Help Im Nervous

sneakyg

Hi im a Noob to this forum and to house buying in general, i am planning on buying a property in cheshunt - herfordshire, the property is smack bang next to their main shops and is a 2 double bed, converted house (im buying the top floor) it is fairly big in size (apart from the kitchen) and looks to be in good condition. However im buying for £17,0000 and im concerned that it will loose money.

I dont plan to move for around 5 years.

can someone give me some advise to if they feel i will loose money after the 5 years are up?

m1ntie

House prices are still falling. Nobody knows how far they will fall before they "bottom out" however it is entirely possible that they could fall another
10%-20% and take upto 10 years to recover.

So yes you do risk losing a substantial amount of money. I would rent for the next 12-24 months.

Davesnave

Most of the regulars on here don't think this crash will be as 'mild' as the last one either, so you'd be wise to delay until the full extent of the economic recession is clearer, especially if your job(s) is/are at all vulnerable.

It sounds like you are planning to buy a flat, but if you are prepared to wait, a house might well become a realistic option. Put it another way, will you be happy to have paid 'house' money for a flat, which is what will happen if prices go the way most analysts expect and you proceed with this purchase.

sneakyg

thanks for the advice. i need to move within the next few months at the latest due to various reasons and need to make sure that its as safe a move as possible in the circumstances.

http://www.rightmove.co.uk/viewdetails-18907855.rsp?pa_n=7&tr_t=buy

tell me what u think pls

GracieP

sneakyg wrote: »

thanks for the advice. i need to move within the next few months at the latest due to various reasons and need to make sure that its as safe a move as possible in the circumstances.

http://www.rightmove.co.uk/viewdetails-18907855.rsp?pa_n=7&tr_t=buy

tell me what u think pls

Well it's certainly a lovely looking building, but it is still essentially a 2 bed flat in Zone 6. My gut says that is very overpriced.

What are your personal circumstances? Do you plan on having a family in the next 10 years? If so I wouldn't touch a flat with a barge-pole. Rent a place and keep saving, 18 months from now you could find yourself being able to buy the whole house.

And enjoy the Cheshunt Lee Valley park, it's very, very beautiful. I miss it a lot since I moved from north London.

lynzpower

I notice its only been on the market for 2 days??!? Have you literally swooped in, offered a poxy 2k under AP and they have snapped your hand off??

brit1234

sneakyg wrote: »

thanks for the advice. i need to move within the next few months at the latest due to various reasons and need to make sure that its as safe a move as possible in the circumstances.

http://www.rightmove.co.uk/viewdetails-18907855.rsp?pa_n=7&tr_t=buy

tell me what u think pls

Still looks overvalued by a lot and appears to be an ex buy to let property (no chain and a few other things). Nothing is comming up on property bee so it is likely it has just been put on as there as been no reductions or anything.

Personally I would stay well away. There are plenty of ex buy to let properties on the market as landlords bail out, why not get one which has been reduced and been on the market for a while so you can put a cheeky offer in.

If you buy this proerty at the price landlord will be laughing. and you will be in big negative equity.

I recomend you use this popular tool to see all the reduce prices on rightmove to give you a heads up. - Property Bee

http://www.property-bee.com/

penguine

There have been 3 previous house price crashes since the 1970s. Each time, property fell in value for several years then stayed level for several years further before rising again. House price falls are steeper this time -- and the rest of the economy does not look good -- so it seems likely that this crash will be worse than previous ones. So you have nothing to lose, and everything to gain, by waiting awhile before buying.

GDB2222

sneakyg wrote: »

thanks for the advice. i need to move within the next few months at the latest due to various reasons and need to make sure that its as safe a move as possible in the circumstances.

http://www.rightmove.co.uk/viewdetails-18907855.rsp?pa_n=7&tr_t=buy

tell me what u think pls

The safe move at the moment is to rent. There's really no question about it, with property prices dropping at 2% each month, equivalent to over 20% a year. There are a few brave souls around buying places, but they are generally only buying absolute bargains at knock-down prices. Even so, it's hardly safe.

You're damn right to be nervous!

sneakyg

Thank you everyone, your imput is very much appreciated. I might hold out for a few months more.....but its a nice place

GDB2222

Most of the experts' predictions are that prices will drop another 20% or more before stabilising. That's the best part of £40k on your property. There'll be other nice places along later if this one goes.