Should I buy a house now?
Discussion
Morning everyone ....
Should I buy a house now?
I’ve been struggling with this over the last 3 / 4 weeks ... so I thought I’d throw it out to the PH wider audience!
I am no expert but I’m pretty money savvy and have been keeping my eye on house prices and the market recently [via what’s reported in the media only].
I’m currently in the process of buying a house with the missus and I’m at the stage where I’m probably going to be ready to sign in the next 2 / 3 weeks ... so its final decision time!
The house was on the market at offers over £200k and we managed to agree at £190k which I considered a reasonable figure based on the asking price [5% deduction], the house is an early 1900’s two bed Victorian terraced in a popular up-and-coming South-West area.
We’re putting down 5% deposit and have managed to get a pretty good mortgage deal with Bradford and Bingley [5.79% fixed for 2 years – repayment], the repayments are affordable [about 29% of my take home pay and 35% of the missus].
Options are:
1. Buy now but push hard for ALL survey issues to be sorted.
2. Attempt to negotiate a further discount based on the fall in prices over the last month – assume 1.5% - say £3000 [there is no chain, I believe the vendor is selling up and probably doesn’t need to buy another property. She bought 8 years ago for £72,500].
3. Pull out altogether – Lose approx £1000 in fees etc.
I know it’s a practically impossible question to answer but what do people think?
Other info: We’re first time buyers, we plan to stay in the property 2 / 3 years but would look to sell again after this period, if we don’t buy we’ll be renting at circa £650 a month, we’re sick of renting and REALLY like the house. Nothing in the area came close for the price when looking [we looked at about 40 properties].
To get the topic back on track ..... and attempt to avoid a personal attack on myself.
1. I am not saying I am GOING to Gazunder .... as I’m sure you can tell from my initial post I am asking opinions. I am aware of the practice and that it is one available option – I am no expert when it comes to buying houses, the is the first time!
2. If I had to pull out of the deal then yes of course I would-be disappointed and I realise the implications on the vender. However I didn’t feel the need to go into that area in this thread ... as it is pretty much impossible to present feelings via an internet forum.
UPDATE 26/10/10
I'm not expecting anybody to read the whole thread .... I wasn't sure where to resurrect it to [Mods feel free to move if necessary] but I thought it held some general interest.
We've just exchanged on the sale of this house at a figure above what we paid for it 2.5 years ago and in the grand scheme of things have come out 'slightly' on top vs renting
So in the end it all worked out
Should I buy a house now?
I’ve been struggling with this over the last 3 / 4 weeks ... so I thought I’d throw it out to the PH wider audience!
I am no expert but I’m pretty money savvy and have been keeping my eye on house prices and the market recently [via what’s reported in the media only].
I’m currently in the process of buying a house with the missus and I’m at the stage where I’m probably going to be ready to sign in the next 2 / 3 weeks ... so its final decision time!
The house was on the market at offers over £200k and we managed to agree at £190k which I considered a reasonable figure based on the asking price [5% deduction], the house is an early 1900’s two bed Victorian terraced in a popular up-and-coming South-West area.
We’re putting down 5% deposit and have managed to get a pretty good mortgage deal with Bradford and Bingley [5.79% fixed for 2 years – repayment], the repayments are affordable [about 29% of my take home pay and 35% of the missus].
Options are:
1. Buy now but push hard for ALL survey issues to be sorted.
2. Attempt to negotiate a further discount based on the fall in prices over the last month – assume 1.5% - say £3000 [there is no chain, I believe the vendor is selling up and probably doesn’t need to buy another property. She bought 8 years ago for £72,500].
3. Pull out altogether – Lose approx £1000 in fees etc.
I know it’s a practically impossible question to answer but what do people think?
Other info: We’re first time buyers, we plan to stay in the property 2 / 3 years but would look to sell again after this period, if we don’t buy we’ll be renting at circa £650 a month, we’re sick of renting and REALLY like the house. Nothing in the area came close for the price when looking [we looked at about 40 properties].
To get the topic back on track ..... and attempt to avoid a personal attack on myself.
1. I am not saying I am GOING to Gazunder .... as I’m sure you can tell from my initial post I am asking opinions. I am aware of the practice and that it is one available option – I am no expert when it comes to buying houses, the is the first time!
