We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Brexit - pulling out of purchase

124»

Comments

  • Almost all articles I've read about property price drops actually talk about future values.

    If my £200k was expected to be worth £220k in 5 years, but is now predicted to be work £205/£210k, hey I'm quids in still. But in relative terms, my next purchase will probably be a bigger and more expensive home. So the cost is immaterial.

    It's the same argument as my parents. They bought their house for £80k in 1980, valued at £450k in 2015. But they haven't suddenly made £370k. If they bought something similar in the same area, it'd still be around £450k (plus SDLT and fees). So not really 'winning'. They only really 'won' the property game by moving 60 miles away and into an area with few transport links and limited services. They only 'made' £80k of which they've spent most on redecorating, new windows etc.
  • bitsandpieces
    bitsandpieces Posts: 1,736 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I wish this were hyperbole. Sadly as leftie academics we're pretty screwed - not much call for our kind of work in the UK's manufacturing renaissance!

    In terms of other posts - thanks all. Very helpful.

    We've got an 80k deposit, about 40% and mortgage is 2.5%, so saving £200 a month on current rent. Issue is more whether we want to stay in the UK at all now and if we do if we will have to chase jobs across the country - if we do we'll probably need to move by Oct 2019 so we're ready for the next REF.

    Would you be likely to need to move house in the next couple of years, then? If so, bear in mind you'll see a reasonable chunk of money eaten up by buying/selling/buying again (though you can weigh this against savings on rent). If you're able to continue saving each month, that could provide you with a bit more of a cushion.

    No-one can confidently predict what will happen to house prices, but at least some increased volatility does seem likely - which may be more of an issue for you if you're needing to move within a couple of years. On the other hand, there is the issue of quality of life. I'm happy to wait a bit as I'm renting a quite nice, quite cheap home. I might feel different if I was in a part of the country where I had to pay through the nose for a not-so-nice place.
  • Thanks all,

    Again, all reasoned, careful responses. We're neither looking to make money - or necessarily break even - just get through without out losing our home in 3-5 years time. Like the rest of the country we've been hit pretty hard by BTL investors, pushing up rent and quite often having no idea what they're doing. We may lose money but we can take solace in the fact this isn't our pension pot I suppose.

    BB
  • pimento
    pimento Posts: 6,243 Forumite
    Part of the Furniture 1,000 Posts
    I remain to be convinced that we will ever leave.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
  • Davesnave
    Davesnave Posts: 34,741 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 27 June 2016 at 2:32PM
    I wish this were hyperbole. Sadly as leftie academics we're pretty screwed - not much call for our kind of work in the UK's manufacturing renaissance!
    You probably know by now that people with a desire to see another housing Crash were posting on here and other sites, pretending they were in a panic as result of the referendum result. It was a feeble attempt to influence public sentiment.

    Had your first post contained the detail of the subsequent one, I would not have suspected you to be one those sad individuals.

    I'm sorry if I caused offence, by calling your post 'overcooked.' In my view, the real villains were those who matched your choice of language in their brief, made-up stories.

    Despite finding myself smack in the middle of the last crash with my house on the market, I never once wrote here that I was 'terrified' or 'devastated.' It cost me dear, but the feeling was more accurately described as being !!!!!!-off!

    There again, we're all individuals and react differently.
  • Yep, I've seen them and to be honest I was probably suckered into being more worried than I should be. Stupid really given that I've written on performativity and economics!
  • WombleBat wrote: »
    We are seriously considering dropping out of our purchase.

    We are 95% LTV with a house that needs work. We can only get a two year fixed rate mortgage (At a rate we are happy with)

    What concerns us is negative equity + a rise in interest rates (Or worse still negative rates) would destroy us at the end of two years.

    For us the risk v's reward balance has shifted.

    We are going to hang fire for as long as we can to see if we can see a ray of sunshine at the end of the tunnel but I'm not optimistic.

    I am also acutely aware that if things do go south so will our chance of getting a mortgage in the near future so this is not a decision we are taking lightly.

    I think you are sensible. You are far too close to the brink to be taking on a house that needs work. Work costs money and usually a lot more than you think, unless you are a professional
  • Yep, I've seen them and to be honest I was probably suckered into being more worried than I should be. Stupid really given that I've written on performativity and economics!

    No, you're not stupid to be worried. This is a very bad situation we are in.
    But the real answer is that whether to buy now or not is entirely dependent on the individual's circumstances.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.