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Mortgage valuation less than purchase price
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I don't understand your reasoning on this when like for like 4 bedroom houses in the area are selling for around £550-600?
Yes but you are saying that people are only able to afford the £550 - £600 if they use help to buy. So if this is the case then all of the houses bought using help to buy will not be able to be sold for more than the £400 that you say people like you and others using help to buy are paying. The point is that help to buy is a way of builders selling more houses. Help to buy is only available for new houses so as soon as the one you buy becomes 2nd hand it will drop in value and because it only appeals to people who can use help to buy to get it it will only sell to those kinds of buyers and they can only afford £400. The people who can afford £550-£600 are not going to be interested in 2nd hand houses bought using help to buy because they have a choice of any house in that price range.0 -
Yes but you are saying that people are only able to afford the £550 - £600 if they use help to buy. So if this is the case then all of the houses bought using help to buy will not be able to be sold for more than the £400 that you say people like you and others using help to buy are paying. The point is that help to buy is a way of builders selling more houses. Help to buy is only available for new houses so as soon as the one you buy becomes 2nd hand it will drop in value and because it only appeals to people who can use help to buy to get it it will only sell to those kinds of buyers and they can only afford £400. The people who can afford £550-£600 are not going to be interested in 2nd hand houses bought using help to buy because they have a choice of any house in that price range.
Well our flat must be a real exemption then as we bought 3 years ago (using HTB, brand new) for £215k and have just sold for £320k. Either that or you are really making sweeping generalisations based on not a lot of research.0 -
Well our flat must be a real exemption then as we bought 3 years ago (using HTB, brand new) for £215k and have just sold for £320k. Either that or you are really making sweeping generalisations based on not a lot of research.
No not generalisations. How much would the flat have sold for if you hadn't bought it new using help to buy. The fact is that house prices in London have been rising but that doesn't mean that they will continue to do so. If you had bought a flat that wasn't new and hadn't used help to buy for £215k how much would it have sold for in roughly the same area? £320 or more? If it would have been more than £320 that will tell you how much you lost on that property by buying it new using help to buy. All you have to do is to work out how much you could lose on this house if house prices don't rise using the percentage loss on the flat.0 -
No not generalisations. How much would the flat have sold for if you hadn't bought it new using help to buy. The fact is that house prices in London have been rising but that doesn't mean that they will continue to do so. If you had bought a flat that wasn't new and hadn't used help to buy for £215k how much would it have sold for in roughly the same area? £320 or more? If it would have been more than £320 that will tell you how much you lost on that property by buying it new using help to buy. All you have to do is to work out how much you could lose on this house if house prices don't rise using the percentage loss on the flat.
Or alternately stop worrying about the "investment" side and buy a home.0 -
I don't understand your reasoning on this when like for like 4 bedroom houses in the area are selling for around £550-600?
Do you know if they are selling at those prices, or just on the market? The surveyor is telling you that your £600k house is worth £540k (secondhand, presumably), and I guess that reflects actual transactions that have taken place. Can you afford that drop?No reliance should be placed on the above! Absolutely none, do you hear?0 -
No not generalisations. How much would the flat have sold for if you hadn't bought it new using help to buy. The fact is that house prices in London have been rising but that doesn't mean that they will continue to do so. If you had bought a flat that wasn't new and hadn't used help to buy for £215k how much would it have sold for in roughly the same area? £320 or more? If it would have been more than £320 that will tell you how much you lost on that property by buying it new using help to buy. All you have to do is to work out how much you could lose on this house if house prices don't rise using the percentage loss on the flat.
Other one bed flats locally go for closer to the 280k mark, so a great investment for us (seeing as it was a step up home for a short while).Or alternately stop worrying about the "investment" side and buy a home.
I think the idea of buying a home is one that makes sense to us as we have no plans to move for the forseeable future but then I suppose you never know what's around the corner and why you might need to sell and move etc.
I have just spoken to MA who has advised that the housing association will only lend the HTB 40% based on the mortgage valuation, meaning we will end up needing to find 16k from somewhere - definitely impossible.
So depending on whether TW are now going to renegotiate with us (doubtful seeing as there are currently about 20 people camped up outside, but then slightly hopeful seeing as we surely CANNOT be the only people in this boat), it may all fall through anyway. So a waiting game now.0 -
What happens when HTB loans get withdrawn, you would be looking at sizeable negative equity?0
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Crashy_Time wrote: »What happens when HTB loans get withdrawn, you would be looking at sizeable negative equity?
How will whether HTB is available in future or not affect the OP and the value of their house?0 -
glentoran99 wrote: »How will whether HTB is available in future or not affect the OP and the value of their house?
If HTB is inflating house prices, then withdrawal of HTB may lead to prices reducing again. That's the theory, anyway.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Pull out of this one IMO.0
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