2. If I had to pull out of the deal then yes of course I would-be disappointed and I realise the implications on the vender. However I didn’t feel the need to go into that area in this thread ... as it is pretty much impossible to present feelings via an internet forum.
UPDATE 26/10/10
I'm not expecting anybody to read the whole thread .... I wasn't sure where to resurrect it to [Mods feel free to move if necessary] but I thought it held some general interest.
We've just exchanged on the sale of this house at a figure above what we paid for it 2.5 years ago and in the grand scheme of things have come out 'slightly' on top vs renting
So in the end it all worked out
Edited by John Laverick on Tuesday 26th October 15:03
John Laverick said:
Morning everyone ....
Should I buy a house now?
I’ve been struggling with this over the last 3 / 4 weeks ... so I thought I’d throw it out to the PH wider audience!
I am no expert but I’m pretty money savvy and have been keeping my eye on house prices and the market recently [via what’s reported in the media only].
I’m currently in the process of buying a house with the missus and I’m at the stage where I’m probably going to be ready to sign in the next 2 / 3 weeks ... so its final decision time!
The house was on the market at offers over £200k and we managed to agree at £190k which I considered a reasonable figure based on the asking price [5% deduction], the house is an early 1900’s two bed Victorian terraced in a popular up-and-coming South-West area.
We’re putting down 5% deposit and have managed to get a pretty good mortgage deal with Bradford and Bingley [5.79% fixed for 2 years – repayment], the repayments are affordable [about 29% of my take home pay and 35% of the missus].
Options are:
1. Buy now but push hard for ALL survey issues to be sorted.
2. Attempt to negotiate a further discount based on the fall in prices over the last month – assume 1.5% - say £3000 [there is no chain, I believe the vendor is selling up and probably doesn’t need to buy another property. She bought 8 years ago for £72,500].
3. Pull out altogether – Lose approx £1000 in fees etc.
I know it’s a practically impossible question to answer but what do people think?
Other info: We’re first time buyers, we plan to stay in the property 2 / 3 years but would look to sell again after this period, if we don’t buy we’ll be renting at circa £650 a month, we’re sick of renting and REALLY like the house. Nothing in the area came close for the price when looking [we looked at about 40 properties].
Go ahead at that money. If it was a 2m property the answer might be different. If you are buying to live it should make little difference in the long run. Should I buy a house now?
I’ve been struggling with this over the last 3 / 4 weeks ... so I thought I’d throw it out to the PH wider audience!
I am no expert but I’m pretty money savvy and have been keeping my eye on house prices and the market recently [via what’s reported in the media only].
I’m currently in the process of buying a house with the missus and I’m at the stage where I’m probably going to be ready to sign in the next 2 / 3 weeks ... so its final decision time!
The house was on the market at offers over £200k and we managed to agree at £190k which I considered a reasonable figure based on the asking price [5% deduction], the house is an early 1900’s two bed Victorian terraced in a popular up-and-coming South-West area.
We’re putting down 5% deposit and have managed to get a pretty good mortgage deal with Bradford and Bingley [5.79% fixed for 2 years – repayment], the repayments are affordable [about 29% of my take home pay and 35% of the missus].
Options are:
1. Buy now but push hard for ALL survey issues to be sorted.
2. Attempt to negotiate a further discount based on the fall in prices over the last month – assume 1.5% - say £3000 [there is no chain, I believe the vendor is selling up and probably doesn’t need to buy another property. She bought 8 years ago for £72,500].
3. Pull out altogether – Lose approx £1000 in fees etc.
I know it’s a practically impossible question to answer but what do people think?
Other info: We’re first time buyers, we plan to stay in the property 2 / 3 years but would look to sell again after this period, if we don’t buy we’ll be renting at circa £650 a month, we’re sick of renting and REALLY like the house. Nothing in the area came close for the price when looking [we looked at about 40 properties].
Edited by John Laverick on Friday 6th June 09:11
Didn't we have a thread on here about underzumping a few weeks ago and everyone decided that it was the wrong thing to do.
If you want to buy it . . . then buy it.
If you don't cut your losses and walk away.
i cant believe people are condoning underzumping on here. If you do decide to do this i hope karma comes round and bites you in the ass
If you want to buy it . . . then buy it.
