did i buy too soon?

Batchy

When I brought, i made sure it was a long termer, and suitable for life, just in case the reasons above do come about... no point buying a 2 bed flat, and being stuck there for over 10 years, with 3 kids etc.

So got the same as you, you will be fine.

Dont worry, just think if yours goes down so will everywhere else, so what you lose on yours you will gain on the rest anyway.

Negative equity is a !!!!! but, pay down your mortgage as fast as possible and your sorted. Or save as much as you can going forward... either or, doesnt matter, just manage it correctly! :-)

RenovationMan

moneyinmypocket wrote: »

I bought my first house the other month - put down 25% dep (have no other debts) - i had waited for a few years to see if prices where going to drop or not but in end i went for it and bought a detacthed 3 bed for same price the prev owners paid in summer 2004.

Its not that i want to sell it or anything but with all the talk of everything on the verge of crashing i am starting to feel like maybe i bought too soon - if everything does crash big time then i would be trapped - and its that feeling of thinking you cant leave that (without taking a hit) that is making my lose sleep at moment.

You should sell up as soon as possible. Ignore the fact that the cost of selling and then renting would be a lot more than the loss of equity on your new home. Just make sure that you time your re-entry back into the housing market perfectly to catch that upswing and ignore the fact that the cost of re-purchasing a house will wipe out any gains you have made in the upswing.

Good luck!

Graham_Devon

moneyinmypocket wrote: »

I bought my first house the other month - put down 25% dep (have no other debts) - i had waited for a few years to see if prices where going to drop or not but in end i went for it and bought a detacthed 3 bed for same price the prev owners paid in summer 2004.

Its not that i want to sell it or anything but with all the talk of everything on the verge of crashing i am starting to feel like maybe i bought too soon - if everything does crash big time then i would be trapped - and its that feeling of thinking you cant leave that (without taking a hit) that is making my lose sleep at moment.

Prices may go down, they may go up.

I personally feel there is more weight on them falling than rising. Others think differently. Ultimately, none of us have been correct.

As to your point about being trapped, prices would have to fall 25%m and more (if your are on a repayment mortgage) to "trap you". While this can happen...if it did happen, you would be no different to anyone else, infact you'd be a lot better off than the majority of recent buyers, and also a lot better off than a lot of non recent buyers.

With the 25% deposit, you are in a very healthy position.

Ultiumately, if you are worrying over whether you made the right decision, you've done it now. You can't really change it without losing a load of cash now (and losing cash seems to be your worry), so I'd take a look at your house, be proud of your house, enjoy your house, and stop worrying over the price you bought it at, as you have no control over it.

Flight2quality

wotsthat wrote: »

Hey, loving the confidence. There's nothing in your post to suggest that it's an opinion rather than a statement of fact.

A lot of people when making financial decisions might weigh up the pros and cons. I know that I think about what the consequences might be if a decision I take is wrong and whether I'm willing to take the risk.

Have you ever considered even for a fleeting second that you may be wrong and what the impact would be on your situation would be if you are?

So yeah there is a chance I could be wrong and the global financial crisis could be over and another boom upon us, but I think the chances are so remote I will continue with my strategy.

wotsthat

Flight2quality wrote: »

So yeah there is a chance I could be wrong and the global financial crisis could be over and another boom upon us, but I think the chances are so remote I will continue with my strategy.

So if the financial crisis is resolved and/or we see some economic growth does that mean you are shafted?

chewmylegoff

moneyinmypocket wrote: »

I bought my first house the other month - put down 25% dep (have no other debts) - i had waited for a few years to see if prices where going to drop or not but in end i went for it and bought a detacthed 3 bed for same price the prev owners paid in summer 2004.

Its not that i want to sell it or anything but with all the talk of everything on the verge of crashing i am starting to feel like maybe i bought too soon - if everything does crash big time then i would be trapped - and its that feeling of thinking you cant leave that (without taking a hit) that is making my lose sleep at moment.

this probably isn't the place to ask this sort of question to be honest. the "regulars" are so entrenched in their positions regarding house prices that they're almost like cartoon characters*, which is all the more surprising when the debate moves onto different topics and people appear able to hold sensible conversations about them.

the point is that you have actually bought a house, so there's not much you can do about it now if it turns out you could have got it for less in 6 months time. no point in losing sleep over something which has happened and cannot be reversed.

so, you might as well not worry about it and get on with whatever it is that you enjoy in life.


* = and that's before you even take into account the precious metals nut and the stupid trolls.

Flight2quality

wotsthat wrote: »

So if the financial crisis is resolved and/or we see some economic growth does that mean you are shafted?

No it just means gold and silver will not go nearly as high as they will if if the crisis is not sorted out quickly.

wotsthat

Flight2quality wrote: »

No it just means gold and silver will not go nearly as high as they will if if the crisis is not sorted out quickly.

Sounds like a win win.

Continued crisis and no growth - gold and silver go up.

Resolved crisis and growth - gold and silver go up.

chewmylegoff

wotsthat wrote: »

Sounds like a win win.

Continued crisis and no growth - gold and silver go up.

Resolved crisis and growth - gold and silver go up.

there are no circumstances in which gold and silver will not go up.

even if the price of gold and silver crashes and stays low for years to come that is just a massive buying opportunity (and would obviously never happen as they can only go up, even when the price is falling i expect they are going up).

RenovationMan

chewmylegoff wrote: »

there are no circumstances in which gold and silver will not go up.

even if the price of gold and silver crashes and stays low for years to come that is just a massive buying opportunity (and would obviously never happen as they can only go up, even when the price is falling i expect they are going up).

Even when gold and silver are going down, they are going up. Its all down to individual perspective (i.e. which way up you hold the charts).