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Buy or sit tight?
StarFish_2
Posts: 11
Forumite
I'm that cliche of a regular MSE 'reader', but never a poster. Having recently had an offer accepted on a 2 bed flat, would really welcome other people's advice/thoughts.
Basically, have had an offer I put on a 2-bed with cellar, period conversion flat in East London accepted. On for £375k, got accepted at £351k. Having seen a lot of duds over the last couple of months I thought it was a fair price for something that I really liked. (Fair in the relative sense, I know all prices in London are insane).
Really annoyed with myself as as soon as I got the survey booked in, got a mortgage sorted with a broker, I started doing my research and realised that irrespective of stuff like the Olympics, East London Line etc., the market is seriously falling... logic (credit crunch - falling demand etc.) tells me there is no way I am going to recoup the £15k in fees (stamp duty etc.) anytime soon, let alone see the property increasing in value.
I know you buy property for the long-term but no idea what my situation will be in 5 years - I'm 33, no kids etc, who knows what will happen. Flat is great but not exactly a family home - slap bang in the east end.
Rationale for moving was that I have paid off much off my 1 bed ex-council flat that I bought 7 years ago. Always wanted outdoor space and getting a 2 bed place meant I could rent a room out for a bit. Have to admit I don't 'need' to move but really want to. Current place worth about £230k so was going to remortgage that and rent it out (have rented it out easily in the past).
Logic tells me that I should just stop the whole thing and hold tight, cut my losses and write off not inconsiderable survey/broker fees (very annoying), hold tight for a few months and maybe might be able to afford something bigger/better down the line. Or should I go back and offer them something like £330k (bit insulting but hey) given the way things are going? Really confused, it's the only place I liked in several dozen places I've seen over the last few months, it's a unique kind of place and bound to get snapped up by someone, but nowhere is worth the pain of negative equity is it...
Think I have answered my own question in this rambling, but would be interested to hear what others think... I really like the place and for me personally it is a good time to buy and rent a room out but I know I need to be thinking wider than that.
Basically, have had an offer I put on a 2-bed with cellar, period conversion flat in East London accepted. On for £375k, got accepted at £351k. Having seen a lot of duds over the last couple of months I thought it was a fair price for something that I really liked. (Fair in the relative sense, I know all prices in London are insane).
Really annoyed with myself as as soon as I got the survey booked in, got a mortgage sorted with a broker, I started doing my research and realised that irrespective of stuff like the Olympics, East London Line etc., the market is seriously falling... logic (credit crunch - falling demand etc.) tells me there is no way I am going to recoup the £15k in fees (stamp duty etc.) anytime soon, let alone see the property increasing in value.
I know you buy property for the long-term but no idea what my situation will be in 5 years - I'm 33, no kids etc, who knows what will happen. Flat is great but not exactly a family home - slap bang in the east end.
Rationale for moving was that I have paid off much off my 1 bed ex-council flat that I bought 7 years ago. Always wanted outdoor space and getting a 2 bed place meant I could rent a room out for a bit. Have to admit I don't 'need' to move but really want to. Current place worth about £230k so was going to remortgage that and rent it out (have rented it out easily in the past).
Logic tells me that I should just stop the whole thing and hold tight, cut my losses and write off not inconsiderable survey/broker fees (very annoying), hold tight for a few months and maybe might be able to afford something bigger/better down the line. Or should I go back and offer them something like £330k (bit insulting but hey) given the way things are going? Really confused, it's the only place I liked in several dozen places I've seen over the last few months, it's a unique kind of place and bound to get snapped up by someone, but nowhere is worth the pain of negative equity is it...
Think I have answered my own question in this rambling, but would be interested to hear what others think... I really like the place and for me personally it is a good time to buy and rent a room out but I know I need to be thinking wider than that.
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Comments
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Think I have answered my own question in this rambling, but would be interested to hear what others think... I really like the place and for me personally it is a good time to buy and rent a room out but I know I need to be thinking wider than that.
I think I wish government would stop selling off housing stock to council tenants for peanuts which they then resell for hundreds of thousands, when half the rest of the country cant get a look in.0 -
No idea. I know if it were me I'd not be buying it. I'd stay put and keep my head down for 4-5 years. But I don't know London at all.
If you try to cancel the survey first thing in the morning, there's a chance the bloke's not been booked and you get your money back.
Worth a shot if you do decide to not go ahead.0 -
If I could go back in few weeks then I would stop now. There are going to be more uncertainty in your head and more financial losses.
Read my thread: http://forums.moneysavingexpert.com/showthread.html?t=789431Have you got something to share - Do it.
When you don't know - Ask.0
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