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Back out of Sale & Purchase?
lockstock27
Posts: 7 Forumite
Hi All,
This will be subject to opinion and may well start a debate because lets face it no one knows what is going to happen in the coming months.
We put our house on the market at the end of January and it got snapped up! we knew it would. Its a great house for first time buyers (As it was for us) we decided to look at moving on because we've been here for 3 year this week. But the house is on a main road which is getting louder now that a new estate has been built down the road and the more we are here the more noticeable it becomes. This road is on the front too so that means a loud living room and master bedroom. So we want to move into a cul de sac off a main road (which we currently are) Anyway... it got snapped up. 11 viewing in 2 days!
We have a good amount of equity which is actually enabling us to move. If it wasnt for that then we just dont have the funds. So all was going relatively well - also we have got a lot on our plate with serious illness in the family that is progressively getting worse and more frequent so we had considered backing out as things took a turn in February. Things have settled enough to carry on BUT now this COVID outbreak which is affecting EVERYTHING! My wife has a friend at her work who is also around the same stage of moving as us and their solicitors contacted them to basically say "look, you should talk to us about how you wish to proceed because the value of the house you are buying could significantly drop" The house we are buying is nice... Wife is more sold on it than me. It was refitted a the end of 2018 with an extension so its at a good standard throughout BUT I did and still do feel that it was at the top end of what it's worth. With this now I feel we could exchange contracts and then BAM! a few months down the line loads of the value is gone. I've talked to people about it (non professionals) just to air my feelings and concerns and I keep getting the response "If it is your long term home, then go for it" which yes, I see what they are saying. If the market does take a dive then in 5-10 years it could pick back up again and most likely will. But we are young professionals - I'm not set in my career. I've done 10 years in the field and would like to make a career change a bit later on. My wife will become qualified in her field early next year and that well made lead her to end up looking further a field to get the role she will be qualified for. So this was only another 2-3 year plan for us... not long term. Should we pull the cord?
This will be subject to opinion and may well start a debate because lets face it no one knows what is going to happen in the coming months.
We put our house on the market at the end of January and it got snapped up! we knew it would. Its a great house for first time buyers (As it was for us) we decided to look at moving on because we've been here for 3 year this week. But the house is on a main road which is getting louder now that a new estate has been built down the road and the more we are here the more noticeable it becomes. This road is on the front too so that means a loud living room and master bedroom. So we want to move into a cul de sac off a main road (which we currently are) Anyway... it got snapped up. 11 viewing in 2 days!
We have a good amount of equity which is actually enabling us to move. If it wasnt for that then we just dont have the funds. So all was going relatively well - also we have got a lot on our plate with serious illness in the family that is progressively getting worse and more frequent so we had considered backing out as things took a turn in February. Things have settled enough to carry on BUT now this COVID outbreak which is affecting EVERYTHING! My wife has a friend at her work who is also around the same stage of moving as us and their solicitors contacted them to basically say "look, you should talk to us about how you wish to proceed because the value of the house you are buying could significantly drop" The house we are buying is nice... Wife is more sold on it than me. It was refitted a the end of 2018 with an extension so its at a good standard throughout BUT I did and still do feel that it was at the top end of what it's worth. With this now I feel we could exchange contracts and then BAM! a few months down the line loads of the value is gone. I've talked to people about it (non professionals) just to air my feelings and concerns and I keep getting the response "If it is your long term home, then go for it" which yes, I see what they are saying. If the market does take a dive then in 5-10 years it could pick back up again and most likely will. But we are young professionals - I'm not set in my career. I've done 10 years in the field and would like to make a career change a bit later on. My wife will become qualified in her field early next year and that well made lead her to end up looking further a field to get the role she will be qualified for. So this was only another 2-3 year plan for us... not long term. Should we pull the cord?
0
Comments
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A 2 - 3 year house isn't a great investment at the best of times.....and whatever this time is, it's certainly not the best.
3 -
Surely it's swings and roundabouts for you though? If you're selling and buying now? You could pull the plug and your current house will go down in value as well as the one you buy.1
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There is that. But given that we've already paid 3 years of this mortgage and if it did drop we'd be back to maybe a similar price to what we bought it for....so we would hopefully still have a bit of equity to work with.Splatfoot said:Surely it's swings and roundabouts for you though? If you're selling and buying now? You could pull the plug and your current house will go down in value as well as the one you buy.
But if we move and up our mortgage by 60-70k, then use the equity into the deposit of around 25k and then the !!!!!! falls out of the market... the deposit is in the wind and we are in negative equity.0 -
But it could be double the negative eq so stuck in the new house far longer than stuck in the current one.Splatfoot said:Surely it's swings and roundabouts for you though? If you're selling and buying now? You could pull the plug and your current house will go down in value as well as the one you buy.
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Yeah. Just tried to take a step back and a deep breath. Looked at some photo's of the new property to see how I feel about it. Can see why we went ahead to begin with. Probably need to stop looking so far into the future and the what if's. Bigger issues surround the exchange and completion if removal service gets struck down or we get struck down and cant move out because we are to self isolate. One thing at a time aye. Thanks. Just nice to get some unbiased opinions. Wife is a bit blinded by the new and exciting. I'm a bit more of a pessimist/realistmarkin said:
But it could be double the negative eq so stuck in the new house far longer than stuck in the current one.Splatfoot said:Surely it's swings and roundabouts for you though? If you're selling and buying now? You could pull the plug and your current house will go down in value as well as the one you buy.0 -
Moving for just 2-3 years is a large expense to incur. (2 sales/2 purchases) . Yet you are concerned about house prices. Personally I would stay longer in the existing property and build more equity.1
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Buying for only 2-3 years with a small deposit is a risky move. If house prices remain stable or increase, it works well. If house prices drop, you can find yourselves trapped and unable to move into a different property because your deposit gets wiped out.
If you do it with a decent deposit, its much less risky. While a crash will always reduce the value of your deposit, it will drop house prices generally, so it would become more affordable to move - as long as you do still have a deposit.
1
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