Trading up easier as property prices plummet

Gorgeous_George

No, how it worked was, you had the holiday then, when you moved house, you MEWed to pay the costs.

Without the holiday, MEWing wouldn't have been necessary. Effectively, you had MEWed for the holiday.

GG

dervish

scousethife wrote: »

So you bought a house for 100k
sold it for 85k
then bought another for 170k

You still have to add another 85k to your mortgage!

as I said in the first line - no one trades up without adding to their mortgage!

So if they dropped 15k and 30k respectively your only 10k better off (whose nicked the 5 grand?.......probably a scouser

The myth I was refering to was when people say oh we made 100 grand on our house and it let us buy a bigger one!

No it didnt what "let you buy a bigger one" was the more money you borrowed

Oh and do you mind if I throw in the cost of moving house? £9000 is apparently the average.


Ok yeah the chealsea flat people can but thats hardly a typical scenario is it? in fact it aspires to being negligable.

no

You dont consider that some people may have both paid off their mortgage some time ago AND already sved up anough money to pay any differecen in prices.

Having a proce crash of houses certainly helps when reducing any blaance.

Running_Horse

From memory, during the last crash a neighbour was able to move his negative equity to his new house and increase the mortgage. Once credit eases and sales improve, such schemes may become available again. Whether they are advisable is another matter, but no doubt what he borrowed then looks like peanuts today.

scousethife

dervish wrote: »

no

You dont consider that some people may have both paid off their mortgage some time ago AND already sved up anough money to pay any differecen in prices.

Having a proce crash of houses certainly helps when reducing any blaance.

Jesus christ on a bike!!!!!!!!!!!!!!!!!!!!

Allright so they paid it them selve rather than borrow

but

THEY STILL ADDED MONEY TO IT!!!!

people NEVER say this, they just say we made "so much" and bought a bigger place.

they never say we sold ours for 100 k more than we bought it, and got a bigger place that went up loads too, so we had to borrow more/spend loads of our savings to do that.

its like gamblers they only tell you about their wins never their loses.

dervish

scousethife wrote: »

Jesus christ on a bike!!!!!!!!!!!!!!!!!!!!

Allright so they paid it them selve rather than borrow

but

THEY STILL ADDED MONEY TO IT!!!!

people NEVER say this, they just say we made "so much" and bought a bigger place.

they never say we sold ours for 100 k more than we bought it, and got a bigger place that went up loads too, so we had to borrow more/spend loads of our savings to do that.

its like gamblers they only tell you about their wins never their loses.

theres no need to be rude and abusive.

anyway you are WRONG!

They could have bought theit first house with cash for lets say 50k. in 1999.

The price sweelss to 150k in 2007. They sell it and when the house crash oocus they buy a MUCH MUCH MCU bigger house for 150k.

same money spent - much bigger house trading up.

LilacPixie

It cost 9k to move??????? I think I have just had a heart attack.

Cannon_Fodder

LilacPixie wrote: »

It cost 9k to move??????? I think I have just had a heart attack.

Afraid so, at least on average - mostly stamp duty, which the Govt were milking during the approach to peak prices.

http://www.guardian.co.uk/money/2007/mar/26/movinghouse.business

katiegizmo

LilacPixie,

yes 9k sounds about right.

i budgeted well over what our quotes were from EAs, solicitors etc and still a load of unexpected costs come out to surprise you!

make sure you read a list somewhere of all the things to remember to budget for, make sure any quotes you get include VAT and are not subject to minimum amounts (EAs seem to forget to mention that the 1% or 2% they charge is often the net not the gross figure).... and then add a couple of grand for emergencies. even if you dont spend it you have some nice cash then to do up the new home or plug into your mortgage!

LilacPixie

Easy seeing that when i bought this place it was below the stamp duty threshold and I was moving from my parents so I pretty much only had minimal things to move and I did that in my car myself. Can't remember how much the solicitors fees were. Ha I am so innocent.

katiegizmo

i was exactly the same... had only moved from home before to a flat.
selling and buying at the same time was definitely a more stressful experience!