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Seller hikes asking price
Comments
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dissstressed wrote: »Our seller has emailed us saying that he expects prices to rise significantly as a result of the changes (gave me some guff about how the extra money towards a deposit can now be leveraged by buyers 4-5 times to get a mortgage 20-25k bigger, etc) and has said that he wants 10k more.
kingstreet wrote: »Garbage.
Only increased income or reduced credit does that.
Mortgage amounts are not a function of 'savings' but only of affordability and that is unaffected by today.
Not quite, the maximum loan is a function of the LOWER of
1) max affordability ie multiple of income
2) max LTV (e.g. with a 90% mortgage, the max loan is 9x deposit)
Some buyers will indeed be constrained by the deposit so more savings not spent on stamp duty will mean they can get a higher mortgage. However this stamp duty reduction will only help FTBs who are LTV constrained to increase their leverage. For that group alone to drive prices significantly is unlikely.
Also, as the vendor is selling now, the future house price is irrelevant. Their only argument could be they could get more from another buyer if prices rise. But pulling out and starting again would mean they're paying for an empty house for longer.. which would be more hassle plus cost.0
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