Need to buy renter house and can’t get a big enough mortgage. Gutted

Whywontthiswork

lookstraightahead said:

Op, there seems to be a lot of press about a slowing down of the market. If the landlord is savvy they might realise what a catch you are 

This is something that keeps me awake at night. Am I mad for paying £40k more than what it was worth last year because of the market right now just so I don’t risk losing not only the purchase but our home (if he decides to sell anyway)? Or do I sit right and wait 6 months and see if prices come down (and the discount initially offered may not still be in the table). Having never bought before this is causing me great anxiety! 

Getting_greyer

Whywontthiswork said:

lookstraightahead said:

Op, there seems to be a lot of press about a slowing down of the market. If the landlord is savvy they might realise what a catch you are 

This is something that keeps me awake at night. Am I mad for paying £40k more than what it was worth last year because of the market right now just so I don’t risk losing not only the purchase but our home (if he decides to sell anyway)? Or do I sit right and wait 6 months and see if prices come down (and the discount initially offered may not still be in the table). Having never bought before this is causing me great anxiety! 

Let's just assume that whomever purchases it will be doing so as residential home.

A thought experiment (im ignoring tenancy rights for now).  Let's say that the current owner of house 1 (your home) agrees to sell at the price you are able to offer right now(£330k). Happy days, you don't have to move.

Now Let's say an identical house (house 2) comes onto the market at same time, but is located far enough away that it would have an effect on say school catchment or transport links etc.  However the asking price is £40k less than your one (for sake of argument assume the seller would accept your offer immediately).  In this scenario which one would you offer on?


Now Let's say house 1 sale is impossible. But a new btl LL comes in and your tenancy remains the same.  You continue to live in house 1 as you have been doing. However a new house in, house 3, comes onto the market in your area but is slightly less nice (in your opinion, whether that's number of rooms, garage, garden whatever,) than house 1 but is within your budget and seller would accept your offer of 330k.  

I suppose which option you choose in these scenarios will tell you if you are driven by purchasing something for sakes of ownership or whether you're driving to ensure you remain living in your current home.  If it's the latter you're value of the house is probably higher than some other random buyer. Which isn't nessarilly a bad thing as you would get what you want out of it at the end of the day.  

lookstraightahead

Whywontthiswork said:

lookstraightahead said:

Op, there seems to be a lot of press about a slowing down of the market. If the landlord is savvy they might realise what a catch you are 

This is something that keeps me awake at night. Am I mad for paying £40k more than what it was worth last year because of the market right now just so I don’t risk losing not only the purchase but our home (if he decides to sell anyway)? Or do I sit right and wait 6 months and see if prices come down (and the discount initially offered may not still be in the table). Having never bought before this is causing me great anxiety! 

I think once you've bought you kind of forget the market anyway, but also you've rented for a long time so a little longer won't be scary for you.

Maybe go i with your highest offer, and then if it goes wrong the possible  downturn in the market will be a sweetener.

maybe ask yourself whether you love the house or is it just convenient to stay put - you will always find properties equally as nice I'm sure. 

waribai

Again easy for me to say but £70k spent on rent shouldn't make you inherently sick to your stomach. You didn't spend it in a casino or frivolous purchases, you spent it on putting a roof over your family's head for a number of years. 

In terms of staying awake at night fretting over whether house prices drop, why worry if you consider this your dream home? People laughed at me for purchasing in 2007 before the crash but I was in a secure well-paid job at the time and the bank would lend to me. 2009 and the prices had dropped and we could have bought the same house 10% cheaper in theory but by that time my salary had dropped due to the recession and banks were far more cautious about who they lent to. Don't assume you will always have the same attractiveness mortgage-wise!

In short, if you like the property go for it, what prices do in the short term, who gives a monkeys? If on the other hand prices keep rising while you are waiting...:)