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Advice on reducing asking price
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lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.Your actual words were "What I don't want is my 'dream home' ... becoming an absolute nightmare." You then continued with "A property that is an absolute nightmare is much worse than missing out on a dream home."I've simply asked how does someone's home become an "absolute nightmare" and for whatever reason you seem reluctant or unable to answer.You really don't need to agreeI agree, negative equity could be a nightmare but the chances of that happening are incredibly slim.As you know a third of all purchases are cash so negative equity is obviously impossible in those cases.For the remaining two thirds, most homes are bought with at least a five-year fixed rate mortgage and at least a 15% deposit with the average deposit being something like 23%. That means most homeowners have at least 15% equity on day one, fixed outgoings for at least 5 years and month in, month out, for five years they're reducing the amount they owe. Yes, it's not impossible that some could be in negative equity after five years but it's highly unlikely. Of course, even if someone is in negative equity, it's a nightmare but it's not the end of the world.I do disagree with what I think you're suggesting which is "don't buy a dream house because you might end up in negative equity". While technically you are correct, statistically it's very unlikely. You may as well say don't have a relationship with anyone because it may end badly or don't cross the road as you may get knocked over... Life is for living and you can't be scared of doing anything just because things may go wrong, that's not living.Every generation blames the one before...
Mike + The Mechanics - The Living Years3 -
Life is for living and you can't be scared of doing anything just because things may go wrong, that's not living
Life is for living, agreed, you don't have to throw caution to the wind though. A bit like the relationship point you made. I'm not saying don't have a relationship with anyone, I'm saying think before you act. I'm not saying don't cross the road, I'm saying why cross with your eyes shut when you can just open them.
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MobileSaver said:Sarah1Mitty2 said:Aberdeenangarse said:MobileSaver said:Sarah1Mitty2 said:JJR45 said:MobileSaver
Most of the rest will have taken out a five-year or longer fixed rate so they won't be worrying about renewing for at least another three years yet...
it is around 50% of new lending that was on 5y+ fixed in 2020, but that could still mean the majority of a mortgage on a property in terms of value could be on a different term.
https://www.telegraph.co.uk/property/uk/buy-to-let-crisis-trigger-property-fire-sale-landlords-suffer/0 -
RelievedSheff said:lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.Your actual words were "What I don't want is my 'dream home' ... becoming an absolute nightmare." You then continued with "A property that is an absolute nightmare is much worse than missing out on a dream home."I've simply asked how does someone's home become an "absolute nightmare" and for whatever reason you seem reluctant or unable to answer.You really don't need to agree, but you don't need to waste your valuable time and energy on me as I will not change my opinion.
have a lovely day (and I mean it 😊)
We survived. We still had somewhere to live. That house was still our home. It's value was irrelevant.0 -
Sarah1Mitty2 said:RelievedSheff said:lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:MobileSaver said:lookstraightahead said:I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.Your actual words were "What I don't want is my 'dream home' ... becoming an absolute nightmare." You then continued with "A property that is an absolute nightmare is much worse than missing out on a dream home."I've simply asked how does someone's home become an "absolute nightmare" and for whatever reason you seem reluctant or unable to answer.You really don't need to agree, but you don't need to waste your valuable time and energy on me as I will not change my opinion.
have a lovely day (and I mean it 😊)
We survived. We still had somewhere to live. That house was still our home. It's value was irrelevant.Surely that is dependent on whether you are buying and selling?I mean, if you're renting then perhaps.Ultimately, the only people that lose out during negative equity are those who sell to rent or get out of the housing market.0 -
@Sarah1Mitty2 "have seen their borrowing power decimated" ? Have you actually worked out the costs ?
On £100K borrowing, before you could get a fix at 2%, that would be £424 per month.You can now get a fix at 4.5% which is £556. An extra £130 a month is hardly having your borrowing power decimated when the average uk salary is £3166 per month ?
Remember an awful lot of people aren't first time buyers having to borrow £200K, they are people moving from an existing home with equity in it, so often aren't borrowing that much to upsize1 -
"Negative equity is easily avoided now though, you just don`t buy a house at bubble prices when interest rates have started to rise"
No, you buy a house when you can afford the monthly repayments, are offered a mortgage and find a house you want to live in.
Until mortgages become more expensive than renting, people will always keep buying0 -
JJR45 said:mi-key said:
Until mortgages become more expensive than renting, people will always keep buying
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mi-key said:@Sarah1Mitty2 "have seen their borrowing power decimated" ? Have you actually worked out the costs ?
On £100K borrowing, before you could get a fix at 2%, that would be £424 per month.You can now get a fix at 4.5% which is £556. An extra £130 a month is hardly having your borrowing power decimated when the average uk salary is £3166 per month ?
Remember an awful lot of people aren't first time buyers having to borrow £200K, they are people moving from an existing home with equity in it, so often aren't borrowing that much to upsize0
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