Play it safe or Go for broke??

Lomion

Jonbvn wrote:

Just because house prices have fallen in USA, Ireland, Spain. France........
There is of course nothing to suggest that house prices in the UK will not buck the trend and continue onwards and upwards forever:eek:

I'll have a pint of what you're drinking;)

Where did I say the prices are going to carry on going up?

Think my words were I don't honestly know what's going to happen.

And I don't care

My whole point was that it doesn't matter in the slightest as long as you're happy paying the mortgage every month for the next 25 years

Jonbvn

Lomion,

Let's agree to disagree. This is getting us no where.

izzybusy23

Lomion wrote: »

My whole point was that it doesn't matter in the slightest as long as you're happy paying the mortgage every month for the next 25 years

I understand where you are coming from BUT personally I would NOT be happy to pay a mortgage on an over inflated house for the next 25 years whilst the house next door sold for say for arguements sake, £50k+ less. I would be seriously gutted and forever kicking myself for not holding out.

I think its all well and good saying 'if you can afford it and happy to pay the mortgage' but once the excitment is over and you get into the same old routine, happiness would soon turn to bitterness if you realised you'd bought at the peak and everything around you was crashing big time and subjected yourself to HAVING to work to pay the mortgage and possible negative equity, unlike the OP currently.

I just don't get why, whilst everything is pointing to a major slump, people are still questioning house prices and still prepared to go 5 x their salary on what is an obvious over inflated house, and worry about whether they will get a mortgage to cover the amount they want anyway.

sanjaymaz

RoxieW wrote: »

I hope it will be ok if we go for it - I see it as a calculated risk - things could go horribly wrong if say there was a high hike in rates or one of us lost a job but that risks always there I guess. Worst case we'd drop off the ladder and rent. Things will be a bit tight for a couple of years while we work up career wise but i think we should ride that out. Hubby thou likes to play safe.

When my wife and I bought 5 years ago, we took on a £220k mortgage on a property worth £250k. Now the house is worth £400k and the mortgage is about £185k and our income is much higher so we are doing fine. She didn't want to take the risk, but I did, and we did it because we found a house we loved and we were prepared to work harder if things went against us.

In your position, in today's market, I'd say 2 things - if you think property prices will hold or rise, then go for it!! You'll get an extra year or two in a property you love. Secondly, I'd avoid buying a new build in today's market, especially in Yorkshire which is where we hear all the headline stories of price falls.

Best of luck and I hope you take the best decision for you and your family.

Sanjay

________________________________________________________
Get moneyback from your normal online shopping - sign up at http://www.greasypalm.co.uk/r/?l=227289

RoxieW

thanks sanjay
definitely not going to rush into this one - if we're going to stretch ourselves then it has to be the perfect forever house and the best value for our money. Thanks for all the advice