Reducing an already agreed price

Crashy_Time

MovingForwards said:

@Windofchange I'm around your age and had to start over due to marriage breakdown.

There are many of us who want stability, want freedom of making a home a home, it's the small things like being able to decorate, get things fixed instead of waiting and waiting, knowing no-one will ask for their property back because they want to sell it / having family move in / because of daring to ask for a repair.

We all need somewhere to live in retirement and for me that's not a rental, the idea of moving at 70 or 80 isn't something I would want to do.

Based on my 'half' of the rent, shared flat, and on today's 'half' monthly rent, my soon to complete mortgage works out around the same over the mortgage term. When the mortgage is paid off its just upkeep of the property.

I know I've repairs / upkeep to fund too, even that will work out cheaper than my rent liability.

At least I know I will get them done and not be waiting for an electrician and plumber to come out after reporting it the day after getting the keys, still waiting a few months after a professional tradesperson came out.

For me there are loads of positives and I know I'm one of the lucky ones able to buy, many of my friends can't / won't due to income, age or other reason. 

I also made a decision not to max myself out with a mortgage and buy a suitable place for my wants and needs.

Buying a home isn't based on a whim, a lot of thought, planning and saving goes into it. 

How long is the mortgage term, and what tools are you using to predict the interest rate over that term?

MovingForwards

@Crashy_Time 23 year term and I've based it on the original contractual mortgage payment / interest rate, which isn't favourable.

How can I predict future interest rates. My calculations are based on the now.

I made my decision to buy before moving up here. I made a decision to move out of Edinburgh when I buy when I became 'priced out' of buying in the areas I would buy in and I wasn't prepared to borrow the maximum amount to buy in an area I do not like just to say I live in Edinburgh.

If I want to, I could get my mortgage cleared in 10 years due to overpayments.

Never once did I think about making a lower offer since the virus appeared. 

I'm buying a home and will ride out anything that happens now or in the future, as was my plan all along.

Crashy_Time

MovingForwards said:

@Crashy_Time 23 year term and I've based it on the original contractual mortgage payment / interest rate, which isn't favourable.

How can I predict future interest rates. My calculations are based on the now.

I made my decision to buy before moving up here. I made a decision to move out of Edinburgh when I buy when I became 'priced out' of buying in the areas I would buy in and I wasn't prepared to borrow the maximum amount to buy in an area I do not like just to say I live in Edinburgh.

If I want to, I could get my mortgage cleared in 10 years due to overpayments.

Never once did I think about making a lower offer since the virus appeared. 

I'm buying a home and will ride out anything that happens now or in the future, as was my plan all along.

That was my point because you said that the mortgage payment works out at the same as your rent over the term of the mortgage - you can`t know this - and also that your repair liability will work out at less than your rent liability - you can`t know this either! Of course if you can clear your mortgage in ten years that is a bonus for you, so good luck!

John_

danfreestone said:

Myself and my wife are currently in the process of upgrading to a bigger home we have agreed to sell ours for 274k and buy a bigger home for 330k.
Our buyers are still happy paying the 274k for ours. 
Would it be morally wrong to try renegotiate the price down on the purchase. 
This is going to be our forever home so price is not everything but i do like a bargain 
We are currently delayed waiting for lockdown to end 

Yes, it would. If I was selling and someone tried this I’d tell them that the price has actually now gone up by the amount that they were trying to knock off.

if they agreed to it I’d then string them along to exchange and then pull out, because I’d not want to sell to them.

Crashy_Time

John_ said:

danfreestone said:

Myself and my wife are currently in the process of upgrading to a bigger home we have agreed to sell ours for 274k and buy a bigger home for 330k.
Our buyers are still happy paying the 274k for ours. 
Would it be morally wrong to try renegotiate the price down on the purchase. 
This is going to be our forever home so price is not everything but i do like a bargain 
We are currently delayed waiting for lockdown to end 

Yes, it would. If I was selling and someone tried this I’d tell them that the price has actually now gone up by the amount that they were trying to knock off.

if they agreed to it I’d then string them along to exchange and then pull out, because I’d not want to sell to them.

Why would someone who wants more value agree to a price hike? This just doesn`t make much sense I`m afraid......and would likely just see you sitting on the market for longer than necessary.

John_

Crashy_Time said:

ToxicWomble said:

I hope the vendor sees this thread and contacts you to tell you the asking price has just gone up 50k 

The chances of that happening are pretty low IMO.

Yes, but you’ve demonstrated ignorance of the housing market for years, at least a decade during which you didn’t buy as you were certain that prices were coming down.
An educated person would reassess their competence after getting something so wrong for so long, so it’s a bit strange that you just blunder on, acting as if you’ve some insight.

MovingForwards

Crashy_Time said:

MovingForwards said:

@Crashy_Time 23 year term and I've based it on the original contractual mortgage payment / interest rate, which isn't favourable.

How can I predict future interest rates. My calculations are based on the now.

I made my decision to buy before moving up here. I made a decision to move out of Edinburgh when I buy when I became 'priced out' of buying in the areas I would buy in and I wasn't prepared to borrow the maximum amount to buy in an area I do not like just to say I live in Edinburgh.

