Is this buyers remorse?

ReadingTim

Crashy_Time wrote: »

Most people think that the property market no longer functions in the best interests of most people, that has big political implications, and politicians will do whatever gets them votes.....

"Most people" might believe the property market is broken, but also oppose the building of new homes in their immediate area to alleviate the problem. Accordingly,"most people" are part of the problem, not the solution. Similarly, despite what they say "most people" vote with their wallets, so aren't going to vote for anything which reduces the value (albeit unrealised) of the property, and therefore their personal wealth. Likewise with politicians (constituency and London property owners, plus other property interests) won't associate themselves with such a wealth-reducing cause, for the opportunistic reasons you allude to.

In short, no turkey votes for an early Christmas.

vacheron

LKRDN_Morgan wrote: »

Completed today on our first ever home. When I got the call from the solicitor to say everything's done I was excited but now a few hours later I feel like a wreck!
I don't know what's wrong with me! I loved this house when we viewed it. I loved it when I went back to measure after exchange but now I'm sat back in my rented thinking !!!!!! have we done.

Is this really normal?? Does it pass? I'm never emotional but right now I'm feeling like I could burst into tears at any moment

I don't believe that it is limited to housing either. I think any commitment which significantly changes your lifestyle into the future can have a similarly primal "run away!" response when you realise you are now committed to the process.

My wife has been working in a temporary job for the last 3 months. She loves the job and the people but working a 5 day week was taking it's toll on family life.

Part time would have been ideal, but it is unheard of in her industry.

Last week her boss took her aside and asked her if she could stay permanently. He said he understood her family commitments and so if she told him the hours she wanted to work, along with the salary she would require, he would see what he could do. She told him and yesterday he accepted her request.

Three months ago this would have been her dream job. Now the time to actually make the commitment has arrived she's been overwhelmed with self doubts.

Crashy_Time

ReadingTim wrote: »

"Most people" might believe the property market is broken, but also oppose the building of new homes in their immediate area to alleviate the problem. Accordingly,"most people" are part of the problem, not the solution. Similarly, despite what they say "most people" vote with their wallets, so aren't going to vote for anything which reduces the value (albeit unrealised) of the property, and therefore their personal wealth. Likewise with politicians (constituency and London property owners, plus other property interests) won't associate themselves with such a wealth-reducing cause, for the opportunistic reasons you allude to.

In short, no turkey votes for an early Christmas.

Yet people voted for Brexit, and will probably vote for Corbyn in great numbers, interesting....

Crashy_Time

vacheron wrote: »

I don't believe that it is limited to housing either. I think any commitment which significantly changes your lifestyle into the future can have a similarly primal "run away!" response when you realise you are now committed to the process.

My wife has been working in a temporary job for the last 3 months. She loves the job and the people but working a 5 day week was taking it's toll on family life.

Part time would have been ideal, but it is unheard of in her industry.

Last week her boss took her aside and asked her if she could stay permanently. He said he understood her family commitments and so if she told him the hours she wanted to work, along with the salary she would require, he would see what he could do. She told him and yesterday he accepted her request.

Three months ago this would have been her dream job. Now the time to actually make the commitment has arrived she's been overwhelmed with self doubts.

When the commitment could ruin you for life if interest rates rise the potential for remorse is much greater than if the market had been allowed to correct itself years ago, the outcomes now are going to be so much worse for so many people.

Filo25

Crashy_Time wrote: »

When the commitment could ruin you for life if interest rates rise the potential for remorse is much greater than if the market had been allowed to correct itself years ago, the outcomes now are going to be so much worse for so many people.

If they're worried about that then they can do a 10 year fix at a good rate easily enough, I'm not seeing a massive likelihood of SIGNIFICANT interest rises in the short-medium term anyway

With regards to the original post I think its perfectly normal, I certainly had buyers remorse the first time I went to our house after the previous owners moved out, it never looks great when you visit a newly emptied property, it went away when we got the place looking a lot more like we wanted it to.

ReadingTim

Crashy_Time wrote: »

Yet people voted for Brexit, and will probably vote for Corbyn in great numbers, interesting....

