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Skyler

Buy Now Repent At Leisure?

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Hi I'm new to the forum, so please be gentle :)

My husband has sold his business which is also our home, this leaves us with the dilema of should we buy a house now or wait and rent.

I've been reading threads on here and I'm getting really cold feet with regard to buying somewhere. The reason being is that we will have around £70k deposit to put down on a house. At the moment the prices for houses which would be our buy till you die house are out of our reach financially by around £20k.

If we bought now we would have a LTV of around 70%, if house prices continue to fall (up to some of the levels mentioned on here) then we could potentailly lose the equity in our property and when it comes to remortgaging we could be potentially left on the lenders SVR. This also leaves us unable to move up the property ladder and we will never be able to afford our buy till you die house.

However, even if we waited IR are set to rise so raising a mortgage for what have currently got on offer wouldn't be possible due to affordability so we would still only be able to afford the type of house that we can now. The only plus side to waiting would be that at least we would still have our £70k deposit and if we bought when the market bottoms out then we wouldn't lose that.

Does anyone have any advice? I've tried to explain all this to my husband but he doesn't believe that house prices will continue to fall. I just want to safeguard our deposit as we would never be able to save that much money again.

Thanks in advance

:)

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Hi I'm new to the forum, so please be gentle :)

My husband has sold his business which is also our home, this leaves us with the dilema of should we buy a house now or wait and rent.

I've been reading threads on here and I'm getting really cold feet with regard to buying somewhere. The reason being is that we will have around £70k deposit to put down on a house. At the moment the prices for houses which would be our buy till you die house are out of our reach financially by around £20k.

If we bought now we would have a LTV of around 70%, if house prices continue to fall (up to some of the levels mentioned on here) then we could potentailly lose the equity in our property and when it comes to remortgaging we could be potentially left on the lenders SVR. This also leaves us unable to move up the property ladder and we will never be able to afford our buy till you die house.

However, even if we waited IR are set to rise so raising a mortgage for what have currently got on offer wouldn't be possible due to affordability so we would still only be able to afford the type of house that we can now. The only plus side to waiting would be that at least we would still have our £70k deposit and if we bought when the market bottoms out then we wouldn't lose that.

Does anyone have any advice? I've tried to explain all this to my husband but he doesn't believe that house prices will continue to fall. I just want to safeguard our deposit as we would never be able to save that much money again.

Thanks in advance

:)

Just got this from the bank, they don't think interest rates are going any where fast so I wouldn't worry too much about that.

Although I reckon inflation will be a problem but thats another story.

IEF___final_0509.pdf

IEF___final_0509.pdf

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Just got this from the bank, they don't think interest rates are going any where fast so I wouldn't worry too much about that.

Although I reckon inflation will be a problem but thats another story.

If thats what the banks say then I would worry....really worry. :blink:

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Hi I'm new to the forum, so please be gentle :)

My husband has sold his business which is also our home, this leaves us with the dilema of should we buy a house now or wait and rent.

I've been reading threads on here and I'm getting really cold feet with regard to buying somewhere. The reason being is that we will have around £70k deposit to put down on a house. At the moment the prices for houses which would be our buy till you die house are out of our reach financially by around £20k.

If we bought now we would have a LTV of around 70%, if house prices continue to fall (up to some of the levels mentioned on here) then we could potentailly lose the equity in our property and when it comes to remortgaging we could be potentially left on the lenders SVR. This also leaves us unable to move up the property ladder and we will never be able to afford our buy till you die house.

However, even if we waited IR are set to rise so raising a mortgage for what have currently got on offer wouldn't be possible due to affordability so we would still only be able to afford the type of house that we can now. The only plus side to waiting would be that at least we would still have our £70k deposit and if we bought when the market bottoms out then we wouldn't lose that.

Does anyone have any advice? I've tried to explain all this to my husband but he doesn't believe that house prices will continue to fall. I just want to safeguard our deposit as we would never be able to save that much money again.

