Thinking of 'pulling out' of purchase but stil sell?

housebuyer2018

Thanks for the further feedback since my last post. It's really helpful to see others opinions.



I had this weekend to mull it over. I think i realise that 'next door but one' being 'a bit noisy' probably isn't a major thing and you are unlikely to know this (or much else) anywhere you go. It probably just takes the excitement out of the process a bit and replaces it with anxiety!


I think part of the problem now though is while thinking about this it got my mind working on other factors:
1) It's top of our budget. Great i can lock in for 5 years - but what then?
2) It's top of our budget. Why not get something for less, rent alongside a few months and do it up to add value. For reference... i replaced the bathroom and ensuite in our current house as well as sorted the kitchen (painted wooden units with F&B, new sink & tap). All DIY and spent £3k, added £20k to house price estimate from agent. I know it's hard work but it's quite rewarding!

3) How is the market going to go. House prices seem to be levelling a bit and who knows what the financial impact of Brexit will be! Do i want to buy a house and lose alot of equity (70K - apx 27% value).

4) Do we really know what we want(ed)? Would going into rented for a short spell help us have time to figure this our.

So many difficult questions and hard to figure out what is the right move.

Anyone have any thoughts on the above?

Hoploz

If you buy there's a chance prices may reduce and you could lose a little before prices increase again (only a problem if you need to sell when the market is low, if you hold on it'll go back up again)

If you rent, you will definitely lose thousands as you're paying out every month.

If you buy to renovate and you don't live there you'll be subject to different tax rules and I assume different mortgages also. If you can live in the mess it's the best way as if it is your main residence you're fine on the tax front.

steampowered

Another vote for sticking with the purchase.

I don't think the idea of buying a fixer-upper and renting somewhere else sounds very compelling. These days fixer-uppers often don't go for that much less than other properties, so by the time you've paid the rent I doubt you'll be financially better off.

Noone knows what will happen to house prices in the future. But it shouldn't matter to you if you are intending stay there for a reasonable period of time, as repayments to the mortgage would offset any reduction in property prices.

Brexit may well cause the value of the pound to flop further. But as properties are valued in £ Brexit shouldn't affect property prices too much. A pretty enormous drop in the value of the pound has already been taken into account by the markets.

Renting while you work out where you want to live can be a smart move for people who are new to an area. But it sounds like you already know the area. Will you really have any more insight into the area after renting for a few months, or would you just be kicking the same can down the road? It sounds like the latter.

At a £210k house price you aren't paying an enormous amount in stamp duty so you could always move again in a few years time if you don't like the property.

housebuyer2018

I hadn't thought about the tax aspect if renovating. Wouldn't you just say you were log on in it though as your rent needed to run out?

It's only likely to be a month or two