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Golden Shower

Been Thinking Of Buying

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For various reason both myself & my girlfriend have been thinking of buying. We could still afford a decent place (North Yorkshire) but there's been a couple details that keep us from jumping at the moment.

1. We could buy a place, but would be moving from a decent 3 bed detached to maybe a 2 bed locally. We could get a 3 bed semi/detached if we moved a bit further up north and I compromised on my commute.

2. Right, we've got the deposit and would be very surprised if we couldn't get the finance (land of easy money). But (!) the properties I have been viewing have just had their prices slashed. Also, when looking further up north there's a glut of properties for sale that just aren't selling.

Thinking about how much bargaining power a buyer must have you could get a discount, but that would set the market value for those houses. So there's the new market value, you pay your deposit but if prices drop again and unless you have a large deposit you're gonna be in negaitive equity very quickly.

3. Given (2.), many of the best mortgage deals have redemption policies on them. So if you do start going into negative equity and have to move, you could be hit by a double whammy of having to pay a large redemption fee if you're not careful.

4. Finally, we are coming up to the weaker part of the year can't help thinking, "Wait and see".

Anyway, my point is from a financial risk view (2 & 3), could it be that there is no point in an FTB buying until prices start to climb? Even in a stagnating market you could argue that inflation may take care of it, but you still take the risk of a drop.


Very hard to take my recent thoughts about buying too seriously. Anyone considered this issue? As Andrew Farlow would say, the driving force behind jumping on to the ladder has now gone.

Thought train over.


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I wouldnt there really is no rush, were giving it another 2 years of saving and watching prices drop.

Every £1 you save is more than £2 you'd have to pay back to a mortgage company, and every £1 a house devalues is allso over £2 you dont give a mortgage company.

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  • 301 Brexit, House prices and Summer 2020

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      • down 5% +
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