Thanks in advance

:)

Are you for real! :blink: IMHO, if you're looking at the top of the market (house for life), you'll 'realise' that 20k before the end of the year by renting and not buying.

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Hi I'm new to the forum, so please be gentle :)

My husband has sold his business which is also our home, this leaves us with the dilema of should we buy a house now or wait and rent.

I've been reading threads on here and I'm getting really cold feet with regard to buying somewhere. The reason being is that we will have around £70k deposit to put down on a house. At the moment the prices for houses which would be our buy till you die house are out of our reach financially by around £20k.

If we bought now we would have a LTV of around 70%, if house prices continue to fall (up to some of the levels mentioned on here) then we could potentailly lose the equity in our property and when it comes to remortgaging we could be potentially left on the lenders SVR. This also leaves us unable to move up the property ladder and we will never be able to afford our buy till you die house.

However, even if we waited IR are set to rise so raising a mortgage for what have currently got on offer wouldn't be possible due to affordability so we would still only be able to afford the type of house that we can now. The only plus side to waiting would be that at least we would still have our £70k deposit and if we bought when the market bottoms out then we wouldn't lose that.

Does anyone have any advice? I've tried to explain all this to my husband but he doesn't believe that house prices will continue to fall. I just want to safeguard our deposit as we would never be able to save that much money again.

Thanks in advance

:)

I for one would not buy now if I were you. There are still too many concerns out there, too much bad news to come. I would add leave the buying process for a few months anyway, I'll think you will find the "spring bounce" will pass and the market will return to being very tough again for sellers. Today's land registry figures show falls again! You only need falls of another 20k, just sit back and let the market fall to a lower level.

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Are you for real! :blink: IMHO, if you're looking at the top of the market (house for life), you'll 'realise' that 20k before the end of the year by renting and not buying.

The particular house that we have seen is currently on the market for £250k and has been on for over 18 months. The say they 'can't' take anything less than £235k which is £20k above our budget. As the house has been on the market for such a long time it's obvious that they don't really need to sell so they will hold out for their money.

I'm more than willing to wait but my husband is set on buying somewhere, I'm trying to pursuade him that now isn't the time to buy but he doesn't want to go into rented as it's a waste of money. YES I KNOW!! I've tried to tell him that by buying now he will LOSE some of if not all of the deposit but he really doesn't think that property prices will fall by another 30%. He also seems to think that in 5 years time when we come to sell again that we would be able to achieve the same price as what we paid for the property now.

The following words spring to mind HEAD, BANG, WALL!!

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If it's been on for 2 years at 250, they can't reasonably expect more than 200, and most likely they'd eventually get just below the stamp duty threshold at 175.

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The particular house that we have seen is currently on the market for £250k and has been on for over 18 months. The say they 'can't' take anything less than £235k which is £20k above our budget. As the house has been on the market for such a long time it's obvious that they don't really need to sell so they will hold out for their money.

I'm more than willing to wait but my husband is set on buying somewhere, I'm trying to pursuade him that now isn't the time to buy but he doesn't want to go into rented as it's a waste of money. YES I KNOW!! I've tried to tell him that by buying now he will LOSE some of if not all of the deposit but he really doesn't think that property prices will fall by another 30%. He also seems to think that in 5 years time when we come to sell again that we would be able to achieve the same price as what we paid for the property now.

The following words spring to mind HEAD, BANG, WALL!!

And that they will do for the next 8 to 10 years. All, IMHO of course.

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If it's been on for 2 years at 250, they can't reasonably expect more than 200, and most likely they'd eventually get just below the stamp duty threshold at 175.

They purchased in Jan 2007 for £230k, probably spent around £20k on a kitchen/sunroom conversion. Went back on the market in Oct 2007 for £280k reduced last year to £250k and still for sale.

