House Buying whos pulling out

Clutterfree

indianabones wrote: »

Your greedy parasite of a friend is no different to all those others who have got us into this horrible mess in the first place. I don't wish ill on anyone, but for the greater good of the population I'm willing to make an exception.

I wish sales collapse all over the country and there is a state of chaos in the housing market. Hopefully house prices drop by 30% around the country and by 100% for London.

The ones who suffer are the low income class and the young trying to get on the ladder.

You say people should buy a home when they want to live in it, they would if they could afford to.

Wow aren't you overflowing with the milk of human kindness?!

Money_saving_maniac

Kctc2016 wrote: »

We are in the process of buying a house (paperwork all with the conveyancer) and I'm worried.

The house was a lot of money for us and the mortgage total will be high, but based on current value and repayments we know we can afford it.

Our issue is that we have planned to put in only a 15% deposit in order to pull out some equity to do work to the house, some essential (new heating, roof repairs etc) some to make the house work better (kitchen extension as currently not a kitchen/diner).

We had planned a 2 year fixed rate mortgage so that we could have the improvement works done and add back to the property the equity we had pulled out (we got money off as we knew that getting 30k off and putting it back into the house would mean the house would be worth 30k more due to the planned changes), remortgage in two years and have our payments go down again. Short term pain for longer term gain! We want to be here for a long time but need this initial plan to work to make the house work for us.

As I see it there are now two issues, one is that house prices may go down (10-18% from what I've read) and so even if we put this money into the house in improvements at the end we may not be realising any more value on the house, and two at the end of the two year fixed term interest rates may have jumped up making the mortgage unaffordable (especially if we have not increased the equity).

We are buying in a Cambridgeshire village where not many properties come onto the market and prices have gone up at an alarming rate over the last year or so.

I would love people's advise here as I'm really not sure what to do?

I don't know about your area but you do need to be very careful.
In the city where i live, fixer uppers are going for far more than they should.
A couple of weeks ago I had a convo with a lovely lady in an estate agents (truthful lady, how rare is that)
I asked to view a house that was on the market for 200k but needed total renovation. She said that she thought the renovation would cost 30k-40k as part of the conversation.
She said yes you can view it but there's an offer for 220k on it (probate property so bidding war type thing). I said how much did she think it would go for after the renovation. She said not the value of the renovation and the house, it would be worth less than what it had cost me.

Further conversations with estate agents have shown me that actually they have not priced a house based on the cost of the renovations, they just knock a couple of k off if bad, and add a couple of k on if great. So please don't assume you'll buy, do it up and have the value of the house unless the house really is cheap.

Buy it to live in it long term and there's no issue. Now in particular is not the time to think of housing as an short or mid term investment for the future.

jimbog

indianabones wrote: »

I wish sales collapse all over the country and there is a state of chaos in the housing market. Hopefully house prices drop by 30% around the country and by 100% for London.
.

Wow! Free London houses!! - bagsy have a Mayfair one!!! :T

smile88egc

Now is a dangerous time to buy with a small deposit or stretching to the top of your budget. Especially for first time buyers.

I expect to see an end to the ridiculous prices of late, many buyers lowering their offers 10% already.

Mickygg

brodawel wrote: »

We are two weeks into the purchase of a house and will definitely not be pulling out. If we lost this house I would be gutted as there has been very little else coming up for sale and possibly even less if people decide not to move.

I am the same. I have doubts for another reason but not because of Brexit. It is a house i've been looking for for at least 2 years. If the market does slow significantly there will be next to no houses in my search area or criteria so i'd rather continue with my house that I want and wont worry about house prices if they decrease.
Even if they do go down, they will bounce back up, they always do.
For me a house is where I want to live and enjoy life to the maximum. If the house prices do go down, I may not find a house I want to buy until the house prices have gone back up again!!

Crashy_Time

The vote was only two days ago! Absolute madness to commit to anything just now, especially if it is stretching your finances.

Crashy_Time

Mickygg wrote: »

I am the same. I have doubts for another reason but not because of Brexit. It is a house i've been looking for for at least 2 years. If the market does slow significantly there will be next to no houses in my search area or criteria so i'd rather continue with my house that I want and wont worry about house prices if they decrease.
Even if they do go down, they will bounce back up, they always do.
For me a house is where I want to live and enjoy life to the maximum. If the house prices do go down, I may not find a house I want to buy until the house prices have gone back up again!!

What about if interest rates go up?

kilby_007

LottieLou wrote: »

As a low income class might I add to as a cleaner and a nurse.

A £420K house on a low income? I'm doing something wrong....!

LottieLou

kilby_007 wrote: »

A £420K house on a low income? I'm doing something wrong....!

Me too!! :rotfl: that wasn't the highest valuation. But it is the product of a lot (a lot) of sacrifice and luck I guess!

Mickygg

Crashy_Time wrote: »

What about if interest rates go up?

What if what if? Its all about what if. As I said a house is for living in and having my family around me. Sure if interest rates do go up to 5% plus I may have a problem....but if I thought of of every possibility then id never move, id still be living with my folks crying into my beans on toast wondering why id never taken a risk.