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5 minutes ago, Chunketh said:

My house purchase just fell through. Been waiting on this since January and I am super pissed.

Hopefully some of you good folk can make me feel better about it :) ?

How did it go down? 

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2 minutes ago, Switch625 said:

Just might turn out to be the best bit of bad luck you ever had Chunketh

There you go :) Thats what I needed to hear.

 I am in this for the long term, 46 years old so if I am going to get something permanent for a decent retirement it has to be real soon. Thats the bit that scares me. Whats with all the rises going on!

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24 minutes ago, PeanutButter said:

Why'd it fall through? 

Vendors pulled out for "family" reasons. Whatever the **** that means. They were chasing for a completion date this time last week.

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24 minutes ago, definitelynotanagent said:

Are you renting at the moment, or do you have a place to sell too? If renting, then there might be a lot of sellers who'd really value a short chain in the near future, which might allow you to negotiate a bigger discount on the place you're buying :)

Renting, hence the urgency on owning something.

We can overpay in spades, I was planning on getting rid of the mortgage in 14 years and retiring. Now im faced with having to come up with a 20% deposit (out lender held our offer at 10% on this purchase) which we can do, but it means using the emergency fund....which makes me very very nervous in the current climate.

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10 minutes ago, Chunketh said:

Renting, hence the urgency on owning something.

We can overpay in spades, I was planning on getting rid of the mortgage in 14 years and retiring. Now im faced with having to come up with a 20% deposit (out lender held our offer at 10% on this purchase) which we can do, but it means using the emergency fund....which makes me very very nervous in the current climate.

Hmm, yeah I completely get the thing about emergency funds... Personally we've put as little money as possible into the mortgage since getting it, and have stuffed any left-overs into a savings account... We even opted for a 30 year mortgage, and save the difference into a savings account for a rainy day.

Having said that, I wonder if home-owners would be better protected than renters in the event of unemployment etc... Certainly at the moment (although extraordinary times, clearly) it would seem that you can basically default from your mortgage for a year with little hassle from the bank, where-as if you were renting you'd be out on your ear as soon as the courts open up again.

 

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38 minutes ago, Chunketh said:

There you go :) Thats what I needed to hear.

 I am in this for the long term, 46 years old so if I am going to get something permanent for a decent retirement it has to be real soon. Thats the bit that scares me. Whats with all the rises going on!

All the government props of the last years have been exceedingly successful in creating a soft landing for the giant ponzi we call the housing market. As evidenced by the data;

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2018/Jun_Q2_2018.pdf 

That average house price looks spookily familiar now doesn't it?

In fact the prices rose only 33% in the last decade.

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2020/Decades_special_report_Jan_2020.pdf

I grant that 33% may sound like a lot, but that would be wiped out by a 25% fall.

Factor in your costs of renting vs. paying off the mortgage 

https://www.drcalculator.com/mortgage/

Don't forget to add in dilapidation costs and the cost of rearranging your ponzi loan every 2, 3 or 5 years and things probably aren't looking too bad.

Everyones circumstances are different, but I calculate as little as a 10 to 15% drop would leave me better off than if I had bought at the earliest possibility 

One word of warning I am expecting Rish's last little pro-housing market stunt to at least stem the falls, but I suspect that this will only offer temporary relief to the rampers, as rising unemployment will dictate the direction of travel.

Have a good evening.

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2 minutes ago, Switch625 said:

All the government props of the last years have been exceedingly successful in creating a soft landing for the giant ponzi we call the housing market. As evidenced by the data;

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2018/Jun_Q2_2018.pdf 

That average house price looks spookily familiar now doesn't it?

In fact the prices rose only 33% in the last decade.

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2020/Decades_special_report_Jan_2020.pdf

I grant that 33% may sound like a lot, but that would be wiped out by a 25% fall.

Factor in your costs of renting vs. paying off the mortgage 

https://www.drcalculator.com/mortgage/

Don't forget to add in dilapidation costs and the cost of rearranging your ponzi loan every 2, 3 or 5 years and things probably aren't looking too bad.

