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

[mummyjaguar]

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!!

sorry everyone been tied up for a few days. Further news. Went back and said its still too much and she'll now drop another 20k. That's it though.

The problem is that it now makes it kind of affordable but the drop only reflects the additional work that needs doing and doesn't reflect the fact that the market has fallen further since we first offered on the house.

AND we've now signed a lease on a rental propety for six months so that we're not homeless in a few weeks.

Think we're going to sit tight and see what happens. If we buy now we'll have a 500k mortgage. If prices drop just ten per cent we'll have a £420 mortgage. It makes financial sense.

Don't understand these people who say the price drops don't matter if you're not moving in the immediate future - of course they do if you're having a mortgage because you'll need a large mortgage now than you will after the falls.

Oh for a crystal ball ....

mummy that is why we dropped out of ours really.We got an amazing reduction but it still needed work(a lot)and i calculated that by the time the work was done the house would still be worth less than the total we had spent and we would have needed even further reduction to cover the work and still not get diddled

The only reason why it wouldn't matter if the price drops if is you are paying the same amount or less for your mortgage/rent than you are now. We are not going to move unless the new mortgage is the same or less than our rent now. That way we aren't losing out, as we would have been paying that anyway. In your situation, mummyj, you right that you are moving up (presumably) to a very large mortgage so should wait and see. In my situation in the (much cheaper) North of England our rent is expensive and we have a large deposit from the sale of our previous house. Hence a new mortgage won't really go above that rent price (well, it could, of course, if we really stretched ourselves, which we would have done in a calm market!)
Very confusing and hoping also for a crystal ball!

Our offer's just been accepted on the 'now or never' house
Just got to sort out the money now

yes mj, it makes to you to wait as you have already sold your house! otherwise that would have dropped in value too making the difference the same. actually, it's wise to sell now, house or no house to go to and hold on to the cash..........hmmmmm

except for this very reason no one is buying~!