We offered £215k for it but it's a no go, so we've walked away. Ho hum :(

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They purchased in Jan 2007 for £230k, probably spent around £20k on a kitchen/sunroom conversion. Went back on the market in Oct 2007 for £280k reduced last year to £250k and still for sale.

We offered £215k for it but it's a no go, so we've walked away. Ho hum :(

Fair play to you. ;)

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The particular house that we have seen is currently on the market for £250k and has been on for over 18 months. The say they 'can't' take anything less than £235k which is £20k above our budget. As the house has been on the market for such a long time it's obvious that they don't really need to sell so they will hold out for their money.

I'm more than willing to wait but my husband is set on buying somewhere, I'm trying to pursuade him that now isn't the time to buy but he doesn't want to go into rented as it's a waste of money. YES I KNOW!! I've tried to tell him that by buying now he will LOSE some of if not all of the deposit but he really doesn't think that property prices will fall by another 30%. He also seems to think that in 5 years time when we come to sell again that we would be able to achieve the same price as what we paid for the property now.

The following words spring to mind HEAD, BANG, WALL!!

We were in the exact same situation - on at 250k for 4 months, down from 275k for 12 months. Couldn't take less than 235 (same house as yours? :P ). Against my better judgement we were negotiated up to 230k. Unbelievably, this was rejected as they've decided to "rent it out until they can get what it is worth". It is still listed as for sale and not seen it advertised to rent anywhere.

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I would check out the auction sites on the web, and then the auctions.

I can understand that renting is not comfortable, as it isn't 'your' home.

I think there is no doubt that property is going to fall further, and you think so too or you wouldn't have come to a site called HPC.

Reasons to buy now, you find an absolute bargain either at auction, on an executor's sale.

Your mortgage fix might best be done soon.

To buy a property at more than 75pct of its 2007 value is not sensible.

Good luck with your house hunting.

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They purchased in Jan 2007 for £230k, probably spent around £20k on a kitchen/sunroom conversion. Went back on the market in Oct 2007 for £280k reduced last year to £250k and still for sale.

We offered £215k for it but it's a no go, so we've walked away. Ho hum :(

Even if you give them "full value" for the alterations then the current valaution of that property ought to be no more than 215.

I would carry on walking.

tim

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I'm more than willing to wait but my husband is set on buying somewhere, I'm trying to pursuade him that now isn't the time to buy but he doesn't want to go into rented as it's a waste of money. YES I KNOW!! I've tried to tell him that by buying now he will LOSE some of if not all of the deposit but he really doesn't think that property prices will fall by another 30%. He also seems to think that in 5 years time when we come to sell again that we would be able to achieve the same price as what we paid for the property now.

The following words spring to mind HEAD, BANG, WALL!!

Indeed. Have you tried directing him to some of the material on this website??

I don't see any reason to buy a house right now unless it's your "buy for life house".

However, if your husband looks at the strong falling prices trend, increasing unemployment, pay cuts, worldwide recession, difficult mortgage conditions and impending energy problems as an environment in which REAL (i.e. inflation-adjusted) house prices 5 years from now will be higher than today, I can't imagine anything I could say to him to change his mind. He is falling back on ingrained perceived wisdom instead of looking at the facts.

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OP - how long ago did you make your offer?

If it is very recent, there's a good chance they will come back to you. It's a 'who blinks first' situation. Have you revealed that you have your heart really set on this place to the EA? If so..bad move.

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We were in the exact same situation - on at 250k for 4 months, down from 275k for 12 months. Couldn't take less than 235 (same house as yours? :P ). Against my better judgement we were negotiated up to 230k. Unbelievably, this was rejected as they've decided to "rent it out until they can get what it is worth". It is still listed as for sale and not seen it advertised to rent anywhere.

Are you in the North East? We could have been after the same house lol!!

OP - how long ago did you make your offer?

If it is very recent, there's a good chance they will come back to you. It's a 'who blinks first' situation. Have you revealed that you have your heart really set on this place to the EA? If so..bad move.

