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Original poster

Property experts - am I mad to be considering stretching ourselves and moving at the moment?

77 replies

ellehcim · 26/09/2007 22:05

Saw a few things on tv with the whole Northern Rock thing which made me think we shouldn't move but we're having the 'stay where we are and be forced to shell out school fees because the secondary school is rubbish -v- move to catchment for best state school but pay an extra £100k for house similar to ours' dilemma. We'd be stretching ourselves if we moved. Happy to Scrimp and save for a few years but not if the crash is about to happen!

Any views?

OP posts:
Frizbe · 26/09/2007 22:14

depends where in the country you are? if your up north, your less likely to loose too much cash, predictions for more of a drop are in south east! apparently.....

Original poster
ellehcim · 26/09/2007 22:16

We're in Nottingham. Prices are definitely coming down. The house I was thinking about viewing has been reduced by £50k this week.

OP posts:
LucyJones · 26/09/2007 22:17

ooh Nottingham
can I ask which secondary school you are talking about?

noddyholder · 26/09/2007 22:23

I have just sold and am renting for a while as prices are dropping here in the south east.Can you sell bank the equity and rent in the catchment area and then buy when things are more stable?

Original poster
ellehcim · 26/09/2007 22:30

LucyJones we're thinking about moving to get into the Southwell Minster School catchment area because the results are always the highest. Property in that area is ridiculously expensive though compared to the other side of Nottingham where we are at the moment!

NoddyHolder we thought about that but then they've been saying the crash is about to happen for years haven't they. Bit worried that we'd do that and then gradually eat away all of our equity renting. Plus with a new baby I can't be doing with the lack of a permanent home.

And yes I know I'm slightly mad to be worrying about secondary schooling when my boys are only babies but our local school really is dreadful.

OP posts:
LittleMinx · 26/09/2007 22:43

People have been predicting a CRASH for years... i know people who sold in 2001 and are still in rented and prices have risen and they are well and truly stuffed and seriously regret it

I dont think there will be a crash.... yes prices may drop a bit but there are too many people out there wanting to buy compared to the percentage of properties available.

Properties in a catchment area to a good school will always command a high price so personally i would go for it now.

You could leave it 12 months, find out prices are slightly lower, but interest rates could be higher etc .

LucyJones · 26/09/2007 22:45

oh yes Southwell is pricey.
Which secondary are you trying to avoid if you don't mind me asking?

haychee · 26/09/2007 22:52

We sold to wait for the prices to drop and have been stuck in expensive rented property ever since. That was 2004! Our rent is £850pm x 36months = i dont want to know. Needless to say aswell our profit we had has near enough diminished. So we are basically first time buyers all over again and its impossible to get back on the ladder, unless we buy a 1 bed flat!!! Its just so expensive here.

Original poster
ellehcim · 26/09/2007 22:56

OK We're definitely not renting. Poor you haychee. Actually I also have friends who moved into rented in 2000 to wait for prices to come down and are now stuck having used their equity.
LucyJones - Wilsthorpe in Long Eaton. 3rd from bottom in the county league tables. If we stay in our current house the boys will have to go to Trent College and that will mean school fees of about £5k a term(eeek!)

OP posts:
hatwoman · 26/09/2007 23:00

possibly more importantly than the likelihood of a crash you need to take into account how long you will stay there, the outlook for interest rates and your capacity to cope with raised interest rates.

If you will happily stay there for the next 20 years then a potential crash is not the main issue - ie you don;t want to move so the value of your house compared to the size of your mortgage is not that relevant. the real shambles is when interest rates go up and you can;t keep up the payments - at that point you have no choice but to move - and then the relative values of your house and mortgage become extremely important.

having said all that I have no idea what the interest rate outlook is - but one thing to be sure is that it's pretty unwise to put yourself at your upper limit on the assumption that they won;t go up.

LucyJones · 26/09/2007 23:01

ah, not sure about the Long Eaton side of it.
I've heard good thing sabout Sedst Brdgford High but not sure if that is too far for you?

LucyJones · 26/09/2007 23:02

gah at typos! West Bridgford that should be

Original poster
ellehcim · 26/09/2007 23:08

West Bridgford is our second choice area. Great for work commute, social life and school pick ups but DH not happy about paying lots of money to be surrounded by other houses. Again though we'd be paying an extra £100-£150k for a house the same size as ours - which could pay for the school fees!
If we moved we would be stretching ourselves a lot so although it would be our "forever house" we could have problems if interest rates went up significantly.

