should we pull out?

sandraa_2

House price in the area are not crashing but are going down a bit. Could nt find a 3 bedhouse for £250000 few months ago... so we felt we had a bargain. BUT now there are few on the market...

We can save over £1000 a month while renting, and already have £250000 saving. So I guess that would put us in a ood position to buy in 2years time, even if banks criteria tighten.

There are given us a X5 incomes mortage with a 5% deposit... would be easier if they withdrew their offer!

AHHHHHH

waggys

If you are concerned, is there anyway you could re-negotiate the price? However, if this was to happen, a new valuation would probably need to be carried out for your mortgage offer???? (check this with your solicitor). Having been in negative equity in the early 90's, I can assure you it is not a pretty place to be. If you are having doubts, delay your exchange otherwise you stand to loose your deposit once you have exchanged, if you decide not to go ahead. You are looking at a huge financial commitment; you need to be sure it is right.

nelly_2

Zammo wrote: »

Absolute rubbish.

I take that was a remark in your profeessional on crystal balled opinion?

Prove it was rubbish!

If your saying it wa srubbish you must have proof rather then conjecture

sandraa_2

" Having been in negative equity in the early 90's, I can assure you it is not a pretty place to be. "

We don t want to go there!!!

We still have our deposit in our bank account. :-)

motch

sandraa wrote: »

Thanks for comments.

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

I think your above quote is a bit of a clue to what you should do. Even if property stays level for the next few years you'll still be quids in.

bobjonah

motch wrote: »

I think your above quote is a bit of a clue to what you should do. Even if property stays level for the next few years you'll still be quids in.

He's right you know, double your outgoings on a depreciating asset. Why?

Zammo

nelly wrote: »

I take that was a remark in your profeessional on crystal balled opinion?

Is that like a kind of Spanish crystal ball? Or have you been drinking heavily again?

Ian_Griffiths_Halifax

Property is NORMALY a medium to long term investment. If you intend moving again in 2 to 3 years then think seriously about pullng out. If you think you'll be staying 5 years plus, then there's time for the value to drop a little then go up and beyond the purchase price.

If you have an AVERAGE increase in value of 7% then your property would double in value every 10 years.

All figure are approximate. The writer bares no responsibility for any losses incurred by taking on board his comments as it's 12.35 am and he's just had a Jack Daniels.

TTMCMschine

nelly wrote: »

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

Having had some considerable experience in investing & having studied market mechanics & psychology quite a lot I find a singularly insoluble problem with your prognosis, namely:

If houses are "unaffordable" then how do they "wait for wages to catch up?"

In a market the price adjusts to meet affordability, which means in our case that prices will drop.

"Waiting to catch up," with average wage rises of around 2% (which could easily fall for many people to 0% or even -100% as the recession bites) will only take the next 28 years (assuming average house price = 6x average salary, plus 2% wage rises, plus affordability returning at 3.5x salary)



Don't buy the house OP, it's financial suicide - you would be whats known in investment circles as either the bigger fool, or maybe even the last fool.

Rover

nelly wrote: »

my opinion was prices would drop

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

Define abit ?
Average UK sale prices will fall 10% this year alone. Is that abit?
Negotiating hard with a builder on a new build will result in atleast >25% off the 'asking' price now.

Most informed observers predict a slide in house prices all the way to 2012.
Merv King, George Soros, Warren Buffet and the IMF all think the UK housing market is over valued - the IMF think >30%.

However Sarah beeny and Nelly think house prices will drop abit. Mmm, tough one.