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

jimnastics

SouthCoast wrote: »

I have extensive knowledge of the Worthing property market and will be buying for cash...............

........in two years time.

P.S. Watch the prices of The Warnes flats crash!

Yes I know of a chap who owns an apartment in that place... I think he paid £250k for a 2 bed there. Do you think they will properly crash?! Our flat is in Sompting Avenue in Broadwater. Do you think this area will crash just as badly?

barnaby-bear

jimnastics wrote: »

That's one of the other issues, we're still pretty new to all this and I wouldn't know how to assess how we would manage. Say we did saty in our flat (bought at £148500 and with around £25k "tied up") and it did drop to £90k, can you tell me all the bad news on what that would mean to us in a practical sense?

If the flat was 160k but the 3-bed house you want is 280k you'd need to borrow an extra 120k, if the flat drops to 90k the house will be about 160k so only another 80k to find - so a notional 40k 'profit' - crashes good for those at the bottom of the ladder PROVIDED a mortgage provider will pay off what you owe on the flat and transfer increased debt to a new property. Overpaying your mortgage could be a good place for your savings, offsetting?

space_rider

You are both still young. Unless you are both in very well paid jobs with no risk of being made redundant and plenty of savings, I would stay as you are. Why have the worry. We bought just before interest rises really started to climb back in the late 80`s and when we had our child I had to go back to work when she was 3 months old because of the cost of the mortgage. Childcare was much cheaper then but we still struggled.