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

jimmyjammy001

Well this has just come out, talking about around a 20% fall in house prices, let's not forget that they are in a massive bubble at the moment due to low interest rates, various government prop up schemes and Bank of mums and dad's pumping money in. 

https://www.thisismoney.co.uk/money/mortgageshome/article-8138747/House-prices-collapse-20-amid-coronavirus-crisis.html

jay213

I guess it depends if you want to take the risk that your job is still going to be okay after this.  A lot has changed the last few weeks, I think you should offer less if you think you can go ahead and you want to risk the greater chance of going in to negative equity and maybe staying there longer than intended.

I would think going forward you could get more for your money.  The price you were willing to pay 11 months ago, was when the economy was doing well.

Davesnave

Buying in a recession or at the end of it can get people a bargain, but as I'm forever pointing out, the supply of property at those times will be weak. There's the 3 Ds of death, debt and divorce which force people to sell, but unaffected by those, they tend to stay put.

We were lucky to find what we wanted in only 6 months at the end of the last crash, but we were much more flexible regarding location than the majority of buyers. Our vendor had experienced 2 of the 3Ds and the house whole property needed a cash input, which again, isn't something everyone wants.

Like a pair of shoes that hurt, it's no good buying a bargain if it doesn't fit you!

FtbDreaming

Im gonna go back on what I said originally and say pull out. Nothing to do with covid19 or the market but £110k for a studio flat at the age of 28 isn't really a long term option unless you're planning on staying single forever. 

My 3 bed house with gardens and driveway is £80k... It’s not that grim up north. 

snowqueen555

Seems risky to me to buy a studio flat right now especially with your little job security. But I am not you. 

SharkMoney

I would definitely pull out - a studio flat is hardly a forever home and there must be tons on the market, plus brand new ones. I would personally hold out for home builders to start offering dramatic discounts.

Splodges

I'm considering first thing tomorrow morning telling my solicitor not to exchange. Then telling the estate agent I'd like to pull out unless another price could be negotiated. I wouldn't have considered doing something like this before the last couple of weeks. And I'd be quite happy to pull out if they didn't want to offer the price- I was willing to pay a fixed asking price for the last 11 months but I think the perceived value has gone down now. Thoughts on this? I still expect it likely that prices may drop, if I can save £5k-10k it would allow a small safety net to reduce risk and I'd be happy to walk away without the deal.

Mickygg

Thrugelmir said:

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. 

I know how real the news is. Everyone does. I am merely pointing out the panicking and hysteria doesn't help. This poster is saying cruise liners and airlines are definitely going bust all over the place. Unless this person has a crystal ball no one knows. 

As for no sport for the rest of the year, this would have been read and quoted from daily fail.

I'll say it again.... no one knows how this will go or who is going to go bust or when live sport will next air. 

Mickygg

Splodges said:

I'm considering first thing tomorrow morning telling my solicitor not to exchange. Then telling the estate agent I'd like to pull out unless another price could be negotiated. I wouldn't have considered doing something like this before the last couple of weeks. And I'd be quite happy to pull out if they didn't want to offer the price- I was willing to pay a fixed asking price for the last 11 months but I think the perceived value has gone down now. Thoughts on this? I still expect it likely that prices may drop, if I can save £5k-10k it would allow a small safety net to reduce risk and I'd be happy to walk away without the deal.

I think this is the right call. It is likely prices will drop but we don't know. If I was in your shoes unless the property was a one off and you have been looking for years I don't think I would proceed just now. At the very least I would delay. 

JayRitchie

Splodges said:

I'm considering first thing tomorrow morning telling my solicitor not to exchange. Then telling the estate agent I'd like to pull out unless another price could be negotiated. I wouldn't have considered doing something like this before the last couple of weeks. And I'd be quite happy to pull out if they didn't want to offer the price- I was willing to pay a fixed asking price for the last 11 months but I think the perceived value has gone down now. Thoughts on this? I still expect it likely that prices may drop, if I can save £5k-10k it would allow a small safety net to reduce risk and I'd be happy to walk away without the deal.

Not sure £5k is where it is at. 25% maybe?