It was just last week. I told them that the offer was on the table and we couldn't go any higher and to keep us in mind if they reconsidered their position.

I very much doubt they will get back to us to be honest, I think the vendors are as deluded as the EA. There are 3 properties on the estate all up for £250k and none of them have budged.

When I spoke to the EA originally they said that there wasn't anyone else interested in the property and it had been on the market for 18 months. The said that they had accepted an offer early on but the buyer pulled out.

When I rang to make the final offer I told them our position e.g. completing on our sale in 3 weeks, ready to move, a mortgage offer in place, could have a valuer out next week etc etc but it didn't make any difference.

As said before ho hum :(

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Are you in the North East? We could have been after the same house lol!!

It was just last week. I told them that the offer was on the table and we couldn't go any higher and to keep us in mind if they reconsidered their position.

I very much doubt they will get back to us to be honest, I think the vendors are as deluded as the EA. There are 3 properties on the estate all up for £250k and none of them have budged.

When I spoke to the EA originally they said that there wasn't anyone else interested in the property and it had been on the market for 18 months. The said that they had accepted an offer early on but the buyer pulled out.

When I rang to make the final offer I told them our position e.g. completing on our sale in 3 weeks, ready to move, a mortgage offer in place, could have a valuer out next week etc etc but it didn't make any difference.

As said before ho hum :(

You're not asking for the moon. Only 20K. They may be deluded, but they wouldn't be still in business if they can't negotiate. Keep us posted on this.

And tell your old man that you have more sense than him!

Best of luck.

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You're not asking for the moon. Only 20K. They may be deluded, but they wouldn't be still in business if they can't negotiate. Keep us posted on this.

And tell your old man that you have more sense than him!

Best of luck.

There certainly wasn't any negotiation, we put the first offer in, that was rejected as being too low the only indication from the EA was that they wanted close to the asking price. We put the second offer in (a few days later) that was rejected again and this time EA said they couldn't go any lower than £235k. Thats where we had to leave it.

There isn't an abundance of property available where we are looking so we may end up in rented for the short term. I'm certainly not going to pay over the odds for a house just because we HAVE to find somewhere to live.

I keep telling the hubster that but he never agrees lol :)

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Well I think I've managed to talk the hubster round to going into rented.

Just have to find somewhere to put our deposit and hope that we can still get a mortgage in 6-12 months time. I feel pretty deflated by it all if I'm honest, my gut feeling is that the houses that we like will always be out of our reach as the vendors just will not budge on their prices.

Time will tell though!

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The houses Imp and I liked when we first started looking were always just out of our reach. Then, suddenly they weren't. Trouble is, we (me) kept looking at the houses that were still just out of our reach and thinking that only another 20k would get us a better house. I know that if they had come down 20k, there would still be very nice houses that we needed just 20k more to get.

Set yourself a limit and stick to it, else you'll just keep looking at what you could get, if only you had 20k more. Prices aint going upwards any time soon (IMO), so there's no need to panic.

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Be very patient. Reality will eventually settle in.

Very hard when patience isn't something that comes easily :unsure:

The houses Imp and I liked when we first started looking were always just out of our reach. Then, suddenly they weren't. Trouble is, we (me) kept looking at the houses that were still just out of our reach and thinking that only another 20k would get us a better house. I know that if they had come down 20k, there would still be very nice houses that we needed just 20k more to get.

Set yourself a limit and stick to it, else you'll just keep looking at what you could get, if only you had 20k more. Prices aint going upwards any time soon (IMO), so there's no need to panic.

I hear you loud and clear, we have a financial limit which we have to stick to which at the moment just isn't enough to purchase our dream house. My sights are set too high at the moment but hopefully what we're after will come into view sooner rather than later.

Had a quick look through the rentals in the area we would like to move to and there isn't many of those either. This isn't turning out quite the way I expected it to :blink:

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