Has fear of brexit spooked you buying a house ?

Has fear of brexit spooked you buying a house ?

Author
Discussion

rs4al

Original Poster:

925 posts

164 months

Tuesday 17th May 2016
quotequote all
So after mr Carney et al stating that a brexit would have dire consequences for the economy and house prices,

I'm personally starting to think buying a house before the referendum is a bit of a risk especially if we do leave and the talked about house prices drop by 10-20%., I'm quite lucky in having already sold my house and ready to move.

Anybody else in the same boat ?

anonymous-user

53 months

Tuesday 17th May 2016
quotequote all
rs4al said:
So after mr Carney et al stating that a brexit would have dire consequences for the economy and house prices,

I'm personally starting to think buying a house before the referendum is a bit of a risk especially if we do leave and the talked about house prices drop by 10-20%., I'm quite lucky in having already sold my house and ready to move.

Anybody else in the same boat ?
As if. Get your tin foil hat off.

Sebo

2,166 posts

225 months

Tuesday 17th May 2016
quotequote all
garyhun said:
As if. Get your tin foil hat off.
Whilst I don't think leaving the EU will cause a monumental downward slide in house prices, I think you are being churlish to assume you know exactly what the affect of a vote to leave the EU will be.

rs4al

Original Poster:

925 posts

164 months

Tuesday 17th May 2016
quotequote all
garyhun said:
As if. Get your tin foil hat off.
Aha a leaver nuts it's a valid question and I bet more people are having the same thought, certainly the property market where I am has slowed right down and that can only be the uncertainty caused the referendum.

AyBee

10,522 posts

201 months

Tuesday 17th May 2016
quotequote all
I'm semi-with you. I was looking a few months back, but have put it off for now due to some other life decisions as well as uncertainty with house prices the way they are right now. I certainly don't think they're going up right now and part of me is hoping that they'll drop a bit if the vote is out (I'm also tempted to vote out just to cause uncertainty tongue out).

Ozzie Osmond

21,189 posts

245 months

Tuesday 17th May 2016
quotequote all
rs4al said:
So after Mr Carney et al stating that a brexit wouldcould have dire consequences for the economy and house prices,
  • IMO he's right
  • Hopefully it won't happen
  • If you wait for house purchase you may end up having to spend more money to buy the same house after confidence returns...

fido

16,752 posts

254 months

Tuesday 17th May 2016
quotequote all
Sebo said:
the EU will cause a monumental downward slide in house prices, I think you are being churlish to assume you know exactly what the affect of a vote to leave the EU will be.
Just fixed at 2.59% for five years on my second flat - clearly the markets aren't bothered by the Cameron/Carney scaremongering!

Equally, you don't know exactly what the affect of a vote to stay in the EU will be.

anonymous-user

53 months

Tuesday 17th May 2016
quotequote all
Sebo said:
garyhun said:
As if. Get your tin foil hat off.
Whilst I don't think leaving the EU will cause a monumental downward slide in house prices, I think you are being churlish to assume you know exactly what the affect of a vote to leave the EU will be.
Hence my reply to the OP that we will see 10-20% falls.

Simpo Two

85,149 posts

264 months

Tuesday 17th May 2016
quotequote all
We won't leave the EU, the politicians will see to that. No doubt the markets will go weird in the lead-up to the referendum but then all be normal again. If you can call the EU and rampant debt normal.

walm

10,609 posts

201 months

Tuesday 17th May 2016
quotequote all
There are a few things that are impacting the housing market right now.
1. The BTL rule change on stamp duty for second homes. Came into effect in April (IIRC) - brought forward significant volume into March.
2. More London-centric but any Brexit will hit GBP vs. all other currencies so that is making foreign property buyers wait. They genuinely WOULD be able to get a cheaper property by 8-10% if we Brexit owing to the currency drop.
3. Affordability. Last month house prices were STILL up 5% countrywide (Nationwide survey) hence affordability is becoming an increasing problem. Wages aren't keeping up with that.
4. Macro uncertainty from Brexit. There is no doubt that a new PM and 2 years of trade negotiations will cause macro problems for the UK.

