Cold feet when buying, help?

lloydb723

Hi there. I am in the process of buying a new build flat after the first one fell through. I had the offer accepted on Friday and am meeting with my mortgage advisor tomorrow. However I am having huge doubts and cold feet about the whole thing. Back story is, through different circumstances and decisions I've lived with my family for the last six-seven years. I rented whilst at uni then struggled for work.

That is now resolved and my parents are adamant that to move I should buy somewhere as rentng after all this time is just throwing money away. They are willing to give me a considerable sum (20k) to assist with this and the flat I am looking at will also need Help to Buy. Friends too think it is a good idea to get on the ladder if I can. My panic is that I feel I never did that renting and moving around stage that most twenty-somethings do. I am also incredibly nervous about getting stuck there and overstretching savings.

On the flip side, with the amount of deposit I would have, running it would be very cheap, it would be solely mine, not shared, and the location is great too. I just have ambitions to move away from my hometown at some point like many friends i've had did and I worry buyng this may mess me up and leave me stuck.

Has anyone else ever been through this type of thing? Did you go through with it and then sold quickly? Whilst it should be a big positive to have the opportunity, I havent slept for days through anxiety. Thanks for any help.

Caitykinss

While not in your position exactly, I am in my mid-20s and just exchanged on my first house. I think you have to decide what's best for you, not what your friends have done. Personally, I think renting and moving around in your twenties is overrated, and often done as a necessity rather than for the pleasure of it. When I left university 4 years ago, I too slightly resented moving back in with parents (although grateful for it) and thought I might move away, go on an adventure. This wasn't helped by watching friends going off to London, looking like they're having a great time on social media, but actually flat sharing in grotty places and generally struggling to get by. I didn't think I'd be buying a house in the same city I grew up in, with a job that has nothing to do with my degree. But such is life.

If you put off buying now because maybe, perhaps you'd like to move to a different city one day, are you ever going to do it? Does it mean that instead you'll go and rent somewhere for a while? Or will you stay living with your parents and carry on as you are, watching friends on social media off around the country having a great time? Think about it realistically - if you are going to use this as a kick up the bum to go off and have your big adventure, then go for it! If not, you have to accept it and think of the alternatives and get on with living your life.

Arthritic_Toe

Renting is not necessarily throwing money away - in a falling market it can be the better option. Buying a property that then falls in value is throwing money away.
That said, its a huge bonus being offered 20k for a deposit - so jump on that ladder if you think property prices will be on the way up. You might want to hold fire though if a no-deal Brexit brings about a reduction - and then snap one up at a lower price.

muhandis

Personally, I identify with your reservations about moving directly from parents' to an inflexible owned home (if buying through H2B, you're not even allowed to let it out).

However, it needs to be looked at in the context of your financial situation. If you can afford to lock up the flat and move to another city if need be, then it's no bother.

But if you have to sell the flat to be able to move, it could become a millstone around your neck, especially given the fact that it's a new build flat which will lose x% of its value the day you get the keys.

Finchy2018

You've had 6 or 7 years since you finished uni to move around and still haven't....why so sure you're going to do it now?

RelievedSheff

Leaving the security of your nest (mum and dads house) may seem like a scary move but you have to do it at some point and with the extra help of the £20k towards your deposit from your parents you have really been given a big push in the right direction.

You have to leave home at some point. There are people who would love to be in your situation right now!

Of course it is a scary step buying your first home but if you are ever going to own a home instead of renting then you have to do it at some point.

lloydb723

Thanks for the replies. To answer one person who said i've had six-seven years and didn't move, the reason for that is I got stuck on zero hours for five of those and spent some money travelling, so it was for financial reasons.

I feel that to justify staying here, buying now makes sense but it has just been one thing after another since I decided to. The first place i nearly exchanged on fell through after six months when the solicitor uncovered some concering information about it. As a result I have rather jumped quickly into this one.

Does anyone have expereince of new builds, H2B and selling on quickly? The thing is I currently love my job and have no immediate plans to move away, at least not for another year or two. So this seemed like a good place to be in the meantime. I would be proud of myself for being able to buy, however I worry that I will not be able to sell. Then again renting after all this would also seem like a waste.

[Deleted User]

What 'renting and moving around stage' are you referring to? I certainly never went through that stage and most of the people I know didn't either.

The main reasons people relocate are work, family, or retirement.

If you have no reason to move then whats the point? There is no shame in staying in your home town if you're happy and settled there. You have a great opportunity to get on the property ladder whilst a lot of your friends will probably still be renting for years to come. I'd imagine they are the ones feeling envious of you right now!

ACG

When I bought my first home I bricked it. I was saddled with a debt of about £70k, so not exactly a lot but it is still scary. However, I was paying £350 a month where as rent would have been double that.

Are the cold feet over the property (in which case find another) or the fact you will be saddled with debt? If it is the latter, that is not so bad as you would end up paying probably more in rent each month... Although you should understand that the HTB loan is an equity loan, so it can go up if the value of the property goes up.

lloydb723

The cold feet is the commitment side of things with the mortgage. At least with rent you can give a months notice and get out of there. This place, I would have to sell, or get family to cover it at short notice as I cant let with H2B. However, I know realistically I will stay in my current job a while, so a year renting would probably be a waste of time and I will just be adressing this again in two years time having lost money.

Most of this is hypothetical, but I have friends who have left the country and moved cities previously. Although I wanted to, the timing and job opportunites didn't come up when needed, and I got stuck at home. I just wasn't in the right place/mindset then. Now, many friends are settling down and I feel like I missed out on the fun years. My biggest concern solely lies around being stuck there, having not had the chance to move from place to place. Is this being a bit ridiculous?

muhandis

New builds (especially flats) usually lose value in the initial years (on the plus side that means your HTB loan also goes down)

Whether or not you will be able to sell on quickly is entirely dependent on the circumstances at the time - local property market, economy, leasehold environment, etc - in short impossible to predict.

lloydb723 wrote: »

Does anyone have expereince of new builds, H2B and selling on quickly?