Ftb Advice Needed

[Battenberg]

Hello I'm looking for your advice on thoughts on my currernt situation.

We have been in rented accomodation for 7 years and are finally in a financial position to purchase.

We have recieved our mortgage offer on a property but a number of things have come up from the Solicitors, which have left us unsettled and now unsure whether to continue with the it. The vendors have also been rather shady over things.

Also our local EA's have lots of 'reduced' signs in the window and this has left us questioning if by the time we pick the keys up, the house is going to be worth less than what we are paying for it.

It wasn't until a few weeks into the process after our valuation that we found out about a search engine to see what properties had sold for in the area. This house had sold for £109950 in July 04. We had agreed to pay £120000.

We are seriously considering pulling out now.

Please could you give me some advice.

Tia

[Merryn]

Hello I'm looking for your advice on thoughts on my currernt situation.

We have been in rented accomodation for 7 years and are finally in a financial position to purchase.

We have recieved our mortgage offer on a property but a number of things have come up from the Solicitors, which have left us unsettled and now unsure whether to continue with the it. The vendors have also been rather shady over things.

Also our local EA's have lots of 'reduced' signs in the window and this has left us questioning if by the time we pick the keys up, the house is going to be worth less than what we are paying for it.

It wasn't until a few weeks into the process after our valuation  that we found out about a search engine to see what properties had sold for in the area. This house had sold for £109950 in July 04. We had agreed to pay £120000.

We are seriously considering pulling out now.

Listen to your gut instincts.  You've got reservations over the "shady" vendors, the state of the market, and the price you are paying.  You've rented for 7 years. What's the rush now?

The decision is yours - but don't ignore that gut!

Good luck 

Please could you give me some advice.

Tia

<{POST_SNAPBACK}>

[Merryn]

Hello I'm looking for your advice on thoughts on my currernt situation.

We have been in rented accomodation for 7 years and are finally in a financial position to purchase.

We have recieved our mortgage offer on a property but a number of things have come up from the Solicitors, which have left us unsettled and now unsure whether to continue with the it. The vendors have also been rather shady over things.

Also our local EA's have lots of 'reduced' signs in the window and this has left us questioning if by the time we pick the keys up, the house is going to be worth less than what we are paying for it.

It wasn't until a few weeks into the process after our valuation  that we found out about a search engine to see what properties had sold for in the area. This house had sold for £109950 in July 04. We had agreed to pay £120000.

We are seriously considering pulling out now.

Listen to your gut instincts.  You've got reservations over the "shady" vendors, the state of the market, and the price you are paying.  You've rented for 7 years. What's the rush now?

The decision is yours - but don't ignore that gut!

Good luck 

<{POST_SNAPBACK}>

[CrashedOutAndBurned]

I never suggest anyone should do anything other than their own careful research. But it seems as if you've already realised that prices are falling and that those trying to sell you the property are probably nervous due the fact people 'pulling out' is now commonplace as more of us wake up to the reality of a market in reverse.

[verolution]

Make sure you are buying for the right reasons:

- you really like the house

- it is unique and they don't come up for sale every other day

- you can see yourself living there for several years

- you don't mind losing money on it because you will love living there

- you aren't buying because you are worried about 'missing the boat'

- you aren't buying because Krusty says renting is dead money

- you aren't buying with an I/O mortgage and no vehicle for capital repayment

- you aren't buying a shoe box with the plan to trade up in 2 years

[Zzzzzzzzzzzzzzzzzzzzzzzzzz]

Where are you buying Tia?

[200p]

Make sure you are buying for the right reasons:

- you really like the house

- it is unique and they don't come up for sale every other day

- you can see yourself living there for several years

- you don't mind losing money on it because you will love living there

- you aren't buying because you are worried about 'missing the boat'

- you aren't buying because Krusty says renting is dead money

- you aren't buying with an I/O mortgage and no vehicle for capital repayment

- you aren't buying a shoe box with the plan to trade up in 2 years

<{POST_SNAPBACK}>

Thats sound advice which i am going to save in my notebook !

