Sold our flat in London at a good price. Now living with parents temporarily so need to move asap. Found somewhere to buy in the South West which is lovely but abit of a stretch and requires a hefty mortgage and money spent on it as a granny has lived there for 30 years. We would get this mortgage on basis of DHs new job (should be secure but who knows as he is the new boy).
All the doom and gloom about the economy has given us cold feet. Especially the Merrill Lynch prediction of 30% fall in house values over 3 years and no recovery for 20 years! We have paid for a survey and legal costs and should exchange next week but are we mad? Should we wait and rent for a year? New baby due in Nov.
Dunno, helpfully! You've already shelled out on survey and legal. But personally I'd not go for a mortgage that would stretch me atm. How would you survive if dh's job went tits up? Or house prices dropped by 30%?
Personally I wouldnt buy at the moment if you don't need to, especially if it means overstretching yourselves and with a new baby on the way. But if you have alot of equity from your flat, and think you could still afford the mortgage payments if they were to increase then go for it but try to get the best price you can as like you said it could be worth 30% less in a couple of years.
I wouldn't buy if mortgage meant stretching myself unless it was an absolutely unique opportunity. I certainly wouldn't buy if I were relocating as I would use it as an opportunity to rent and find out a bit more about which areas I liked and so on. Even if you know an area reasonably well as a visitor, it isn't until you have lived there that you find out why you should live on such-and-such a street or the other side of the village. I know you will feel grim pulling out at this stage but I think it would make sense to walk away.