House Buying Cold Feet

Newbee_Berkshire

Hi All,
I have been an active reader of this forum for almost a year now and now I am in need of advise. I was passively house hunting - keeping an eye on the market and area, and found a house which had all the right checkboxes at the right price. I offered a price for the house and upon little negotiation it was accepted.
Being a first time buyer, the EA suggested that the whole transaction would only be completed by end of February or early march. Now I am having a cold feet for the whole thing given, I will only move very close to the Brexit (Article 50). Am I getting too worried -
- If Article 50 gets triggered, few more price adjustments will be seen. Property in Berkshire have adjusted by about 5% in the last six months.
- The house I have been offered looks at the right price, but my thinking is I may have few more options in the same price range in March?
- On top of it all, I am in fixed term lease which ends July 2017, I am in no position to pay for both rent and bank at the same time. So looking for a house in March/April may be more ideal.
Looking for some kind advise please !

marksoton

Newbee_Berkshire wrote: »

Hi All,
I have been an active reader of this forum for almost a year now and now I am in need of advise. I was passively house hunting - keeping an eye on the market and area, and found a house which had all the right checkboxes at the right price. I offered a price for the house and upon little negotiation it was accepted.
Being a first time buyer, the EA suggested that the whole transaction would only be completed by end of February or early march. Now I am having a cold feet for the whole thing given, I will only move very close to the Brexit (Article 50). Am I getting too worried -
- If Article 50 gets triggered, few more price adjustments will be seen. Property in Berkshire have adjusted by about 5% in the last six months.
- The house I have been offered looks at the right price, but my thinking is I may have few more options in the same price range in March?
- On top of it all, I am in fixed term lease which ends July 2017, I am in no position to pay for both rent and bank at the same time. So looking for a house in March/April may be more ideal.
Looking for some kind advise please !

Well there's your answer.

Hoploz

You say you think there will be more options in the same price range in March. I don't get why - will people suddenly dash to out their houses on the market then? I think it's more likely that if prices begin to falter then fewer people will go on the market as nobody wants to sell at a low price unless they have to.

If it is a long term home then don't get tied up in knots over a few thousand. You never know what's round the corner so if you've found an ideal house then just go for it.

I'm not sure about the financial side of the tenancy ending. If you really can't afford both for a short period of the odd month or two then this is a worry.

Leaving it until March to look when you intend to move in July is optimistic - you never know how long a chain is going to take. It can be 6 weeks, it can just as easily be 6 months. You can never tell. Even a complete chain can be delayed if someone loses their buyer elsewhere in the chain and everyone has to wait weeks for them to sell again and for their new buyer catch up.

If you are renting you would be advised not to give notice until you exchange contracts, as until that point anyone can drop out and you could make yourself homeless. This remains the case if your contract period is coming to an end - you should go on to a rolling contract. Therefore an overlap is inevitable.

lettucekl

Hoploz wrote: »

I think it's more likely that if prices begin to falter then fewer people will go on the market as nobody wants to sell at a low price unless they have to.

Ive never understood this, if the market falls slightly then you'll sell for less but you'll also buy for less. So its swings and roundabouts surely?

marksoton

lettucekl wrote: »

Ive never understood this, if the market falls slightly then you'll sell for less but you'll also buy for less. So its swings and roundabouts surely?

Depends what your motivation is and how long term you are purchasing for.

AnotherJoe

marksoton wrote: »

Well there's your answer.

Indeed, why are you even asking if it's out of the question anyway ? If you are so tight on money that three months mortage is out of the question you are extending yourself financially perilously.

As for Brexit, that's a red herring / illogical thinking. If you think Brexit merely being triggered will cause prices to fall ( and FWIW I live in Berkshire and prices are still rising where I live) why would you buy in July?

Surely if the mere triggering of A50 causes a fall then the subsequent negotiations and scare stories in the press over the next two years and then actual withdrawal will cause even more of a fall, perhaps catastrophic, so you should wait for about five years until it's all settled down ??

Or maybe you've just rationalised that as an excuse to cover the fact you can't really afford to buy this house and are having buyers remorse and want a good excuse to put in front of the estate agent ?

Just get out now before you spend any money.

cloo

If there really is no question of paying mortgage and rent for so long, then I agree it answers the question. Other than that, I wouldn't delay a purchase, especially if I was likely to stay put for 5 years +, but if you can't pay, then hold off.


Bear in mind that you should really expect to have at the very least a month of rent and mortgage crossover - sales rarely go as planned and if you give your notice based on the estate agent reassuring you that you'll be in your new place in a month, you may find yourself with nowhere to go until you complete, or at least a disgruntled landlord with a tenant who isn't leaving on time! It's best not to give notice until you have exchanged (and the deal is done), which will leave you with a few weeks' crossover, assuming you're on a month's notice.