OP posts:
1dilemma · 26/09/2007 23:25

very difficult decision since the right answer depends on so many variables and what's right for you might be wrong for others.
The govs behaviour re pumping cheap money into the market and guaranteeing deposits (although I havn't seen the small print on that one) will have staved off the crash for a bit longer but who knows how much longer?

LaDiDaDi · 26/09/2007 23:27

Tbh I don't think that I would financialy stech myself now so that my children could go to a school that when they are 11 that was good when they were 2.

I'm not trying to have a go at you for thinking this far ahead, I do the same much to dp's irritation, but you really don't know what house prices/interest rates/school results/your children's interests and aptitudes/ your exact personal circumstances will be so far in advance. Given that it seems you have the option of paying for private education I would stay put for now and review things in 5 or so years time.

LaDiDaDi · 26/09/2007 23:28

make that "financially stretch"

DaisyMOO · 26/09/2007 23:49

What about the Bramcote area to get into the catchment for Bramcote Hills which I think has quite a good reputation - nice area and cheaper than Southwell. Don't blame you from not wanting to go to Wilsthorpe. My mum used to teach there and had some horror stories...

Or what about the Boys' High School - fees are about £6K A YEAR cheaper.

noddyholder · 27/09/2007 06:45

I think we are all in a false sense of house prices only rise.There have been crashes before that have been nothing to do with supply and demand and/or interest rates.The world of finance is in a mess atm so anything can happen and houses we viewed in May are still on the market and being dropped in price significantly.

TheBlonde · 27/09/2007 07:34

I'd be worrying about further possible rate rises and the rise in other household bills like CTax and Elec/Gas

marialuisa · 27/09/2007 08:43

The commute from Southwell into town wouldn't be pleaseant though....You could also look at Duffield for the Ecclesbourne catchement if you don't mind commuting. Prices seem to be holding up there.

Original poster
ellehcim · 27/09/2007 19:05

Can't believe the boys high school is £6k cheaper. Thats a BIG difference! DH went to Bramcote Hills in the dim and distant past and had a bad time there. He cringes if we have to drive past it so I don't think that's an option. Hadn't thought about Duffield at all - will do some research.
Drove around looking at houses today and really want to move. DH's banking colleagues all seem to think there will be a recession though so now he's getting cold feet anyway.

OP posts:
LittleMinx · 27/09/2007 21:58

ermm noddy holder, which crashes exactly as there have been no crashes since the early 90's

I would also like to add that despite there being a world finance problem we are still selling houses like hot cakes...... i sold 2 today . we had 1 wk where it was slow after the northern rock but we are back selling like mad now again.

I would also like to say that a lot of property gets stuck on then reduced as it was either overpriced to start with, or the vendors wanted too much We have stuff stuck on and eventually it gets dropped drastically but thats because, say for example, we tell a vendor their house is worth 300k , they then decide they want it to go on at 350 as they think its worth it . We have to legally market it at the price the vendor chooses, hence why properties get stuck and then end up getting reduced

Personally, working in the industry, i think anyone waiting for a crash is going to be in for a big disappointment

noddyholder · 28/09/2007 07:18

There have been several corrections.(and the huge drop of the early 90's)I think we will have to agree to differ on this because watching the news and reading the financial stuff it does seem things are turning and not before time.We will see an interst reduction probably followed by an election and then a fall But that is just my amateur prediction!

noddyholder · 28/09/2007 07:21

BTW prices were falling and we were heading for a crash a few years ago when the treasury slashed interest rates to avoid a recession.This is factual and well documented but they were surely just prolonging the agony.As an EA LM you are never going to admit things are on a downward turn.

WideWebWitch · 28/09/2007 07:37

Hi, come onto the house price bores thread!
Personally I do think there'll be price reductions. I think proprty is massively overvalued atm and I think:

mortgage to income ratio for ftbs is high
house price to income ratios are v high
many people couldn't afford their own house now
world fin markets are in a mess - billions wiped out in subprime bad debt
Even the Guardian is predicting prices going down

Personally, we're waiting and everything I've read makes me think I'm right to do so.

If your boys are young wait, really, would be my advice. It's certainly worth seeing what happens over the next year I think.

Also see propertysnake

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