Having doubts buying now

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After a long time of searching, I finally found the dream home, and had an offer accepted for 2.5% under asking. It's stunning, with land, great location, and ticks 99 boxes out of 100.

It has loads of potential for improvement and I also plan to run a business from home to replace my job, so it's life changing. Would plan to be there 20+ years. It's a cash purchase so the mortgage rates luckily aren't a factor.

But am I stupid to buy now? I keep having doubts, thinking we're potentially over paying and if I wait 6 months something else will come along 20% cheaper! Which would be a saving of around £200k.

I’d be worried that I’d never find my perfect house again.

I've lived through two crashes and both times the value has come back - and some.

As log as you're not planning to sell during a crash, it will be fine.

If it helps, we have had rate rises of .5% each month for the last 7 months, so the cash rate is up from 0.1% to 2.6% house prices have dropped around 10% here (Sydney) we look to be coming to the end of the increases so confidence is returning and prices are stabilising again,

I think if it's a long term home it will all come out in the wash, you may not find the right place again until prices start going back up, the housing market tends to rebound quickly.

If you have tight criteria, and plan to spend a long time there, and don't need a mortgage, I'd go for it, I think. Prices might fall, but someone might nip in and buy that particular one first, and if you pull out now, I doubt the seller would consider you another time. So if finding another one that ticks all your boxes wouldn't be easy, it's a big risk not to go ahead.
I looked for over 2 years before I found the one we are in now, because we had tight critria too. I woudn't want to go through that again. And there are no guarantees that prices, even if they fell in the next year or so, wouldn't go up again before you found what you wanted.

You would buy a car that depreciates every year without thinking about it, houses should be thought of in the same way. Houses are homes and they aren't just an item you buy to make money from. With your list of criteria you may not find another one that comes up for a while again - buy it and enjoy it! Why care what its value is especially if you won't have a mortgage?

If it cash in the bank then you should consider inflation erosion. That 20% cheaper house may come about through a 10% reduction in price and 10% annual inflation. We've had 1year already of 10% inflation

Good point.

This sort of house is going to be slightly more immune to price falls as it sounds a dream place and likely to be of interest to other cash buyers. If you are looking at it as a long term home, I'd proceed and look forward to my time there. Hopefully it will keep its value over 20 years but if it doesn't, you'll hopefully have had 20 joy filled years there.

Thanks so much again for the words of wisdom, I've finally relaxed and feeling more excited and positive now.

You're all right, it's not about the money really if we're going to live there for years and years. And we can definitely add value over time too - but more importantly it's the quality of life this place offers that's most significant.

The mortgage rates are an absolutely massive factor for the majority of buyers though, and it is this that will affect the value of property going forward. If you have cash don`t throw it down the drain on property at the tail end of the biggest bubble/Ponzi scheme in history!

Totally up to you if you're up for spending £200,000 more by buying this year rather than next year. What is it about MNetters urging everyone onto the property ladder? Your house will almost certainly be worth less next year than it is next year and only you can judge if it is worth that much to you. And to whoever was saying that it's all fine, the estate agents say it is fine... Listen to yourselves!

I would buy the house in this situation. Prices may well fall over the next couple of years, but there is absolutely no guarantee that anything as good will come on the market. If people have a really good house they probably are not going to be inclined to sell in a dip unless they absolutely have to.
As you are a cash buyer and intend to stay for a long time, there are few drawbacks and many positives.

Very unlikely 20 percent cheaper in 6 months. Property takes 18 to devalue that much. Also anything you gained on leaving a sale until 6 months you would lose your mortgage deal and newer deals are so much higher. Most banks will only hold it open for up to 6 months but you have to complete during that time or bank will quote you higher borrowing rate. If 99 percent perfect and you love it I would go ahead and buy it.

I’m pretty sure the market was meant to come down in 2022 but that didn’t happen… don’t waste your time on what ifs :)

Why do you mention mortgage offers? She says she's paying cash.

I’d go for it. Even if prices come down on average it doesn’t necessarily mean that the value of that particular property will come down. It’s going to vary over area and whether anyone else wants to buy that specific property. And in the long term a probably short term price reduction isn’t going to affect you unless you suddenly need to sell in the period where prices are lower.

There's too much people don't know, to be able to advise you well tbh.

if you buy it outright, will you still be ok for money to heat & eat & enjoy life, while you set up your business. Would you be ok financially if the business doesn't work?