure. What I'm saying is if item X was £10 at noon tomorrow and I knew it'd be £5 by 6pm, I'd hang on and that'd be £5 in my pocket that otherwise wouldn't be

but what if noone would lend you the £5 to buy it at 6pm?

 

[ChrisFilter]

but what if noone would lend you the £5 to buy it at 6pm?

And you had to spend 25p an hour to borrow some else's X.

 

[zenie]

Filter your place is fucking gorgeous, but I can understand why you're having doubts.

Is it anything to do with the location pissing you off rather than financial?

 

[rutabowa]

and also it was a really shit X and you weren't allowed to fix it, and when you eventually gave it back to them they were like "oh you;ve totally knackered it, we're going to charge you £1 for that."

 

[ChrisFilter]

Filter your place is fucking gorgeous, but I can understand why you're having doubts.

Is it anything to do with the location pissing you off rather than financial?

Na, the location is great for us. Easy commute to everywhere we need to go. I'm gonna buy me a scooter anyway

 

[Spion]

but what if noone would lend you the £5 to buy it at 6pm?

have you been on one of those positive thinking courses?

 

[zenie]

Na, the location is great for us. Easy commute to everywhere we need to go. I'm gonna buy me a scooter anyway

Then totally fuckin buy it. No brainer dude.

 

[Bambouk]

If you buy now and watch the price fall by 25%, then over 5 years it rises 25% you're back where you started. Except that the mortgage you've paid off over 5 years is yours instead of renting and paying someone elses mortgage. You've still got to watch interest rates and make sure you can still afford to keep up the payments.

On the other hand, you could have put all your other money into a savings account and earn 10 years of 5% interest, ish, and earn about 63% on the money.

 

[Bambouk]

Personally I think the only reason they didn't drop to 4.75% last week was they new in the current credit crisis it was unlikely the lenders would pass this onto their customers.

Inflation is pretty high these days.

but his point is that the new house you were buying would also cost siginificantly less. so as long as you intend to buy another house in the UK then it's no problem.

If you take a mortgage of 200k, payoff say 25k in 5 years and then sell your house for 150k... you have a 25k hole. That's much worse than your regular k hole.

 

[Bambouk]

This is quite useful to have a look at past rates. 14% in 1990!!!

If I had a house, I'd put it on them not going that high again anytime soon (10 years).

 

[zenie]

If I had a house, I'd put it on them not going that high again anytime soon (10 years).

Oh aye I never said anything to the contrary

 

[magneze]

I'd stick with it Chris. As others have said, you're buying a home not an investment and you'll be there for a while.

Please be aware that any advice from the Internet can be good as well as bad.

 

[Choc]

If it were me, and I did strike lucky in selling soon, I'd rent til the market hit bottom before buying

that is what i don't understand how can the london market hit rock bottom? everyone would want to buy the cheap price property (esp in view of how many people are holding back at the moment and are having high rents).

chris i too think you should go for it. 194 for a ground floor (presum with garden) victorian maissonette is at a good price. if you want to start a family in the next few years most likely you will not want to move out until perhaps even more than 5 years. plus rents are just crazy. we are paying half our salary for our rent now..

 

[ChrisFilter]

that is what i don't understand how can the london market hit rock bottom? everyone would want to buy the cheap price property (esp in view of how many people are holding back at the moment and are having high rents).

chris i too think you should go for it. 194 for a ground floor (presum with garden) victorian maissonette is at a good price. if you want to start a family in the next few years most likely you will not want to move out until perhaps even more than 5 years. plus rents are just crazy. we are paying half our salary for our rent now..

Yeah, got a beautiful little garden. My favourite bit is the utility room that has a desk built into it... bling

 

[Choc]

Yeah, got a beautiful little garden. My favourite bit is the utility room that has a desk built into it... bling

i think you are in for a good deal under 200k. go for it

 

[trashpony]

Yeah, got a beautiful little garden. My favourite bit is the utility room that has a desk built into it... bling

Can you send me a link to it? I *heart* house porn

FWIW - I think you should go ahead. It's not an investment, it's a home. There's a big difference. The amount of money I've made on my flat went up and now it's gone down a bit. I don't care. It's virtual money - like monopoly. In the long run, it'll make you money if that's what you care about. And buying in London is probably the most crunch-proof place to buy.

 

[Ms T]

In the nineties my old boss was in negative equity (in Clapham). All she had to do was hang on for a few years and it was fine. Now it's worth silly money, probably. IMHO it's only a problem if you *have* to sell.

 

[jusali]

Buy it! You're pissing rent money down the drain.
It'll be yours! No landlords checks, no worrying about decoration, can I hang a picture, can I have a pet..... yadda yadda
Life's a risk so what?

 

[Idaho]

Aye, sure. What I'm saying is if item X was £10 at noon tomorrow and I knew it'd be £5 by 6pm, I'd hang on and that'd be £5 in my pocket that otherwise wouldn't be

As others have pointed out, you are missing the other factors. The availability of credit tomorrow at noon. The cost of waiting until then (in rent). Not to mention you are assuming a big price drop, and that isn't certain. And you are assuming that he can get somewhere as good and that the utility value he loses from not getting now will be suitably recompensed.

You having any joy selling yours?