This may be a common question but would be so grateful for some advice. Having read this forum over past few days I am just a little confused about whether the situation so many give such a bleak assessment of with the housing market is to do with long term house prices or just a lack of the short term gain, that ‘some’ (and I stress not me) have ‘enjoyed’ in recent years?
Our situation is a bit of a nightmare for me and is really stressing me. We live in a nice enough house, however with children growing and moving onto secondary school it’s simply no longer big enough and we need to buy something a bit bigger that with probably add 80k to our mortgage with 40% LTV overall (new mortgage no more than £200k).
The present mortgage has 12 years to run so I would be look at adding 7-8 years to than if I wanted to stick to current payments, I may also be looking at a fixed term rate.
So I am not a property developer and this move will be our last, well certainly unless we ever wanted to downsize – but reading this forum fills me with fear, prices to drop etc etc etc.
To be honest does that bother me as in the long term it’s not relevant is it? I intend to offer 13-14% lower than a house currently listed at £540k, its in the South East (Herts) and prices in the area are still strong due to location and links to London etc, however the property in question is over-priced and as it’s the wrong side of £500k I need to get lower to avoid the extra stamp duty.
So my question really is whether the concern I am reading from so many posts on this forum is that short term house price gain has gone and that prices will slip back is so much of a problem?
To me it is a slight levelling of the playing field and allowing families like mine (‘unfortunately’ born, bred and working in the SE) to buy a house that has sufficient space to live in, can I seriously expect to cram teenagers in a small house for 10 years just because short term price gains are no longer possible? Unless I am selling this isn’t an issue is it?