Everyones circumstances are different, but I calculate as little as a 10 to 15% drop would leave me better off than if I had bought at the earliest possibility 

One word of warning I am expecting Rish's last little pro-housing market stunt to at least stem the falls, but I suspect that this will only offer temporary relief to the rampers, as rising unemployment will dictate the direction of travel.

Have a good evening.

Thanks for the post. I've done the math and over 25 years I think we could weather a 40% fall and break even. That puts me at 71, so calculating returns on not paying rent gets a bit....speculative! ofc I had not factored in the rent drops associated with a 40% (or likely greater) fall over the same period.

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46 minutes ago, Chunketh said:

Vendors pulled out for "family" reasons. Whatever the **** that means. They were chasing for a completion date this time last week.

I'm guessing at least 5k of family reasons to make them take the risk of starting from scratch with someone else. That's be someone who's been slimy enough to go making offers on houses shown as SSTC on rightmove. Combined with they wanted a date last week and you didn't give them one.

Why on earth were you not giving them a date? Given your position of having paid costs and a better start point to get it through fast, I would offer around 2 to 5k and a very fast exchange date. Hold your nose and write a ridiculous smarmy email about being in love with their house and really wanting it and therefore prepared to pay everything you can find [that bit needed to avoid them going after even more]. Then get the thing exchanged.

Of course this little post lockdown craziness may crash and burn to your advantage but it also may not for a while and it sounds like making that sale happen would have worked for you. Good luck.

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41 minutes ago, definitelynotanagent said:

Hmm, yeah I completely get the thing about emergency funds... Personally we've put as little money as possible into the mortgage since getting it, and have stuffed any left-overs into a savings account... We even opted for a 30 year mortgage, and save the difference into a savings account for a rainy day.

Having said that, I wonder if home-owners would be better protected than renters in the event of unemployment etc... Certainly at the moment (although extraordinary times, clearly) it would seem that you can basically default from your mortgage for a year with little hassle from the bank, where-as if you were renting you'd be out on your ear as soon as the courts open up again.

 

+1, GF recently moved in with me and lost her job. Asked for a rent adjustment/holiday and just came up against a wall. 

Flip side recently spoke to a college friend (called me up out of the blue wanting free financial advice). He bought a flat in London rented out to a family member. He's taken a mortgage holiday on that AND got himself a £50k bounce back loan. Fricking joke. 

As long as prices aren't plummeting any bank would be ok to delay and pray. If prices are going up then why wouldn't they? There was almost an unspoken rule (maybe it was spoken) in the GFC that nobody would repossess since it would start to release supply to a precarious low volume market. 

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Posted (edited)
5 minutes ago, ebull said:

I'm guessing at least 5k of family reasons to make them take the risk of starting from scratch with someone else. That's be someone who's been slimy enough to go making offers on houses shown as SSTC on rightmove. Combined with they wanted a date last week and you didn't give them one.

 

We did and agreed the date with them. My point was that they were chasing, we agreed a date then today they pulled out.

They were pushing for a date in mid August that suited us just fine, so I dont think they are starting from scratch as it coincided with the school year etc etc. There is something fishy afoot, I just havent worked out what particular brand of fu**wittery it is.

Edited by Chunketh
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1 hour ago, Chunketh said:

My house purchase just fell through. Been waiting on this since January and I am super pissed.

Hopefully some of you good folk can make me feel better about it :) ?

Don't buy now. Wait until April.

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16 minutes ago, Chunketh said:

We did and agreed the date with them. My point was that they were chasing, we agreed a date then today they pulled out.

They were pushing for a date in mid August that suited us just fine, so I dont think they are starting from scratch as it coincided with the school year etc etc. There is something fishy afoot, I just havent worked out what particular brand of fu**wittery it is.

Well could also just be they changed their mind. Part of the horrible system. When was exchange due? Understandable people will have a think then [last time you can walk away] but it's still shit to leave it until then if nothing has changed.

Having said that I would try an offer of a bit extra if you can and want. What's to lose?

