lets get it right Posted March 7, 2008 Share Posted March 7, 2008 Ok I guess I have all the answers I expected to get from HPC but I assure you I am a genuine non VI FTB.I have linked the house below for opinions if it has any effect? I have also linked the house that is for sale just a few houses down. http://www.rightmove.co.uk/viewdetails-199...=1&tr_t=buy http://www.rightmove.co.uk/viewdetails-156...=2&tr_t=buy Where I live that house would be in the region of 400k. I wonder if wages are getting on for 3 times higher here than in Worksop. Quote Link to comment Share on other sites More sharing options...
Mr Nice Posted March 7, 2008 Share Posted March 7, 2008 if you are comfortable with the idea of losing all of your deposit, and being in negative equity for a potentially long time, and could still AFFORD to move etc. for work, then go for it. the real danger comes if you have to move before you planned, and you get caught totally by the market downturn, that is pretty likely to be with us for a while. Quote Link to comment Share on other sites More sharing options...
pablopatito Posted March 7, 2008 Share Posted March 7, 2008 You worked hard to save it, bought a house and, abracableedin'dabra, it's gone! Vanished! Poof! It is no more. @stards! Good point. It must be very stressful. I had mates in this situation during the last crash and it did take its toll on them. For me, I have 100k equity in the house I'm currently trying to sell that has appeared as if, like you say, by magic. But I've never spent any of that 100k, and because I didn't earn it, I've never really considered it mine. It just sits there, somewhere, on a bit of paper. So if I was to buy now, and lost 40% of it, I wouldn't feel too bad, because I never really felt I had it in the first place - it has never been real to me. But for those without any equity, their £27k is real. They earned it. They worked hard for it. And it will be gone. Quote Link to comment Share on other sites More sharing options...
joey Posted March 7, 2008 Share Posted March 7, 2008 (edited) if you are comfortable with the idea of losing all of your deposit, and being in negative equity for a potentially long time, and could still AFFORD to move etc. for work, then go for it.the real danger comes if you have to move before you planned, and you get caught totally by the market downturn, that is pretty likely to be with us for a while. Not forgetting we could easily go into RECESSION thus bringing on huge UNEMPLOYMENT and compared to the last CRASH, people are not just OVERBURDENED with the exuberant MORTGAGES but also their spiralling CREDIT CARD DEBT. Presently its the CALM before the STORM. Read the ANECDOTALS part of this FORUM and the thread on "Sellers Moving To Australia Not Having Much Lick Selling " or read http://britishexpats.com/forum/showthread.php?t=518829 These people are having huge problems selling up in the present CRISIS they are dropping upto 60K to 70K on 250K homes as DESPERATE to SELL. Even turning in some cases to DODGY BUYER GROUPS who offer 25% to 40% below the OFFER PRICE. I think very INTERESTING times ahead. PROPERTY RIP and the MYTH BUSTED. Just one of the Many DOOM and GLOOM quotes Re: who else is waiting to sell there house.... -------------------------------------------------------------------------------- ME!!!!!!!!!!!!!!! Almost a year on the market and £40k off the original asking price Beth x x __________________ Edited March 7, 2008 by joey Quote Link to comment Share on other sites More sharing options...
Benedict Posted March 7, 2008 Share Posted March 7, 2008 No problem mate. As far as stress testing goes I have calculated the best I can. I have taken IRs up to 12% and based on that between me and my girlfriend we would still be left with approx 1k spare a month after all bills/food/petrol etc. etc. paid.I don't believe the affordabiliy is really an issue for us at the moment or in the forseeable future. The only thing making me hesitate in buying this house is the state of the economy. I do believe things are going downhill and fast although we both like this house/area and its at a reasonable price for what it is. If you've got that much give in your finances and it's a house you love and can stay in for years then you don't need to let the financial arguments be everything. Might not be the best time to buy in financial terms but hanging around for a few years waiting to get on with your life isn't great either. Quote Link to comment Share on other sites More sharing options...
too soon to buy? Posted March 7, 2008 Share Posted March 7, 2008 A 4 bed detatched and it looks in great nicker, £155k, i say buy it mate. Think about this. What are the repayments on the morgage, can you afford it? Do you want the house? If so buy it. You could wait for a HPC, but i doubt your main income is from buying and selling houses. Therefore, if you see somewhere that you can afford, have done some sensitivity analysis (which you say you have) then buy it. The alternative is to rent and I have never had a good experience with renting. Quote Link to comment Share on other sites More sharing options...
