Should I buy the house?

Shreeve26

On the 1st April, We were supposed to be moving into our first home. Due to the lockdown, we decided to change the date. Now, we are extremely concerned about a housing crash. The house is vacant so according to government guidance we can still move. The vendor has dropped  £10,000 off the price (£235,000 to £225,000) but this is only 4.2%. Should we pull out of the purchase or buy the house ?

Comms69

How much are you putting in as a deposit? Is it a forever home?

Basically I wouldn't be buying now, not even for cash. I would be buying in 12-18 months time, when the market is flooded and prices drop. 

Vestraun

Have you already exchanged? 

RelievedSheff

A lot will depend on how long you plan to stay in this house. If it is a long term home then there is very little reason to put off the move. If you plan to move in 2-3 years then you would need to be more cautious and consider your options more carefully, including where you will live in the mean time and how much in rent this will cost. 

The vendor has already offered you a discount of 4.2% which they have no obligation to do. No one holds a crystal ball so no one can tell you what the housing market is going to do over the next few months or years. Take with a pinch of salt any advice from people who claim to they can tell you what it will do.

We all need somewhere to live and if you view your house as a home rather than as a cash cow it will put you in better stead.

numbercruncher8

Need more details. Your own financial situation is likely to have a bearing, as well as employment prospects.
If the discount was unsolicited that seems to me to be a very rare thing, do more research on what caused this.

[Deleted User]

Very low discount, you should be looking for sub 200k now. If you can wait then I'd just wait, prices are not going up and no one else is buying at the moment.

Crashy_Time

[DELETED USER] said:

Very low discount, you should be looking for sub 200k now. If you can wait then I'd just wait, prices are not going up and no one else is buying at the moment.

Yes the discount would be more suited to more "normal" times.

graphs

There is a bigger discount to be had. Play hardball

Crashy_Time

RelievedSheff said:

A lot will depend on how long you plan to stay in this house. If it is a long term home then there is very little reason to put off the move. If you plan to move in 2-3 years then you would need to be more cautious and consider your options more carefully, including where you will live in the mean time and how much in rent this will cost. 

The vendor has already offered you a discount of 4.2% which they have no obligation to do. No one holds a crystal ball so no one can tell you what the housing market is going to do over the next few months or years. Take with a pinch of salt any advice from people who claim to they can tell you what it will do.

We all need somewhere to live and if you view your house as a home rather than as a cash cow it will put you in better stead.

Even a planned long term home may have to be sold sooner due to unforeseen circumstances, the OP would be wise to negotiate a bigger cash cushion than 4.2% IMO.

steampowered

It depends on your situation really. 

If you have a decent deposit and are intending to stay in the property for some time - those would all be good reasons to go ahead. Over the long term with a decent deposit it shouldn't matter if there is a drop then a recovery in house prices.

If you have a wafer thin deposit, or are intending to move on in say 2-3 years - I'd be tempted to wait.

MysteryMe

No one knows enough about the property you have offered on or your personal circumstances or the circumstances of the vendor to be able to give any kind of meaningful advice.
If you pull out or the vendor takes the property off the market you need to be aware that there are always more circumstances at play than just price in a falling market. Too many posts on here are implying that house prices will dramatically fall but everything else remains the same as now. It wont. Interest rates and lending criteria will change as will the availability of housing stock. There may be a plentiful supply of former BTL flats or similar low cost housing but you will not be seeing a glut of desirable housing in desirable locations. People ride out the storm, unless you are the bottom of the ladder most people buy houses for the long term. You can't stop making decisions because of what ifs however if you are in less secure employment or already stretching finances you need to think things through. Buying may still be a better option than paying rent. Uncertainty over employment applies just as much to renters as it does to home owners BTW.