A recession success story...

carolt

I don't get why you're thinking of renting....?

If it's not because of money, which you've said it isn't, is it because you don't know the areas concerned and want to check them out first? Or what? I don't really get your motivation.

Graham_Devon

Ok, so now I read all the replies, the success story seems to be the fact Mitchaa has a higher amount of "profit" thanks to HPI.

However:
1. The house he now wants to buy has also gone up, negating the "profit".
2. He will have to pay a larger amount of estate agents fee's as a percentage.
3. He will have to pay higher stamp duty as a percentage.
4. His inheritence is actually worth less in terms of what it will get now.

That's some success.

See, this, to me, is the problem with JUST measuring ONE part of the equation.....the amount sold for vs the amount bought for.

Just like the rest of us, it's actually more expensive now for mitchaa to buy again.

If prices HAD gone down 40%, thats a whole lot more house that 100k inheritance would have bought....and that's what I'd call a success. Lower LTV.

"I get less for my money, WOOP, go HPI, yayyy!"

mewbie_2

tbh though Graham, if I had 100k inheritance I wouldn't really give a stuff.

er. I know that's not MSE, and it flies in the face of your sensible message, and you are right about the gap getting wider with HPI making us all worse off.... but... 100k.

I'd marry him.

lostinrates

mewbie wrote: »

tbh though Graham, if I had 100k inheritance I wouldn't really give a stuff.

er. I know that's not MSE, and it flies in the face of your sensible message, and you are right about the gap getting wider with HPI making us all worse off.... but... 100k.

I'd marry him.

Hey.mewbie, I can afford you too.

Are you better value than a newbuild flat?

mewbie_2

lostinrates wrote: »

Hey.mewbie, I can afford you too.

Are you better value than a newbuild flat?

I think my peak value has probably passed. Probably a steady decline now and then at some point a total write off.

lostinrates

mewbie wrote: »

I think my peak value has probably passed. Probably a steady decline now and then at some point a total write off.

That sounds like the elusive fixer upper?

nembot

Congratulations on the sale!

Commiserations for the soon to be in negative equity buyer.

Spartacus_Mills

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)

If I were you I would not start bragging about it until the sale has completed and you have the cash in the bank.

SingleSue

As explained Spartacus, the Scottish system is very different to the English system, the offer stage (if I understand correctly, apologies if I have this wrong) is very much like our exchange stage, it is pretty much binding.

Mitchaa, well done on your sale, now to the properties you mentioned.

I don't have a scoobie on the areas etc so I am only commenting on the pictures...I like number 1 (I am a sucker for the more classical building look) although being a town house does give me reservations, the 2nd one I don't like at all, no character and the 3rd one, not sure but it just doesn't float my boat but is better than the 2nd one.

As to your other question, one thing you would need to think about if you got out of the market for a while and rented is the moving of a young family twice in a short period of time, it may seem a pretty simple thing but in reality, it is hard on the little ones and harder on the parents especially when you have been used to owning with the freedom it brings and then have all the rules and regulations that comes with renting.

You want a home, probably a pretty long term one...so any prices rises/falls should not really be at the forefront of your thoughts, as it appears they are not.

Whatever you decide, good luck......and remember to keep the wife happy!

dopester

mitchaa wrote: »

The reason for my thread.

I could potentially have £190k or so sitting in a bank account earning interest and renting, or it could be all thrown back into housing in order to move more central.

I have my doubts about rebuying but its the wife that is like a bull in a china shop. Full steam ahead at the moment, afterall, it is her inheritance, not mine.

Mitchaa young man. Can you take a look at homes you could rent more centrally? Perhaps for 12 months.

Please weigh renting up carefully. You're unlikely to find after 12 months that positive HPI has hindered your purchasing intentions (imo).

More likely you'll find a dream home has fallen more into your price range of better affordability imo. To have more savings left over and be in a better position for the future / family. Just cause you now have an extra financial boost doesn't mean you have to use it all up now.

You're a highly trained specialist, not just another regular getting a big pay-packet for doing little in an associated oil industry job. You should have the house, big savings and investments building up, and money left over to spend imo. Not just all bunged into overly expensive house.

This £1,600 pm rental maybe, with perhaps some room for negotiation on price (£1,250 pm for the year?) would probably keep your wife sweet for the year and that she isn't slumming it. Even at £1,600 pm.. how much extra over mortgage repayments would that be for a year. Perhaps significant amount more (£10K?), but it is only a year.

http://www-q.aspc.co.uk/cgi-bin/public/LiveProperty/271799?ID=FOMAICPG#picture

You've had a great escape imo, and already you've sort of got £2.5K towards a year renting. You'll be better placed to to push other sellers on their asking prices when you come to buy in 12 months imo.

mitchaa wrote: »

We had our house valued at £255k and the EA advised us to put it on the market for OO £255k to try and get close to it as possible. Yesterday morning we received an offer of £240k, refused and said the minimum we would go to was £250k, they counter offered with £247.5k and that was that, took about an hour all in. (Would have dropped to £245k if they'd pushed)