We are tempted by a house that is for sale.
It would mean selling our current house at a relative song due to the current market.
But the other house is massively cheaper than it used to be.
We will be stretched by the cost of the new mortgage but we can afford it.
The big question is....
If this is both my wifes and myselfs dream house, should we buy it (put a serious offer in at least) or be sensible and keep a safe port in a storm
(ie our current cheaper house).
My only reason for not walking away so far is that it is the perfect place for us, and that over the term of our ownership, as long as I can afford
it, I don't care if the value of it goes up or down as it is not an investment, it's a home.
The offer that may be accepted is a good 10% less than asking to absorb at least a little of the current downward trend.
And while yer at it, how long is a piece of string!
Any comments welcome!
Cheers
Ed
YES, buyers market and financial institutions arte giving great deals.
mortgages are cheap now.
I remember 15%, will you still be able to afford the repayment if it was doubled ?
Could well happen
We have three kids, they should be worth a bit if it doubles.
I remember the Thatcher years and a slump or two, so am trying to view it as 'affordable or not', rather than trying to say what it is
worth, if you see what I mean.
always worry when people put we can just afford, I always think can easily afford is the time when you have the answer to your question. I too
remember the Thatcher era and the 15% plus the implementation of Poll tax and the numbers of people who were on the verge of bankruptcy.
Got to also bear in mind the VAT is on the up and potentially another 5p on fuel per litre. Buyers market yes time to but your neck on the line
probably not. Plus 3 kids as well
Just my oppinion but Im happy with my £250 mortgage and no financial stress oh and yes I would love to move and can easily afford it due to callateral
in my house but have also been on the other side when I knackered my back, had the house been any more expensive we would have been in dire straits
financially.
Unfortunately unless you have sold even if you make an offer the estate Agent will not put it forward as a formal offer sign of the times I'm afraid
It's all about the mortgage rate, fix it now, give yourself a few years of stability, have a bit of spare available.
Ex boss of mine worked all the time and lived off beans, but lives in clover now
There is a lot to be said for financial security.
Personally I've only moved house 3 times and live in a modest detatched house which has been paid for for nearly ten years. People I have grown
up with and gone through working life with have chased the dream and still have 15 years of mortgage to go. True they could sell and buy an
equivallent to mine, but have nothing left, unlike the 10 years of saving £500+ per month I have.
Its up to you to decide how secure your income is, can you also afford the protection insurance if you are not highly secure? what about stamp duty
and other moving costs?
Of course only you can decide how happy it will make you, but remember, when poverty comes through the door, love and happiness go out of the window.
quote:
Originally posted by big-vee-twin
Unfortunately unless you have sold even if you make an offer the estate Agent will not put it forward as a formal offer sign of the times I'm afraid
I would say that these cheap morgage rates are great now,but they will go up if not now or next year but they will.
Ask yourself this,when they do go up could you afford the rise plus the rise in fuel etc on your current wage?,because i bet your wage won't
increase with it and you need some wiggle room just in case.
That said nothing ventured etc and you could always sell the new house and down value to what you have now.
id say no myself; i well appreciate the dream home aspect, but as the above have said, you do need some security and 'just afford' doesnt
sound good. I would trim expenditure, and try to overpay your existing mortgage over the next few years. House prices arent going up soon, so theres
no need to rush. Maybe in 5 years, you will have more equity, and a better view of economic stability.
you would also save 5 years interest on the difference between the loans...
[Edited on 11/12/10 by JoelP]
quote:
Originally posted by stevebubs
quote:
Originally posted by big-vee-twin
Unfortunately unless you have sold even if you make an offer the estate Agent will not put it forward as a formal offer sign of the times I'm afraid
Our local Estate Agents wouldn't do that 10 years ago, never mind now!
Cheers for the input gents.
We will be stretched, rather than 'just afford'. With luck it should be paid off in 10 years.
I'll let you know what happens.
Incidently, we have budgeted to sell our house at under current market value, low as that is. I guess what will be will be!
quote:
Originally posted by speed8
quote:
Originally posted by stevebubs
quote:
Originally posted by big-vee-twin
Unfortunately unless you have sold even if you make an offer the estate Agent will not put it forward as a formal offer sign of the times I'm afraid
Our local Estate Agents wouldn't do that 10 years ago, never mind now!
Have to agree. If I was a seller, and I was 6 months ago, I would laugh at your offer unless you were in a position to buy i.e. FTB or firm offer on your place. That's why I'm renting now as we missed out on a couple of places and decided to sell anyway and be in a better position to buy when we find the right place.
Same as the others for sale in my estate, no
luck. If you're happy with the value of the house and the size of the mortgage, it all comes down to interest rates. Interest rates will never be any
lower than they are now. That's good news while it lasts, especially if you're in a position where you can overpay, as you will pay of
capital relatively quickly. BUT it means you need to be able to afford the repayments when interest rates significantly increase, which is absolutely
inevitable within the next few years.
It really is vital that you factor that in to your calcs for what you can afford. I went through this thought process a year ago (deciding whether to
buy my first house as opposed to continuing renting) and decided that as house prices are likely to drop further and interest rates are likely to at
least double, it's just too risky.
The big question is....
If this is both my wifes and myselfs dream house, should we buy it (put a serious offer in at least) or be sensible and keep a safe port in a storm
(ie our current cheaper house).
My only reason for not walking away so far is that it is the perfect place for us, and that over the term of our ownership, as long as I can afford
it, I don't care if the value of it goes up or down as it is not an investment, it's a home.
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If its your "dream home" get it bought!!!!!!!!!!!!!!
You never know what tomorrow is gonna bring. (no dress rehearsal in this life???)
Your far better off regretting something you have done, rather than regretting something you haven`t done!!!!! IMHO