PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.SDLT pantomime
I am worried if I buy now, come 1st April it will transpire that I have paid over the odds meaning a reduction in equity or possibly even negative equity.
As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
Also, as a FTB I wouldn’t have paid SDLT on the first £300k anyway so I feel that the chancellors announcement has made property even more risky and unaffordable for FTBs.
Would you gamble and purchase now, or hold off until 1st April 2021 where property prices will fall by 3% effectively due to the SDLT becoming payable again? The chancellor could extend the holiday also.
I have a large enough deposit for the LTV requirements and a secure job, but if prices fall in April, I could effectively lose my equity.
What happens if there is a second wave of CV-19 in the winter. It seems like the government aren’t even planning for this.
Comments
-
As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
You are overthinking it, as many do. You are buying something to live in, hopefully for a long time. Once you buy you'll have a mortgage you can afford and a place you can call home.
The value of the property in one or two years time will be irrelevant when you own it. The value when you come to sell might be relevant, but you can't predict prices 10 or fifteen years into the future so don't even try or worry about it.
1 -
jonnygee2 said:As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
You are overthinking it, as many do. You are buying something to live in, hopefully for a long time. Once you buy you'll have a mortgage you can afford and a place you can call home.
The value of the property in one or two years time will be irrelevant when you own it. The value when you come to sell might be relevant, but you can't predict prices 10 or fifteen years into the future so don't even try or worry about it.
There is nothing stopping me staying put for say 12 months, although not ideal. As a FTB I won’t be buying a family home so will probably be moving again in 3-4 years - here lies my predicament.In my situation, I don’t want to be buying at the height of the market, as no one would.0 -
There is nothing stopping me staying put for say 12 months, although not ideal. As a FTB I won’t be buying a family home so will probably be moving again in 3-4 years - here lies my predicament.
Honestly if you are going to have to sell in 3 years, just don't buy for another 3 years. It's too short, the costs and risks of buying and selling outweigh any price gains.
Trying to predict the market is a fools game. Buy what you can afford when you can afford it, but do try and buy with at least 5 years in mind, preferably much more.
1 -
Sibbers123 said:jonnygee2 said:As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
You are overthinking it, as many do. You are buying something to live in, hopefully for a long time. Once you buy you'll have a mortgage you can afford and a place you can call home.
The value of the property in one or two years time will be irrelevant when you own it. The value when you come to sell might be relevant, but you can't predict prices 10 or fifteen years into the future so don't even try or worry about it.
There is nothing stopping me staying put for say 12 months, although not ideal. As a FTB I won’t be buying a family home so will probably be moving again in 3-4 years - here lies my predicament.In my situation, I don’t want to be buying at the height of the market, as no one would.1 -
Wkmg said:Sibbers123 said:jonnygee2 said:As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
You are overthinking it, as many do. You are buying something to live in, hopefully for a long time. Once you buy you'll have a mortgage you can afford and a place you can call home.
The value of the property in one or two years time will be irrelevant when you own it. The value when you come to sell might be relevant, but you can't predict prices 10 or fifteen years into the future so don't even try or worry about it.
There is nothing stopping me staying put for say 12 months, although not ideal. As a FTB I won’t be buying a family home so will probably be moving again in 3-4 years - here lies my predicament.In my situation, I don’t want to be buying at the height of the market, as no one would.
- the costs of buying and selling.- over 3 (Calendar) years as a FTB you can also get extra £4000 towards deposit if you are able to pay £4000 per year into LISA.- assuming stamp duty goes back to normal after this 6 months (not guaranteed of Course). Also need to consider you will then have lost FTB stamp duty relief.1 -
If you can hold on till next summer, by then people will have been weened off their furlough for a decent number of months and reality will start to hit. Measures announced yesterday make it more attractive for employers to keep / hire young people rather than older homeowners.The next 6 months will just be the final pump of air into the bubble before it bursts.0
-
Sibbers123 said:Looking on rightmove in my local area, I have seen a few properties that have their asking price increased. One from £335k to £350k.
I am worried if I buy now, come 1st April it will transpire that I have paid over the odds meaning a reduction in equity or possibly even negative equity.
As a FTB I am not already vested in the property market so any fall in value after purchase will cost me.
Also, as a FTB I wouldn’t have paid SDLT on the first £300k anyway so I feel that the chancellors announcement has made property even more risky and unaffordable for FTBs.
Would you gamble and purchase now, or hold off until 1st April 2021 where property prices will fall by 3% effectively due to the SDLT becoming payable again? The chancellor could extend the holiday also.
I have a large enough deposit for the LTV requirements and a secure job, but if prices fall in April, I could effectively lose my equity.
What happens if there is a second wave of CV-19 in the winter. It seems like the government aren’t even planning for this.2 -
Sibbers123 said:
What happens if there is a second wave of CV-19 in the winter. It seems like the government aren’t even planning for this.Gather ye rosebuds while ye may0 -
Here is one example of developers being greedy in my local area.0
-
I drive through Silsoe every day and can't believe there is still a demand for so many new buildsGather ye rosebuds while ye may0
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards