has anyone pulled out of buying due yo current economy?

JazCE

I've been offered and have accepted a shared ownership flat in London. I've honestly no idea if I'm making the right decision, especially now that the pound is tanking and the fact Tesco and unilever are fighting. I can only see things getting worse, and I do fear that a hard brexit will pull the bottom out of the London market in all sorts of ways.

Basically I'm scared.

richard2511

We had an offer accepted in July and we are due to complete this month. Proceeding as normal.

SuzieSue

JazCE wrote: »

I've been offered and have accepted a shared ownership flat in London. I've honestly no idea if I'm making the right decision, especially now that the pound is tanking and the fact Tesco and unilever are fighting. I can only see things getting worse, and I do fear that a hard brexit will pull the bottom out of the London market in all sorts of ways.

Basically I'm scared.

Everyone is scared when they are making the largest purchase of their life so far. There are always economic and social problems going on in the world. You are focusing on them at the moment because you are about to make a large purchase.

No-one can tell you what you should do as it depends on your personal circumstances. Make sure you have adequate insurance if you are worried about losing your job.

Mortgage_Moog

You could factor all kinds of things into this. Have you considered that maybe house prices could rise and you could end up not being able to buy? Fuel could go up, war could break out, if you worry about all those things you'd never do anything!

I just bought my first place and I'm loving it. Life is too short to think of all the what's and maybe's. If it comes to the worst you can always sell up, take what money you can get back and go back to renting. I always feared being "stuck" with a mortgage forever but so long as you put down a decent deposit (10% or more) then you're free to sell up or change without losing too much as you already have a good amount of equity in the property.

always_sunny

JazCE wrote: »

I've been offered and have accepted a shared ownership flat in London. I've honestly no idea if I'm making the right decision, especially now that the pound is tanking and the fact Tesco and unilever are fighting. I can only see things getting worse, and I do fear that a hard brexit will pull the bottom out of the London market in all sorts of ways.

Basically I'm scared.

Don't be - do you really think a city of 8M+ would disappear over night? As long as what you have settled on is within your means and it's not overpriced you'll be fined.

What other options would you have? Move to France or Portugal? So you will still need a roof over your head.

Crashy_Time

Mortgage_Moog wrote: »

You could factor all kinds of things into this. Have you considered that maybe house prices could rise and you could end up not being able to buy? Fuel could go up, war could break out, if you worry about all those things you'd never do anything!

I just bought my first place and I'm loving it. Life is too short to think of all the what's and maybe's. If it comes to the worst you can always sell up, take what money you can get back and go back to renting. I always feared being "stuck" with a mortgage forever but so long as you put down a decent deposit (10% or more) then you're free to sell up or change without losing too much as you already have a good amount of equity in the property.

Not sure how someone just about to buy shared ownership in London could be said to "have a good amount of equity in the property"?

Crashy_Time

JazCE wrote: »

I've been offered and have accepted a shared ownership flat in London. I've honestly no idea if I'm making the right decision, especially now that the pound is tanking and the fact Tesco and unilever are fighting. I can only see things getting worse, and I do fear that a hard brexit will pull the bottom out of the London market in all sorts of ways.

Basically I'm scared.

Sensible option IMO would be wait for actual Brexit and wait to see if Trump wins, that is under a month to find the second one out. Shared ownership is a dreadful dreadful idea really though.

Mortgage_Moog

Crashy_Time wrote: »

Not sure how someone just about to buy shared ownership in London could be said to "have a good amount of equity in the property"?

I forgot it was shared sorry. I wouldn't touch shared ownership with an extended barge pole. I was going for that until I found out the many drawbacks such as the amount of rent you pay shooting up, the part you don't own rocketing in value so much that you won't be able to afford it.

I'm proud that I bought 100% of my maisonette. I could have paid the same for 50% of one with another bedroom but I'm so glad I didn't. Those new shared ones often don't even have fast broadband.

always_sunny

Crashy_Time wrote: »

Sensible option IMO would be wait for actual Brexit and wait to see if Trump wins, that is under a month to find the second one out. Shared ownership is a dreadful dreadful idea really though.

But before people had to wait for the Scottish Independence referendum? Then it was something the Brexit referendum, then something else. Every 6 months or so there is a good reason why folks should wait for the next apocalyptic reason that would see prices plummeting and yet, none of these worry really materialised.

With Brexit in full swing, will the OP need for housing change? With Trump winning would the OP move in a flat in Trump Tower? Would any of these events see properties in London be exchanges for a sack of potatoes instead?

I do agree on the shared ownership though :beer:

Bossypants

I suppose it depends on why you are buying. In my case, I had an offer accepted a week before Brexit and, apart from a small wobble on the morning after the vote (more panic than anything, I never thought we would leave), I have never considered pulling out. My reasoning is that 1) I still want to move out of my current place, 2) I still want to live in the house I am buying, and 3) even if prices do tank next month or next year, they will take my current place with them, so I won't actually be any better/worse off.

The last point is obviously slightly different from a first time buyer POV, but even then, if the economy tanks you might find you have a harder time getting a mortgage than you do now, or will be able to borrow less.

As others have said, if you wait for things to be perfect before you make a move, you'll be standing still your whole life.

Crashy_Time

Bossypants wrote: »

I suppose it depends on why you are buying. In my case, I had an offer accepted a week before Brexit and, apart from a small wobble on the morning after the vote (more panic than anything, I never thought we would leave), I have never considered pulling out. My reasoning is that 1) I still want to move out of my current place, 2) I still want to live in the house I am buying, and 3) even if prices do tank next month or next year, they will take my current place with them, so I won't actually be any better/worse off.

The last point is obviously slightly different from a first time buyer POV, but even then, if the economy tanks you might find you have a harder time getting a mortgage than you do now, or will be able to borrow less.

As others have said, if you wait for things to be perfect before you make a move, you'll be standing still your whole life.

But if it is harder to get a mortgage that will mean cheaper property? London will still be there, the people will still be there, but their means to buy will be affected?


Next crisis must come from the EZ banks IMO.....


http://www.bloomberg.com/news/articles/2016-10-13/deutsche-bank-said-to-implement-hiring-freeze-as-ceo-cuts-costs