ARRGHH. Persuade me to sit on my hands!

fimonkey · 22 July 2008 at 5:10PM

http://www.rightmove.co.uk/viewdetails-18160288.rsp?pa_n=1&tr_t=buy

This is in the area I want to live in, and they've reduced to 150K.

I have 31K in savings, so would be able to put a deposit of 25K, plus 4K for fee's and redecoration (and 2K kept back for emergencies).

That would mean a mortgage of £125K, at 7% repayment this would be: £893.85pm.

I currently take home £1900 net per month (but about to drop to £1700 in Sept).

So I think it's affordable, and its exactly what I'm looking for, plus I could get a lodger in to help if things got tough (like hikes in energy bills etc).

PLEASE PERSUADE ME TO NOT EVEN LOOK AT IT! House prices are gonna fall further right? So even though this one's a bargain, I can get the same next year for even less, right?

So why am I ignoring these facts? Anyone got any suggestions/ideas. Should I even consider it? It'd be such a dream to own my own freehold in Christchurch, Dorset. Most of the two beds in the area are much more!

Cheers all

ohyespleasethankyou · 22 July 2008 at 5:44PM

If you are happy with the repayments/area/house/price why wait? I agree prices are dropping but if you will be happy to live there for several years then it doesnt really matter. Put an offer in that expresses your view that the market will drop and get 5k off? I wouldnt buy now but then I thought the market had topped in 2002 so nearly rented when I sold my flat "while I waited for the prices to drop" :eek:

wymondham · 22 July 2008 at 5:48PM

Be aware of the pitfalls of owning a house worth less than your mortgage. If you're fine with it and want to take the risk, go for it!

I personally think anyone thinking about buying in this market when they don't have to is bonkers. Why knowingly choose to lose money??

geoffky · 22 July 2008 at 6:04PM

Give Me The Money Its Better Than Burning It...

franklee · 22 July 2008 at 6:06PM

That's been for sale since early spring (don't know which year). Do you know it's price history?

fimonkey · 22 July 2008 at 6:13PM

Franklee, It was on for 179K, they then dropped to 169K and it became SSTC. Sale fell through, they came back on the market at 159K and have just dropped to offers over £150K.

I know it's madness to buy now (which is why I need persuading to sit on my hands). However renting is a complete pain! I'm about to move AGAIN into another shared house (cos its cheaper than renting a flat on my own, so I can continue to add more to my deposit), but I really really want a place of my own!!

The mortgage would be 125K. Anyone think it's likley to drop lower than that price in the next year (or similar houses in a similar area) given it's top price last year was just shy of 180K.

Thanks all...... fingers still itchy!

fimonkey · 22 July 2008 at 6:14PM

geoffky wrote: »

Give Me The Money Its Better Than Burning It...

And in return you'll provide me with at least a 2 bed freehold in Christchurch, but NOT on the Somerford estate?

mewbie_2 · 22 July 2008 at 6:28PM

What would a property like that rent for in that area? I don't think anyone expects prices to rise anymore, so there is no rush for a decision. Why not rent for a year, and wait for more opportunities to come along? Even if you are not saving as much money in terms of adding cash to your deposit it is reasonable to assume that property will drop by 1-2% a month for the next 12 months or so.

That's about 15-20,000 pounds off a property at that current price.

wymondham · 22 July 2008 at 6:39PM

fimonkey wrote: »

Franklee, It was on for 179K, they then dropped to 169K and it became SSTC. Sale fell through, they came back on the market at 159K and have just dropped to offers over £150K.

I know it's madness to buy now (which is why I need persuading to sit on my hands). However renting is a complete pain! I'm about to move AGAIN into another shared house (cos its cheaper than renting a flat on my own, so I can continue to add more to my deposit), but I really really want a place of my own!!

The mortgage would be 125K. Anyone think it's likley to drop lower than that price in the next year (or similar houses in a similar area) given it's top price last year was just shy of 180K.

Thanks all...... fingers still itchy!

over what period has the above drop occured?

Woby_Tide · 22 July 2008 at 6:53PM

fimonkey wrote: »

And in return you'll provide me with at least a 2 bed freehold in Christchurch, but NOT on the Somerford estate?

http://www.rightmove.co.uk/viewdetails-21792479.rsp?pa_n=1&tr_t=buy

3 beds over near Fairmile?

RichPenny · 22 July 2008 at 7:10PM

I'd say that the mortgage is a little bit too much for you. I know interest rates aren't at 7% just now, you'd probably get a deal at around 6%. That would still leave you paying around 50% of your take home pay on a mortgage. With bills paid solely by you it doesn't leave much left over for fun (or indeed saving). If energy and food prices continue to rise this would trouble you further. FWIW, I earn a similar amount and would max out at £700 on the mortgage with overpayments included (real repayment figure is £630 on £107k).

ARRGHH. Persuade me to sit on my hands!

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