Eek, just had reasonable offer on our house (at last) and have dilemma...

[Elibean]

...we're staying in the same area, but the houses we want are few and far between. There are no totally ideal ones on the market atm, we've lost two already due to offers on ours falling through.

Here's the thing: this offer looks a lot more viable, and we've accepted. We're thinking of renting, ready to pounce on house of our dreams asap....but am having last minute jitters, what if prices go up sooner than expected? We'd be stuck...

Alternative is to try v v hard to find something now, but don't want to push ourselves to make too many compromises if we can just be brave enough to risk a bit of time. What would you do??

I'd take the money, rent and wait, especially if you're after a 'dream home'.

Not wanting to be a miserable sod but, I can't see prices picking up yet as the economic news doesn't look great. There is a lot more unemployement expected and I can't see wages rising. I do think the market will shift though - just not with rising prices; people have to move. Some are talking about the worst economic crisis since the war so I'd be surprised if the prices shot back up asap.

Mind you - without a crystal ball - none of us knows!

Think I would rent and wait too - you are really just giving yourself a few extra months to find the right house rather than running around now like a headless chicken trying to find something.

They won't move very quickly. It takes a long time for markets to pick up again from a slump. I reckon you should have at least 6 months before there's any upward movement and that's me being optimistic.

None of us have a crystal ball but, even if the economy/lending were to pick up, I just don't think buyer confidence is there and people are getting used to the idea of negotiating hard so, imo, house prices will lag behind the real economy for a while. Rent and take your time - the fact that you will be chainless means that you will be in a good position to put in a low offer if prices do start to ebb upwards.

Thanks, thats pretty much what my gut feeling is too. The EA did say the problem wouldn't be prices rising, so much as no one putting their houses on the market till they do - so there is a big shortage of supply. Still, we'd be in a good position to pounce and it only takes one....

Here's hoping this offer doesn't fall through and its third time lucky

Rent and wait.6 months?More like 6 years you have plenty of time and will be in a great position to barter when you find one.we were in rented for 15 months and got a great deal at the end of last yr

Speaking from experience of this - rent - but be aware that:

• some vendors with houses on the market for the last few months are not dropping their prices and are sticking at peak 2007 prices, therefore if you are selling at today's prices you need to consider that it might be hard work to have this drop accepted by a seller.

• renting is 'dead' money and depending on length on time, could eat into any capital you have. However, if you rent for say, 6 months, if anything, prices will drop, therefore you will be borrowing less and saving that way

• you often have to tie yourselves into 6 month tenancy contracts, plus pay for credit checks and put down a deposit, which would prove expensive, if for eg, you find a house you want next month.

• on the plus side, you are in a fantastic position to put in lower offers which the advantage that you are chain free.

• prices (in my area certainly) are very slowly being reduced, so if you are patient, you could end up getting alot more house for your money.

• it takes all the stress out of the process. Admittedly, we are renting a lovely little place from a relative after selling our house very quickly for cash. It means we are not tied into any agreements and can rent for as long or short a time as we want. Its quite a nice feeling to have that to 'fall back on'. Once you've actually made that move into rented, you can really concentrate one exactly what you want, rather than being rushed to offer on a house, because you don't want the chain to break down.

Good luck!

Thanks some more

Having looked hard at details and floor plans of ones we've seen, nothing is really right so yes, we are going to rent. If nothing comes up before we exchange, that is.

Its true about the dead money part, if we end up finding our house in a month, but we'll almost certainly have work to do on it, and with two small dds it would be lovely not to live in the building site!

Appreciate the feedback, makes me feel a bit braver...

If you were in rented costing £1k a month this time last year and want to buy a property costing £250k you'd have saved £25k in total and be £13k up on the deal, renting's not dead money then is it ?

I meant'dead' money in terms of having to sign up for long term rental agreements when you could possibly buy a house sooner rather than later.

In terms of the OP 'saving money' - she is now only just selling her house at the market price and any house she buys will also be at the market price. If she is already on the housing ladder, the rise or fall in prices is relative. There is the possibility that if she rents long term, she could 'save' some money on a house, but I think any major drop will be some time off.

House prices are not going to get anywhere near what they were until between 2013 and 2017. They probably will never get back to what they were.

Renting when you are looking for a "dream" house is a great idea. It was the only way we were able to buy a decent house in our area. Renting for a short time is not "dead money". Just think how much money you save on repairs and responsibility!

If you can't find a house you like then renting is the most sensible option. There is no way prices are going up in the next 6 months. Even if you find a place next week it may take 4 months to completion anyway, depending on the chain.

They will get back to what they were at some point, it may well be after 2017 though!

it really depends on what your "dream house" is and whether you think it will ever go down to a price you can afford - is their a gap between your dream and reality?

Sorry, thought this thread had dropped off the bottom somewhere - thanks for helping me brainstorm some more.

We're going to rent. Unless something great comes up in the pre-exchange of contracts period - which will probably be a month at most (she said, optimistically ).

I think I was just feeling out of control and panicky....it does make sense to rent, and it is the only option really, as we're not too sure we either like or can afford the two current possible houses. Our dream ones are in a very specific area, not far from dd's school, nice square 1930s houses (currently in pretty but narrow Edwardian one) with good sized gardens. Either modernized in a way we like, or unmodernized so we can do it up - the latter being another good reason to rent, as we can stay out of the place while it gets done.

Now I need to think about furnished or unfurnished....

womble, I think we can afford our dream-ish house - just about - because although they are bigger than our current one, they are further from shops and less posh, and therefore cheaper.

I think you are definately doing the right thing.

We moved in Dec 07 and wanted this to be last move for many years. We had a very narrow area we wanted to move to and rushed to pick an available house.

We have regretted ever since and have not settled. We like the area (it is where I grew up) but hate the house with a passion. I thought I could do head over heart as it meets the tick list but it just doesn't feel right. We hace accepted we will end up moving again as soon as it is a viable option for us and will be prepared to rent and bide our time.

Good luck.

Thanks, ftg, though sorry you had to go through that - I think the market was so pressurized a few years ago that lots of people bought faster than they otherwise might have.

I hear you