Pulling out of purchase - Opinions please

nicknameless

If you want the place and can afford the place and are not intending to move then whilst it might not be the best long term financial decision (who knows - crystal ball anyone) then it is only the paper value that's the issue.  Just take a longer mortgage fix to give you more peace of mind if you know you're there for at least 5 or more years?

YellowCarBlueCar

I think you need to weigh up how you would feel about losing the house, vs. your perceived financial risk.

When we first bought we were stretched to the max - we didn't have a sofa for months, lived with dated fixtures and carpets, and did the work as we could afford.

Much of what you describe as 'needs doing' doesn't sound urgent - while ceilings can collapse, unless there has been recent movement then they are not likely to do so anytime soon.  Kitchen & bathroom presumably still work - so no rush there (if you wait then the hideous trend for shiny grey stuff - which will look as dated as an avocado bathroom suite in few years - may have passed )

The likelihood is that:
-your earning will continue to increase - so what seems tight now becomes less of a worry.
-house prices will probably continue to rise.  Unless there is a radical change in supply, we're in a supply-limited market.
-In any event you'll be in the house you wanted to be in.

Most people are financially stretched when they first buy.

nicknameless

p.s. it also depends on your view of housing.  Some see it as an investment (I wonder why lol).  My investments are elsewhere.   My only concern at the moment would be if I were moving in the relatively short term and would be prevented from doing so with a significant housing market downturn.

CoffeeFirst

YellowCarBlueCar said:

I think you need to weigh up how you would feel about losing the house, vs. your perceived financial risk.

When we first bought we were stretched to the max - we didn't have a sofa for months, lived with dated fixtures and carpets, and did the work as we could afford.

Much of what you describe as 'needs doing' doesn't sound urgent - while ceilings can collapse, unless there has been recent movement then they are not likely to do so anytime soon.  Kitchen & bathroom presumably still work - so no rush there (if you wait then the hideous trend for shiny grey stuff - which will look as dated as an avocado bathroom suite in few years - may have passed )

The likelihood is that:
-your earning will continue to increase - so what seems tight now becomes less of a worry.
-house prices will probably continue to rise.  Unless there is a radical change in supply, we're in a supply-limited market.
-In any event you'll be in the house you wanted to be in.

Most people are financially stretched when they first buy.

We would definitely be very disappointed to the lose the house just because of PERCEIVED (caps because it is obviously only a guess and may not even happen - it could be worth the same in 2 years time, in which case crisis averted) financial risk. 

Yes we will definitely have to take our time sorting things out - hasty decisions tend never to be the right ones anyway! I don't think/hope the ceilings are dangerous just cracked and at the end of life so that will be a one room at a time approach. And I'm excited about it!

CoffeeFirst

nicknameless said:

p.s. it also depends on your view of housing.  Some see it as an investment (I wonder why lol).  My investments are elsewhere.   My only concern at the moment would be if I were moving in the relatively short term and would be prevented from doing so with a significant housing market downturn.

I know it's an investment but, we aren't buying to invest just for a home, I then just see it as saving rather than expecting it to grow. i.e. just happy to have equity that I pay off and not bothered if price doesn't increase (assuming other house prices aren't increasing so we aren't losing in comparison). It will definitely be more than 5 years, maybe 10-20 years!

steampowered

The chance of the house dropping in value by 7.2% by 2023 is pretty much nil, unless you are buying a new build from a developer.

The chance of the house dropping that much after taking into account the mortgage repayments you will be making between now and then is even less.

You are overthinking this and should chill out a bit. If you are buying a house you can afford that is suitable for your needs, and is roughly in line with the current market in your area for similar houses, then that's absolutely fine.

nicknameless

CoffeeFirst said:

nicknameless said:

p.s. it also depends on your view of housing.  Some see it as an investment (I wonder why lol).  My investments are elsewhere.   My only concern at the moment would be if I were moving in the relatively short term and would be prevented from doing so with a significant housing market downturn.

I know it's an investment but, we aren't buying to invest just for a home, I then just see it as saving rather than expecting it to grow. i.e. just happy to have equity that I pay off and not bothered if price doesn't increase (assuming other house prices aren't increasing so we aren't losing in comparison). It will definitely be more than 5 years, maybe 10-20 years!

Sorry I was trying to say I do not see a home as an investment.  The money sunk into it an opportunity cost for investment elsewhere perhaps.

If you are there for 10-20 years and can be certain about shorter term risks (your fear about remortgaging so soon) then I don't see a great issue.

We are in a different boat as intend a move away from the region we live now in 5-6 years post full-time working life, so resale in that timeframe is a consideration.  

Ally_E.

If you're worried about what will happen in 2023 when mortgage fixed term runs out, you should take out 5 years fixed term mortgage and remove that worry