Upsizing in a freefall market...
Upsizing in a freefall market...
Author
Discussion

anonymous-user

Original Poster:

84 months

Tuesday 30th September 2008
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[redacted]

HundredthIdiot

4,477 posts

314 months

Tuesday 30th September 2008
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anonymous said:
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Do what they say. Those sort of people never make mistakes.

Wacky Racer

41,367 posts

277 months

Tuesday 30th September 2008
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My only advice would be very careful not to overstretch yourself financially with any mortgage repayments,(over and above your inheritance) it's not too bad in a rising market, but madness in the current circumstances.....

Plus, don't forget removal costs, agents fees, stamp duty etc........

stuthemong

2,534 posts

247 months

Tuesday 30th September 2008
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Sounds to me like staying where you are is the best option. You aren't exactly awash with cash (only deposit being a few K equity (soon eaten up by fees) and your 1-time inheritance).

Personally, I think you'd be mad to put your neck on a block now.

Stay where you are with a big buffer (inheritance in bank @6%) incase either of you are made redundant, in which case you will be still be OK.

Upsize and any problems hit you HARD.

Seems bizarre to take the risk now IMO

Edited by stuthemong on Tuesday 30th September 23:12

MrV

2,748 posts

258 months

Tuesday 30th September 2008
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anonymous said:
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+1 on all that he said and be ready to take a hit on any paper profit you think you have in your current house

muley

1,453 posts

311 months

Tuesday 30th September 2008
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anonymous said:
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What he said. In 91/92 the place we were selling dropped by £10K and swmbo was upset - I consoled her by saying our next place (we were looking to upshift) would have dropped by £20K.

In fact I was wrong, our next place had dropped by £70K ...

Edited to add, the fact we had 'cash on the hip' helped. I'd recommend selling if you can and renting while you look for the bargain house.

Edited by muley on Tuesday 30th September 23:14

trooperiziz

9,457 posts

282 months

Tuesday 30th September 2008
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Don't worry about it, you won't be able to sell your current house anyway, so the choice has been made for you wink

stuthemong

2,534 posts

247 months

Tuesday 30th September 2008
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What is your motivation to upsize though?

I'd just pay off the mortgage TBH.

Famous Graham

26,553 posts

255 months

Tuesday 30th September 2008
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anonymous said:
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Can you not pay off 1/3 and reduce monthly outgoings or term?

spikeyhead

20,519 posts

227 months

Tuesday 30th September 2008
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anonymous said:
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You may well be better off having an offset mortgage, keeping the payments the same and using those to reduce the mortgage. That way you'll have even more equity available when you come to move.

Olf

11,978 posts

248 months

Tuesday 30th September 2008
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Stay in the house and put that money into Lloyds TSB shares for ten years. That will sort your mortgage...

chris_w666

22,655 posts

229 months

Tuesday 30th September 2008
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anonymous said:
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You lose interest on your bank account but it reduces interest on the mortgage.

Famous Graham

26,553 posts

255 months

Wednesday 1st October 2008
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anonymous said:
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It does make sense to a degree, but you would save an awful lot of interest long term if you took out a new mortgage at 1/3 less than the current value.

(well, getting a similar interest rate anyway, which I realise might be tricky given your current 4.2)

But I'm a hypocrite - I'd probably only pay a bit off and spend the rest on fun stuff biggrin

Harsh

4,551 posts

241 months

Wednesday 1st October 2008
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HundredthIdiot said:
anonymous said:
[redacted]
Do what they say. Those sort of people never make mistakes.
rofl

Brilliant, love the irony!


sparkythecat

8,101 posts

285 months

Wednesday 1st October 2008
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You shouldn't twofold your irony.
You end up with creases across the front of your shirt, which looks silly


welshbikerduck

1,448 posts

219 months

Wednesday 1st October 2008
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anonymous said:
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Not meaning to p1ss on your bonfire, but while your 1st time buyer house maybe all nice and new with it's hotpoint appliances, but the fact is you like just about every other 1st time buyer bought the house with a 100% mortgage. The reason for this is because you couldn't afford a sizeable deposit and a 100% mortgage got you your home.

Incase you been on holiday the last few weeks 100% mortgages exist only in the history books. Almost impossible to get a mortgage for over 75% now. I think your options are going to be made for you instead of by you, i would suggest stay where you are because you are not going to be able to sell your house anyways, or the only way you could sell your house would be by selling it for either below or close on what you still owe on it. The reason i say this is because you had the 100% mortgage on it and have only had the house a short time. Prices have dropped quite a lot, infact a lot more in the real world than what the TV reports, thats because that data is way out of date by the time it gets compiled.

