sold my house, now what in todays market
Discussion
Posted recently debating a let to buy but have gone against that due to a lack of available properties in my price range with a LTB deposit. Have accepted an offer on my place from a first time buyer. Which raises a couple of issues:
If i buy somewhere that has an onward chain, which most do, then it is likely it wont be complete within 6 months and so will end up stuck with whatever horrific interest rates are available in 6-12 months time instead of the fairly reasonable ones today. I currently have 100k borrowed with lloyds at 1.35% fixed for another almost 3 years which i can transfer to a new property, but am looking to borrow up to 230k on top of that which wont be at the same interest rate (with a partner this time)
House prices look seriously poised to 'correct' now, some say as much as 20% which would be 90k saving on my purchase. So do i just get my sale completed, pay the ERC of 3k on my mortgage and put the 135k i'm left with in the bank, go into rental and hope the crash materialises. I've then lost my 3 years of cheap rate with lloyds, but have secured a peak price for my property. The big risk being they dont crash and i just end up throwing money away.
Doesnt help that there are hardly any detached properties coming onto the market, we are prepared to pay the going rate for a decent 3-4 bed detached in our area (400 to 500) but are lucky to see 1 a month worth viewing.
If i buy somewhere that has an onward chain, which most do, then it is likely it wont be complete within 6 months and so will end up stuck with whatever horrific interest rates are available in 6-12 months time instead of the fairly reasonable ones today. I currently have 100k borrowed with lloyds at 1.35% fixed for another almost 3 years which i can transfer to a new property, but am looking to borrow up to 230k on top of that which wont be at the same interest rate (with a partner this time)
House prices look seriously poised to 'correct' now, some say as much as 20% which would be 90k saving on my purchase. So do i just get my sale completed, pay the ERC of 3k on my mortgage and put the 135k i'm left with in the bank, go into rental and hope the crash materialises. I've then lost my 3 years of cheap rate with lloyds, but have secured a peak price for my property. The big risk being they dont crash and i just end up throwing money away.
Doesnt help that there are hardly any detached properties coming onto the market, we are prepared to pay the going rate for a decent 3-4 bed detached in our area (400 to 500) but are lucky to see 1 a month worth viewing.
If you think prices will fall, maybe consider buying a small place for now?
My feeling is that any correction won't be equal across the board, there are some houses that people always want, big houses may be affected differently from small houses, not all areas will have the same forces at work and so on.
You really have to go with your own faith.
I start by working out what your existing heap deal is actually worth, against your best guess of what a deal in the open market would get you in 2/3/5 years.
House prices may or may not fall, but the rent you pay is predictably significant.
My feeling is that any correction won't be equal across the board, there are some houses that people always want, big houses may be affected differently from small houses, not all areas will have the same forces at work and so on.
You really have to go with your own faith.
I start by working out what your existing heap deal is actually worth, against your best guess of what a deal in the open market would get you in 2/3/5 years.
House prices may or may not fall, but the rent you pay is predictably significant.
Housepricecrash.co.uk is filled with people who sold decades ago awaiting 'the crash'.
I presume they're all in caravans now.
Who knows what the future holds, it certainly doesn't look rosy compared to any other recent time, but the country is a giant ponzi scheme based on pricing property ever higher.
No doubt they'll do every single thing within their power to keep it limping upwards.
I presume they're all in caravans now.
Who knows what the future holds, it certainly doesn't look rosy compared to any other recent time, but the country is a giant ponzi scheme based on pricing property ever higher.
No doubt they'll do every single thing within their power to keep it limping upwards.
I'm in a similar position at the moment.
We have recently sold our house (bought as first time buyers 10 years ago).
Multiple reasons for the sale, not just for the fact we would like somewhere slightly bigger.
At the moment, if we were to buy, we would end up in a slightly better area but a similar sized house at our max budget.
Bearing in mind I have saved hard over the past few years to help fund the move. Taking on £100k+ over our sale price for somewhere comparable seems crazy at the moment.
Our plan is to move back in with my parents (we are very fortunate to have this opportunity), so we can see how the market goes over the next few months.
Will either be the best or worst decision I have ever made.
We have recently sold our house (bought as first time buyers 10 years ago).
Multiple reasons for the sale, not just for the fact we would like somewhere slightly bigger.
At the moment, if we were to buy, we would end up in a slightly better area but a similar sized house at our max budget.
Bearing in mind I have saved hard over the past few years to help fund the move. Taking on £100k+ over our sale price for somewhere comparable seems crazy at the moment.
Our plan is to move back in with my parents (we are very fortunate to have this opportunity), so we can see how the market goes over the next few months.
Will either be the best or worst decision I have ever made.
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