First time buyer – should I continue with my purchase?

ukcarper

indianabones wrote: »

Judging by the OPs situation it doesn't appear they've actually weighed the options up carefully enough. Seems pretty obvious to all of us that he's not gaining anything by proceeding. The property is not suitable for a family and it definitely is overpriced.

I'm not in a 12 month boycott lol. I'm a FTB looking for a suitable property and at the right price, unfortunately everything, absolutely everything is overpriced.

Had it not been for Brexit I may well have been forced into buying one these overpriced properties because the rents right now are even more absurd.

But Brexit has come and it gives us a bit of hope that the prices will come down.

How much has the price of property increased since you started looking?

indianabones

ukcarper wrote: »

How much has the price of property increased since you started looking?

A ridiculous amount, 8-10%. But I guess my patience will be rewarded a significant drop. My situation like FTBs who were didn't proceed will be better, more savings for a deposit but house prices down on what they were 2 months ago.

Finally, finally there may be light at the end of the tunnel for young people.

paisted

indianabones wrote: »

Judging by the OPs situation it doesn't appear they've actually weighed the options up carefully enough. Seems pretty obvious to all of us that he's not gaining anything by proceeding. The property is not suitable for a family and it definitely is overpriced.

I assure you we have been very careful and detailed in our analysis. We reviewed: the maths underpinning the decision (particularly, calculating how much we need the property to increase in value in order to cover the costs of buying and selling the property and to fund our next purchase); whether the property supports our goals (and how well it does so); what those goals actually are and whether we are fully aligned; and all the other ancillary costs and benefits of proceeding and not-proceeding. On balance, we are happy to proceed. A little fearful, perhaps. But with our eyes wide open and happy to accept the consequences of our decision.

The more difficult question is whether we should seek a reduction. I personally feel that it is too late in the day to go down this route. It is important to me to deal in good faith with the vendor, and I do not want to lose the property. Any reduction we receive is unlikely to have a material affect on the risks of buying the property. No one has commented on this point so far, but I would welcome thoughts.

As for your own situation, I respect that you have made your own decisions based on your own careful analysis, and wish you the very best of luck!

smile88egc

Well any reduction you can negotiate reduced the risk of negative equity when prices do drop in the short term.

This is important even if you plan on staying there medium term as circumstances can change. Say when you decide to have a child that the first pregnancy is twins? You can't know what's round the corner, so locking yourself into a situation like this could be costly.

So many buyers are asking for reductions and putting in offers well below asking price, I'm sure to some extent your vendor is expecting it. This price drop can be passed up the chain and in turn they may be able to use it to negotiate down the price of their next property.

Good luck in whatever you decide.

booksurr

if you expect to be moving on to somewhere bigger in 2 years you should not be buying anything now, Brexit or not, as all you will do is lose money to 3 sets of fees: x2 purchases and x 1 sale and even in London it is unlikely that capital growth in 2 years would cover that lot.

ReadingTim

• The property you want
• The price you want
• The location you want

Pick 2....

jimpix12

paisted wrote: »

This seems to be the common theme, and one which makes sense to me, hard though it is to hear.

Are there any dissenting views, or anyone wanting to play devil's advocate?

Not quite a dissenting opinion, but:

Lee is a sh1thole. Move further out and enjoy a better quality of life.

ukcarper

indianabones wrote: »

A ridiculous amount, 8-10%. But I guess my patience will be rewarded a significant drop. My situation like FTBs who were didn't proceed will be better, more savings for a deposit but house prices down on what they were 2 months ago.

Finally, finally there may be light at the end of the tunnel for young people.

Prices may or may not fall only time will tell.

jimpix12

Davesnave wrote: »

As your own 12 month boycott of the housing market had no effect, how will the OP's decision have more influence?

Individual decisions obviously drive overall sentiment, but the OP owes nothing to you, nor are they responsible for ensuring 'fairness,' whatever that is.

The OP, having carefully considered their options, now has you attempting to drop a guilt trip on them. Nice!

How many BTLs do you have again? Or were you the property developer flipping homes? I get confused by the VIs on here.

Of course, the OP should listen to this sage with his subtle mocking tone. What a fool - waiting for prices to drop!

indianabones

ukcarper wrote: »

Prices may or may not fall only time will tell.

Well according to the news articles people have posted here and that are available online. Prices have already come down.