Just stay where you are and ride the storm out, you don't mention how much inheritance you have so quite hard to say what to do with it. Will it be enogh to buy a property without the need to sell yours? If so wait a year and then go shopping for some bargains.

Shuvi

889 posts

236 months

Wednesday 1st October 2008
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+1

Part of the problem, in the UK, is, everyone this last 20 years thinks buying a house is an exercise in easy money.

Buy a home that you can afford. Leave the clever stuff to your, 'high up', family.

At the moment you want to continue distorting the market for selfish reasons.


Shuvi

889 posts

236 months

Wednesday 1st October 2008
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OOEERR.

I've just seen my badly formatted post above. Worse though, I've seen your profile.

Nice ARSETRA. The plate was how much? Class.

Did your, 'high up', parents pay for that?

Get a proper car. Get a life, sell the idiotic number plate.

You may be better off.

Can't help myself. Must ask


WTF is limited about a C Open?

The colour of the the(birds)hair?

"OOOH we've a limited edition Daihatsu". I'll bet that goes dowm real well at the golf club/swingers parties.

Edited by Shuvi on Wednesday 1st October 04:42

deviant

4,316 posts

240 months

Wednesday 1st October 2008
quotequote all
Shuvi said:
OOEERR.

I've just seen my badly formatted post above. Worse though, I've seen your profile.

Nice ARSETRA. The plate was how much? Class.

Did your, 'high up', parents pay for that?

Get a proper car. Get a life, sell the idiotic number plate.

You may be better off.

Can't help myself. Must ask


WTF is limited about a C Open?

The colour of the the(birds)hair?

"OOOH we've a limited edition Daihatsu". I'll bet that goes dowm real well at the golf club/swingers parties.

Edited by Shuvi on Wednesday 1st October 04:42
WTF?!?!

Personally I would look at the reasons you want to upsize?

For me a house is about having a home so we bought what we could afford and are paying off our mortgage ASAP...but we also managed to buy at the right time (in Aus) so we have bought at the low point and with our repayments will be done in 10 years which is when prices should be peaking again (going off historical data). If they dont peak then meh..we will just stay put.

If you dont NEED to upsize and as you have said yourself you are in a beautifull new house then I would pay off that 1/3rd of the mortgage and get the rest paid off ASAP and stay put...I dont know how old you are but my motivation is that by the time I'm 35 I will not have any major living costs leaving wads of money for living life to the full. If the market is right I might look at selling and buying bigger / newer for the same money.

I also look at it as we get older and our jobs progress our wages are going to rise leaving more free money a month until the mortgage is done...I cant imagine anything worse than always upsizing and soaking up that free money for no real reason.

Shuvi

889 posts

236 months

Wednesday 1st October 2008
quotequote all
deviant said:
Shuvi said:
OOEERR.

I've just seen my badly formatted post above. Worse though, I've seen your profile.

Nice ARSETRA. The plate was how much? Class.

Did your, 'high up', parents pay for that?

Get a proper car. Get a life, sell the idiotic number plate.

You may be better off.

Can't help myself. Must ask


WTF is limited about a C Open?



The colour of the the(birds)hair?

"OOOH we've a limited edition Daihatsu". I'll bet that goes dowm real well at the golf club/swingers parties.

Edited by Shuvi on Wednesday 1st October 04:42
WTF?!?!

Personally I would look at the reasons you want to upsize?

For me a house is about having a home so we bought what we could afford and are paying off our mortgage ASAP...but we also managed to buy at the right time (in Aus) so we have bought at the low point and with our repayments will be done in 10 years which is when prices should be peaking again (going off historical data). If they dont peak then meh..we will just stay put.

If you dont NEED to upsize and as you have said yourself you are in a beautifull new house then I would pay off that 1/3rd of the mortgage and get the rest paid off ASAP and stay put...I dont know how old you are but my motivation is that by the time I'm 35 I will not have any major living costs leaving wads of money for living life to the full. If the market is right I might look at selling and buying bigger / newer for the same money.

I also look at it as we get older and our jobs progress our wages are going to rise leaving more free money a month until the mortgage is done...I cant imagine anything worse than always upsizing and soaking up that free money for no real reason.
I think I get you. Misquote?