should we pull out?

Rover

sandraa wrote: »

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

How much deposit did you lay down, who is the builder and can you confrim you are effectively a FTB with cash/mortgage in place?

ruggedtoast

sandraa wrote: »

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.

The housing market had started visibly crumbling in September but these things are slow. Anyway considering the rent youre paying would be double your mortgage I'd say it was a no brainer. No one should recommend buying at the top of a bubble market, even in Surrey!

Jimuth

Pull out!

If you're even thinking about it now, then wait until the crash really starts. You won't be able to watch the news, read a paper, scan this site - if you're even thinking about the value of the home, then you're not mentally "sticking your head in the sand" enough to not care. This means that the price you're paying, being overpriced, will stick with you for the next x years...

I've been there, and just about back to normal now since withdrawing from an FTB purchase. If your mortgage is a long-term fixed and you've got the 10% deposit, you're slightly insured about the end of the of the discount rate and your LTV going above the house value, but you're still buying an overpriced house.

Do you hate renting?
Are you going to lose anything beyond solicitors fees and any mortgage valuation/arrangement fee?
Is it your dream home and the thought of NOT living there would be the worst ever ever thing?

If the answer to all three above is NO, then don't do it. You'll most likely find somewhere better and cheaper in a year, you'll have more money, and the economy will either be nose-diving or stabilising after this crunch.

Try having a look at places slightly out of your price range now and see if they're "worth waiting for" ... this was the thing that convinced me and the OH that pulling out of our purchase (as hard as that was) was the right thing to do. I'm now poring over Property Bee watching the little price drops happen... twice a day now on average across a universe of about 150 properties... definitely something that wasn't happening when we were looking back in Jan/Feb...!

Good luck. Hope you make the correct decision for yourselves.

MUDGUTS

sandraa wrote: »

" 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. :-)

Keep your deposit in the bank, if you have 25K now and can save another 1K a month. You can wait 15 months and have 40K. You say you waited three years for a crash. Now it's happened and prices are dropping you have nothing to lose by waiting. Lets face it, prices won't be going up in the next year or so.

Take the safe option. Keep your deposit in the bank.

dannyboycey

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

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

Dream on...

The voice of someone who has recently bought, trying to convince themselves it'll all be ok?

Eon4

Just read this whole thread!!! If you weren't confused enough beforehand I bet you are now!!

Your posts read to me like you know deep down what you want to do (i.e pull out) and are just looking for reassurance.....sadly nobody can reasssure you with any certainty ...but if you are worried about the money now then I am sure you won't find yourself in a "worse" position financially by not committing now and waiting 6/12 months.

Just remember nobody really knows how bad things will get so you need to do what feels right for you now.....I don't get the feeling your heart is in this property so maybe you should pull out???

MUDGUTS

Take the safe option. Keep your deposit in the bank.

willis

Good luck whatever you decide, I am in a similar position and know how confusing it is.

sandraa_2

I think the answer was there always:

What really matter to us in life: Our close family and their happiness.

Buying a house would for sure make us more happy BUT the financial risk would make us soooo stressed and spoiled it all.
We are now renting a flat we don t love but at the end of the day what really matters is who you live with, and not where you live.

WE ARE PULLING PULLING OUT, we have £25000, we're now aiming at £40000 and we will look at the market closely over the next few years.

Thank you all for your comments.

Sandra

sandraa_2

I think the answer was there always:

What really matter to us in life: Our close family and their happiness.

Buying a house would for sure make us more happy BUT the financial risk would make us soooo stressed and spoiled it all.
We are now renting a flat we don t love but at the end of the day what really matters is who you live with, and not where you live.

WE ARE PULLING PULLING OUT, we have £25000, we're now aiming at £40000 and we will look at the market closely over the next few years.

Thank you all for your comments.

Sandra