Dealing with fear of overpaying

joshardy

To be fair to crashy, the days of property gaining £250k value in 4 years are over. There is a limit (and I believe we are getting there) to how much people can earn and therefore how much they can borrow.

Crashy_Time

hounsehunterftb wrote: »

40K ! how do you work that figure out? We do know we are over paying but only say by 5-7K. I doubt anybody can stomach that much loss

40k isn`t a great deal of money really, if you psychologically can`t take that kind of loss on property, buying a new build anywhere south of Nottingham in this economic environment is probably a bad idea.

MobileSaver

Crashy_Time wrote: »

40k isn`t a great deal of money really, if you psychologically can`t take that kind of loss on property,

Crashy and his friends at HPC have had a "fear of overpaying" for well over a decade which means they have all continued paying rent (i.e. buying their landlord's house for them) year after year when they could have bought themselves.

I'd guess that on average they have all lost well over £100k, if you can stomach that sort of loss then by all means follow Crashy's advice.

Mrs36

Crashy, just out of interest (genuine question) just how much of a crash are you hoping for?

Hoploz

Generally speaking, if you're able to buy a property big enough to be future-proof, eg big enough to have a family in, even if it is a squeeze, then you don't need to worry as you'd never need to move, only if you wanted to. If you sit tight you'll weather the storm of a dip in the market - as long as you make the monhtly repayments you'll be fine, assuming interest rates don't shoot up to levels of 13% again like in the nineties.

hounsehunterftb

We are just going to go on with it. We have already applied for a mortgage now. We are just hoping for the valuation to pass thus confirming our offer isn't bad after all. Fingers crossed!

Crashy_Time

MobileSaver wrote: »

Crashy and his friends at HPC have had a "fear of overpaying" for well over a decade which means they have all continued paying rent (i.e. buying their landlord's house for them) year after year when they could have bought themselves.

I'd guess that on average they have all lost well over £100k, if you can stomach that sort of loss then by all means follow Crashy's advice.

And if your landlord already owns their house, or you have more money than your landlord, just ignore this advice.

Crashy_Time

Hoploz wrote: »

Generally speaking, if you're able to buy a property big enough to be future-proof, eg big enough to have a family in, even if it is a squeeze, then you don't need to worry as you'd never need to move, only if you wanted to. If you sit tight you'll weather the storm of a dip in the market - as long as you make the monhtly repayments you'll be fine, assuming interest rates don't shoot up to levels of 13% again like in the nineties.

The problem is though that most people can`t afford to do this because the market has been pumped up on cheap credit and false sentiment?

glasgowdan

Crashy_Time wrote: »

Different market now though, the OP needs to be comfortable with maybe a 40K loss if rates rise and Brexit/EZ etc. gets sticky? If you love the home and can stomach the loss, go for it.

This says it all. You think a £135k house could lose 40k due to brexit. So you're suggesting a 30% crash then?

I see no evidence of anyone taking your advice on this forum these days. Good thing too, seeing as you've no experience of buying and selling and constantly give out advice.

Crashy_Time

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