WWYD - another home buying question

[SamDelta1]

Hello!

I know there are currently a few threads floating around with the same topic, however I would like to hear a few more opinions before I decide what to do moving forward.

Before the Corona Virus hit I was nearing completing on a house sale. However I now have now cold feet and think it might be wise for me to pull out of the transaction.

I have managed to secure a 9.5k reduction on a purchase that was an original asking price of £330,000 - however, I’m not sure that this is enough. If houses do tumble, I would have to sell at a loss as I can’t see myself saying for more than 5-6 years.

What would you do? I would really like to move, but it would not be the end of the world if the sale were to fall apart. I appreciate the reduction but I don’t think it will cover me financially if we go into a recession etc.

The house is pretty small, with no means on extending, however it is on the commuter belt and in quite a good location in Bexley.

WWYD?

Apologies for all the typos! My anxiety levels are high right now

The general view on MN is that if this is going to be a long term purchase then you should be relatively safe to proceed.

I can't advise as we are trying to buy as well and face the same dilemma. Just wanted to ask how you approached the vendor in terms of renegotiating please? Did they offer when you tried to pull out?

Thanks and good luck!

@littlecontis I just emailed the EA and told them that we can’t proceed unless the price is revised. We originally asked for 5% as we thought that this was low enough to prevent a full on renegotiation.. it was not. We went back and forth and eventually landed on 9.5k - I’ve since been advised that I shouldn’t have settle on anything less than 10% (or close enough)

But are you selling at a higher price therefore balances out?

@Changedmyname84 I’m not selling, I’m moving out of rented

Think I’d be reluctant to agree to buying at the moment. It’s shit for the vendor, but the impact of the Coronavirus and recession/depression could be significant.

I’d bail out, it is a shame for the vendor, but your the one risking negative equity. No sentiment in business and all that...

If you have a decent deposit and a stable income (ie - you stand a good chance of still getting a mortgage if banks become more reluctant to lend) then I would pull out and see what happens. You will be kicking yourself if you rush in and prices plummet over the next year.

Depends how much you pay in rent and how much you view that as wasting money, and how keen you are to get on the property ladder.
People are saying there will be a big recession after Corona, but I'm not sure how that will affect house-prices, depends how many people lose their jobs and have to sell their homes to survive.

Bail out. See what happens. Try not to panic either. We are also trying to sell our flat and move to another area as well so I have no advice or tips.

Is your rent cheaper than your mortgage? I’m not convinced that house prices will be affected as much as people are saying and for as long as they’re saying, so if you have a stable job and will pay less for a mortgage I would personally go for it. If house prices fall it will be harder to get a mortgage and rates may increase, so you might not actually be better off.

We are nearly at exchange, our house is vacant and we are staying with the in laws at the moment so we can still continue. I'm nervous but we are continuing with our purchase. We are first time buyers and the agreed price around 40-50 thousand lower than the other property in the street (needs updating) the area is perfect for our children's schooling and we are planning on staying long term, hoping it pays off for us 🤞

I've been having a look on rightmove past year for houses in my local area and I'm now seeing alot of ones that were previously sold a couple months ago being relisted, obviously quite a few people are changing their minds, still listing at the same prices as before though, obviously estate agents don't want to see prices/commission go down!

A house is not just an investment though. Yes it is a factor. If you have savings for your deposit these will be getting nothing right now. Mortgage interest is really low right now. Building on new homes is at a low so predictions are that rent will not go down as supply of new properties stalls and it isn’t known what this will do for property values too. There may sadly be repossessions coming up if people’s livelihoods continue to be eroded. How secure is your job? Would you get a mortgage offer in a new more jittery market where many banks are withdrawing loans of all varieties.

Is your quality of life going to improve commute wise and amenity wise? Do you have a spare bedroom in the new house to make it work for you and provide an income that may offset any loss if the property does go down in value?

OP are you the poster who has had several threads on this subject and the purchase price you've agreed is not £330k minus £9.5k, it's less? Who advised you to get 10% off and why?

It comes down to do you want the house or not ? Are there other houses available ? Can you stay in rented ? Why would you move in under 5 years ?

Well if you have cold feet then spending 330k is clearly not the best idea. Curious why you have chosen 5-6 years to stay there though (should you go through)?

No-one knowws what the market will do but I guess a huge number of transactions will tank.