Should I pull out of my purchase last minute? Covid concerns.

hotnoise

graphs said:

Anything between 20-40% falls in property looking likely. This virus is not going away and recession is coming if not a depression.

And you're getting those figures from...? Property prices didn't even drop 20% in 2008, and that was a banking crash that directly affected mortgaging and the housing sector.

I think people are vastly overplaying how badly house prices are going to be affected with this current economic downturn. I'm buying a property myself right now, so I'll be sure to pop back and let you tell me "told you so!" if things pan out as miserably as you think they will.

iammumtoone

If the worse happens and you have to stay in it for more than 5 years how would you feel?  If you have to continue living with your Dad for the next five years at an age where it would be better for you to be able to come and go freely in your own home, how would you feel? Personally I would not have wanted to live at home at your age, certainly not long term. 
The answer to those questions may help you decide.

Mickygg

homeless9 said:

Can you offer less, or is it too late?. UK has now shutdown. Hospitality sector switched off. Next to nobody travelling abroad, or travelling to UK. Cruise liners and airlines about to go bankrupt. Sport switched off for the rest of the year it seems. Utter devastation. 

Eh? If you are so knowledgeable about the cruise liners and airlines going bust I assume you've gone all in shorting? Sport switched off for rest of year? Its people like you spouting nonsense I wish couldn't post in threads.
Enlighten us all which airlines and cruise liners are going bust that you are so sure on? Hard times for sure but this is a bold statement when all you are doing is guessing or reading the daily fail.

Splodges

JayRitchie said:

i think I'd play safe if I was you. How much do you earn? Is it a place you could live for 10 years?

Play safe as in to pull out and not buy?

Davesnave

Splodges said:

Davesnave said:

FtbDreaming said:

I know people say its just business but you have had so much opportunity to pull out over the last 11 months or even 3 weeks since the covid drama arrived at our shores pulling out on the day of exchange is quite mean. 

I wouldn't lay a guilt trip on someone because the perilous nature of their employment has just become apparent to them. In my book, that's quite mean too.

We're in an unprecedented situation, the nature of which is only just becoming clear to many . Only a week ago some respondents here were still doubting the severity and long term nature of the recession we shall face. No one has a crystal ball of course, but one's hardly needed.

I'm not going to advise the OP, as  they know best about their track record in the industry and their likely prospects when normality returns. What I will say is that we lost buyers at the start of the last recession and we were  mightily peed-off by that. We were  even more peed-off by the time we'd lost two more buyers and 16% of the original sale agreed price a year later! Regardless of how upsetting the experience was though, our losses were merely financial and we got over them.

It sounds like you'd estimate a recession and fall in house prices over the next couple of years too then? 

Well, it's global and the last crash impacted prices for at least 4 years in most places. You'll have seen my earlier statement that we lost 16% on an up-together house by selling in 2008 rather than sit it out. That was in a place a stones throw from Bath's Royal Crescent, not some dump in a post-industrial dead end, so I'm not with those doubting 20% falls happened.

However, no one can predict accurately what will happen this time, or what schemes governments will cook up to rescue what's left of the economy.

Splodges

iammumtoone said:

If the worse happens and you have to stay in it for more than 5 years how would you feel?  If you have to continue living with your Dad for the next five years at an age where it would be better for you to be able to come and go freely in your own home, how would you feel? Personally I would not have wanted to live at home at your age, certainly not long term. 
The answer to those questions may help you decide.

Yeah it's not ideal by any means- the property I'm buying is a studio flat so I'd be wanting to sell in 5 years most likely and upgrade after saving/paying off capital aggressively for that time. I wouldn't stay at my dads for 5 years, more like 1-2 while aggressively saving most of my income then looking to enter the market with a much higher downpayment at hopefully lower prices

JayRitchie

Splodges said:

JayRitchie said:

i think I'd play safe if I was you. How much do you earn? Is it a place you could live for 10 years?

Play safe as in to pull out and not buy?

Well - I dont think this is the time to borrow lots if you are heavily stretching to pay the mortgage, or have a non safe job. A lot depends on whether its a place you would be happy to live in for a long time. I know people who were in 40% negative equity which was no fun when they wanted to start families. On the other hand there is a lot to be said for having your own place. 

Grenage

I think most people would have to be bonkers to proceed with any purchase at the moment; there's no way houses prices aren't going to drop significantly.  Save your money and reap the rewards when the prices come down.  It's unfortunately for the seller but you can't shaft yourself to be nice.

I say this as a home-owner with no particular interest in house prices going either way, as we've still got another 7 years on our fixed term.  Maybe the economy will have recovered by then - maybe not.  This is going to have drawn-out consequences.

Thrugelmir

Mickygg said:

homeless9 said:

Can you offer less, or is it too late?. UK has now shutdown. Hospitality sector switched off. Next to nobody travelling abroad, or travelling to UK. Cruise liners and airlines about to go bankrupt. Sport switched off for the rest of the year it seems. Utter devastation. 

Enlighten us all which airlines and cruise liners are going bust that you are so sure on? Hard times for sure but this is a bold statement when all you are doing is guessing or reading the daily fail.

Doesn't take much to realise that with few planes flying and next to no cruise ships sailing that companies are going to have financial difficulties. Quantas is standing down 20,000 of it's employees for six months without pay for example. That's how real the news is. 

diggingdude

I'm not sure I would buy a studio at this moment in time. Tbh if prices drop many just won't sell. But to be stuck in a studio for say 10 years could be hard. What if you need a room for kinky fun time?