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Crazy Idea?


Beware78

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HOLA441

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?

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HOLA442
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 debtif 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).

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