Should I upsize now or wait?

[onthefencesitter]

I have found a 3 bed flat in my area (in London) that I like and which has been discounted seller as the BTL landlord who owns it is in quite a lot of debt and is basically selling it at a £70k loss.. It would be a stretch but it is a pretty good deal. I would have to sell my existing flat to buy it. Or should I wait for a year when prices go down (but of course the price of my flat would also have gone down). This would be a long term purchase.

I am putting my flat on the market now because I think that it may take a while to sell as the market isn't great and I can only really make serious offers anyway once my own flat is under offer, which gives me more time to monitor the market . I have no pressing reason to move at the moment but I just really liked this flat!

You could put it up and see what happens?
Selling is less stressful if you don’t have a real push.

What size of flat are you in now and what stage of life? If it’s a one bed and you want kids in next few years it makes sense to move now.

If you are in a two bed in an area you like and not overcrowded I’d be more tempted to stay put.

what is the main driver for the move? Have you stress tested the finances?

Its a 2 bed flat. Its just me and DH. No kids but plan to have one child in a few years and not actively TTC now. I am 30 this year. My main motivator for the move is because I always wanted to move before starting a family as it would probably not be easy to sell a flat/go to viewings with a baby and also your affordability is reduced. Also we are at that weird time when interest rates are going up but not crazy high (yet) so you can lock it in but yet housing sentiment esp in London isn't great (so larger flats in particular are actually going down in price).

We have been overpaying £1k in our mortgage even before DH's pay increased so I think financially it would be fine; but of course one could always have more savings!

normally it's easier to buy in a falling market but if the flat is already cheap then it makes sense to try.

Where does it say the prices are going down in a year???

No guarantee that prices will fall. People have been making that prediction for 20 years (hello housepricecrash members 👋) and consequently holding off buying. Many of those people have seen previously affordable properties spiral out of their budget and find that their budget will only stretch to smaller homes in cheaper areas.

If you like this place, it has the right amount of space and it represents good value for money in the current market, it sounds like a bit of a no brainer. Worth a try to put your place on the market.

I don't understand the sentiment of waiting for prices to fall when you are already a home owner? If you like it and can afford it then why not go for it?

Less stamp duty to pay?

the estate agent said and there have been various reports in the media.

I mean, mortgage interest rates are going up and landlords are selling up. London flats are heavily dominated by landlords anyway so this makes a difference.

I'd do it now then but only for a flat with proper long term potential. I.e it would be fine with two kids and for another 10 years.

There may be fluctuation in the market but right now you can afford your next step up where you want to be. I wouldn't risk being priced out. It may not be by the market but say you get pregnant with twins?!

Yes you could have saved a bit on stamp duty in a falling market but there are many other variables you can't control that could cause greater issues in the long term

Its a 122 sq m flat with 3 bedrooms. I don't want 2 kids, I am planning on having 1 kid but I really do want the extra bedroom. I have grown used to our second bedroom being my office/room where i keep my hamster/having an extra bed if either of us is ill.

The prices of London flats have been stagnant for quite a few years. But like you said, my affordability is likely not to improve if I have a child or twins!

Yes I guess it’s different in London, I live in Herts and lots of people post covid have all moved here, the prices are astronomical (always been pricey in certain areas) however off the charts now, we are outpriced now and are wanting to buy it’s all gone crazy and now uncertain what to do / what we can afford. So was interested as following the information to see if worth holding on or going for it and paying a hell of a lot more - it’s hurting seeing something smaller in a not so nice area going for twice the price. I guess that’s 2022 for you.