In turkey terms, Brexit would have promised an end to Christmases. It's a bit like that £350m per week that'll go to the NHS...

vacheron

Crashy_Time wrote: »

When the commitment could ruin you for life if interest rates rise the potential for remorse is much greater than if the market had been allowed to correct itself years ago, the outcomes now are going to be so much worse for so many people.

When I first posted above I hadn't read the whole of this (increasingly OT) thread, but now I have I might as well add my experiences too.

Like you I rented from 2006 to 2010 and spent those years reading HPC etc. and convincing myself that I'd save a fortune if I only waited another few months.

I was even "safely" renting in 2008 through the greatest global housing mortgage crisis experienced in decades.
What happened to house prices? hardly anything. Did rental rates collapse? no.

As the months of waiting turned into years I eventually decided that life is too short to wait forever and bought in 2010. I've conservatively saved £85,000 in rent over this period and lost about £23,500 in interest making me £61,500 better off over 7 years.

Our house also modestly increased in that time by about £30K, but I'm not even including that in the equation as it is not a liquid asset and is first and foremost our home. I couldn't care less if it fell to £10K as we'll intend to be here for at least another 15 years and we could always use that opportunity to trade up to somewhere bigger.

You say in post #138 you've been predicting a crash for 10 years and it's now popping. But if someone warned me in 2007 that in 10 years time those same people would still be saying that house prices were on the brink of collapse, I certainly wouldn't have sacrificed £87,000 and a decade of enjoying our own family home in order to protect myself against it.

Crashy_Time

vacheron wrote: »

When I first posted above I hadn't read the whole of this (increasingly OT) thread, but now I have I might as well add my experiences too.

Like you I rented from 2006 to 2010 and spent those years reading HPC etc. and convincing myself that I'd save a fortune if I only waited another few months.

I was even "safely" renting in 2008 through the greatest global housing mortgage crisis experienced in decades.
What happened to house prices? hardly anything. Did rental rates collapse? no.

As the months of waiting turned into years I eventually decided that life is too short to wait forever and bought in 2010. I've conservatively saved £85,000 in rent over this period and lost about £23,500 in interest making me £61,500 better off over 7 years.

Our house also modestly increased in that time by about £30K, but I'm not even including that in the equation as it is not a liquid asset and is first and foremost our home. I couldn't care less if it fell to £10K as we'll intend to be here for at least another 15 years and we could always use that opportunity to trade up to somewhere bigger.

You say in post #138 you've been predicting a crash for 10 years and it's now popping. But if someone warned me in 2007 that in 10 years time those same people would still be saying that house prices were on the brink of collapse, I certainly wouldn't have sacrificed £87,000 and a decade of enjoying our own family home in order to protect myself against it.

So you expect to buy somewhere bigger for about 15k? Seems like we are on the same page

Davesnave

vacheron wrote: »

I was even "safely" renting in 2008 through the greatest global housing mortgage crisis experienced in decades.
What happened to house prices? hardly anything.

Depends how one defines 'hardly anything' I suppose.

We were selling in 2008. Our house lost 3 sets of buyers and eventually sold for about 16% less than the first agreed sale price.

I'd say 16% was a decent reduction, especially as the area was far from shabby. By 2012/13 prices there had recovered, but for people like Crashy, who kept waiting for the cataclysm which never came, it was then too late to act.

We bought again in 2009, not because we knew cleverly that things were at the bottom, but because we'd found somewhere that suited. Also, for average guys like us, it was actually quite scary having virtually all our assets as pixels on a computer screen, rather than a building & land.

vacheron

Davesnave wrote: »

Depends how one defines 'hardly anything' I suppose.

We were selling in 2008. Our house lost 3 sets of buyers and eventually sold for about 16% less than the first agreed sale price.

Way up here (North East) the houses we were looking at fell perhaps 5-10%.

I suppose this is the way I look at it:

If I moved my 7 years of home ownership back in time to the worst case scenario of buying in 2001, (7 years before the crash), and selling right at the bottom in 2008, my house would have lost 10% in value (this is assuming assume house price inflation between 2001 and 2008 was 0%, however in reality it more than doubled!) .

By not renting during these 7 years I would have been able to save the equivalent of 21.7% of the value of the house by not renting an equivalent property. This means that even selling in the in the largest crash (correction) for decades I would still have been 10% better off buying!