Ready to exchange on house purchase - should we reduce our offer due to COVID-19?

Crashy_Time

Jono987 said:

MobileSaver said:

ger1986 said:

move in with parents until we find a place. ... they will still be available in a few months (and potentially at a reduced price). 

Unless you happen to find desperate vendors, you are totally kidding yourself if you think much will change price-wise or otherwise "in a few months."

However as long as you are happy to live with parents for a year or so then you're one of the lucky ones who has less downside to delaying than most people.

This, you wont see prices much lower in a few months lol, yes they will probably drop but it will take a long time to see it.
I assume you are a young couple? If so enjoy living with your parents for what will probably be way over a year! Personally i would have gone through with the purchase just to not have to do this haha, money isnt everything! 

It happened quickly in 2007/8, why do you see it taking a long time this time around?

MobileSaver

Crashy_Time said:

Jono987 said:

 yes they will probably drop but it will take a long time to see it.

It happened quickly in 2007/8, why do you see it taking a long time this time around?

What on earth are you talking about? It took until a year and a half after the 2007 financial crisis before prices dropped around 20%!

Oh, and guess what, prices dropped by 20% but transactions dropped by 50% putting paid to the fake news that lower prices makes it easier to buy a house...

kinger101

There's not enough information on what you've posted.  But my concern would be spending what sounds like a large portion of your income on a 35 year mortgage.  Sounds like you're already high risk.  If house prices do crash*, or lending criteria tighten, you might find that no lender will accept you for a remortgage at the end of your current product. So you'd end up on the standard variable rate.

If that's something I couldn't afford, then I wouldn't be buying right now.

* we don't know that they will, and won't until months after restrictions are lifted due to transactions levels being too low.

Hannimal

Uhm. Please don't treat people like this.

Crashy_Time

MobileSaver said:

Crashy_Time said:

Jono987 said:

 yes they will probably drop but it will take a long time to see it.

It happened quickly in 2007/8, why do you see it taking a long time this time around?

What on earth are you talking about? It took until a year and a half after the 2007 financial crisis before prices dropped around 20%!

Oh, and guess what, prices dropped by 20% but transactions dropped by 50% putting paid to the fake news that lower prices makes it easier to buy a house...

How do you explain that prices are higher now, but transactions are about half what they were back then?

MobileSaver

Crashy_Time said:

MobileSaver said:

prices dropped by 20% but transactions dropped by 50% putting paid to the fake news that lower prices makes it easier to buy a house...

How do you explain that prices are higher now, but transactions are about half what they were back then?

Again, you are taking one thing and then making the assumption that the opposite must also happen, clearly it didn't and hasn't.

The verifiable facts do not lie, unlike your oft-quoted "In My Honest Opinion" it is indisputable that when prices dropped significantly during the last financial crisis, transaction levels dropped even more significantly.

There is a certain irony that for years you gloated about low transaction levels but now that you have realised the implications of lower prices = lower sales you are trying to deflect away from reality.

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

prices dropped by 20% but transactions dropped by 50% putting paid to the fake news that lower prices makes it easier to buy a house...

How do you explain that prices are higher now, but transactions are about half what they were back then?

Again, you are taking one thing and then making the assumption that the opposite must also happen, clearly it didn't and hasn't.

The verifiable facts do not lie, unlike your oft-quoted "In My Honest Opinion" it is indisputable that when prices dropped significantly during the last financial crisis, transaction levels dropped even more significantly.

There is a certain irony that for years you gloated about low transaction levels but now that you have realised the implications of lower prices = lower sales you are trying to deflect away from reality.

No, I am just stating the fact that transactions stayed lower while prices moved higher. The market isn`t people who won`t/don`t sell the market is people who want/need to sell, and actually sell! It is too early to say how prices/transactions will move at this stage IMO, although I wouldn`t want to be a BTL landlord between tenants or running Airbnb just now. I can`t get at one of my pensions just now to transfer it because the commercial property investments are shut to withdrawals for at least six months, so even "crashists" are feeling the heat from this one!

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

prices dropped by 20% but transactions dropped by 50% putting paid to the fake news that lower prices makes it easier to buy a house...

How do you explain that prices are higher now, but transactions are about half what they were back then?

it is indisputable that when prices dropped significantly during the last financial crisis, transaction levels dropped even more significantly.

No, I am just stating the fact that transactions stayed lower while prices moved higher.

Right, so we are in agreement then! Even though it seems counter-intuitive, it is a simple fact that (for a whole myriad of reasons) if house prices fall it actually gets harder to buy a house.

megw

Reduce offer, then pull out completely if they don't accept. House prices are about to come crashing down. 

sjc93

This thread is a trip.... The same users do sure love scaremongering the first time/nervous buyers!

Only you know with your personal circumstances whether you want to go ahead with the move or not. If it's your first home and you're in rented, living with parents & you need to get out (or any other situation, etc) and you're in a position where you can see yourself in the property for at least five years, then I'd go for it. 

You already got the property 8% under the asking price - at the end of the day, we have to put a roof over our heads. I'm going through the process of buying my first property with my OH and we're renting.. With everything going on due to COVID, we probably could have gazundered and tried to negotiate with the price (we bought for asking, the property is in a popular area & we knew it would go) but we love the property and we can see ourselves in it for at least 5 years (we have a 5yr fixed term mortgage).

I live in the cotswolds so house prices aren't going to 'dramatically' drop around here. At the end of the day, it's up to you and if you really love the house and see it more of an investment than a roof over your head that will eventually be yours regardless of how much you're paying for it (and your money is actually going towards something instead of renting and dead money!)