If I want to, I could get my mortgage cleared in 10 years due to overpayments.

Never once did I think about making a lower offer since the virus appeared. 

I'm buying a home and will ride out anything that happens now or in the future, as was my plan all along.

That was my point because you said that the mortgage payment works out at the same as your rent over the term of the mortgage - you can`t know this - and also that your repair liability will work out at less than your rent liability - you can`t know this either! Of course if you can clear your mortgage in ten years that is a bonus for you, so good luck!

No one can calculate anything based on future prices as money changes in value, I've seen how prices change over the years, as have you. No one can say there will / will not be a property crash now, next year in ten years; it's all best guesses.

My first five years are on a fixed rate, then my next one will be too, probably at a lower Apr than I'm going to be paying when I complete.

As I'm a joint tenant, I'm liable for the whole rent each month, as is my mate. We just opted to pay 50% each. Therefore my rent liability is a lot more than mortgage / outgoings / repairs will be.

I've worked out how much my share of the rent is and the whole rent liability, based on the current rental cost for a year, multiplied it by five and compared that to the mortgage and overpayments.

I've also worked out my outgoings for when I do complete and they are less than my rent liability.

Had I kept saving to buy in Edinburgh, it would have taken years and I still may not have been able to buy here. 

Therefore I had a decision;
-- do I keep saving and risk being in rental when I retire on state pension and small company pensions,
or
-- do I buy, pay the mortgage off, work on getting a bigger pension / savings and make a home my home.

Which is why it's down to everyone buying a home, now or in the future, to weigh it all up and not go in blind.

Crashy_Time

John_ said:

Crashy_Time said:

ToxicWomble said:

I hope the vendor sees this thread and contacts you to tell you the asking price has just gone up 50k 

The chances of that happening are pretty low IMO.

Yes, but you’ve demonstrated ignorance of the housing market for years, at least a decade during which you didn’t buy as you were certain that prices were coming down.
An educated person would reassess their competence after getting something so wrong for so long, so it’s a bit strange that you just blunder on, acting as if you’ve some insight.

No, I said that it was a leveraged debt bubble that wouldn`t withstand big financial shocks, and had no interest in buying anyway, subtle, or not so subtle difference. It looks like you think people who just happened to buy at the start of a credit bubble are to be taken as educated and competent on the economy, housing etc. I can only wish you good luck with that one.

Crashy_Time

MovingForwards said:

Crashy_Time said:

MovingForwards said:

@Crashy_Time 23 year term and I've based it on the original contractual mortgage payment / interest rate, which isn't favourable.

How can I predict future interest rates. My calculations are based on the now.

I made my decision to buy before moving up here. I made a decision to move out of Edinburgh when I buy when I became 'priced out' of buying in the areas I would buy in and I wasn't prepared to borrow the maximum amount to buy in an area I do not like just to say I live in Edinburgh.

If I want to, I could get my mortgage cleared in 10 years due to overpayments.

Never once did I think about making a lower offer since the virus appeared. 

I'm buying a home and will ride out anything that happens now or in the future, as was my plan all along.

That was my point because you said that the mortgage payment works out at the same as your rent over the term of the mortgage - you can`t know this - and also that your repair liability will work out at less than your rent liability - you can`t know this either! Of course if you can clear your mortgage in ten years that is a bonus for you, so good luck!

No one can calculate anything based on future prices as money changes in value, I've seen how prices change over the years, as have you. No one can say there will / will not be a property crash now, next year in ten years; it's all best guesses.

My first five years are on a fixed rate, then my next one will be too, probably at a lower Apr than I'm going to be paying when I complete.

As I'm a joint tenant, I'm liable for the whole rent each month, as is my mate. We just opted to pay 50% each. Therefore my rent liability is a lot more than mortgage / outgoings / repairs will be.

I've worked out how much my share of the rent is and the whole rent liability, based on the current rental cost for a year, multiplied it by five and compared that to the mortgage and overpayments.

I've also worked out my outgoings for when I do complete and they are less than my rent liability.

Had I kept saving to buy in Edinburgh, it would have taken years and I still may not have been able to buy here. 

Therefore I had a decision;
-- do I keep saving and risk being in rental when I retire on state pension and small company pensions,
or
-- do I buy, pay the mortgage off, work on getting a bigger pension / savings and make a home my home.

Which is why it's down to everyone buying a home, now or in the future, to weigh it all up and not go in blind.

Again you are predicting rates five years out, and relying on this to make your sums work? Also you can`t be liable for the whole rent if someone else is also liable for the whole rent but you only pay 50% each? Outgoings could probably be calculated to an extent, if we don`t get serious inflation off the back of all the bailout tools being used, that could raise rates and impact the amount of spare cash you have for over-payments, and a serious structural or roof repair will cost you a lot more than a years rent probably?

MobileSaver

Crashy_Time said:

 a serious structural or roof repair will cost you a lot more than a years rent probably?

Oh please, that old chestnut for the HPC brigade when all other scare-mongering options have been exhausted! In over 30 years of home ownership (all of older properties) I have never once had to pay out for a "serious structural or roof repair" or for a new boiler either.