Should i buy or not

pors99

Myself and my wife have a two bed terraced house worth about 145000 likely to be approx 9-10k equity (drop from last summer but hey!).

I would like like to move to a bigger home, but the wife is not so sure with the prospect, saying that this is the worst time to move etc. We both have jobs where it is unlikley that we would bve made redundant, unless they abolish health care or education so income would be constant.

Am i right in saying that this would be an ok time to move or is she right in to say wait for a bit.

We are in rush to sell and have recently been looking at a new build with a part/ex option not ready until spring.

Any thoughts

marky

brit1234

pors99 wrote: »

We are in rush to sell and have recently been looking at a new build with a part/ex option not ready until spring.

Argh,:mad:

Newbuild,:mad:

Part exchange:mad:

Hang on to your horses cowboy. If you are patient and forward thinking you can do well out of up gradding. Just slow it down, stop thinking with your heart and use your brain instead.

If you rush you can make big mistakes. The longer you wait the smaller the rungs between the ladder.

pinkshoes

Assuming you're moving in the same area, then a % drop in house prices will make the gap between the price of yours and the one you want to buy smaller.

i.e. if yours is £100k, and the new one is £200k, and houses drop 10%, then your new house will then only be £90k more expensive than your current one, instead of £100k.

Saying that, you'd lose your £10k equity, so being able to move in the future will depend on your ability to save money, and save up a new deposit to buy your way out of negative equity.

Premier_2

It depends on whether you are looking purely for investment or to improve your lifestyle with a nicer, larger home.

If, as I suspect from your post, it is the latter then now is probably as good a time as any to buy. Yes your new home may drop initially, but if that's the case the home you are selling will also fall in value.

Another thing to be aware of is the diminishing equity on your current property. As prices fall that equity get less (or worse still goes into negative territory). Unless you have significant savings, you may not be able to upgrade if you leave it as you may not have the sufficient deposit. Many lenders have now reduced the LTV to 90% (although you can still get 95% if needed), but I don't think you'll see 100% or more LTV loans coming back for a long, long time, if ever.


Edit: pinkshoes beat me to the same conclusion

pors99

sorry typo should say no rush to sell!!

hethmar

The problem is with the newbuild - will it be built when they say and how much will its value have decreased by the time it is built?