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Sgprop2017

Am I mad - playing with fire?

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I've read a few posts on the forum and i'm a follower of everything house prices and mortgages.

The long and short of it is:

I'm now 30. I purchased my first house in a middle of road sort of area 6 years ago for £150,000. It is a fairly standard 3 bed semi corner plot with parking for 3 cars and a great south facing garden. The inside of the house is very average, no character but we've put our mark on it over the years, put in a new kitchen and decorated all the rooms. We had considered extending, our friends across the road have done this.

I did fairly well to get the house in the first place, 2 years out of uni with no money to start with I built my first business and used the profits to fund the purchase with a 30% deposit. 5 years into owning the property I paid off the mortgage in full.

My daughter was born 2 years ago and we starting looking for a larger house. In the area (like many others) good houses are scarce and its took us a full 2 years to find somewhere we really love. We sold our house STC within 3 days for £212,000. The house I love i've managed to sort a private deal at £420,000. If it went on the open market it would be on for 500k and most likely selling for around 450 - 460k (lesser houses have recently). I have lined up - 50% deposit - mortgage fixed for 5 years 1.9%... meaning monthly payments at around £700 per month. I would still have 50k+ in the bank and around 75k in company funds to draw upon.

All this being said, I would be stupid to not have doubts considering alot of infomation not just on this forum and confidence is slowly starting to shift.

What do people think? Am I mad to go through with this purchase?

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Given the insanity of house prices and govt policy in UK, I don't think its bad for you to go ahead and buy a house which suits your growing family.

Life and family can't be postponed waiting for HPC which Govt won't let happen.

Carney convinced me that waiting for crash is like searching for Oasis in Sahara desert.

Exhausting and humiliating especially if your personal circumstances like marriage/family changing.

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Considering the announcement in the last 24 hrs of an increase in HTB then I would go ahead.  The Tories obviously have no intention of allowing any kind of decent crash.......sadly:(

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55 minutes ago, janch said:

Considering the announcement in the last 24 hrs of an increase in HTB then I would go ahead.  The Tories obviously have no intention of allowing any kind of decent crash.......sadly:(

It will not happen. They will not let it happen.

Some people in this country will even vote for leader like Gaddafi if he guarantees house price increases YOY.

Nothing will change, they will turn Brexit into a circus and will come up with a Brexit which still keeps us in EU.

Its about their pockets, passing wealth to their children.

Unless another oliver cromwell takes birth, its next to impossible to reverse this plague.

Which is why I have thrown in towel and bought a house. No point in spending your time and energy shouting as Govt listens to only those with heavy pockets.

Housing speculation is the dominant religion of UK and is highly unlikely to change in another 20 years.

 

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New Labour should hang their head with shame that they let this bubble.

Camborne copied the same shit and enlarged it with some spice.

Although I'm not a fan of Nigel, sometimes wonder if UKIP is the only anti-establishment party in this country.

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If you love the house why not go ahead if your business is stable?

The only niggle I had when I read your post was that you love this house and yet you are managing to buy it under the market value. That might make me think again. You are using your heart (i.e. you love the house) but your head also wants it to be a bargain (hence the explanation about the price).

Are there really bargains in genuinely lovable homes in your area? There aren't in mine and I wonder why there is in yours. In my area people are finding it very hard to sell anything over 315k and there is a glut of larger homes. This glut of larger properties not selling is something I am watching. 

 This would make me stop and take a hard look at it the valuation. Why are you being offered something scarce and desirable at a reduced price and how much is this influencing you into "loving" the house.

Otherwise, I can't see any reason not to proceed. You can afford to buy a larger home and are lucky.

 

 

Edited by Flopsy

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2 hours ago, Flopsy said:

If you love the house why not go ahead if your business is stable?

The only niggle I had when I read your post was that you love this house and yet you are managing to buy it under the market value. That might make me think again. You are using your heart (i.e. you love the house) but your head also wants it to be a bargain (hence the explanation about the price).

Are there really bargains in genuinely lovable homes in your area? There aren't in mine and I wonder why there is in yours. In my area people are finding it very hard to sell anything over 315k and there is a glut of larger homes. This glut of larger properties not selling is something I am watching. 

 This would make me stop and take a hard look at it the valuation. Why are you being offered something scarce and desirable at a reduced price and how much is this influencing you into "loving" the house.

Otherwise, I can't see any reason not to proceed. You can afford to buy a larger home and are lucky.

 

 

Its a wonderful house, owners husband has passed away. Survey came back great no issues. She just wants a hassle free sale. I'd be looking maybe 450-460k if it went up with an EA. I think she dislikes EA's as much as me.

I will be going for it for sure!

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On 02/10/2017 at 11:55 AM, John51 said:

 You have a 3 bed semi and one child. Why do you feel the need for a larger house?

Because he's maybe thinking of a second sproglet and would still like a spare room/office/study?  

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sounds to me like you are building up equity from your business a lot faster than even an above average worker - well done to you and your business.

Even if prices crash, you're basically saying that if the business keeps up at this rate, you might be mortgage free in about 10 years. (or in a position to pay the debt off using savings)

Most people would be completely unable to build up 200k equity and 50k savings,  by age 30. I am going at less than 1/4th of your speed, and I am in London ... (or perhaps it is BECAUSE I am in London that I am struggling, not so sure about that !!)

 

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On 04/10/2017 at 11:08 PM, tm_81 said:

sounds to me like you are building up equity from your business a lot faster than even an above average worker - well done to you and your business.

Even if prices crash, you're basically saying that if the business keeps up at this rate, you might be mortgage free in about 10 years. (or in a position to pay the debt off using savings)

Most people would be completely unable to build up 200k equity and 50k savings,  by age 30. I am going at less than 1/4th of your speed, and I am in London ... (or perhaps it is BECAUSE I am in London that I am struggling, not so sure about that !!)

 

Yes, no doubt if I was down London things would be nowhere near as rosey. I've been able to London wages in West Yorkshire for the last 6 years.

On 04/10/2017 at 4:06 PM, Mrs Bear said:

Because he's maybe thinking of a second sproglet and would still like a spare room/office/study?  

Exactly that reason.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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