Quick - tell me some property doom and gloom stories before I weaken and buy a house!!

mummyjaguar · 2008-06-24T13:40:09+00:00

Our purchase of our dream house fell through two weeks ago. We have been teling ourselves every day that it is probably a good thing in the current climate. But then last night we got a call saying that the vendor would reduce the price by £80k if we proceed with the purchase. I loooooooooooove this house. But I know its the wrong time to buy (and stretch ourselves). I need lots of property price stories so that I don't weaken!!

lalalonglegs · 24/06/2008 19:36

IMF says UK property overvalued by 30%, most lenders think prices will come down further this year, even government expecting bigger falls.

Why did purchase fall through? Can you trust it would go through tis time? Can you even get a mortgage- what you qualified for a fortnight ago may no longer be valid

kaz33 · 24/06/2008 19:41

If you can afford the house, can get a fixed price mortgage or a tracker, love the house, it meets your needs for the forseeable future then buy. You will get a good price, prices might go down but you are buying a home. Homes have been used as investments, but that shouldn't be why you buy a house IMO. House prices are going to readjust and no doubt plateau, the days of the excessive price rises in housing costs may be gone but that is probably a good thing.

kaz33 · 24/06/2008 19:41

If you can afford the house, can get a fixed price mortgage or a tracker, love the house, it meets your needs for the forseeable future then buy. You will get a good price, prices might go down but you are buying a home. Homes have been used as investments, but that shouldn't be why you buy a house IMO. House prices are going to readjust and no doubt plateau, the days of the excessive price rises in housing costs may be gone but that is probably a good thing.

Smileymoo · 24/06/2008 20:38

If the vendor is already willing to drop by 80k, you can probably negotiate even further. What would be the loan to value of your mortgage? If it's only 75/80%, then house prices would have to fall over 20% before you'd have negative equity. Plus it'll be a good time to get builders for renovations because they're short of work. So if you have a large deposit, ignore the newspaper headlines and go ahead with purchase.

Dottoressa · 24/06/2008 20:43

On the whole, it's never a bad time to buy property. But why is the vendor agreeing to such a price cut?? That really is a big one. Is he that sure that nobody else will want the house - and, if so, why??

myredcardigan · 24/06/2008 20:53

Is it the same house you linked to before? If you can afford it and it's a long term (10-15yr) house then go for it.

We have just done the same, exchanged last week. Big but affordable mortgage. I'm expecting house may be worth slighty less next year but see it as a long term family home so shouldn't affect us. We held out and got 12% off the asking price though so giving us a bit of a cushion.

myredcardigan · 24/06/2008 20:55

Have to add though that although the house is beautiful and you seem to get so much more for your money down there , the close proximity to water would make it an absolute no-no for me.

lalalonglegs · 24/06/2008 22:07

Why not wait? If he is prepared to drop the price drastically, it means he can't sell it to anyone else so it will probably still be around in a few months' time. And probably be even cheaper.

nkf · 24/06/2008 22:11

How much do they drop before it's not a stretch. How much was 25 - 30% off the asking price? It could be worth considering.

noddyholder · 24/06/2008 22:16

this is the worst time ever to buy.Why pay someone elses debt when you can wait and have a smaller debt yourself.Have you seen the news tonight?The BBA say the banks are pricing in predicted falls of 25% mortgages are getting more expensive and harder to get.By xmas lots of bargains.I would think you would need 35% equity at least too avoid going negative.WAIT!

LyraSilvertongue · 24/06/2008 23:30

It's not a bad time to buy at all. It's a buyer's market and it you can afford the repayments and have a bit of equity, you can get yourself a bargain.
Go for it.

1dilemma · 25/06/2008 02:20

30-50% drops in price predicted (maybe higher in London) but if it is the long-term house of your dreams that wont nec. matter to you but you will be paying off someone elses debt......

Buda · 25/06/2008 06:28

If you don't have to move just yet I would wait.

