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Did we dodge a bullet?

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Hola amigos, newbie here. Been following HPC but never really had much to contribute, guess now I do

So after a long and painful search we finally found something and made a conditional offer on a new development outside London in Zone 7, the condition being developer SDLT contribution. The offer was readily accepted and so we began the proceedings.

Everything was going smoothly until Mr. Hammond struck last week in the budget, seemingly for FTBs but clearly in favour of his builder and bank pals. Our distraught developer called us back, thru the (his?) EA, to let us know that his SDLT contribution would now be £5k less since we have "room for £5k" and should be generous enough to let him on it.

Now we really liked the property and were about 80% thru with the buying process having spent money upfront on solicitors, surveryors valuation etc.  The prospect of losing the property at this stage seemed scary.

Nevertheless, we asked for a bit of time. Called the EA and offered to split, got a "NO" straight back. So we bluffed that we might not go ahead, only to be called and told back that developer has a higher offer on the table, your move.

OK so we'd been looking forward to buying a home while they've been trying to get higher offers using ours as a benchmark. Borderline legal but 100% immoral.

Granted we liked the property but on second thoughts, it is not even in London, way overpriced for what it is and we probably offered too much. Inflation is on the up, wage increments minimal, £ on the decline, interest rates - should be a lot higher but will likely stay down unless they want to bring this house of cards down so we thought did we want that mortgage of 10x earnings hanging over us for the rest of our lives?

So we took another day to decide, rang the EA back yesterday and told him to stick the property up where the sun don't shine. We doubled down and asked the EA **never** to call us back again :)

So there's my story. Feeling elated yet miserable at the same time. There really is not much hope for FTBs. Everyone seems to be in on it or wants to dance till the music stops. The number of times we've heard "housing ladder" this year ....

Anyway  guess we got a chance to reevaluate and perhaps when we look back in a few years we hope to thank Mr. Hammond for his help.

For now though, have we dodged the bullet?

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Welcome. Yes you have!

 

10x combined earnings?! Or sole!? Both are crazy. Our household income is £50k and a £200k mtg is just about manageable but ONLY on these historically low rates.

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Well done DodgyDave, love the name by the way and it reminds me of someone, can't think who?  By backing out of this deal you have done your bit to help prices start their inevitable fall.

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3 hours ago, AnneD said:

“I am convinced that the European banking sector is going through a kind of new industrial revolution that is likely to extend over the next decade.”

Sure Frederic, like the railways did back then!

6 hours ago, DodgyDave said:

For now though, have we dodged the bullet?

I don't know but I really hope you get rewarded.

It's your money (plus debt!) and you don't have to spend it! 

Saying "no" does feel great.  Shame it was a call and not a face to face.

Edited by Fence

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It's the same as being gazumped or gazundered in my view and when a deal is struck to come along later and try to re-negotiate is immoral in my view.  Serves them right for messing about (greed) over a measly £5K  (peanuts to them and a lot to anyone else).  I definitely think you've dodged the bullet. Just hang on a little longer..................you will reap the reward and get a better (not good but better) value house:)

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Thank you all, we're going to wait and watch until mid next year.

My view is that the government doesn't really want to bring house prices down and will do whatever it needs to keep them up. And then we have the BoE, who will cite every excuse in the world to not raise interest rates thus supporting house prices.

In light of this double whammy, I'm not sure how much longer can first time buyers put off buying a property. Tbh, the only thing stopping us from buying right now are bang average, mediocre new builds asking astronomical prices. It's been frustrating to follow such properties since the past couple of years - I've been wondering who the hell would want to buy that dump at THAT price - only to realise that no matter what they always find someone to sell to.

House prices have come down quite a bit recently - builders have been accepting offers about 8-10% down. Here's hoping this trend continues.

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On 29/11/2017 at 6:33 AM, DodgyDave said:

Our distraught developer called us back, thru the (his?) EA, to let us know that his SDLT contribution would now be £5k less since we have "room for £5k" and should be generous enough to let him on it.

The cheeky fecker. The stamp duty is between you and HMRC. Nothing to do with the EA or housebuilder. I wouldn't have even offered to split the difference. The original deal stands or I'm pulling ou t of the sale. <_<

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  • 239 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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