Should we pull out of house buy

john_w_2007

@chewmylegof

Yes that is right...we cannot go below 187500 based on both our salaries...which arnt that muh. We rung up saying there are plenty of nice 1 bed flats and some 2 beds around the 170 marker. They wouldnt have it...we were absolutely not allowed to go below 187500.

Im thinking it might be worth pulling out. In our offer we said our offer was subject to Survey etc etc...after advice...from catalyst. One of our 'subject to's' wasnt us changing our mind and getting worried about house prices...hope there arnt any reprisals.

@ad9898 I wonder if anoyone has done that.

John

MrSafeGaz

I can only give my opinion from a financial perspective because that is primary consideration when buying a house.

Pull out, you will potentially save alot of money in the long run. 6 months or so is not a great deal of time to see how this all plays out.

Chris2685

Interesting, I haven't heard of the scheme you're describing. I am in the process of buying through the MyChoice Homebuy scheme... I feel that it is the right choice for me at the moment, but I wouldn't recommend it to anyone.. It is a pain in the !!! (took them 5 weeks to assess the property we put an offer on in July, and now it's going to be end of October before we complete), and isn't really all you want it to be...
If you're desperate to move to a nicer house, then go for it though. The shared ownership part is basically discounted rent, much cheaper than renting somewhere yourself. The only thing people on this forum will tell you is that you are paying over the odds due to the scheme, without the scheme the house would be valued less because no one would buy it in theory because they can't afford it without the help of these schemes.

chewmylegoff

john_w_2007 wrote: »

@chewmylegof

Yes that is right...we cannot go below 187500 based on both our salaries...which arnt that muh. We rung up saying there are plenty of nice 1 bed flats and some 2 beds around the 170 marker. They wouldnt have it...we were absolutely not allowed to go below 187500.

Im thinking it might be worth pulling out. In our offer we said our offer was subject to Survey etc etc...after advice...from catalyst. One of our 'subject to's' wasnt us changing our mind and getting worried about house prices...hope there arnt any reprisals.

@ad9898 I wonder if anoyone has done that.

John

if this is just an offer you can withdraw it without giving a reason and they have no comeback.

if you have signed something then it will depend what the agreement you have signed says. if you have put a deposit or reservation fee down then you would risk losing it and depending on the contract you might be responsible for more costs.

if the minimum you are allowed to pay is £187k then you really don't want to be bidding on properties with an asking price of £190k - you could probably buy the place for £160k with a conventional mortgage (£175k tops with the new stamp duty band dragging everything down). it really does sound as if this scheme is just a way to get yourself into instant negative equity.

the scheme sounds awful in my view. just encouraging you to pay more and borrow more than you actually want to. not in your interest to go down this route by the sound of it.

pinkshoes

john_w_2007 wrote: »

We were prepared to go in with the expectation something would improve in 2009, but to fall by up to 25% by 2010 makes me think we should pull out now before anyone spends any money on the costs of moving..

john_w_2007 wrote: »

We would stay for at least 5 years...but the 25% thing worries me..though some say they have fallen 12% already so only have technically the other 12% to fall. Urgh I dont know...I was really excited until earlier.

So it's now 2008, you're planning on staying in this HOME for at least 5 years (so until 2013 at least), and you're worried what it's going to be worth in 2010??

If you're already happy where you're living now, can save up a good deposit in the next 18 months, and aren't bothered about owning your own home, then pull out now so you don't mess the sellers around any more!

NOBODY knows what the housing market is going to do. "Experts" can only guess along with everyone else.

carolt

Sounds like a terrible deal. Sorry. 5 years is a long time - what if you're stuck and need to move (split up/lose job/have baby/need to relocate etc?

Sazzyukrafc

We bought our first house two months ago and don't really care about all this tbh...we plan to be in the house for quite a few years, so we don't see the problem for us.

pinkshoes

carolt wrote: »

Sounds like a terrible deal. Sorry. 5 years is a long time - what if you're stuck and need to move (split up/lose job/have baby/need to relocate etc?

How very pessimistic! If everyone lived their lives by "what ifs", then no would actually bother living. Life is about taking risks, having fun, and being happy.

My friend would have bought a new car if he knew he was going to die of cancer a year later.

And if me and my OH hadn't bought just because we might split up, then we wouldn't have shared the last amazing 18 months together in our own home.

Sh*t happens. Deal with it IF and WHEN it happens. I'm sure the OP has thought these things through if they're planning a home for at least 5 years!


Besides, aren't we all going to die tomorrow when they turn on the LHC and try and recreate the big bang?

chartreuse_2

pinkshoes wrote: »

Besides, aren't we all going to die tomorrow when they turn on the LHC and try and recreate the big bang?

I thought so. Perhaps the uberbears know something we don't...

Mutton_Geoff

Nationwide now expect house prices to fall 25%

1. Several posts on here seem to read that they have another 25% to go. What he actually said to the BBC was they'd fall 25% from their peak. We're already more than half way there according to the popular indices.

2. I'd be very surprised if some banker could predict the bottom of the market in this way.