Would you gazunder in these circs?

[Claliscool]

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

[bogfi]

The economy will recover however people have lost jobs that some won't get back, we have a huge debt to pay back, potential negatives to more people working from home. It took about 10 yrs to recover from the 08 recession & a lasting legacy of that was wage stagnation. The op is right to be cautious.

[domesticslattern]

It's a risky strategy and leaving it until the week of exchange even more so.
Do you mind losing the property purchase and also losing the place you currently rent? Worth also taking into consideration your knowledge of the property and its pros and cons from living there. That counts for a lot. If you have to move out, rent somewhere else and then start a purchase of a new place from scratch then you won't know about eg dodgy neighbours etc.

[Claliscool]

Thank yiu for all the advice - on balance I won't gazunder for the reasons everyone has given! Thank you

[sirfredfredgeorge]

Do you mind losing the property purchase and also losing the place you currently rent?

It's a pretty low risk though surely? The landlord is not in a position to get new tenants with any ease, they'd be taking an even larger hit in doing so, and current rental rates are well down in most places certainly anywhere that had any Airbnb volume or Student volume of properties due to the glut of those coming onto the general market.

But yes it's a risk, but not a particularly large financial one to balance against the risk of thousands of pounds of equity disappearing.

[Aragog]

Dh is selling a property for his clients.
Estate agents called today to say that the buyer - who had had an asking price offer agreed pre-Covid - has withdrawn offer and new offer is £40k less.

Dh has advised the clients to drop the offer entirely and put the house back on the market. They're in rush to sell and they don't need to buy another property. His clients had had other good offers previously so they're willing to take time to get a better price.

The estate agents may not have given these buys the best advice as it turns out.

[Fredthefrog]

Just be aware you would need a new mortgage and may not get it this time as the banks are getting jumpy.

[domesticslattern]

We don't know if the landlord could get new tenants with ease tbh. Round here rents are not softening, due to lack of stock. Good properties (especially with outdoor space, in good school catchment areas) are still very much in demand. I am sure it varies area by area.
Also if this FTB loses this property and needs to rent elsewhere as she completes another purchase, that means a few more months of potential mortgage payments being lost in rent.

[MuchasSmoochas]

I would try and stall it if you can. Keep it vague, something like you have reservations about your future income and could you continue to rent for a few months. We don’t know what’s going to happen with the housing market. You can only ask! Have you asked your lender if they are confident with the existing valuation?

[hydroxychloroquinegate]

Go for it. They can only say no. It's a business transaction - they'll understand. Sounds like you are in a good position and saying no would mean them marketing it etc. A man would.