Should I even be thinking about pulling out of a sale?

Sarah1Mitty2

Ramouth said:

This really is one that only you and your family can decide.  If it were me, I would stick with the larger property so as not to have to move again for longer.  But I really disliked the process of selling and buying so am perhaps not representative.

In general (and possibly a little faster at the moment) inflation reduces the proportion of your income that your mortgage payments take up over time.  What may feel like a squeeze now may feel less so in 5 years time if your pay has increased but your mortgage has stayed the same.

Inflation increases the interest rate on your mortgage and takes more of your income for cost of living other than your mortgage, and it means people will pay less for your house as the cost of borrowing increases, we are not going to see wage increases happen like the 1970`s, the entire dynamic is different now..

RelievedSheff

Sarah1Mitty2 said:

Ramouth said:

This really is one that only you and your family can decide.  If it were me, I would stick with the larger property so as not to have to move again for longer.  But I really disliked the process of selling and buying so am perhaps not representative.

In general (and possibly a little faster at the moment) inflation reduces the proportion of your income that your mortgage payments take up over time.  What may feel like a squeeze now may feel less so in 5 years time if your pay has increased but your mortgage has stayed the same.

Inflation increases the interest rate on your mortgage and takes more of your income for cost of living other than your mortgage, and it means people will pay less for your house as the cost of borrowing increases, we are not going to see wage increases happen like the 1970`s, the entire dynamic is different now..

Really?

My wages have increased 12% in 2022 with an increase of 3.5% in January this year and a minimum of 3.5% in July of this year.

And that isn't the highest in my line of work.

Sarah1Mitty2

RelievedSheff said:

Sarah1Mitty2 said:

Ramouth said:

This really is one that only you and your family can decide.  If it were me, I would stick with the larger property so as not to have to move again for longer.  But I really disliked the process of selling and buying so am perhaps not representative.

In general (and possibly a little faster at the moment) inflation reduces the proportion of your income that your mortgage payments take up over time.  What may feel like a squeeze now may feel less so in 5 years time if your pay has increased but your mortgage has stayed the same.

Inflation increases the interest rate on your mortgage and takes more of your income for cost of living other than your mortgage, and it means people will pay less for your house as the cost of borrowing increases, we are not going to see wage increases happen like the 1970`s, the entire dynamic is different now..

Really?

My wages have increased 12% in 2022 with an increase of 3.5% in January this year and a minimum of 3.5% in July of this year.

And that isn't the highest in my line of work.

Why would your pay rise affect any of the general points I made, and why are people bothering to strike if pay rises are so generous?

RelievedSheff

Sarah1Mitty2 said:

RelievedSheff said:

Sarah1Mitty2 said:

Ramouth said:

This really is one that only you and your family can decide.  If it were me, I would stick with the larger property so as not to have to move again for longer.  But I really disliked the process of selling and buying so am perhaps not representative.

In general (and possibly a little faster at the moment) inflation reduces the proportion of your income that your mortgage payments take up over time.  What may feel like a squeeze now may feel less so in 5 years time if your pay has increased but your mortgage has stayed the same.

Inflation increases the interest rate on your mortgage and takes more of your income for cost of living other than your mortgage, and it means people will pay less for your house as the cost of borrowing increases, we are not going to see wage increases happen like the 1970`s, the entire dynamic is different now..

Really?

My wages have increased 12% in 2022 with an increase of 3.5% in January this year and a minimum of 3.5% in July of this year.

And that isn't the highest in my line of work.

Why would your pay rise affect any of the general points I made, and why are people bothering to strike if pay rises are so generous?

You claim no one is getting pay rises in line with inflation.

I disagree.

Certain sectors most certainly are. And more.

jonnydeppiwish!

you need you need to decide what you want. If it’s the slightly cheaper and smaller house (have you had all the children you want and can you live in it till they leave?), then pull out and buy the other. 

I would say though, before you do that, if that’s what you decide to do, give you current vendor the opportunity by revising your offer on their house - you’ve nothing to lose by doing that and possibly quite a few thousand less to spend if they do agree to a decrease in price.