Also no idea where you are but if it's London I'd join everyone else and say well done and wait for the nicer cheaper house next year. Stupid peak prices have had a few weeks of insane fast moving action even in London but I don't see that continuing here. Somewhere more rural with space etc. I am not so sure the crash will be next year.

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7 minutes ago, ebull said:

Well could also just be they changed their mind. Part of the horrible system. When was exchange due? Understandable people will have a think then [last time you can walk away] but it's still shit to leave it until then if nothing has changed.

Having said that I would try an offer of a bit extra if you can and want. What's to lose?

Also no idea where you are but if it's London I'd join everyone else and say well done and wait for the nicer cheaper house next year. Stupid peak prices have had a few weeks of insane fast moving action even in London but I don't see that continuing here. Somewhere more rural with space etc. I am not so sure the crash will be next year.

Aye could be, they were being flakey with exchange dates so I still think something was afoot. We pressed for exchange on Monday this week and they pushed back and asked for Friday, we agreed that last week (at our cost in terms of notice on current rental) and today they pull out.

I think they are just time wasting ****ers that cant make their mind up. Hopefully they have just done us a favour and they will look back on this thinking oh **** we should have taken that.

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Posted (edited)
5 minutes ago, Gigantic Purple Slug said:

Don't worry, in a few minutes some twit will come along and accuse you of being a troll for the merest suggestion that you are interested in buying a house at current prices.

That will make you feel better.

LOL

I feel like a twit for considering it, but I am out of time :(

caveat: Yes if it was 10% cheaper in 12 months I would be fine, but we just dont know if the government will let that happen. Chances are they wont.

Edited by Chunketh
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2 hours ago, Chunketh said:

My house purchase just fell through. Been waiting on this since January and I am super pissed.

Hopefully some of you good folk can make me feel better about it :) ?

Watch ‘The Big Short‘ that may cheer you up. 

10m furloughed, Gold and all time ie signal of hedging against currencies, shares and property and the government throwing money round like a betrayed wife using her husbands credit card

I have been offered 2 houses at around 20% below ‘market value’ this week. That is 2 more than the last 3 years. And nope...not interested in them. 

Spoke to 2 EAs yesterday....stuff is selling and they BOTH said they can’t understand it and every morning they think it will be the day it all collapses. 

Unless something is a forever home (where value changes in the future don’t matter) and it’s also relatively good value then buying now seems to be totally counter intuitive.

The potential upside of buying now I believe are much lower than a potential downside....wait a few months and see what is happening. 

We have been locked down...now it’s the roaring 20’s....it will last a while as people celebrate, go out and spend. But we all know how the 1920’s ended. 

Hope that helps. 

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21 minutes ago, Pop321 said:

Watch ‘The Big Short‘ that may cheer you up. 

10m furloughed, Gold and all time ie signal of hedging against currencies, shares and property and the government throwing money round like a betrayed wife using her husbands credit card

I have been offered 2 houses at around 20% below ‘market value’ this week. That is 2 more than the last 3 years. And nope...not interested in them. 

Spoke to 2 EAs yesterday....stuff is selling and they BOTH said they can’t understand it and every morning they think it will be the day it all collapses. 

Unless something is a forever home (where value changes in the future don’t matter) and it’s also relatively good value then buying now seems to be totally counter intuitive.

The potential upside of buying now I believe are much lower than a potential downside....wait a few months and see what is happening. 

We have been locked down...now it’s the roaring 20’s....it will last a while as people celebrate, go out and spend. But we all know how the 1920’s ended. 

Hope that helps. 

Ill get me costume ;)

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I was in a similar sittuation a number of years ago and can sympathise. It obviously isnt nice being messed about and losing money on legal/surveyor fees. But there is also the psychological factor, you have gone through a stressful sittuation, imagined a particular future event that probably wont happen. Adrenalin rush with no resolution can have an effect on your state of mind and judgement. Please be aware of this. 

On a more positive note, it seems you are well set up financially and havent gone stupid on the mortgage. Most importantly, you have the correct attitude, you are buying a house for its real purpose, a home, not as a financial instrument. Hope things work out for the best for you. 

 

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  • 417 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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