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Is this buyers remorse?

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Comments

  • glasgowdan
    glasgowdan Posts: 2,967 Forumite
    First Post First Anniversary Combo Breaker
    20 years of rent? That's a disaster! Unbelievably poor financial management if nothing else. Houses are in demand, be it rented or bought. That won't change for a long time.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    What area is this, must be rural?
  • cashbackproblems
    cashbackproblems Posts: 1,826 Forumite
    The only people who should panic are those that purchased maxing themselves out and with no other savings/investments to fall back on, as interest rate increases/job losses and you have no one to turn to, especially if buying as a single.


    I recently borrowed in London almost x5 my salary but with a 100k deposit and have 50k in the markets and a secure job, so can handle any non-major downturn. Plus you are building up the equity each month whereas renting is dead money, so even though my area is currently selling 5-10% below what I paid (including refurbs), im still better off than renting.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    cashbackproblems wrote: »
    The only people who should panic are those that purchased maxing themselves out and with no other savings/investments to fall back on, as interest rate increases/job losses and you have no one to turn to, especially if buying as a single.


    I recently borrowed in London almost x5 my salary but with a 100k deposit and have 50k in the markets and a secure job, so can handle any non-major downturn. Plus you are building up the equity each month whereas renting is dead money, so even though my area is currently selling 5-10% below what I paid (including refurbs), im still better off than renting.


    So 10% off your illiquid asset already is what, alive money? What happens if the markets crash, the property market crashes, and rates rise because of some currency shock or whatever?
  • NicNicP
    NicNicP Posts: 249 Forumite
    Combo Breaker First Anniversary
    Hope you've moved in and are feeling different. I felt exactly the same when we bought our current house. We'd lived in our old house for 15 years and after buying at auction and renovating it, were paying a low mortgage. We more than doubled it to live where we are now and before exchange I worried. Love our house though and moving was the best thing we ever did. My friend bought up the road and paid £25,000 more for her house, even though ours is extended, has a garage and bigger rooms, less than a year later. Like boredatwork says, I remember the first night home with our second child and wondering why we'd had another one! Think it's just uncertainty of the unknown.
  • jayII
    jayII Posts: 40,693 Forumite
    Crashy_Time wrote: »
    So 10% off your illiquid asset already is what, alive money? What happens if the markets crash, the property market crashes, and rates rise because of some currency shock or whatever?

    Then a huge number of homeowners will struggle and most will find a way to keep their houses, just as homeowners did in the late 1980's. A few will have to sell, but they'll get through it, pick themselves up and be no worse off than if they'd always rented. At least they'll know they tried to improve their situation.

    We bought 18 months ago after choosing to rent for 10 years (had a cheap rental in a 'convenient-at-the-time' area that we didn't want to buy in). We bought with 10% deposit and our mortgage + overpayments is less than an equivalent rent in this area. We've now paid off an additional 10% and the house value has risen by another 5-10% or more (hard to be exact because houses on our street rarely come up for sale and are usually sold before they hit Rightmove), making our current equity at least 25%. Our mortgage rate is fixed for a few more years and we have a lot of disposable income that we partly pay to the mortgage, so we're in a far better position than we'd be if we continued renting.

    If it all goes pear shaped then so what--at least we'll know we tried!
    [FONT=&quot][FONT=&quot] Fighting the biggest battle of my life. :( Started 30th January 2018.
    [/FONT]    [/FONT]
  • cashbackproblems
    cashbackproblems Posts: 1,826 Forumite
    Crashy_Time wrote: »
    So 10% off your illiquid asset already is what, alive money? What happens if the markets crash, the property market crashes, and rates rise because of some currency shock or whatever?


    Well the 10% fall is short term im not looking to sell short term so wont crystallise the loss, even if the "market crashes" as long as I can afford to service the loan then most people can ride it out. The alternative is losing out on the home equity and even if the prices wont increase you are better off, plus you cant put a value on the security and comfort having your own place provides.


    Govt have shown they wont allow a full on crash lasting years we are too dependent on property now and it would have wider economic impacts.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    edited 13 September 2017 at 10:24AM
    [QUOTE=cashbackproblems;73118623_Well the 10% fall is short term im not looking to sell short term so wont crystallise the loss, even if the "market crashes" as long as I can afford to service the loan then most people can ride it out. The alternative is losing out on the home equity and even if the prices wont increase you are better off, plus you cant put a value on the security and comfort having your own place provides.


    Govt have shown they wont allow a full on crash lasting years we are too dependent on property now and it would have wider economic impacts.[/QUOTE]


    How do you know this?
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
    Name Dropper First Anniversary First Post
    Crashy_Time wrote: »
    How do you know this?

    For the same reasons we know that aliens are unlikely to invade earth.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    ReadingTim wrote: »
    For the same reasons we know that aliens are unlikely to invade earth.


    I thought you were denying that 10% falls could happen a short while ago?
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