Sarah1Mitty2

RelievedSheff said:

Sarah1Mitty2 said:

RelievedSheff said:

Sarah1Mitty2 said:

Ramouth said:

This really is one that only you and your family can decide.  If it were me, I would stick with the larger property so as not to have to move again for longer.  But I really disliked the process of selling and buying so am perhaps not representative.

In general (and possibly a little faster at the moment) inflation reduces the proportion of your income that your mortgage payments take up over time.  What may feel like a squeeze now may feel less so in 5 years time if your pay has increased but your mortgage has stayed the same.

Inflation increases the interest rate on your mortgage and takes more of your income for cost of living other than your mortgage, and it means people will pay less for your house as the cost of borrowing increases, we are not going to see wage increases happen like the 1970`s, the entire dynamic is different now..

Really?

My wages have increased 12% in 2022 with an increase of 3.5% in January this year and a minimum of 3.5% in July of this year.

And that isn't the highest in my line of work.

Why would your pay rise affect any of the general points I made, and why are people bothering to strike if pay rises are so generous?

You claim no one is getting pay rises in line with inflation.

I disagree.

Certain sectors most certainly are. And more.

No, I mentioned three consequences of inflation and stated an opinion about the 1970`s versus now. If everyone gets inflation busting pay rises inflation will go higher and the interest on your mortgage debt will keep rising, those people buying after an inflationary bust will at least have less debt to pay back at (high) interest.

Sarah1Mitty2

jonnydeppiwish! said:

you need you need to decide what you want. If it’s the slightly cheaper and smaller house (have you had all the children you want and can you live in it till they leave?), then pull out and buy the other. 

I would say though, before you do that, if that’s what you decide to do, give you current vendor the opportunity by revising your offer on their house - you’ve nothing to lose by doing that and possibly quite a few thousand less to spend if they do agree to a decrease in price.

Why the rush to buy right now though, this is probably the worst time in a long time?

jonnydeppiwish!

Sarah1Mitty2 said:

jonnydeppiwish! said:

you need you need to decide what you want. If it’s the slightly cheaper and smaller house (have you had all the children you want and can you live in it till they leave?), then pull out and buy the other. 

I would say though, before you do that, if that’s what you decide to do, give you current vendor the opportunity by revising your offer on their house - you’ve nothing to lose by doing that and possibly quite a few thousand less to spend if they do agree to a decrease in price.

Why the rush to buy right now though, this is probably the worst time in a long time?

Why? There’s never a great time to buy, it’s going to cost money but if you live in it for 5 years or so, you’ll likely still have a property worth at least the same as you paid for and you haven’t been paying someone else’s mortgage.

mi-key

Best time to buy is when you find a house you like and can afford it. Interest rates always go up and down over the lifetime of a mortgage, as do property prices ( although the overall trend is always upwards after a few years ). 

As the poster above says, you can end up paying rent for 5 years while you wait, which can easily cost over £50,000  with nothing to show for it - do you really think you will save that much on the house overall by waiting? ( not to mention the gains in equity you also make... ) 

[Deleted User]

Sarah1Mitty2 said:

[Deleted User] said:

GDB2222 said:

LegallyLandlord said:

One more thought is you could continue with the house sale and move into rented accommodation. Prices are likely to drop and unless the house you’re planning to buy is truly unique, others will come alone. 

You may well be correct about house prices, but there’s an enormous risk in getting off the housing ladder for the average individual. 

I was told this when i purchased during the pandemic. Prices are up 20% since. There is nothing comprable available in my area in terms of size and value. Glad I proceeded. Of course, A decrease is possible but trying to predict the market, trying to beat the market. Its fantasy.

Reality is that interest rates were at near zero during the pandemic, and now they are heading back to normal, many people are probably now regretting their timing as they could have waited and started with much less debt.

Being told by some bloke on the internet that you are wrong for buying a house which later increased in value by 20%. 

There is no such thing as waiting and having less debt. You have waited until mortgage rates increased which completely trumps the reductions (if indeed there are any).