Beware78 Posted October 25, 2017 Share Posted October 25, 2017 Got a crazy idea, please tell me how crazy it is and whether I've gone mad! My current situation is I've been living in my current place for about 7 years. Nice two bed flat in the West end of Glasgow. I do really like my flat, but I feel I've almost outgrown in, I earn a lot more now than I did when I bought it but have resisted buying something bigger due to the ridiculously high prices. Anyway, I've got about 50% equity in it and my new job means I spend a lot of time up North (West coast) and really like it up there. I've thought about selling up and buying a wee place up there for a similar value to the flat but nothing suitable ever seems to come on the market. If house prices were to drop 50%, I would owe pretty much what the new value of the flat would be, I'd sell it and buy something up North on the same mortgage payments as now. However, if a hpc were to be likely soon. I could remortgage to market value, stick the cash somewhere safe and wait for house prices to crash. Then I buy the nice wee place up north with the cash and all is good. I have two properties, a wee hideaway up North and a City crash pad. I figure if house prices crash I would have more choice up North and being a cash buyer would be a great position to be in. Am I completely mad for even thinking about this? Quote Link to comment Share on other sites More sharing options...
Venger Posted October 26, 2017 Share Posted October 26, 2017 7 hours ago, Beware78 said: ...However, if a hpc were to be likely soon. I could remortgage to market value, stick the cash somewhere safe and wait for house prices to crash. Then I buy the nice wee place up north with the cash and all is good. I have two properties, a wee hideaway up North and a City crash pad. I figure if house prices crash I would have more choice up North and being a cash buyer would be a great position to be in. Am I completely mad for even thinking about this? If you remortgage now on the current value of your two-bed West-End of Glasgow flat (to get a lump sum into cash), wouldn't you owe a significant sum of money (mortgage debt) if house then fell in value -vs- the HPC value of your two-bed West-End of Glasgow flat? Or you could do it, and maybe buy not one, but two crash pads in cash. 'Cash' (debt). Quote Link to comment Share on other sites More sharing options...
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