[Battenberg]

Make sure you are buying for the right reasons:

- you really like the house

- it is unique and they don't come up for sale every other day

- you can see yourself living there for several years

- you don't mind losing money on it because you will love living there

- you aren't buying because you are worried about 'missing the boat'

- you aren't buying because Krusty says renting is dead money

- you aren't buying with an I/O mortgage and no vehicle for capital repayment

- you aren't buying a shoe box with the plan to trade up in 2 years

<{POST_SNAPBACK}>

We are buying in Cardiff but it is in what is classed as an 'econimically disadvantaged' area.

We have lived on the edge of this area for 7 years, having been housed by and Ex servicemans Association. I have desperately wanted to buy for years but it's only now that we have got ourselves straight enough to do so.

One of my main concerns is that I we would be buying more in the heart of the area and in 3 years time, when our eldest goes to senior school, we would rather it was one with better prospects so hoped to move at that time. Obviously if the house goes down in value, already being in a 'poorer' area will put us at a greater disadvantage again.

Also if we stay in rented we will be £300 a month better off and could probably build up a bigger deposit.

Another problem was that a house a few doors down sold a few weeks ago for 10k less than the one we were hoping to buy.

I have to say that everyones advice has really confirmed what I already know and the 'missing the boat' issue has been a big one over the last 5 years as the prices soared.

If we pull out we would have lost around £900 on fees but my husband keeps reminding me that it's better than losing a few thousand the minute we pick up the keys and after all that money can be recouped in 3 months if we stay here just from what we save on a mortgage.

I also agree with the statement about gut instinct as something has been niggling me all the way.

I'm so sorry to mess the vendors around now but it is such a major financial decision. They haven't been entirely straight with us which has made me very suspicious and despite them supplying a lame explaination have only owned the property since July last year.

[delboypass]

cant work out why you are even looking to buy in this market place

Especially when you are riddled with doubt. (over house price slide)

£900 is nothing in the greater scale of things - looking at other threads - £11k slide

Are you paying £120k...

DId you even try to negotiate a price reduction?

[Key Worker]

The obvious thing would be to point out the previous selling price and ask for a discount now that new information has come to light in the Halifax and Nationwide surveys for May and June suggesting there is a risk of falls. (See other threads for info on this and to visit the Halifax's and Nationwide's own sites.)

In normal times, I don't personally think that the mark-up you are being asked would be exceptional, but are these normal times?

Get things in proportion. You never actually lose money until you sell for less than you bought. You can avoid this by: 1. holding on to the property for a long time 2. taking out insurance against sickness and redundancy (Nationwide is reasonable for this, and you don't need to have your mortgage with them. However, CHECK very carefully that the policy will pay out in YOUR personal circumstances.)

Also, if it is an old house, you can probably never really know all the things which might be wrong with it, even after you have had a surveyor go over it. There is an element of risk. In theory, you have come-back to the surveyor (ie. you can sue him or her) if he or she misses something important. Newly built properties can be just as prone to problems.

If I were you, I would go for it, as others say, if you have strong personal reasons for wanting to buy (marriage, baby, solidifying your relationship with someone, overwhelming desire to make a home the way you want in a place you can't be kicked out of) AND if you could tolerate being there for five years or more (it might take that long or more for prices to go up again).

Don't get too hung up on the way surveyors describe things and the little things that solicitors bring up. Basically, is the roof O.K? Does the person selling it really own it? Is a motorway going to be built next to it? Does it have subsidence? Is there some other MAJOR structural or legal defect? Is the lease long enough?

Last of all, ask yourself, who will want to buy this in x years time (the next purchaser when you come to sell) and why? Will they choose this property or would something else be more attractive FOR MOST OTHER PEOPLE.

You might lose money IF you are forced into a sale in the next year or two, but what some people sometimes miss is that there is a lot to be said for getting on with your life the way you want it, too.

[verolution]

Doesn't sound like either of you are 100% so I wouldn't do it, this is the biggest purchase you will ever make so its got to feel right.

