should we pull out?

sandraa_2

Hello there.

We are first time buyer and just about to buy a £250000 3bed-house in Surrey.

Well well well... we started the journey mid febuary when I first visited that house. House price were not falling then and after waiting 3 years for a crash we had just given up on hope and were thinking it would now reamain stable.

BUT of course you all know what the headlines have been in the last few weeks... crash crash crash is likely to be on its way.

We should probably pull out and wait another few years to buy, BUT well we like the house and are about a week from exchanging contract...

What if price don t fall around here? People here saying that we are close to Terminal 5, area is in expension...

Will we never buy?

Please need some advise, comment, support!

Sandra

barryjohnsmith

If you like the house and intend to stay there for a few years, I'd be inclined to buy now.

nelly_2

my opinion was prices would drop

My new opinion is they will drop a bit untill the crunchie is sorted.

All the crunchie is doing is stopping lending to chavs...no deposit no clue no dress sense bad loopy earings and shell suits.

The rest of us will be un affected, those of us who put down a normal deposit 5-10% will still get mortgages

But house prices wont rises with any significance for ten years.

Its had its spurt ....its gone past normal wages (affordability).... and will now have to wait for wages to catch up

mymatebob

If it is the house you want and you can afford it then buy it.

Surely it is a place to live?

But if you only intend to stay for a couple of years, and I know people don't have crystal balls (no matter what they might say) then think again

Zammo

nelly wrote: »

All the crunchie is doing is stopping lending to chavs...no deposit no clue no dress sense bad loopy earings and shell suits.

The rest of us will be un affected, those of us who put down a normal deposit 5-10% will still get mortgages

Absolute rubbish.

Zammo

mymatebob wrote: »

Surely it is a place to live?

Yeah, who cares if you're losing 5k a month, it's only the banks money. It's a place to live right?

sandraa_2

Hi everyone,

I must admit I am quite surprised by this first replies. I was expecting people to tell me not to buy.

We are not thinking about moving for a while.

We have a 5 % deposit.

We can afford the mortgage but it is huge: £1450 a month (repayment).

Also, as we are taking a mortgage it means that for £1 borrowed we pay £2. So in fact if house price fall 20%, on a £250000 house that means a £50000 price drop, so a £100000 saving over the life time of the mortgage. AM I RIGHT?

If we wait 2 years we could save £50000 and hope that house price drop, if they don t we still have nothing to lose, well exept THIS house.

Correct?

Sandra

zzzLazyDaisy

You have to live somewhere. If this is the house you want, then I'd seriously consider going for it. At that price it is at the lower end of the market for Surrey, and so does not have as far to fall as the higher priced properties. If you don't buy, will you be renting somewhere at a market rent instead? That's money that could be paying your mortgage.

My sister has just bought in Surrey - where she is there is a lot of greenbelt land and there has been no new housing built cos no land to build on, so there is still incredible demand for the lower end houses.

Yes, be aware that the price could fall after you buy, but if you are intending to stay for a few years prices will stabilise eventually. However, as others have said, if you may only be there for a couple of years before moving on, then that would be a different argument.

tomstickland

Yes. It might well be worth waiting for a year to see what happens.

sandraa_2

Thanks for comments.

We are now paying £650 rent and Interest part of our mortgage would ne £1200 to start with...

zzzLazyDaisy

Sorry last post crossed with yours. Yes you are right, if you are banking on a £50000 drop in price, then stay out of the market. Personally, in Surrey, I'd be surprised if prices drop that far.... but they might.

Its a gamble and the choice is yours!