first time buyer cold feet

Jaywilz

Hi All,

I am just looking for a bit of advice.

I am currently buying my first property but I am starting to have second thoughts about the purchase.

Its not in an area I particularly like, its a newish build which again isn't something I really wanted and the service charge seems fairly high and its about a mile from the nearest train stations, although the bus stops right outside that takes me to the station.

I also feel like I'm overpaying for the property as if i bought it last year I would have paid 7% less

Now as a single man living in London, what I want and what I can actually afford are two very different things, this is the best thing I have found for the money, but it is still on the outskirts of London however it is along the upcoming crossrail line.

Am I just having normal FTB nerves or shall I actually just pull out and risk having the buy something similar in 5 years time for a lot more.. Or shall I just continue with the purchase as according to Zoopla the price has gone up 10k in value since I had my offer accepted.

Any help/advice will be appreciated.

Thanks in advance :undecided:think:

AdrianC

Jaywilz wrote: »

I also feel like I'm overpaying for the property as if i bought it last year I would have paid 7% less

I'm not quite sure of the logic there, but...

according to Zoopla the price has gone up 10k in value since I had my offer accepted.

Those Zoopla "values" are more hassle than they're worth. I wish they'd scrap the stupid idea. They are meaningless, plucked-out-of-thin-air random numbers.

DigForVictory

Nerves are normal! Hang on in there, as it doesn't have to be a forever address, just a place to stay & grow for a while.
I'm guessing you've already paid out for surveys, mortgage preliminaries etc? Don't chuck that a twinge - regard it as an investment.

The first place you buy is Always a rollercoaster, so hang on tight, learn the ride & in a few years time you'll be a much happier, more confident player of the game!

All the best in your new place!

princeofpounds

Random bits of advice:
1) ignore zoopla
2) most major decisions in life involve risk. embrace that fact, realise that exactly how things turn out is not going to be in your total control either way.
3) if you are not totally stretching yourself to buy a property then it is less critical if it is a totally optimal decision. negative equity doesn't kill you unless you have to crystallise the loss or refinance at a killer SVR.
4) if your careers prospects are on the up over the next few years, you should find your current situation easier to handle when you need to make your next choice.
5) your nerves are normal, your concerns are also totally valid

Kynthia

Do you really want to buy? Did you rush into this property? What other properties are available in your price bracket that merged your priority needs? Are you over stretching yourself?

It's possible your are getting cold feet as buying is scary, but after you'll be fine. However is it just a bitter pill to swallow that you can't afford what you really want or that you could have gotten more for your money a year ago, you'll need to get over it as that happens to everyone. Or if it's that you've panicked and bought something you don't really want then you need to pull out. Only you know which it is.

hazyjo

No property will be worth the same price all of the time. Houses have shot up £100k or so near me in a year! You need to get your head round that before buying. If you bought now, chances are, the way the market's going, it'll be worth another 7% or so in a year's time...

You can't expect to make money on property. Buy it as a home and enjoy it.

Jx

princeofpounds

You can't expect to make money on property. Buy it as a home and enjoy it.

Indeed, the real thing to be concerned about when buying a property you live in is the liability you are taking on, rather than the asset you are getting.

A hike in interest rates on a stretched variable mortgage is far more damaging than a fall in house prices (although they will probably arrive together).

It can make sense to buy an overpriced house IF you are funding it with underpriced debt. Thats's pretty much what's going on in the market in these QE-fuelled days.

cloo

I think, as a first home, go for it. It's probably not your 'forever' home, so unless you have concerns about it's onward saleability (and that should improve significantly with the opening of Crossrail) I'd say go for it and then you'll be a good position when you want to find a longer term place.

stargirl04

I made your mistake - having bailed out of a purchase a year ago before the market went nuts. I am now waiting to exchange and the top end of the chain are p***ing us about and stalling. If it falls through, I'll be priced out.

If I hadn't got cold feet a year ago and bailed out, I wouldn't be in this position but in my own home in a good area. Don't end up like me. My advice is to stick with it. As others have said, it's not your forever home, just somewhere to get started.

Jaywilz

Thanks for all the help and advice guys its really appreciated. I will stick with it and keep remembering the reasons why I bought it.. park nearby.. nice quite area... crossrail.. property in VGC.. a lake a stones throw away.

I guess it is just nerves and I'm not stretching myself too much.

Thanks again everyone

stargirl04

If you are on the Crossrail route you're laughing. The way prices are going, the value of your property will rocket. Even before the price madness in London, property on the CR route in greater London is forecast to increase by 30% in five years. I would say if things carry on as they are now, that could be an even higher percentage.