If you drop out it is a bitch for the seller, but i'd be more concerned about your own situation and how much stress financial problems can put on a family (getting stuck in neg equity for instance).

I don't have kids (yet!), but if I was worried about schools I'd much rather be renting and have the option to move into a decent catchment area if need be.

Edited July 10, 2005 by mescalinemonkey

[No Muggy Bear]

Don't forget the old pearls of wisdom: Location, Location, Location, also that you should only buy a house you can see yourself living in for at least five years. Which can be a long time if you have bought in a not so desirable area. I wouldn't buy in an area where there is a higher than average amount of people who don't work. Not to be snobbish, but when you are going to work every day to fund the payments, it stings a bit when you notice your neighbours curtains are still drawn, the milk on the doorstep and no sight of them till the pubs open!

PS. I know it is your decision, I respect that but please DONT do it! Hey enjoy anothr couple of years where you don't have to worry about DIY and Building insurance!

[pricedout]

Hello I'm looking for your advice on thoughts on my currernt situation.

We have been in rented accomodation for 7 years and are finally in a financial position to purchase.

We have recieved our mortgage offer on a property but a number of things have come up from the Solicitors, which have left us unsettled and now unsure whether to continue with the it. The vendors have also been rather shady over things.

Also our local EA's have lots of 'reduced' signs in the window and this has left us questioning if by the time we pick the keys up, the house is going to be worth less than what we are paying for it.

It wasn't until a few weeks into the process after our valuation  that we found out about a search engine to see what properties had sold for in the area. This house had sold for £109950 in July 04. We had agreed to pay £120000.

We are seriously considering pulling out now.

Please could you give me some advice.

Tia

<{POST_SNAPBACK}>

[pricedout]

Tia

I'm in a not dissimilar position to you - have been priced out for about the same period, due to a lack of financial savy (my fault, nobody else to blame), unreliable contract working, crap salaries, partner on one side of country and me on t'other etc. etc.

We are now both living in the same town and both have fair to good jobs and have actually saved a good deposit.

We are desperate to buy, but have waited this long, we can see prices starting to turn in this area (Somerset/Wiltshire border) and there is no way I'm going too loose my hard earned deposit (years of saving) to some BTL speculator.

Waiting a little longer may pay dividends if prices crash and if they were to stay flat your not actually loosing anything, bar a little more time.

I've had to endure colleagues/friends(?) taking the mick because we don't own property, some of them are now desperately trying to sell - but there are currently few takers - I wouldn't be one of them! ( they don't tend to brag about their property empires at the moment)

All markets work in cycles - what goes up eventually -- comes down, .

Good Luck

[theChuz]

£109950 in July 04 and £120000 in July 05.

Looks to me like someones looking for the greater fool, you will have to let us know if they found it

Personally if i had any reservations i wouldnt buy. Just because you can buy something dosnt mean that you should. Youve been renting for 7 years .. another 12 - 18 months wont really hurt.

That being said if this is the house of your dreams and you dont mind losing 40K then go for it. Prices round these parts have have over doubled in the past 5 years, so im expecting a 40% reduction. Sounds like madness dosnt it ha

[Gavin]

I am a renowned bear so please remember this.

However please ask yourself this question.

Why is the current vendor wanting to sell after less than a year?

The possibilities are these:

1. They can't afford the repayments.

Further anecdotal evidence that the market fundamentally unbalanced.

2. There is something wrong with the property.

Could be structural, could be that the local chav populace hang around in the exact area, but after dark and when you aren't likely to be viewing.

3. The vendor thinks a crash is on the way.

More anecdotal evidence of a crash on the way by means of sentiment barometer

Any of the above mean that either you shouldn't buy it, OR you can negotiate a discount. If the seller must sell, then this is a wonderful bargaining tool you have. NO one buys a property with a view to selling it in less than a year except speculators. WHY ARE THEY SELLING.

I wouldn't buy, but then thats not surprising given my beliefs about the market.

Of all the advice given here please question the advice that you can buy now and hold for a recovery even if prices crash.

Thats just rubbish. If there is a crash then you could buy much better next year or the year after, and save money renting in the meantime.

