WWYD - accepted high offer Friday, nowhere to move yet

purplebiro

Just reacting to the news fro the US in a fairly selfish way and wondering what others would do in our situation:

We accepted an offer on our house on Friday for £155750, mortgage is currently £103k. Our property is in an area which is definitely experiencing a bit of a bubble at the moment - this is the most a 2 bed house has ever gone for round here (and we rejected offers up to £6k higher because they were 10% deposit, no savings and we are concerned about getting down-valued by the mortgage providers - buyer has £70k deposit), £16k over asking price, best and final with 11 offers after one viewing day, etc. However, we are yet to find a property to move to - there is scarce stock of a suitable size in the area we live, we've been ousted at best and final on one place (before we accepted offer on ours) and we're not willing to compromise when we want this to be a forever home. That's fine though - our purchasers have known all this from the outset, are FTB in rented with pals on a rolling one month contract and have reiterated several times that they're not in any hurry. They're nice peeps, friends of friends too.

And then last night. Am I being silly to think our best move would be to take the money and run - get their sale completed at this price as fast as humanly possible and move into rented. My logic being that markets are going to plummet fairly soon and we should avoid losing our nice big deposit whilst gaining from a slump in prices in the area (although with accompanying reluctance to move). Is that horribly mercenary? What would you do in this scenario?:eek:

AnotherJoe

i think your thoughts about the US election affecting UK house prices are way off mark.

Markets wont "plummet" unless you mean about 5% tops (I think Asia dropped 5% at most?), I think the FTSE is down less than 1% at the moment, Paris 2% and Hong KOng 3%. Thats hardly a "plummet".

In any case Trumps very conciliatory* speech contained a lot about rebuilding USA infrastructure which ought to lead to a boom not a bust and some sectors such as defence and pharma are up.

In your case I'd do whatever i was going to do irrespective of the result. I might take the money now simply on the basis that whatever your friends say they may, indeed likely will, get fed up waiting eventually, and UK house prices might dip for other reasons nothing to do with Trump.

* very 'presidential' and magnanimous, surprised the heck out of me, I thought it would be very triumphant !

Bluebirdman_of_Alcathays

purplebiro wrote: »

And then last night. Am I being silly to think our best move would be to take the money and run - get their sale completed at this price as fast as humanly possible and move into rented. My logic being that markets are going to plummet fairly soon and we should avoid losing our nice big deposit whilst gaining from a slump in prices in the area (although with accompanying reluctance to move). Is that horribly mercenary? What would you do in this scenario?:eek:

What evidence is there property prices would plummet? I think the impact of the US election will be negligible.

booksurr

if you demonstrate a knee jerk reaction to every such thing you will be paralysed and your life will be in stasis. For example, in your terms, by the time the market "recovers" from the USA panic, BREXIT will be back on the agenda, so are you going to panic again over that?

needhouseadvice

if there's going to be a global recession (as has been predicted if trump wins) that's certainly going to affect prices over here. i'd take the money and rent.

Bluebirdman_of_Alcathays

needhouseadvice wrote: »

if there's going to be a global recession (as has been predicted if trump wins) that's certainly going to affect prices over here. i'd take the money and rent.

W
Who predicted that? The same ones that predicted recession if we voted to leave the EU?

needhouseadvice

Bluebirdman_of_Alcathays wrote: »

W
Who predicted that? The same ones that predicted recession if we voted to leave the EU?

http://www.politico.com/story/2016/11/krugman-trump-global-recession-2016-231055

Bluebirdman_of_Alcathays

needhouseadvice wrote: »

http://www.politico.com/story/2016/11/krugman-trump-global-recession-2016-231055

Heh - Paul Krugman thought Gordon Brown was a financial sage!

purplebiro

A mixed response then...

Voyager2002

Bluebirdman_of_Alcathays wrote: »

Heh - Paul Krugman thought Gordon Brown was a financial sage!

Well: Gordon Brown was probably the best chancellor since the Wilson years! He managed the economy very well so long as Blair was around to take the credit: it was only when he took the top job and was distracted from the economy that things went to pot. Not to mention a few problems with sub-prime lending and banks in the USA...

Voyager2002

Bluebirdman_of_Alcathays wrote: »

W
Who predicted that? The same ones that predicted recession if we voted to leave the EU?

Trump has promised to withdraw from major trade deals and launch a trade war with China. We don't know if he means it, but any such action would reduce economic activity across the globe, and yes, that would affect house prices in the UK.

(He has also promised to eliminate the US budget deficit and pay back the debt; increase public spending; and cut taxes! I don't think that is going to happen!)