Sold to Downsize Anecdotal

[sta100]

Circumstances forced me to move at the beginning of the year (no mortgage). Put my house on the market, 20 viewers bidding above ask etc. etc.

Spent way too much time looking for a house to buy in cash, got outbid several times despite going way over ask, eventually found one. A couple of months ago I could see the writing was on the wall. Pulled out of the purchase and decided to buy a significantly less expensive flat instead. Did have not one single doubt this was the right thing to do.

House is still sat on market 10% below my offer. I'm sat in a flat which would have to fall 25% to be equivalent.

Flat is cheap to run, low service charge and heating virtually paid for by flat below. Money is earning interest, I'm waiting for another hike to tie it up. Plus I don't need a house, I hate gardening, and use the garden like 10x a year, I hate maintenance too and dealing with tradespeople, someone else can do that while I'll go do something more interesting.

Anyway that's real evidence of a min 10% drop on a decent detached house in a popular area in the South East in the space of a few months.

 

[Bruce Banner]

Sounds like it's all worked out perfectly for you.

We are in a similar position having sold our mortgage free detached family home, to move area, after the kids flew the nest in 2005.

After over ten years renting for much less than the interest on our "house money", we bought a small house with enough "house money" left over to buy a second if we wanted.

Similar thoughts on maintenance, gardening, tradespeople, interest on remainder of "house money" etc.

You did it right, relax and enjoy.

 

Edited October 29, 2022 by Bruce Banner

[sta100]

Thanks, and good to hear this worked out for you too. Think things are going to swing even further our way.

Got enough cash to sit on sidelines and pick something up cheap if the falls go as I think they will. Chain free cash buyer puts me in a great position now. I was getting outbid by people borrowing cheap cash, now that's gone I'll be in a great position.

I think the markets already crashed, figures we'll get by early next year will reflect it.

[Twenty Something]

49 minutes ago, sta100 said:

Thanks, and good to hear this worked out for you too. Think things are going to swing even further our way.

Got enough cash to sit on sidelines and pick something up cheap if the falls go as I think they will. Chain free cash buyer puts me in a great position now. I was getting outbid by people borrowing cheap cash, now that's gone I'll be in a great position.

I think the markets already crashed, figures we'll get by early next year will reflect it.

So you plan to end up with a flat and a house in the future then? If you’ll need to sell your flat to then buy a house you’re not really chain free. If you’re that adamant that prices are going to go belly up why wouldn’t you rent, put all your money in savings and then really be in a position to cash in if your prediction is correct? Or are you planning on becoming a BTL’er with the flat? 

[sta100]

30 minutes ago, Twenty Something said:

So you plan to end up with a flat and a house in the future then? If you’ll need to sell your flat to then buy a house you’re not really chain free. If you’re that adamant that prices are going to go belly up why wouldn’t you rent, put all your money in savings and then really be in a position to cash in if your prediction is correct? Or are you planning on becoming a BTL’er with the flat? 

I don't need to sell my flat to buy a house.

Renting is an all or nothing strategy really and carries too much risk for me. All sorts of life things can happen where it's better to own a place. I'm fortunate in that I don't have young kids,  so a flat is quite easy for me.

I can sell the flat after I've bought a house which makes life a lot easier if I want to move to a house, the main point is that it will leave me room to pick something that's going to work well for me if I need or want to move again, e.g. low maintenance rather than the situation over the past few years where I had to make a lot of compromises when I had to move previously. I might just stay here though, i quite like it.

Edited October 29, 2022 by sta100

[winkie]

So what is best for one or two people......one four bed or two one beds?........ variety is the spice of life.

[sta100]

5 minutes ago, winkie said:

So what is best for one or two people......one four bed or two one beds?........ variety is the spice of life.

I think a lot of people will be looking to downsize in the current climate. I've always thought as a house as a liability as well as an asset, I don't think most people feel the same way about the liability part.

[winkie]

Just now, sta100 said:

I think a lot of people will be looking to downsize in the current climate. I've always thought as a house as a liability as well as an asset, I don't think most people feel the same way about the liability part.

Outside space is always more important than inside space.

[sta100]

Just now, winkie said:

Outside space is always more important than inside space.

The more space I have the more I fill it with useless junk.

[Bruce Banner]

17 minutes ago, winkie said:

Outside space is always more important than inside space.

All the outside space we need is somewhere to hang the washing and offroad parking for two cars. 

 

[Bruce Banner]

17 minutes ago, sta100 said:

The more space I have the more I fill it with useless junk.

Us too, our fourth bedroom is a dedicated "box room", filled with boxes that we haven't opened for nearly twenty years, but my wife thinks she remembers exactly what's in them and who am I to argue.

[winkie]

7 minutes ago, Bruce Banner said:

All the outside space we need is somewhere to hang the washing and offroad parking for two cars. 

