A recession success story...

chucky

mitchaa wrote: »

I mentioned last week that we put our house up for sale recently. Well yesterday we received and accepted an offer of £247,500 Was on for £255k so not bad.

The success story is, is that we bought it in the 1st half of 2007 for £215k so highlights the fact that not everyone has suffered during this recession (Mods i've highlighted the word recession to keep it here )

Anyway, enough of the gloating of my luck, It's come as a little surprise selling so quickly and now we're a little stuck on what to do next?

The wife was left £100k in a will a couple of months ago, and we have £170k or thereabouts left on the mortgage with about £20k in savings. ERC is 3% which is a bit of a pain as i dont just like throwing money away.

Now, because of the increase in that time compared to the falls in the majority of other areas, I truly believe now that Aberdeen and its shire are in for a period of long long stagnation. I dont think prices will drop that much from here on in, but then again I dont expect prices to rise by all that much so perhaps renting for a while is an option

My wife on the other hand wants to go head first right back into buying, and has already been looking, couple on her short list...

http://www-n.aspc.co.uk/cgi-bin/public/LiveProperty/274762?ID=MCGJLMNB#picture

http://www-n.aspc.co.uk/cgi-bin/public/LiveProperty/273592?ID=MCGJLMNB#picture

http://www-n.aspc.co.uk/cgi-bin/public/LiveProperty/273514?ID=MCGJLMNB#picture

I'm just not sure on whether to get right back in there or move into rental for a while? It's not about money, I really couldn't give a monkeys what 'profit' or 'drop' the next property will have. If my thoughts on long stagnation for the area come true then it makes it even less of an issue.

Fit day eh day, as they would say in Aberdonian? (I suspect my wife will win regardless to what i say but always worth a 2nd opinion)

congratulations on the sale - ignore the bitter people that are only jealous and do what you feel and need to do for you and your family. :T

you know you're local market best, as you well know ignore the 'armchair internet economists' that tell you not to buy - how do they know what's best for you!?

Graham_Devon

chucky wrote: »

you know you're local market best, as you well know ignore the 'armchair internet economists' that tell you not to buy - how do they know what's best for you!?

Tbf, he put a question out on the internet, to a crowd her knew, asking for opinions on what he should do.

chucky

Graham_Devon wrote: »

Tbf, he put a question out on the internet, to a crowd her knew, asking for opinions on what he should do.

this is mitchaa thread graham... don't try and spoil it... :rolleyes:

Graham_Devon

chucky wrote: »

this is mitchaa thread graham... don't try and spoil it... :rolleyes:

Erm.....what?

Thrugelmir

chucky wrote: »

congratulations on the sale - ignore the bitter people that are only jealous

Whilst people hold differing views and opinions. I'm not sure that they write in the manner you describe. Isn't the point of asking a question on a forum to gain as many contrary views as possible. In order to make a better informed decision.

IveSeenTheLight

mitchaa wrote: »

ERC is 3% which is a bit of a pain as i dont just like throwing money away.

Your not throwing money away by paying the Early Redemption Penalty.
If you work it out, the sum will probably be equivalent to 4 months interest, so you are in effect paying that up front but saving every month of interest after that

IveSeenTheLight

HAMISH_MCTAVISH wrote: »

Anyway.... A couple of points, I see you are looking at Hilton and Westhill. Two VERY different areas!!!!! With very different School options for kids.

Totally agree here.
If I was looking at a place to bring up kids I would be looking at the Westhill option.
Hilton would not be my ideal location for children

Mitchaa, you have done very well for your property.
If you look at the graph below from data taken from the Registers of Scotland Executive Agency, you can see that you property has performed above average.
Also worth noting that on average, property have been stagnating in Aberdeen(shire) for the last 14 months.

If you believe it will continue to stagnate, why put off buying?
At some point they will rise again and maybe you might enter more competition than you might see at the moment

mitchaa

Thrugelmir wrote: »

There was always the option of sitting tight and discharging your existing mortgage. As if you say prices may well stagnate locally. Why rush?

We could have done and ploughed £120k into the £170k we owe but the little lad is 2 now and in a couple of years will be starting school so that has been going through our minds. I suppose with the unexpected inheritance in July and the way the housing market has gone up here, it's given us a little push to get the finger out and move a little sooner.

Only time will tell if its the right move i suppose. The wife will probably win the battle but from being on here too much I'm starting to get a little cautious:rotfl:

Thrugelmir

mitchaa wrote: »

We could have done and ploughed £120k into the £170k we owe but the little lad is 2 now and in a couple of years will be starting school so that has been going through our minds. I suppose with the unexpected inheritance in July and the way the housing market has gone up here, it's given us a little push to get the finger out and move a little sooner.

Only time will tell if its the right move i suppose. The wife will probably win the battle but from being on here too much I'm starting to get a little cautious:rotfl:

At the end of the day you just need to make the decision for the right reasons. Personally I would ignore whether house prices are going to rise or fall. I would concentrate more on factors such as longer term interest rates, job security, schools , quality of life etc.

mitchaa

IveSeenTheLight wrote: »

Totally agree here.
If I was looking at a place to bring up kids I would be looking at the Westhill option.
Hilton would not be my ideal location for children

Mitchaa, you have done very well for your property.
If you look at the graph below from data taken from the Registers of Scotland Executive Agency, you can see that you property has performed above average.
Also worth noting that on average, property have been stagnating in Aberdeen(shire) for the last 14 months.

If you believe it will continue to stagnate, why put off buying?
At some point they will rise again and maybe you might enter more competition than you might see at the moment

Showing about a 10% rise for the area, mine worked out at around 15%, so probably more in line with the signature data below (Just above 15%)

I would prefer the Kingswells/Westhill area. Good access for work, and I wont need to battle the Haddigan roundabout every evening:D But the wife wants closer to the centre where she works and a couple of private schools in the Queens Rd area that she wants to have a look at. (Would be secondary school anyway, if that were ever to happen)

The only reason to put off buying is the thought of a 2nd stage crash. Although I think Aberdeen would be safe again if it did happen, there are some very overpriced properties in Aberdeen as im sure you'll know that i do believe quite a few need to drop. Ex council houses in dodgy estates with £225k+ asking prices So the market is confusing me a little.

Like I said, I suspect the wife will win this battle.