Buying at the top of the bubble

[UngratefulCowlGuess]

Just purchased a house at what has to be the very top of the housing bubble.

We sold earlier this year and after our onward purchase fell through had to move in with family an hour way. The school run has nearly killed us all.

Instead of feeling excited, I feel angry at how fucking ridiculous house prices have got. The house is lovely, perfect for the next 20+ years, but we're paying so much it's crazy.

I know we'll never get our money back once the current shitshow really kicks off and house prices drop. I want that for my DC, but knowing already we paid so much but had no choice, it's really taken the shine of it all.

Having bought at a similarly inopportune moment, and had the same thoughts, I think you just have to park it and think of it as a home rather than an investment, especially if you’re staying long term. It may be worth not following the housing market too closely now you’ve made the move. Difficult I know.

Honestly, I know no one can ever say this for certain, but even if prices do go down a little bit, if you're staying there for 20 years they probably will go up again. They went down a bit after we bought in 2007, but look how much they've risen since then.

It's also normal to feel the new-house blues, just settle in and try to enjoy it - it sounds like the right house for you.

Oh yes, I forgot about the new house blues. I'm definitely suffering from this.

In 5 years when I've made a dent in the mortgage I'll probably feel much better but at the moment all I can see is debt debt debt 😞

It may be worth not following the housing market too closely now you’ve made the move.

I'm going to delete the apps now and really stay away from 'browsing'. I've been looking for so long it's just a bloody habit now!

You've got a lovely house and can stay put for 20 years.

That's a lot more than a lot of people have got.

I think it is just best to be grateful for that rather than concentrate on the negatives. The price will almost certainly go down in the short term, but 20 years is a long time.

But you probably sold at the height of the market as well.

During a lifetime of buying/selling houses everyone has probadly bought at the wrong time or over paid.

You are right @GasPanic. I'm very privileged to be in this situation I know.

Still annoyed though! But definitely should be more grateful.

We also recently bought, although the market was starting to turn so managed to negotiate a chunk off the asking price. We’ve got 25% equity and a 5 year fix at a rate we’re comfortable with so we’re not too worried about any dips in the market as the risk of negative equity is pretty low. We love our house, happy with our repayments and plan to be here a long time so we’re honestly not too worried about any dips as they won’t really affect us. If we end up moving in 10/20 years I would be extremely surprised if the house is worth less than we paid as these things tend to even out over time. Does any of the above apply to you? If it does then I don’t think you need to be too worried.

I bought on the top of the market in 1988 (moved jobs to London). Sold in 1995 at a 40% loss.
I paid off the mortgage so I could move (supported by wage inflation at the time).

As long as you can afford the mortgage payments, negative equity just means you probably can't move. Negative equity is only a real issue if you can't afford your mortgage payments.

We thought this in 2007. Don’t panic, sit tight.

It is annoying, but sounds like you have a fab house that you love. I make myself feel better by considering how much it would cost to rent around here, and that renting for a few years would have cost me x amount while still not having a house! Prices would have to fall a huge amount for me to not be ahead having bought after just a few years

We are in the same position - bought last year and the Natwest app is already helpfully showing me that our house is worth £35k less than what we bought it for right next to the honking great amount that is our new mortgage. Sigh.

But, we're old hands at this as we last bought in December 2007 - sat tight in the right place and it worked out. I would also make the same decisions again. Interestingly, out of my friends who bought in 2008/9 at lower prices, we are all in similar places now mortgage wise/ house wise - long term it hasn't made a hugh amount of difference to where we are now.

If it's a house you'll likely be happy in for the next 20 years, does it really matter how the price fluctuates over the next few years?

In the same way it wouldn't really matter if the house price doubled next year, if you weren't selling it doesn't really make a great deal of difference.

I suspect we did this too, exchanged last week. I think we may have got it 5% cheaper than it would have gone for a year ago but can’t be sure, we paid the bottom figure of a 25k guide price range. I’m consoling myself that we sold at the peak last year so in the great scheme of things if the price drops then so would the price of the old house have dropped. We were cash buyers so very lucky but it means I can’t console myself that if we’d waited mortgage rates would be more. We plan to stay for a good 10 years so I’m hoping it will all even out by then. I’m stopping looking at Rightmove too -it’s a hard habit to break!