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Hope I've Done The Right Thing?

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Just accepted offer on my house which I've owned for 10 years and havent MEW'ed at all so going to walk out with a nice big cheque (well, big to me any way?). I'm going to give renting a go for a year or so and see what happens.

Am I doing the right thing?

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Just accepted offer on my house which I've owned for 10 years and havent MEW'ed at all so going to walk out with a nice big cheque (well, big to me any way?). I'm going to give renting a go for a year or so and see what happens.

Am I doing the right thing?

Why the hesitation you have done it, plenty have not been so lucky. Out of interest was it a cash buyer, or did they need a mortgage?

Only ask because RM's latest HPI confirmed again that buyers that need mortgages are:

a) finding it hard to get a mortgage

b. finding it hard to get the lender to agree the price offered

Edited by Sybil13

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since using butter, im told its bad for cholesterol levels...I had it checked, but my levels are low.

Ive bought a tub of "I cant beleive its not butter".

Have I done the right thing?

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since using butter, im told its bad for cholesterol levels...I had it checked, but my levels are low.

Ive bought a tub of "I cant beleive its not butter".

Have I done the right thing?

Do you think the poster used the same to lubricate the pencil then?

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If its any consolation I'm in exactly the same position so you are not alone.

I have just exchanged this morning.

I'm quite confident that (in theory) I could buy back my own property mortgage free in two years time with the profit on my sale, such will be the extent of the ongoing crisis.

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Do you think the poster used the same to lubricate the pencil then?

I wouldnt go that far, but there are scant details for an answer to be of any meaning.

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I did the same two years ago. Sold a largish semi-detached with no land (and £75,000 mortgage) to move back to Cumbria. Have now bought a similar-sized house but detached and with land outright.

Then I was absolutely certain that house prices were about to crash(thanks HPC!). I would say that now the picture is more murky.

Even though I'm now a homeowner and could be considered a splitter, traitor, VI etc, I still believe that there is a good possibility of a further downwards correction and that this current bounce is a bull trap. It really doesn't bother me as this house is my family's home, not part of my asset portfolio.

Good luck with your STR adventure.

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Just accepted offer on my house which I've owned for 10 years and havent MEW'ed at all so going to walk out with a nice big cheque (well, big to me any way?). I'm going to give renting a go for a year or so and see what happens.

Am I doing the right thing?

NO! NO! DON'T DO IT!

:lol:

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If its any consolation I'm in exactly the same position so you are not alone.

I have just exchanged this morning.

I'm quite confident that (in theory) I could buy back my own property mortgage free in two years time with the profit on my sale, such will be the extent of the ongoing crisis.

I share the same view as you that property is overvalued vs historic indicators BUT I believe there is a real chance now that what we'll see is either some sort of gradual decline, a prolonged period of ups and downs (with downs being great than ups ) or some kind of double dip...... I think the odds of us seeing a quick correction over two years are now very very slim. In fact I really don't think it'll happen... the correction is going to happen but its going to be in my view a long drawn out process taking perhaps ten years or so... miserable for those who are just clinging on financially as it'll be like death by a thousand cuts, but equally miserable for those who are waiting to buy and wanting to buy but waiting for something that looks like the bottom... I fear that may well be years and years away yet.

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NO! NO! DON'T DO IT!

:lol:

No one can tell you if you did the right thing with any more certainty than they can tell you what will win the 2.15 today at York. You gambled the wheel is spinning so wait and see. :o

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Just accepted offer on my house which I've owned for 10 years and havent MEW'ed at all so going to walk out with a nice big cheque (well, big to me any way?). I'm going to give renting a go for a year or so and see what happens.

Am I doing the right thing?

I am/was in the same situation. Sold a few months ago, had no mortgage on the house, so full price (minus agent fees) went to me as cash.

My current concern is not whether house prices will crash or not, but whether my cash will be safe for the next few years or not :(

All this QE and currency devaluation talk gives me great concern...

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If its any consolation I'm in exactly the same position so you are not alone.

I have just exchanged this morning.

I'm quite confident that (in theory) I could buy back my own property mortgage free in two years time with the profit on my sale, such will be the extent of the ongoing crisis.

I share the same view as you that property is overvalued vs historic indicators BUT I believe there is a real chance now that what we'll see is either some sort of gradual decline, a prolonged period of ups and downs (with downs being great than ups ) or some kind of double dip...... I think the odds of us seeing a quick correction over two years are now very very slim. In fact I really don't think it'll happen... the correction is going to happen but its going to be in my view a long drawn out process taking perhaps ten years or so... miserable for those who are just clinging on financially as it'll be like death by a thousand cuts, but equally miserable for those who are waiting to buy and wanting to buy but waiting for something that looks like the bottom... I fear that may well be years and years away yet.

Now im generally with abharrison on this, so can two wolves enlighten us on why house prices will correct to "fair value" so quickly?

