Property Price Drop

kier333

davilown wrote: »

I'm not being uptight, I just wouldn't be buying for the aforementioned reasons. Obviously its up to you but it just seems like from your posts that you had already bought the flat and were having second thoughts about proceeding. Don't like seeing people lose money when it can be avoided (except the people who thought buying at 6x income was sensible and in so doing, ruining the country)

Thamks for your concern, my only concern was if i should get a 5 or 2 yr fixed.

Nthing is perfect but i think providing its what you want and you can afford it then go for it.

Plain and simple

kier333

davilown wrote: »

True but waiting those few extra months can take the price down even more. 12-15 months time London prices should be near the bottom ( not at it) and with it another £30k - £45k price reduction

I cannot see that happening to be honest, work and have lived in London for many years and there is far more demand that supply in rentals/purchases because it constanly has an influx of workers

maybe on property of say 300k plus not at the 150k mark maybe 10% max

davilown

kier333 wrote: »

I cannot see that happening to be honest, work and have lived in London for many years and there is far more demand that supply in rentals/purchases because it constantly has an influx of workers.

These reasons are why so many house sellers are pricing their houses at unobtainable prices. Realism is only just starting to get around them and the drops are only just starting.

kier333

davilown wrote: »

These reasons are why so many house sellers are pricing their houses at unobtainable prices. Realism is only just starting to get around them and the drops are only just starting.

well i will watch the market and can always pull out if and when i want and purchase somewhere else at an even cheaper price just before the 6 months is up in terms of the booking fee.

Cat695

davilown wrote: »

Lucky you never inhabiting married quarters!

been there done that and got the badge.....the quarters I lived in were fine....it always amazed me how I paid less for a 3 bedroom house than a single guy who lived in a 4 man room

I wouldn't really consider living in a married quarter as renting especially when I was paying 100 quid a month....when people rent houses for 600quid upwards

LydiaJ

kier333 wrote: »

Worse case senario is it goes back to the building society and i lose 18k, a huge loss however people suffer worse everyday, ie new car purchases, property in Bulgaria etc etc

Kier, I'm afraid that isn't the worst case scenario. If it goes back to the building society, they will sell it quickly without worrying too much about what they get for it, and then pursue you for the shortfall between what you owe and what they get for the flat, which depends on the NE, and on how big a reduction there is on the sale because it's a forced sale.

I'm not saying that that's what will happen. You may keep your job (although construction is not the safest of things at the moment) and you may have no trouble keeping up with the mortgage payments. Your flat may not dip too deeply into NE, or if it does it may come back up out again by the time you want or need to sell. In which case you'll be fine, and I really hope you will be.

But none of us really knows what's going to happen, do we? Take a risk if you want to - that's your choice. Just don't think that your risk is limited to the £18k, because it isn't.

Good luck.

SingleSue

I was just about to post the same thing Lydia.....

Even if they sold at the same price as your mortgage, legal fees, interest etc will leave a shortfall of around 5-10K.

Which they will chase and chase and chase for until you pay or go bankrupt....plus of course, your credit record will be shot to pieces for years to come.