joey Posted March 7, 2008 Share Posted March 7, 2008 (edited) A 4 bed detatched and it looks in great nicker, £155k, i say buy it mate. Think about this. What are the repayments on the morgage, can you afford it? Do you want the house? If so buy it. You could wait for a HPC, but i doubt your main income is from buying and selling houses. Therefore, if you see somewhere that you can afford, have done some sensitivity analysis (which you say you have) then buy it. The alternative is to rent and I have never had a good experience with renting. And you could could become an ELITE MEMBER of "THE JINGLE MAIL" club. I believe its membership is increasing day by day (Jingle Mail : latest Buzz word for REPO's handing back the keys) Edited March 7, 2008 by joey Quote Link to comment Share on other sites More sharing options...
pablopatito Posted March 7, 2008 Share Posted March 7, 2008 These people are having huge problems selling up in the present CRISIS they are dropping upto 60K to 70K on 250K homes as DESPERATE to SELL. Even turning in some cases to DODGY BUYER GROUPS who offer 25% to 40% below the OFFER PRICE. Another way of looking at that Expat thread is to say that if you find a desperate enough seller, then you can buy a house for a knockdown price. Find someone desperate enough, offer them 70% of the asking price, and even in a crash you might come out on top. Quote Link to comment Share on other sites More sharing options...
warpig Posted March 7, 2008 Share Posted March 7, 2008 Misery loves company If I was in your shoes I would be buying it.... Good Luck and let us know how you get on, I think the house is very nice for the money, I recently paid more than that for a flat on the south coast!!! Quote Link to comment Share on other sites More sharing options...
warpig Posted March 7, 2008 Share Posted March 7, 2008 In a year's time you will be in negative equity. Two expressions spring to mind "catching a falling knife" and "patience is a virtue", neither of which requires additional explanation. Quote Link to comment Share on other sites More sharing options...
JumboMills Posted March 7, 2008 Share Posted March 7, 2008 it is ignorant to assume that no property is worth buying under any circumstance. a 4 bed detached house for £155,000 doesnt sound far off the mark to me.a lot of people on this site are likely to miss opportunities if theyre not even prepared to look at them. Finally... the voice of reason! I was getting worried that everyone had finally gone mad! On the face of it, without more details, it sounds like a very good price - pre, during or post-crash. If you like it and you're comfortable with the mortgage then go for it. Life is too short. Best of luck. Quote Link to comment Share on other sites More sharing options...
Objective Developer Posted March 7, 2008 Share Posted March 7, 2008 I've been a long time lurker on here and a bear at heart although a property has come onto the market and it is reduced quite dramatically for a quick sale.Its a 10-15 year old house in a decent area. 4 bed detached on for £155,000(fixed price). The exact same style house a couple of doors down is currently on for £177,000 and its not in a better state. I also have a 15% deposit and can afford the mortgage payment quite easily but I am living in fear of the current econimic state however I believe this house could be a safe bet. Any thoughts are appreciated! You utter slag. Quote Link to comment Share on other sites More sharing options...
too soon to buy? Posted March 7, 2008 Share Posted March 7, 2008 And you could could become an ELITE MEMBER of "THE JINGLE MAIL" club. I believe its membership is increasing day by day (Jingle Mail : latest Buzz word for REPO's handing back the keys) why would this person be in a situation where the house is reposessed? He's already said that he can take IRs up to 12% and stil have £1k left over as disposable. Of course if the HPC crashed to below what he paid for it and in 2 years when he comes off the intro rate onto the SVR, he might see himself having to pay 7-8% - but where does the repo come in? I believe in HPC and that a correction is needed (although I think for some parts of London, stagnation will happen, but for most other parts, a reasonable correction is needed and will happen), but I don't like the talk on too many of these pages about people being almost ridiculed for wanting to own their own home. Quote Link to comment Share on other sites More sharing options...
Objective Developer Posted March 7, 2008 Share Posted March 7, 2008 why would this person be in a situation where the house is reposessed? He's already said that he can take IRs up to 12% and stil have £1k left over as disposable. Of course if the HPC crashed to below what he paid for it and in 2 years when he comes off the intro rate onto the SVR, he might see himself having to pay 7-8% - but where does the repo come in?I believe in HPC and that a correction is needed (although I think for some parts of London, stagnation will happen, but for most other parts, a reasonable correction is needed and will happen), but I don't like the talk on too many of these pages about people being almost ridiculed for wanting to own their own home. You utter slag too. Quote Link to comment Share on other sites More sharing options...
too soon to buy? Posted March 7, 2008 Share Posted March 7, 2008 You utter slag too. that chick in your avatar looks like a slag, Quote Link to comment Share on other sites More sharing options...
chrisstevens Posted March 11, 2008 Author Share Posted March 11, 2008 (edited) I have since found out that this house was actually a repossesion hence it was on the market at a lower price. Edited March 11, 2008 by chrisstevens Quote Link to comment Share on other sites More sharing options...
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