What to do next... what would you do?

mpsavuk

Premier wrote: »

In the meantime, you'll need to live somewhere - would you prefer to lose your money to a landlord or buy a home of your own.
/quote]

This is a very ignorant point of view. The posters property is probably losing upwards of 5k per month! And you think renting is throwing away money? Get real!

I'd much rather be renting in this economic climate then have been silly enough to "buy" a property within the last few years.

jimnastics

mlz1413 wrote: »

surely what you are looking at is affordabililty.

If you move and stay there for 10 years then as long as you can afford the bills that is what matters.

I bought in 2001 and saw my house drop from £35k to £25k over the next 2 years, but it was mine I was happy to stay. 16 years later when I sold it I got substanially more money but it was still only worth first rung of the ladder money.

If your going to be happy to live in a family home and accept that prices will go down and up at different times and accept that you can't always buy and the bottom and sell at the top

I know what you're saying, but on the other hand buying a 3 bedroom house now (around £280k from what we've looked at) would definitely stretch us in terms of mortgage + bills. We could do it, but we'd have to tighten belts a lot compared to now. Add to that the possiblity of kids to raise, then it really would start to be a struggle. If we waited and house prices did seriously drop, we could potentially be looking at a mortgage similar to what we have now but for a 3 bed house... that would be fantastic. If we bought now and then 2 years down the line realised we would have been £400 a month better off if we'd waited, I'd be very annoyed with myself. Although that would mean our flat would have dropped loads as well...

Christ alive I guess there are just no easy answers

lincroft1710

By my calculations your mortgage must have been for about £126,000. It is doubtful if you will have paid off much if any of the capital. Assuming you can sell your flat for £150k and buy house for £280k then you will need mortgage of around quarter of a million. Moving costs can easily soak up £10,000 and these children things are very expensive and time consuming to maintain. As will larger property - heating, lighting, cleaning, higher council tax and water bills. Mortgage rates will also probably increase and there may be other costs to consider.

Only you can make the decision - but the most important question is CAN I AFFORD IT??

GracieP

I know you have said that you don't want to go back to renting. But having just sold a house to a buyer who was selling their flat, it is infinitely superior to consider renting for 6 months rather than be part of a chain. You would be a far more attractive buyer and could likely negotiate a better price. And if you are in a position to move fast you can buy at auction, which is where you are likely to get the best "bargain" at the moment.

mrs_deadline

jimnastics wrote: »

One plus point for us though is that we do live in a very popular and sought after group of flats, where no one has sold up (or even attempted to sell) for well over a year (that one going for £160k). I'm hoping this might at least be a string in our bow.

I don't think I'm really getting your last bit about "buying a house at huge expense and possibly losing value is all somewhat theoretical." Could you expand a little on that?

What I'm trying to say is, moving is only a realistic possibility if you know you'll find a buyer for the current flat (which is proving an insuperable hurdle for many many people, witness the sudden interest in part-exchange deals with newbuild developers of late).

I agree with the other posters on the affordability of your dream home. It's a good idea to run some calculations based on one salary, too, if you're planning to start a family. Do you have savings other than the amount "tied up" in the flat? Maybe try stashing away the difference between the current mortgage payments and the amount you'd be paying on a bigger house, and that way you'll be building up a useful cushion while you mull over your options.

*Louise*

OP - I know what you mean about 'that feeling' of having that house that you will feel content to live in for the next 20, 30 years. It took us 8 years to get out of our 'first rung' flat and into a bigger house - it all takes time.

If I was in your position, I would research the market in your area, then sell now if it's feasible.

Then I would rent for 6 months, keeping an eye on the market and look to buy in late autumn/winter. You will never be able to predict the bottom of the crash, you can only judge by how much you are wanting to pay out.

If you rent, the fact you don't have kids yet makes it so much easier for you.

Also, while you are renting, you should budget according to a bigger mortgage (that you may have for your 3-bed) and put the difference between the rent and the future mortgage into a savings account ready for the happy day you have your first child. (Hope that made sense!)

All the best, hope whatever you do works out for you both.:D

*Louise*

mrs_deadline wrote: »

Maybe try stashing away the difference between the current mortgage payments and the amount you'd be paying on a bigger house, and that way you'll be building up a useful cushion while you mull over your options.

Lol - that's what I was trying to say. Your explanation works better.:o

Premier_2

mpsavuk wrote: »

This is a very ignorant point of view. The posters property is probably losing upwards of 5k per month! And you think renting is throwing away money? Get real!

I'd much rather be renting in this economic climate then have been silly enough to "buy" a property within the last few years.

"Please be nice to other moneysavers"

Prices last month fell on average by 0.9%; less than they did the month before
http://news.bbc.co.uk/1/hi/business/7482115.stm

That would mean a property would need to be valued at well over £0.5million for it to lose £5k in a month

The property is valued at just £165k.

jammie*dodger

Premier wrote: »

"Please be nice to other moneysavers"

Prices last month fell on average by 0.9%; less than they did the month before
http://news.bbc.co.uk/1/hi/business/7482115.stm

That would mean a property would need to be valued at well over £0.5million for it to lose £5k in a month

The property is valued at just £165k.

0.9% of £165k is still £1485 though. That pays rent on a pretty nice house in most areas.

JD

Premier_2

jammie*dodger wrote: »

0.9% of £165k is still £1485 though. That pays rent on a pretty nice house in most areas.

JD

True, but that's a very short term view. I could suggest you look at the last 10 years, but lets say just the last 3 years.

Prices have risen by 9% in the last 3 years (and that includes the fall of 7.3% since the peak last October)

9% of £165k is not surprisingly, £14850 - the equivalent to a profit of £412.50 per month.

So now compare that profit less the average interest rate of about say 6% (about £825pm based on total value) and compare that to the rent mpsavuk has been preferring to pay over "the last few years".

You don't get much, if anything, in Worthing for £412.50 pm rent