Complete sale now & go into rented, OR keep money safe in our home & start over again after Brexit?

askalice

We have a sincere and very patient full-asking-price buyer but we can't find the right place to buy and move to. There's just not a lot of houses on the market in our area and price bracket. We could sell and go into rented until we find the right place, but I am afraid that the pound will crash after Brexit and we will find it will buy less next year (or whenever/if ever Brexit happens.) If we stay where we are for now and lose our buyer, at least our house's value will rise and fall in line with the housing market, but the money market will be much more volatile. Is my logic correct, or am I just an ignoramus where the markets are concerned? Thanks for any ideas and/or advice; this will be our last move as we are in our 70s now and won't be able to recover from a big mistake at this last hurdle

Disjoint

What percentage discount are you selling it at today vs. price before Brexit? If you are taking a big hit I would reconsider as it sounds like you are downsizing (in your seventies, I assume that's what you are doing).
If you are selling it pre-Brexit prices then I wouldn't worry too much, doubt we will get a huge rally in prices post Brexit, might just be a small uptick that shouldn't cause you concern (At least that's what my crystal ball tells me)
Also do you intend to stay in the UK? If yes the £ should not be of any concern to you, as you live and spend in £

Skiddaw1

Disjoint wrote: »

Also do you intend to stay in the UK? If yes the £ should not be of any concern to you, as you live and spend in £

That's what I was thinking too. I think, if it were me, I'd go ahead with the sale, rent, and look for somewhere else to buy at my leisure. After all, whatever ultimately happens re Brexit, people will still need to buy and sell houses and as cash buyers you'll be in a strong negotiating position as and when you find somewhere suitable.

Comms69

askalice wrote: »

We have a sincere and very patient full-asking-price buyer but we can't find the right place to buy and move to. There's just not a lot of houses on the market in our area and price bracket. We could sell and go into rented until we find the right place, but I am afraid that the pound will crash after Brexit - I mean aside from the fact it probably wont; even if it does, the housing market is linked to the pound. and we will find it will buy less next year (or whenever/if ever Brexit happens.) If we stay where we are for now and lose our buyer, at least our house's value will rise and fall in line with the housing market, but the money market will be much more volatile. Is my logic correct, or am I just an ignoramus where the markets are concerned? Thanks for any ideas and/or advice; this will be our last move as we are in our 70s now and won't be able to recover from a big mistake at this last hurdle

Without being harsh - you cant take it with you; do whatever will make you happy in your golden years. If the move is for a retirement near the sea (or whatever) just aim to do that.


If the pound falls, it will be against another currency. We wont get hyperinflation, so the price of existing housing stock would simply adjust.


New housing stock would probably be affected slightly as builders adjust.

theartfullodger

After Brexit? It might never happen!


Just get Remain done!

askalice

Thanks for your thoughts, everyone. I think we have decided to stay put for now. We would be spending more on the cost of renting than our capital would be earning in interest. Trying to be philosophical: we're lucky to have alternatives to choose from, unlike those on minimum wages and zero-hours contracts.

Thanks again

AnotherJoe

askalice wrote: »

We have a sincere and very patient full-asking-price buyer but we can't find the right place to buy and move to. There's just not a lot of houses on the market in our area and price bracket. We could sell and go into rented until we find the right place, but I am afraid that the pound will crash after Brexit and we will find it will buy less next year (or whenever/if ever Brexit happens.) If we stay where we are for now and lose our buyer, at least our house's value will rise and fall in line with the housing market, but the money market will be much more volatile. Is my logic correct, or am I just an ignoramus where the markets are concerned? Thanks for any ideas and/or advice; this will be our last move as we are in our 70s now and won't be able to recover from a big mistake at this last hurdle

You are an ignoramus


When on the news you see the Pound rose or fell against the Dollar, that doesn't mean your house went up or down by the same amount or any amount, our house prices are not linked to the pound vs other currencies despite what you said.
Our houses in the UK are priced in Pounds, not Dollars (or Euros). Unless you are downsizing to Tenerife or Florida, get on and sell it, buyers are in short supply at the moment.
And then you'll be a cash buyer next time which may help with your purchase.

Davesnave

We sold to rent during the last Crash, but at that time interest was at around 6% so we actually made significant money renting in a more affluent road than the one we sold in. Indeed, we'd never been so well-off!

I don't know how niche the property you seek might be, but we were after something quite specific with too little money to have a lot of choice. After 6 months, we found something with a highly motivated buyer on a tight schedule and benefited greatly by being unencumbered. I can honestly say that we wouldn't be here now without that ability to pay cash and move fast.

On the other hand, I remember the financial chaos of that time in the rented place and thinking all our net worth was simply pixels on a screen, so there was a part of me that was ready to buy quickly too. A little voice kept whispering "A house is always going to be worth a house!"

As it turned out, the worst predictions of the pundits didn't happen, so although we bought right at the bottom, we could easily have waited longer. There was no massive rebound in prices here.

The last Crash was global, while the B thing is national, and as others have said, if you're buying here, falls in the £ won't impact directly. We still have a huge housing shortage and lots of pent-up demand. Who is to say though, whether the next global Crash isn't just around the corner?

I would do what makes you feel comfortable. We 'enjoyed' the risk to some extent, remembering Alvin Hall's "Buy when others are fearful," though he wasn't talking about houses. We're 10 years older now; around your age in fact, and probably not so cavalier in our approach to risk.

Davesnave

theartfullodger wrote: »

After Brexit? It might never happen!
Just get Remain done!

Only might?

jbondo

As a buyer, I would be extremely frustrated that you are not willing to proceed and would indeed be considering looking elsewhere. Specially if the buyer was chain-free and ready to move in asap etc.

Davesnave

jkility wrote: »

As a buyer, I would be extremely frustrated that you are not willing to proceed and would indeed be considering looking elsewhere. Specially if the buyer was chain-free and ready to move in asap etc.

I know what you mean. The very first 'ideal' property we set out to buy was suddenly withdrawn when the couple looked into the abyss and decided to visit Relate instead.

Much later, we realised it wasn't really ideal at all, but that was after viewing many others. We needed the experience.

The OP wasn't suggesting keeping the buyer waiting any longer. No one, not even you, ought to consider making a move just to suit someone else's agenda. We all have a right to change our minds in the light of experience.