And any combo of 1,2,3 and r will hit sentiment which means people thinking of SELLING might just wait until the uncertainty of Brexit is out of they way before bothering to list their property, leading to less inventory and less willing buyers.

I strongly doubt you would see 10-20% price drops but the above explains part of why Brexit does matter.

sideways sid

1,371 posts

214 months

Tuesday 17th May 2016
quotequote all
So a couple of playful thoughts in response to the OP.

1. There is ALWAYS a reason to procrastinate. Brexit is just the current one.
2. One school of thought suggests that interest rates will increase if UK leaves, so whilst the purchase price may be "10-20% less", your total purchase cost may be far higher if buying with a mortgage.
3. If you believe that buyers are holding back, and your ideal home is for sale, make an offer at the price you feel is right - on the basis that competing offers may not be forthcoming.

Petrol Only

1,592 posts

174 months

Tuesday 17th May 2016
quotequote all
I'm in the process of moving, Brexit did cross my mind but I really want a bigger detached house with garage. This next move is a 10+ year job so I'm just getting on with it. Don't think I'll lose out in the long term. smile I'd maybe be more cautious if it was A short term purchase.

Terminator X

14,921 posts

203 months

Tuesday 17th May 2016
quotequote all
How did we ever survive before the EU?! I'm fairly confident the world will not end whether we stay or go.

TX.

Sebo

2,166 posts

225 months

Tuesday 17th May 2016
quotequote all
fido said:
Sebo said:
the EU will cause a monumental downward slide in house prices, I think you are being churlish to assume you know exactly what the affect of a vote to leave the EU will be.
Just fixed at 2.59% for five years on my second flat - clearly the markets aren't bothered by the Cameron/Carney scaremongering!

Equally, you don't know exactly what the affect of a vote to stay in the EU will be.
Decent rate that.

Absolutely, agreed. For the record, I am absolutely the most on the fence person with regards to leaving or staying in the EU. Genuinely, I could make a compelling reason for both camps and am still undecided in my vote. My only hope is that there is record breaking turn-out at the polls so that in years to come, it will be universally agreed to have been a true reflection of the majority

rs4al

Original Poster:

925 posts

164 months

Tuesday 17th May 2016
quotequote all
Maybe I should just plough my equity into a GT3 RS.....

It was only a thought about house prices but there is definitely something afoot in the housing market, new builds round here are now advertising offers, which was unheard of a few months ago.

pmanson

13,374 posts

252 months

Tuesday 17th May 2016
quotequote all
fido said:
Just fixed at 2.59% for five years on my second flat - clearly the markets aren't bothered by the Cameron/Carney scaremongering!

Equally, you don't know exactly what the affect of a vote to stay in the EU will be.
In the process of moving at the moment (doubling the mortgage in the process). Multiple lenders offering 2.49% fixed on a 90% LTV.



mikees

2,745 posts

171 months

Tuesday 17th May 2016
quotequote all
garyhun said:
Sebo said:
garyhun said:
As if. Get your tin foil hat off.
Whilst I don't think leaving the EU will cause a monumental downward slide in house prices, I think you are being churlish to assume you know exactly what the affect of a vote to leave the EU will be.
Hence my reply to the OP that we will see 10-20% falls.
If we see 20% falls then me and others will pile in.

cashmax

1,099 posts

239 months

Wednesday 18th May 2016
quotequote all

If you are buying a house to live in and trying to figure out the market, pausing with a sold house, you could end up left out in the cold. Given that the short term volatility will make no difference to you, it's a rather silly risk.

LazyRoss18

423 posts

140 months

Wednesday 18th May 2016
quotequote all
We are due to complete the day after the referendum. We had thought about holding off till after, to look at the market but we couldn't refuse the house that came up smile

anonymous-user

53 months

Wednesday 18th May 2016
quotequote all
cashmax said:
If you are buying a house to live in and trying to figure out the market, pausing with a sold house, you could end up left out in the cold. Given that the short term volatility will make no difference to you, it's a rather silly risk.
Just go to the house crash site for proof smile