If you don't cut your losses and walk away.
i cant believe people are condoning underzumping on here. If you do decide to do this i hope karma comes round and bites you in the ass
Edited by eightseventhree on Friday 6th June 09:19
Whats more important? getting a house that you REALLY like, with a woman you love, being happy, having your own place, a roof over your head or loosing this property, taking another 12 months to find one you both really like, having to rent for 12 months which could be £5000 down the drain and being back in this position in 12 months time?
Renting for another 12 months as I said is £5000 in a landlords back pocket, a Landlord I might add whos not as worried as you about the property market.
Buy it. Renting is dead money.
Renting for another 12 months as I said is £5000 in a landlords back pocket, a Landlord I might add whos not as worried as you about the property market.
Buy it. Renting is dead money.
BoRED S2upid said:
Renting for another 12 months as I said is £5000 in a landlords back pocket, a Landlord I might add whos not as worried as you about the property market.
Buy it. Renting is dead money.
Really?Buy it. Renting is dead money.
Any more than the £11,000 in INTEREST that they will hand over to the B&B over the next 12 months on a mortgage?
Unless prices rise, paying £5000 rent, will leave them a minimum £6000 UP versus buying that place.
And that's if a miracle happens and prices don't fall any further just stay the same.
blindswelledrat said:
You should have been asking this question before you agreed to buy the place.
It isn't like you didn't know the market was difficult a month ago when you agreed to this.
I can't understand why you would be asking this now?
In all fairness it's only very recently that the building societies have stopped rolling out idiots like that prat at the Halifax to assure everyone that everythings fine due to "low unemployment, low interest rates and a strong economy" ( is it bIt isn't like you didn't know the market was difficult a month ago when you agreed to this.
I can't understand why you would be asking this now?
ks ). People have been lied to, sytematically. And they're starting to realise.
Probably best not to turn this thread into a discussion on Gazundering but I’ll reply to the following comments:
anonymous said:
[redacted]
“Absence of other issues” I think you’re forgetting a major one – the house price slump, the fact that since making my offer house prices have gone down!eightseventhree said:
Didn't we have a thread on here about underzumping a few weeks ago and everyone decided that it was the wrong thing to do.
i cant believe people are condoning underzumping on here
Just because it has been discussed on PH doesn’t mean people aren’t doing it. We didn’t hear the property owners complaining when it was Gazumping!i cant believe people are condoning underzumping on here
BoRED S2upid said:
Whats more important? getting a house that you REALLY like, with a woman you love, being happy, having your own place, a roof over your head or loosing this property.
Just read this bit of my post. Forget money and what all these money hungry posters are advising you to do life is too short. You could get hit by a bus tomorrow on your way to B&B to sign up to your mortgage. blindswelledrat said:
I can't understand why you would be asking this now?
It's called 'buyer's remorse'.If you want the house as a house, and don't mind if its value falls, as I suspect it will, then buy it. You only make a loss if you sell, and if property prices fall then your next house will be cheaper too. Simple question is - can you afford it? Do you mind if the value falls? Is negative equity possible and if so, can you cope with it? Have you got any financial back-up? What will happen if you get made redundant?
All good questions to ask and answer I think.
BoRED S2upid said:
You could get hit by a bus tomorrow
An oft-quoted and entirely irresponsible piece of advice that expains why so any people are up to their ears in debt. 'Oh I bought all these clothes because I might get hit by a bus tomorrow'. Don't fall for it. The chances are that you will ive to a ripe old age and so that is what you should account for.John Laverick said:
Probably best not to turn this thread into a discussion on Gazundering but I’ll reply to the following comments:
As I mentioned, one month ago when you agreed to buy that house, you knew that it was risky and the property market was unstable, thus I deem it completely irrelevant that the price has gone down in that time. That is your problem. You didn't offer 190k "subject to complete stability in the housing market between now and completion".anonymous said:
[redacted]
“Absence of other issues” I think you’re forgetting a major one – the house price slump, the fact that since making my offer house prices have gone down!eightseventhree said:
Didn't we have a thread on here about underzumping a few weeks ago and everyone decided that it was the wrong thing to do.
i cant believe people are condoning underzumping on here
Just because it has been discussed on PH doesn’t mean people aren’t doing it. We didn’t hear the property owners complaining when it was Gazumping!i cant believe people are condoning underzumping on here
With regards turning this into a thread about gazundering, that is what the thread is about surely?
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