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kirstieb

Guardian-I'm nervous about buying a house – should I go ahead?

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https://www.theguardian.com/money/2018/may/24/buying-house-should-i-go-ahead

 

What are peoples thoughts on this? "Advice" for first time buyer with depression and a gut instinct that they don't want to buy this house being advised by the columnist to to just ignore all of that and just buy it, after all

 

"As far as how you feel about the property, you must have liked it enough to put an offer in although it’s perfectly understandable in a period of such upheaval in your life that you’re experiencing cold feet. So I wonder if it would help to take the emotion out of the situation and think of the house in the same way that you would think about a rental property. Continuing with the purchase doesn’t mean that the house has to be your home for the rest of your life. You could think of it as the temporary stepping stone to a longer-term home".

 

Personally, I feel its terrible advice.

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Oooh, so tricky.  I spend all my time wishing someone had said to me "man up and buy the ****ing house" in 1997, but that doesn't mean it would necessarily be good advice now.   Making it seem like it's "easy come easy go" buying and selling a house is a bit naughty, it's not like giving a month's notice, packing up your stuff and going elsewhere.  

Regardless of whether it's good advice or bad advice, it's interesting that it shows that no one really believes that property is anything other than a safe bet.  The MSM may have done more bearish articles lately, but I think true sentiment is still holding strong for HPI forever in most people's minds (probably including mine if I'm honest)

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"So I suspect that it’s your depression rather than your nerves that is getting in the way of your completing the purchase of the property and I’m not surprised that you can’t face signing the contract."

 

that's basically saying you must be mentally ill not to go through with it. Who is this providing the answers?

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No vested interest here then:

 

 

Virginia Wallis

Virginia Wallis is a freelance personal finance journalist who contributes regularly to Guardian Money as well as acting as the site's expert on homebuying. She has written for The Observer Cash supplement and is currently the contributing editor, finance for Good Housekeeping magazine. She is also the author of three financial guides for Which?.

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Well this is really tricky, because it boils down to someone saying:

- I've agreed to buy a house
- I have a mental illness
- I now don't think I want the house after all...
- ...but I'm not sure whether it's because the purchase is wrong, or just because of my illness
- Should I still buy it?

I actually have no clue what the answer is here.

The advice given is essentially:

- See a doctor
- Have a think about whether you really should pull out, noting that (1) you'll lose money on the solicitors' fees for work to date (2) data suggests buying is cheaper than renting over the long term and (3) you don't have to live there forever

The only thing that I think is definitely wrong here is worrying about losing the solicitors' fees for work to date.  Saying you've got to press on with buying a £200k house because otherwise your £2k spent on fees is wasted is a failure to appreciate materiality and sunk costs.

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34 minutes ago, thewig said:

Not wanting to take on DEBT will be categorised as a mental illness in the next ten years. Book it

Very good point and I wouldn't be at all surprised.

 

You're already considered an oddball and a misfit if you live a modest, debt free life and don't have/want the latest of everything (all on credit of course)

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I think its terrible advice, I'd say its rule number 1 not to enter into any legally binding contracts while you are having a bout of depression, plus this is likely to be the single biggest financial transaction you are going to make in your life. What happens if the writer ends up more depressed, needs to take some time off work and cant due to the mortgage payments. Or worse, they cant keep working and cant pay the mortgage. 

The expert advising is basically saying you must be mentally ill not to jump at buying this house its so much cheaper than renting. Of course, taking out a 25 yr loan when everything seems a bit rubbish is a fantastic idea, what could go wrong? 

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Who knows? 

Buying in 2007 fckd my life.

Forced sale to rent in 2011 fckd my life (let's move in with the in laws, we can save almost one of our salaries and increase our purchasing power haha haha no)

Not buying for seven years before being ground down and buying at the start of this year will no doubt have further fckd my life. 

It's a lottery at the end of the day, but the government know how to rig it.

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Who knows, if a global crash kicks off and the currency printing really gets going, the debt could get inflated away and you'll be effectively gifted the house, so get on a long enough fixed rate to weather such a storm. Wages will probably get crushed in the process though.

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2 hours ago, DarkHorseWaits-NoMore said:

Who knows, if a global crash kicks off and the currency printing really gets going, the debt could get inflated away and you'll be effectively gifted the house, so get on a long enough fixed rate to weather such a storm. Wages will probably get crushed in the process though.

Printing and Interest Rate drop is on the cards... - Link

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16 hours ago, kirstieb said:

https://www.theguardian.com/money/2018/may/24/buying-house-should-i-go-ahead

 

What are peoples thoughts on this? "Advice" for first time buyer with depression and a gut instinct that they don't want to buy this house being advised by the columnist to to just ignore all of that and just buy it, after all

 

"As far as how you feel about the property, you must have liked it enough to put an offer in although it’s perfectly understandable in a period of such upheaval in your life that you’re experiencing cold feet. So I wonder if it would help to take the emotion out of the situation and think of the house in the same way that you would think about a rental property. Continuing with the purchase doesn’t mean that the house has to be your home for the rest of your life. You could think of it as the temporary stepping stone to a longer-term home".

 

Personally, I feel its terrible advice.

The buying of a home now or even the last few years is the flip side of doing what many of us are doing on HPC and not being dragged in a property market where we are getting nothing like the value we deserve for the money we are going to be paying out. For a long time now I get a little p***ed of once in a while that I cannot be living in my own home, it has it's pressures. But the exact identical opposite worry to that is InBruge in another reality that does buy that expensive property and is living a different kind of hell.

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15 hours ago, scottbeard said:

Well this is really tricky, because it boils down to someone saying:

- I've agreed to buy a house
- I have a mental illness
- I now don't think I want the house after all...
- ...but I'm not sure whether it's because the purchase is wrong, or just because of my illness
- Should I still buy it?

I actually have no clue what the answer is here.

The advice given is essentially:

- See a doctor
- Have a think about whether you really should pull out, noting that (1) you'll lose money on the solicitors' fees for work to date (2) data suggests buying is cheaper than renting over the long term and (3) you don't have to live there forever

The only thing that I think is definitely wrong here is worrying about losing the solicitors' fees for work to date.  Saying you've got to press on with buying a £200k house because otherwise your £2k spent on fees is wasted is a failure to appreciate materiality and sunk costs.

Also making the assumption they will loose money. Many offer no move no fee options and lenders free valuations. Pull out of two sales and lost nothing in the past!

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  • 342 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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