The only possible way you could lose is if prices keep rising. AND EVEN THE MOST BULLISH BULLS AND VESTED INTERESTS AREN'T SAYING THAT ANYMORE.

[Battenberg]

£109950 in July 04 and £120000 in July 05. 

Looks to me like someones looking for the greater fool, you will have to let us know if they found it

Thankyou - you've nailed it on the head. That has been what has niggled me and in the back of my mind can't help thinking they're sat there rubbing their hands having a good ol' laugh. Also from what I can tell they haven't done anything to it at all in the year they have lived there.

That being said if this is the house of your dreams and you dont mind losing 40K then go for it.

It's not the house of my dreams but it was the nicest of all the ones we've seen within our price range - you could say the best of a bad bunch. That said if house prices do fall then that 120k will buy us something even nicer.

Tia

[Antsy]

We are buying in Cardiff but it is in what is classed as an 'econimically disadvantaged' area.

We have lived on the edge of this area for 7 years, having been housed by and Ex servicemans Association. I have desperately wanted to buy for years but it's only now that we have got ourselves straight enough to do so.

One of my main concerns is that I we would be buying more in the heart of the area and in 3 years time, when our eldest goes to senior school, we would rather it was one with better prospects so hoped to move at that time. Obviously if the house goes down in value, already being in a 'poorer' area will put us at a greater disadvantage again.

Also if we stay in rented we will be £300 a month better off and could probably build up a bigger deposit.

Another problem was that a house a few doors down sold a few weeks ago for 10k less than the one we were hoping to buy.

I have to say that everyones advice has really confirmed what I already know and the 'missing the boat' issue has been a big one over the last 5 years as the prices soared.

If we pull out we would have lost around £900 on fees but my husband keeps reminding me that it's better than losing a few thousand the minute we pick up the keys and after all that money can be recouped in 3 months if we stay here just from what we save on a mortgage.

I also agree with the statement about gut instinct as something has been niggling me all the way.

I'm so sorry to mess the vendors around now but it is such a major financial decision.  They haven't been entirely straight with us which has made me very suspicious and despite them supplying a lame explaination have only owned the property since July last year.

<{POST_SNAPBACK}>

Tia - we were in the same position as you, but last June. Finally had enough for a 5% deposit and our landlord was selling our flat. We knew it had problems so got a good discount, forked out for survey, mortgage arrangement fee etc. then got cold feet for exactly the same reasons - small child, local schools not perfect (well, plenty of good girls state schools but we are the owners of a boy...). we lost 1k, but since then prices in the borough (Lewisham) have dropped 4%. So we lost a thousand, but also the chance to be staring negative equity in the face (already). Don't do it - your instincts are probably right.

[Dicky]

Hello I'm looking for your advice on thoughts on my currernt situation.

We have been in rented accomodation for 7 years and are finally in a financial position to purchase.

We have recieved our mortgage offer on a property but a number of things have come up from the Solicitors, which have left us unsettled and now unsure whether to continue with the it. The vendors have also been rather shady over things.

Also our local EA's have lots of 'reduced' signs in the window and this has left us questioning if by the time we pick the keys up, the house is going to be worth less than what we are paying for it.

It wasn't until a few weeks into the process after our valuation  that we found out about a search engine to see what properties had sold for in the area. This house had sold for £109950 in July 04. We had agreed to pay £120000.

We are seriously considering pulling out now.

Please could you give me some advice.

Tia

<{POST_SNAPBACK}>

Don't be such a chicken sh**, buy the bloody house for 120K, if you're planning on living there for the next 5 years so whats the worse that can happen, it will fall say 30% in two years time, okay you could buy then cheaper but so what , just buy it and see what happens if it goes tits up you aint going to be the only one in the sh**, for this reason it probably isn't going to be that bad, just buy it and see, what else do you want to hear the moon's made of Edam.

[Battenberg]

what else do you want to hear the moon's made of Edam.

Oh no! you're not telling me that's it's not - are you?

Well that definitely makes a difference in my decision making - thankyou.

Tia