Save 16k in a year by doing nothing*

lisyloo

He also forgot transaction costs.
My stamp duty was £12k.

silvercar

Where is he living while saving this 16k?

chucky

silvercar wrote: »

Where is he living while saving this 16k?

probably somewhere in lala land

Graham_Devon

lisyloo wrote: »

He also forgot transaction costs.
My stamp duty was £12k.

Thats nice, but on a £160,000 house (hence £16k saving if prices fall 10%), stamp duty wouldn't apply currently (I think!)

lisyloo

Yes you're right, but you would need to factor in transaction costs into the calculations e.g.

mortgage application fees
mortgage valuation fees
legal fees
telegraphic transfer fees
estate agents fees
mortgage exit fees (deeds release & sealing charge)
removals
house insurance admin fees (for cancellation or moving)

That's not meant to be an exhaustive list, but it's likely to eat in the savings by a few ks.

It's not £16K and moving everything you own isn't doing nothing either, but I have a feeling these arguments don't need to be amde around here.

Graham_Devon

lisyloo wrote: »

Yes you're right, but you would need to factor in transaction costs into the calculations e.g.

mortgage application fees
mortgage valuation fees
legal fees
telegraphic transfer fees
estate agents fees
mortgage exit fees (deeds release & sealing charge)
removals
house insurance admin fees (for cancellation or moving)

That's not meant to be an exhaustive list, but it's likely to eat in the savings by a few ks.

It's not £16K and moving everything you own isn't doing nothing either, but I have a feeling these arguments don't need to be amde around here.

You would. Well, some of them. Which is all covered in my asterix under "depending on circumstances".

How and ever.....You'd have to pay all that if you bought today, rather than waiting.....sooooo, you'd still be saving 16k*

chucky

Graham_Devon wrote: »

You would. Well, some of them. Which is all covered in my asterix under "depending on circumstances".

How and ever.....You'd have to pay all that if you bought today, rather than waiting.....sooooo, you'd still be saving 16k*

.......................

chucky wrote: »

probably somewhere in lala land

Graham_Devon

So chucky.

Buy a house today. Let's say your house costs £176,000. Your moving costs are £10,000.

Or you wait, the house stays on the market, but falls to £160,000. You decide to buy. Your moving costs are £10,000.

What spin and fluff you going to come up with to evade the fact that you have to pay moving costs if you buy today, or if you wait a year? Makes no difference. The saving on the house is 16k. Moving costs are the same whenever you buy (basically anyway, before you get pedantic about moving costs are dependant on circumstances).

It's not as if all these costs don't exist if you buy now rather than waiting is it. It's not as if stamp duty doesn't exist if you decide to buy today rather than waiting is it.

Alternatively, you could throw some lame lines my way

Really2

Graham_Devon wrote: »

So chucky.

Buy a house today. Let's say your house costs £176,000. Your moving costs are £10,000.

Or you wait, the house stays on the market, but falls to £160,000. You decide to buy. Your moving costs are £10,000.
)

See here is the problem I see and I think Nearlynew will back me on this.
It comppleatly depends on the state of the seller.
2 houses were built after we purchased ours. Both were £35K and £45K more and are in my view worse plots. Also that put them on the 3% stamp duty bracket, so that turns in to £40#k-£50K more.

So you could wait apply the law of averages and ignore that the house you are looking at looks under valued.
It gets sold to someone else and you then realise to get the same place will cost you more or will have to come down a further 15% ish.

Once you find a place you want at what seems a very good price playing the 12 month waiting game could prove to be a costly mistake also.

lisyloo

You'd have to pay all that if you bought today, rather than waiting.....sooooo, you'd still be saving 16k*

The estate agents fees are part of selling.
So if you are comparing selling now and buying later compared with buying from scratch now, then you need to take account of the estate agents fees.

You can't get out and back into housing again for free.
There is no way that can happen.