 

I don't mean the outside space you own, I mean the outside space don't own but can use, enjoy and benefit from.......a room with a view.

[Bruce Banner]

16 minutes ago, winkie said:

I don't mean the outside space you own, I mean the outside space don't own but can use, enjoy and benefit from.......a room with a view.

Oh, I see. We're where we want to be, area wise.

[sta100]

19 minutes ago, winkie said:

I don't mean the outside space you own, I mean the outside space don't own but can use, enjoy and benefit from.......a room with a view.

Ahh yes. The local sports centre and nature reserve do me just fine

[sta100]

28 minutes ago, Bruce Banner said:

Us too, our fourth bedroom is a dedicated "box room", filled with boxes that we haven't opened for nearly twenty years, but my wife thinks she remembers exactly what's in them and who am I to argue.

Ha we've recently had arguments over what we keep or save. The downsize forced us to get rid of stuff that was just sitting there for years. Feel much lighter now.

[Orb]

55 minutes ago, Bruce Banner said:

Us too, our fourth bedroom is a dedicated "box room", filled with boxes that we haven't opened for nearly twenty years, but my wife thinks she remembers exactly what's in them and who am I to argue.

You could rent that room out for £600 a month. 

[nightowl]

16 hours ago, sta100 said:

Circumstances forced me to move at the beginning of the year (no mortgage). Put my house on the market, 20 viewers bidding above ask etc. etc.

Spent way too much time looking for a house to buy in cash, got outbid several times despite going way over ask, eventually found one. A couple of months ago I could see the writing was on the wall. Pulled out of the purchase and decided to buy a significantly less expensive flat instead. Did have not one single doubt this was the right thing to do.

House is still sat on market 10% below my offer. I'm sat in a flat which would have to fall 25% to be equivalent.

Flat is cheap to run, low service charge and heating virtually paid for by flat below. Money is earning interest, I'm waiting for another hike to tie it up. Plus I don't need a house, I hate gardening, and use the garden like 10x a year, I hate maintenance too and dealing with tradespeople, someone else can do that while I'll go do something more interesting.

Anyway that's real evidence of a min 10% drop on a decent detached house in a popular area in the South East in the space of a few months.

 

You should be bestowed a honoury title such as the Grand Wizard of HPC for this😁

[Bruce Banner]

27 minutes ago, Orb said:

You could rent that room out for £600 a month. 

What, and have someone living in our house? No way.

[Twenty Something]

5 hours ago, sta100 said:

I don't need to sell my flat to buy a house.

Renting is an all or nothing strategy really and carries too much risk for me. All sorts of life things can happen where it's better to own a place. I'm fortunate in that I don't have young kids,  so a flat is quite easy for me.

I can sell the flat after I've bought a house which makes life a lot easier if I want to move to a house, the main point is that it will leave me room to pick something that's going to work well for me if I need or want to move again, e.g. low maintenance rather than the situation over the past few years where I had to make a lot of compromises when I had to move previously. I might just stay here though, i quite like it.

I thought based on recent posts that the world was unfair and why should people be able to deprive others through having miltiple properties when others can afford none? Yet here you are…

[sta100]

1 hour ago, Twenty Something said:

I thought based on recent posts that the world was unfair and why should people be able to deprive others through having miltiple properties when others can afford none? Yet here you are…

Here I am with one small flat?

[sta100]

Since when has being able to move easily and without pressure by buying something with no chain, moving, and then selling with no chain meant someone owning multiple properties?

What exactly is wrong with circumventing the stupidity of being in a position where I have to risk waiting 6 months to find out a chain has broken when I have to move? I have to deal with ridiculous boom and bust hpi and a dysfunctional process for buying and selling. I'd like to just focus on work, creating things, productivity, taking care of family which is better for everyone including you, and be able to move when life circumstances change without spending months being pushed to overspend against 20 other bidders.

You don't seem to understand that the better peoples housing situations the better it is for everyone.

You also haven't picked up that most people on this site including myself don't want a housing crash, it's been needed for many years otherwise we find ourselves in the sort of situation we're in now. We have estate agents turning over large sums of money while students are queuing up to secure somewhere to live. How can you not see that we're all totally f*cked when estate agent profits are more important than education?

 

[sta100]

4 hours ago, nightowl said:

You should be bestowed a honoury title such as the Grand Wizard of HPC for this😁

Ha, bit premature that. Waiting for the rate cut next week 🤭

[shlomo]

4 hours ago, Bruce Banner said:

What, and have someone living in our house? No way.

You should be helping Ukrainian refugees

 

[wighty]

10 hours ago, shlomo said:

You should be helping Ukrainian refugees

 

They'll give him a heart attack, just by turning up. Me too!.

[winkie]

16 hours ago, sta100 said:

The more space I have the more I fill it with useless junk.

For some stuff is a security blanket......might need it one day, will come in useful someday......when it often ends up owning us, tying us down?