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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Would you gazunder in these circs?

59 replies

Claliscool · 27/05/2020 09:27

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 posts:

OlaEliza · 27/05/2020 09:28

If you do I hope they pull out.

MeninSuits · 27/05/2020 09:29

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 · 27/05/2020 09:30

Property market has obviously dropped.

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

Smelborp · 27/05/2020 09:32

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

SuperficialSuzie · 27/05/2020 09:35

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.

Original poster

Claliscool · 27/05/2020 09:47

Shouldn't I be worried about negative equity?

OP posts:

MyKingdomforaNameChange · 27/05/2020 09:49

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

Original poster

Claliscool · 27/05/2020 09:50

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

OP posts:

Feelinghistoric · 27/05/2020 09:50

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 · 27/05/2020 09:51

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 · 27/05/2020 09:51

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).

Original poster

Claliscool · 27/05/2020 09:51

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

OP posts:

theotherfossilsister · 27/05/2020 09:52

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 · 27/05/2020 09:53

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 · 27/05/2020 09:53

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

Feelinghistoric · 27/05/2020 09:53

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 · 27/05/2020 09:54

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 · 27/05/2020 09:55

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 · 27/05/2020 09:55

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

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

Sjl479 · 27/05/2020 09:56

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

Ali2020 · 27/05/2020 09:56

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 · 27/05/2020 09:56

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 · 27/05/2020 09:56

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 · 27/05/2020 09:57

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.

CottonSock · 27/05/2020 09:58

Too risky if you live there. Saving a lot of hassle on moving and costs.

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