Please help to make a decision re house purchase

Fly_Baby

I know, I know, it's up to me to decide - but I want to make sure that I have full information before I go ahead.

Recently I started a thread "Which house to go for" (in short - cheaper house 1 without a driveway vs more expensive house 2 with a conservatory).

https://forums.moneysavingexpert.com/discussion/2738360=

- and now the update.

We put a tentative offer of 245K on the first house (without a driveway) which was refused and then - suddenly accepted (the vendor's potential property was reduced in price so he was happy to accept 245K from us provided we can move quickly).

I know I should be excited - but I am not. I liked the house 2 and we put two subsequent offers on it - but they wouldn't budge on the price. They had a sale agreed at near the asking price (that fell through) so now they want the same money and no less. Similar properties in this area, with the same agent, sold for 15-20K less, but the vendor reckons that theirs is that much nicer.

Anyway, the dilemma now, between two almost identical houses, is:

House 1 at 245 - now
House 2 at 290 - now
House 2 at 275-280 (maybe) - if we wait it out

With House 1, we wouldn't need to pay stamp duty so a huge instant saving. Plus, the mortgage will be much smaller than what we expected, which is a good thing. I never thought that we would be able to buy a house in this area for this little. On the other hand, we can realistically afford more.

The House 2 works out by 55K more expensive (inclduing £9K stamp duty).

WHAT SHOULD I DO?

If we buy the cheaper one and save ourselves a mass of money - would it not be a false economy? Would I be able to enjoy the house if I am in doubt about it now? If we do any extensions will we be able to factor them into the price?

Then, the plan was to live in it for 3-4 years, then to sell it and move - how does this plan look in terms of potential costs? I heard something about CGT on a home sale value if you sell within a certain period after buying - what period, does anyone know? I cannot imagine it as our home for life - does that mean it is not the right one for us?

Sorry for the long post, I am SO confused. Many thanks in advance for any thoughts!

Froglet

The cheaper house may well be attractive because of the saving but if you have any doubts please don't go for it,only to regret it as soon as you move in.It's not like a dress you can return to the shop cos you made a mistake! it would be miserable putting up with a house you grew to hate the more you lived in it.

To be honest..,I would walk away from both,as you feel the other house is overpriced.Are you under pressure to buy soon,have you sold yours or are you first time buyers? take a step back and have a fresh look at everything recently put on the market,but make sure you love the house,it is not something you can,or should have to, learn to live with!

Fly_Baby

Froglet wrote: »

The cheaper house may well be attractive because of the saving but if you have any doubts please don't go for it,only to regret it as soon as you move in.It's not like a dress you can return to the shop cos you made a mistake! it would be miserable putting up with a house you grew to hate the more you lived in it.

To be honest..,I would walk away from both,as you feel the other house is overpriced.Are you under pressure to buy soon,have you sold yours or are you first time buyers? take a step back and have a fresh look at everything recently put on the market,but make sure you love the house,it is not something you can,or should have to, learn to live with!

Thank you very much for your input.

I did not walk away at once because:

1) the cheaper house is cheaper than I was ever hoping to buy in the area. Two similar houses (albeit with a driveway) went for circa 20K more in the last month. So it could be a rare opportunity.

We rented a few flats before, and I would always grow to like the flat eventually. But are can the emotions be different when you actually own the place?

2) My OH is happy to go ahead with it (provided I am happy too!) and sees it as a good investment - i.e. a house we could keep as BTL because mortgage will be cheap and this area is quite desirable because of excellent schools.

Fly_Baby

We are under no pressure to buy now (FTBs) - the only pressure is that at the reduced price the house is not likely to stay on the market for long. But then, it hadn't had any offers before (for over a month).

It is lovely inside, with a big garden, true, no own driveway but plenty of free parking just a few steps away - why didn't anybody buy it? Two similar houses went within two weeks, they were marketed at the same price.

Froglet

i would go and have another really good look at it again.Most people are excited about buying the house they have chosen and can't wait to move in.You sound really unsure to me,as if you are trying to talk yourself into it .

I have worked for an estate agents for over 5 years.the people who buy a house just because it is cheap and has some things going for it but fail to get really excited over it are the ones who live to regret it and are on the move again within 2 years.It is too expensive a purchase to do that!

That's why i suggested you at least see if anything else has come up for sale recently so that you have others to compare it with.

Froglet

Fly_Baby wrote: »

We are under no pressure to buy now (FTBs) - the only pressure is that at the reduced price the house is not likely to stay on the market for long. But then, it hadn't had any offers before (for over a month).

It is lovely inside, with a big garden, true, no own driveway but plenty of free parking just a few steps away - why didn't anybody buy it? Two similar houses went within two weeks, they were marketed at the same price.

maybe the parking issue was just too important to them.If you haven't got a definite place to park,you may always be fighting for space.Insurance too is cheaper off road and of course there is always the risk of someone scraping yours while on the road.

The only other option is to see if there is a garage to rent nearby?

Fly_Baby

Froglet wrote: »

i would go and have another really good look at it again.Most people are excited about buying the house they have chosen and can't wait to move in.You sound really unsure to me,as if you are trying to talk yourself into it .

I have worked for an estate agents for over 5 years.the people who buy a house just because it is cheap and has some things going for it but fail to get really excited over it are the ones who live to regret it and are on the move again within 2 years.It is too expensive a purchase to do that!

That's why i suggested you at least see if anything else has come up for sale recently so that you have others to compare it with.

Thank you. I have my eyes open but we are restricted to this area (schools) and there is nothing new at the moment.

There are a couple of other houses (not ex-council) but they are smaller and are at £315 +.

There are lovely houses of the same kind in the area, such a shame they are not for sale.

realshannon

well, I agree, walk away from both. Ask yourself, why has House 1 not been snapped up? maybe there are bad neighbours or just noisy neighbours. If there isnt a driveway, might be fine now but in the winter when you have your shopping and you cant park outside, it will be a pain! You have got to walk into a house and want to stay, cant wait to move in and be v v v v excited! if you dont feel like that for them, which it doesnt sound like you do, dont do it. The market is coming down alot, winter is coming too, that means the market will slow down, no one really wants to move this time of year unless they have to. So sit tight and get a bargain. OR what about buying at auction?

Fly_Baby

Froglet wrote: »

maybe the parking issue was just too important to them.If you haven't got a definite place to park,you may always be fighting for space.Insurance too is cheaper off road and of course there is always the risk of someone scraping yours while on the road.

The only other option is to see if there is a garage to rent nearby?

Maybe. It is a residential area so parking is free everywhere, don't think it will be an issue, just an inconvenience of having to walk from the car to the front door.

Fly_Baby

Thank you very much for your thoughts.

I know I sound pretty negative - but my feelings aside, what do you think of all the cons I have described?

The lack of a private driveway and being exposed to neighbours' unsightly gardens (I am really bothered about those - is it just me?)? Walking down the dark secluded alley (it is a council estate after all). The immediate neighbours look lovely but just a bit up the street there is a foreign family with many chldren. We have lived in this area for a while and it seems quite safe.

Are these dealbreakers or is it just my perception? Again, my husband is fine to go ahead with the purchase.

Froglet

If you can see these possible drawbacks before you even move in,imagine what it is going to be like living with them! if gardens are neglected it doesn't take a lot of imagination to see that their houses and possibly even children,might be too which will drag the price of yours right down when you want to resell or let.

Our company took nearly a year to sell a lovely house ,the only fault was the next door's garden and frontage was a disgrace,and it put everyone off,except for someone who was pretty much the same way inclined,so he wasn't bothered!!