Buying a House ~Help

kandas

Hello

Im trying to purchase a 4 bed property having recently sold my 2 bed apartment (we are due to exchange next week). However, I am seeking some advice on this forum as I am currently having doubts and need some re-assuring.

The 2 bed apartment has sold for the asking price and we are keen to sell, however, the property we are about to purchase is for £300,000 but the builders have knocked off £50,000. The valuation on the property came in at £250,000 also.

In light of the current economy is it wise to buy or should I rent until next year when the property prices are due to drop even further?

Regards

cupid_s

If I was you I would definately rent for a bit.
If the property is valued at 250k now then it almost certainly will be worth less a few months down the line.

howler_2

kandas wrote: »

Hello

Im trying to purchase a 4 bed property having recently sold my 2 bed apartment (we are due to exchange next week). However, I am seeking some advice on this forum as I am currently having doubts and need some re-assuring.

The 2 bed apartment has sold for the asking price and we are keen to sell, however, the property we are about to purchase is for £300,000 but the builders have knocked off £50,000. The valuation on the property came in at £250,000 also.

In light of the current economy is it wise to buy or should I rent until next year when the property prices are due to drop even further?

Regards

Hmmmmm, you're buying a property for £300k when the seller and a valuer think it's worth £250k? And we're at the start of what most agree will be the biggest property price crash of all time.....

I dont think its reassurance you need

GDB2222

howler wrote: »

Hmmmmm, you're buying a property for £300k when the seller and a valuer think it's worth £250k? And we're at the start of what most agree will be the biggest property price crash of all time.....

I dont think its reassurance you need

I'm sure he means that the asking price is £300k and they are paying £250k.

howler_2

GDB2222 wrote: »

I'm sure he means that the asking price is £300k and they are paying £250k.

Ah ok - well for what its worth I still wouldnt do it. Not exactly going to worth more than £250k anytime soon is it?

GDB2222

Well, I agree we have a lot more of the property crash still to come.

kandas

I intend to live there for at least 5 years before I make the next jump.

Do you think it would be unethical for me to ask the builders to drop the price even further so close to the exchange of contracts? Especially with the latest news about the banking crisis.

GDB2222

kandas wrote: »

I intend to live there for at least 5 years before I make the next jump.

So, you expect the price to go up over that period?

BrandNewDay

kandas wrote: »

I intend to live there for at least 5 years before I make the next jump.

Do you think it would be unethical for me to ask the builders to drop the price even further so close to the exchange of contracts? Especially with the latest news about the banking crisis.

No, it would not be unethical. It would be smart.

Does your five-year plan depend on the house appreciating in value to a certain extent? What sort of mortgage are you getting?

If you need a bigger house, you like this house, and you can easily afford this house, then it is OK to buy it. If you're stretching yourself, then you should not buy this house. Five years ago, stretching into the biggest house you could manage made sense. Not now.

Traditionally, mortgages were only for 3 times the annual salary. If your job is relatively secure, and the mortgage is 3x your annual income, then I think you're safe.

howler_2

kandas wrote: »

I intend to live there for at least 5 years before I make the next jump.

Do you think it would be unethical for me to ask the builders to drop the price even further so close to the exchange of contracts? Especially with the latest news about the banking crisis.

I think you may be massively underestimating the crash to come if you think the price will have risen in 5 years