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Would you gazunder in these circs?

(60 Posts)
Claliscool Wed 27-May-20 09:27:30

Due to exchange on house this week.
Property market has obviously dropped.
No chain.
I'm a ftb buying my landlords property.
Price negotiated pre covid was inflated due to initial brexit bubble.
Would you gazunder?

Yabu - no I wouldn't in these circumstances
Yanbu - yes I would in these circumstances

OP’s posts: |
OlaEliza Wed 27-May-20 09:28:15

If you do I hope they pull out.

MeninSuits Wed 27-May-20 09:29:32

MY DS is buying in similar circumstances. Landlord has made it very clear that the price is not dropping and he will just re-let it. DS hasn't asked for a discount- it is a reasonable price.

MeninSuits Wed 27-May-20 09:30:12

Property market has obviously dropped.

No evidence of that at all. Lots of speculation but no data to support it.

Smelborp Wed 27-May-20 09:32:01

It sounds like its the house you live in. It’s a high risk strategy, are you prepared to lose it?

SuperficialSuzie Wed 27-May-20 09:35:09

If the property market is falling, it will take a good few months after lockdown for this to bear out.

I wouldn't in your circumstances. You will be saving on all the removal costs etc.

If you do, be prepared to lose your home.

Claliscool Wed 27-May-20 09:47:56

Shouldn't I be worried about negative equity?

OP’s posts: |
MyKingdomforaNameChange Wed 27-May-20 09:49:49

Only if you're planning to sell in the next few years smile

Claliscool Wed 27-May-20 09:50:37

Are all these responses from people happily on the housing chain with rising equity grin what about ftb s worried about the future economy?

OP’s posts: |
Feelinghistoric Wed 27-May-20 09:50:44

Thing is, if a vaccine is announced tomorrow, the economy will bounce back fast and house prices were rising at the start of the year. How much do you like the house? If you like it, and you’ve got to know any quirks while living there, then I would go ahead. It’s just all a massive gamble at the moment, which is hellish given the scale of a house purchase. Re negative equity - how long do you plan to live there?

Nosurveysneeded Wed 27-May-20 09:51:18

You are right to worry about negative equity. You probably won't get much sympathy here though.

I understand where you are coming from and if the house was overpriced to start with can understand it even more. However, I am assuming that you need a mortgage. Has the property been 'valued' recently for your mortgage?

It is a difficult one since I am assuming you live there. If you pull out can you continue to rent? Or is that it, you will have to move out. Is it worth losing a property that you presumbly enjoy living in.

Crabbo Wed 27-May-20 09:51:36

You can say the price negotiated was inflated but it’s immaterial really - the point is you agreed to pay it. If you drop it now be prepared to lose the house (presumably completely as the landlord may well serve you notice).

Claliscool Wed 27-May-20 09:51:47

Thanks mykingom, not really but definitely concerned that if I renovate I will go through the ceiling price of property in my street

OP’s posts: |
theotherfossilsister Wed 27-May-20 09:52:31

Do you love the house as somewhere to live/somewhere for your future/your children's future? Or is it an investment?

Personally I am a bit uncomfortable with gazumping. We live in Scotland where it's seen as breaking a contract. However, I do understand why people would do it in exceptional circumstances.

Timesdone Wed 27-May-20 09:53:05

Buy a house because you want to live in it. Negative equity is only an issue if you have to move. It is a pain but it passes eventually. Renegotiating the price at this stage isn’t really on.

user1471505494 Wed 27-May-20 09:53:40

Do you mean Gazump A Gazunder is a chamber pot that goes under the bed

Feelinghistoric Wed 27-May-20 09:53:54

I suppose it’s also relevant why the landlord is selling. Eg do they just not want to be a landlord any more? In which case, presumably they will sell it and you would have to move out. If you initiated the purchase, then they might be happy for you to carry on living there.

Thepilotlightsgoneout Wed 27-May-20 09:54:02

Well, how much do you want it? Will you still buy it if he says no?

Was it valued by an independent estate agent before you agreed the price?

listsandbudgets Wed 27-May-20 09:55:11

That depends.

Are you buying it as a long term home with no intention of selling for a good number of years or a short term investment? If the former then why worry? Anything could happen to the market in that time. It could go up massively or plunge. If the latter then yes probably at short term risk of negative equity.

Gazundering is a nasty practice though and of course you risk the landlord pulling out, selling to someone else and you having g
to find a new home.

It depends on your priorities really.

gamerchick Wed 27-May-20 09:55:19

I really hope your landlord pulls out if you pull this stunt.

Did they ask you to buy it or did you ask.

Sjl479 Wed 27-May-20 09:56:12

@user1471505494 so glad you pointed that out I thought this was some alternative usage I’ve never come across 😄

Ali2020 Wed 27-May-20 09:56:13

I don’t think I would if it was a house I could see myself living in long term. Also, like PPs have said, you run the risk of the LL dropping out and serving you notice.

Chicchicchicchiclana Wed 27-May-20 09:56:40

If you are so convinced house prices are going to drop substantially then pull out of the sale altogether and rent for another year or two. Put your money where your mouth is.

Lightsabre Wed 27-May-20 09:56:52

Mmm, tricky one. Depends whether you would feel gutted about having to move out as, if the landlord says no, they might give notice to you. I think all the economic indicators are that we will be heading into a significant recession which is likely to affect house prices but no-one knows to what extent yet. Mortgage lending is also tightening up - if you don't buy this house, do you have more cash or the ability to lend more money if the bank asks for a higher deposit a year down the line?
If it will be a 10+ year house then I wouldn't worry too much but you could always put the feelers out about a reduction.

MeninSuits Wed 27-May-20 09:57:48

One of teh things that happens when house prices drop is that people dont sell. There becomes a housing shortage and rents can rise.

My DS landlord disked about pre Covid 19- it should have gone through that week. He is going to give him his 3 month rent back once they complete- which seems fair.

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