I'm just looking at it taking a near meltdown of the West's entire banking system to get us to a 20% correction in one year... :unsure:

I just cant see what the catalyst would be for this apart from a sharp rise in interest rates....

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Just accepted offer on my house which I've owned for 10 years and havent MEW'ed at all so going to walk out with a nice big cheque (well, big to me any way?). I'm going to give renting a go for a year or so and see what happens.

Am I doing the right thing?

As long as you get your head around the facts that:

1) You don't need to own your home.

2) Renting is refreshingly liberating after owning.

3) Cash in the bank is most reassuring despite what some here say.

... you'll be happy as Larry. I have been for the last two years.

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miserable for those who are waiting to buy and wanting to buy but waiting for something that looks like the bottom... I fear that may well be years and years away yet.

Which is why I'd suggest people buy a house they like and can afford (assuming they can of course) and get on with their lives. Not being a greedy person I don't really care if I die with 100k in the bank rather than 200k in the bank.

You can't take it with you!

As someone who did buy back in 05 against the best advise of the forum I am getting on with my life and feel like this whole "mess" is passing me by. Low interest rates (I've saved tens of thousands over the lifetime of the mortgage by maintaining the same level of payments and overpayments - prove it to yourself!), working hard, investing in my own human capital, etc. Who know what the best decision will be from a financial point of view, but from a getting on with my life point of view I know which I prefer.

Good luck with renting :)!

Edited by Orbital

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In a deflationary environment, renting is the best thing you can do, let some other fool risk all by owning (or more accurately, having a mortgage). Welcome to the club.

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Which is why I'd suggest people buy a house they like and can afford (assuming they can of course) and get on with their lives. Not being a greedy person I don't really care if I die with 100k in the bank rather than 200k in the bank.

You can't take it with you!

As someone who did buy back in 05 against the best advise of the forum I am getting on with my life and feel like this whole "mess" is passing me by. Low interest rates, working hard, investing in my own human capital, etc. Who know what the best decision will be from a financial point of view, but from a getting on with my life point of view I know which I prefer.

Good luck with renting :)!

Well I think you make 3 good points:

- you cant run your life on purely economic grounds (even economists dont do that)

- the trend can outrun the economic fundamentals for years

- expect the unexpected

I certainly dont think its a good time to overextend yourself to buy a house, but then it never is...

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In a deflationary environment, renting is the best thing you can do, let some other fool risk all by owning (or more accurately, having a mortgage). Welcome to the club.

You are absolutely correct but we arent in a deflationary environment, CPI month on month = 0%

For reasons I have got to take the time to understand, inflation in the UK is proving remarkably stubborn, despite strong deflationary forces on the demand side (wages, unemployment etc.)

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In a deflationary environment, renting is the best thing you can do, let some other fool risk all by owning (or more accurately, having a mortgage). Welcome to the club.

You are absolutely correct but we arent in a deflationary environment, CPI month on month = 0%

For reasons I have got to take the time to understand, inflation in the UK is proving remarkably stubborn, despite strong deflationary forces on the demand side (wages, unemployment etc.)

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In a deflationary environment, renting is the best thing you can do, let some other fool risk all by owning (or more accurately, having a mortgage). Welcome to the club.

You are absolutely correct but we arent in a deflationary environment, CPI month on month = 0%

For reasons I have got to take the time to understand, inflation in the UK is proving remarkably stubborn, despite strong deflationary forces on the demand side (wages, unemployment etc.)

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I'm just looking at it taking a near meltdown of the West's entire banking system to get us to a 20% correction in one year... :unsure:

...

I just cant see what the catalyst would be for this apart from a sharp rise in interest rates....

Careful what you wish for.

With the current momentum you wouldn't need a wipe-out to return to fundamental but I am expecting the next phase Q1 2010.

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Careful what you wish for.

With the current momentum you wouldn't need a wipe-out to return to fundamental but I am expecting the next phase Q1 2010.

please elaborate? :huh:

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I share the same view as you that property is overvalued vs historic indicators BUT ... I think the odds of us seeing a quick correction over two years are now very very slim. In fact I really don't think it'll happen

This is one of the reasons I have decided NOT to STR.

Renting is refreshingly liberating after owning.

And this is another - I totally disagree. I sold in October 2006 but hated renting and so bought again in January 2007. I understand all the logical reasons why then (and now) it could be cheaper and gives you some freedoms etc etc but I just didn't like the intrusions and restrictions.

In a deflationary environment, renting is the best thing you can do

Ah, but is it really going to be deflationary? All that QE etc....

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remember 'terrified' who sold her home in 05 on the advice of HPC members and watched it be resold by the EA a few months later for 100k more!

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remember 'terrified' who sold her home in 05 on the advice of HPC members and watched it be resold by the EA a few months later for 100k more!

That's worrying!! :lol:

But seriously, life's a gamble.... no one really knows whats's gonna happen next!

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