Sounds like they need a sale and you estimated it would cost so much more to renovate didn't you? I would sit tight.

noddyholder · 25/06/2008 08:15

The drops haven't even started yet It IS a bad time to buy unless you can negotiate in the predicted falls now.

LyraSilvertongue · 25/06/2008 09:34

30-50% sounds way over the top.
Price drops have started where I live. And I don't think they'll continue beyond the end of the year.
Every area has its own micro-market and things happen differently.

IAteRosemaryConleyForBreakfast · 25/06/2008 09:45

If you love the house and you're not likely to have to move again in the next several years and you can afford it then why on earth wouldn't you buy it?

This property prices mania really annoys me. It's only an issue for those who have to move - if you don't have to move then you don't have anything to worry about. Different story if you're a property developer or an estate agent, but I suspect you're neither.

Romy7 · 25/06/2008 09:55

are you currently renting or in your own house?

if you love it, i'd go for it.

50% price falls? can't see it.

won't matter a jot if it's the dream nouse you're going to be in the for next 10-15 years - the markets will be an entirely different place by then.

not sure i'd buy it if i was planning on selling it in two years, but if i was planning on living in it for a good while i wouldn't even think twice.

if they've dropped 80K it's cos they've got issues, not you.

we completed in april on a place o'seas (don't own in this country at the mo) but were seriously looking at a few over here instead. the only thing that stopped us was paying tax bringing our deposit across, if our funds had been here, i would be looking to buy now.

that makes it sound like we're loaded, but actually v skint - we owned a property o'seas from when we lived there, and are planning to go back next year - didn't want to pay tax twice switching the money backwards and forwards...

SpacePuppy · 25/06/2008 09:57

£80 000 drop?!?!?!?!?!?!? whats wrong with house?

Raffaella · 25/06/2008 10:27

Go and see it again. Am I right in thinking it's a while since you viewed it?

If you still feel it is the family home you would love then go for it. If it is the place you want your children to grow up in and you're likely to be there 15/20 years (as far you know), then what the housing market is doing for the next 18 months or so is irrelevant.

Sounds like the vendor has realised the amount of work needed/state of the market and has seen the light re the price.

egypt · 25/06/2008 10:34

WELL, i think we need a link!

If you own your own house, go for it. It's all relative, the price you sell your home for will go down as well in the next few months, if indeed things are going to drop. dramatic drops I think not.

You need to grab your dream home while you can, they don't come often

Buda · 25/06/2008 10:39

Would agree that in retrospect you wanted it knowing what the market might do. You only pulled out because of the estimated costs involved in the renovation. Now you have 80K more to spend on renovation so that should be OK.

If you still love it and it is a long term purchase then go for it.

egypt · 25/06/2008 10:41

fwiw we are trying to buy our dream home right now. it's a huge jump for us. 100%

madness

egypt · 25/06/2008 10:47

and you can still get a good fixed rate mortgage deal at the mo. wait few months and the market drops - rates will increase. you could be paying out monthly more than what you would be now on a fixed rate deal.

Ripeberry · 25/06/2008 10:57

Find out all about the house from neighbours and local people.
If it's near water don't even think about it.
Maybe that's why he is so desperate to get rid of it.
Always be suspicious of big price drops and make sure he has not got nasty neighbours.
Good luck.

noddyholder · 25/06/2008 12:21

There is no micro market in a global financial downturn.It is not all about property there are other factors.Banks will never again be allowed to lend riskily.Prices are up to 40% overpriced and in the last crash people couldn'y envisage it but it happened.There has to be a first time buyer sector and those are thin on the ground now because of prices.All 4 major lenders have raised rates and most 2 yr fixes are now pushing 7% with arrangement fees in some cases being asked for up front.There has been a boom and there is only one way out of this now. I for one am glad I sold when I did as a v similar maisonette for sale at the same time has dropped 75k It is wise to wait imho