Buying a House
- Thread starter AeryFairy
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Thank you! Very much looking forward to moving in to our very own house, but it's of course a terrible time for it with the corona virus causing havoc and a potential lockdown around the corner.
We're exchanging contracts early next week, probably Monday. And we have agreed a completion date for the house purchase - 15. Feb. Exciting times, although pretty crazy, considering we're in the middle of this pandemic.
Jamie in Chile
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Indian Summer, are you buying in the UK? Did you do any research or get any sense or opinions about whether the house prices in the UK have been going up or down? Do you know if house are selling for 97-98% of asking price like when the market is strong or a lot less like when it´s weak?
Thanks - and best of luck with it all!
Thanks - and best of luck with it all!
Yes, this is in the UK. I thought house prices would be likely to go down due to the pandemic and the likely economic disaster on the horizon, but apparently people are buying and selling houses as before. Anyway, our situation is we have been renting for ages and ages, which is money out the window every month. So even if house prices are likely to fall, buying a house seems like a good idea. Although making such a long-term commitment also feels like a gamble with all the uncertainty these days - climate change and its impacts (flooding, land slides, extreme wind), clowns running the government, the pandemic, and possible economic disasters.
I would have thought to the contrary. People need security and a 'safe' haven and the pandemic has highlighted the former.
Renting isn't the best solution for long term as you are throwing money down the drain.
How is coronavirus affecting house prices? – Which? News
Which? explains how coronavirus is affecting house prices, including advice for buyers, sellers and people looking to switch mortgage deals.
www.which.co.uk
I've also been monitoring property prices in Sussex and they are not dropping since Covid :
The parts of Sussex everyone is flocking to live in
Lockdown fatigue and stamp duty breaks have led many people in Sussex to move elsewhere
Jamie in Chile
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I had a look at one or two articles and the Zoopla estimate for the house we own (and rent out) in the UK and it looks like prices are about the same as 12 months ago. For 2021, I would expect prices to more likely increase than decrease. You are going to see an economic bounce in the UK possibly in middle or second half of the year.
Saying renting is money thrown away has always struck me as an overly simplistic viewpoint. When you buy a house you have to invest a large chunk of money - often most or all your savings - that could be otherwise invested in the stock market making money, now you have to pay for repairs to the house. And getting a mortgage is more stressful and time consuming and renting. It may mean that your life is consumed by the mortgage stress and that´s a few months where you´ll miss a chance to start a new hobby, go out on dates, or simply not read books or spends less time with your loved ones. Renting also gives freedom in the sense that you are not tied down. If your country falls to a dictator or the next door neighbour turns out to be hideous, it´s easier to leave.
I think it depends on how long you are going to stay in one place. If it´s 2 years it might makes more sense to rent, if it´s 7 it might make more sense to buy.
Climate change is not likely to be a short term problem for much of the UK, provided you don´t live in a few places (e.g.. Fairbourne) or areas at risk of flooding - avoid those. I see the biggest climate change risks for the UK as being a) the possibility that things are so bad in the Middle East and Africa that the immigration to Northern Europe (including the UK here) becomes very, very, very high and destabilizes the country and b) the fact that the UK is a net food importer and climate change may stress and damage food production. However, these are more likely medium or long term concerns. If it gets bad in the UK, it´s likely getting bad everywhere. But you never know, there is a lot of unpredictability with climate change.
Saying renting is money thrown away has always struck me as an overly simplistic viewpoint. When you buy a house you have to invest a large chunk of money - often most or all your savings - that could be otherwise invested in the stock market making money, now you have to pay for repairs to the house. And getting a mortgage is more stressful and time consuming and renting. It may mean that your life is consumed by the mortgage stress and that´s a few months where you´ll miss a chance to start a new hobby, go out on dates, or simply not read books or spends less time with your loved ones. Renting also gives freedom in the sense that you are not tied down. If your country falls to a dictator or the next door neighbour turns out to be hideous, it´s easier to leave.
I think it depends on how long you are going to stay in one place. If it´s 2 years it might makes more sense to rent, if it´s 7 it might make more sense to buy.
Climate change is not likely to be a short term problem for much of the UK, provided you don´t live in a few places (e.g.. Fairbourne) or areas at risk of flooding - avoid those. I see the biggest climate change risks for the UK as being a) the possibility that things are so bad in the Middle East and Africa that the immigration to Northern Europe (including the UK here) becomes very, very, very high and destabilizes the country and b) the fact that the UK is a net food importer and climate change may stress and damage food production. However, these are more likely medium or long term concerns. If it gets bad in the UK, it´s likely getting bad everywhere. But you never know, there is a lot of unpredictability with climate change.
Jamie in Chile
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By the way, it seems to me that most people think that rising house prices are good news for home owners. But that is only true if you plan to sell your house and go back to renting (which almost never happens), or if you plan to move to a smaller house or a cheaper area in the future (which most people don´t).
Home owners who aspire to move to a better area or a larger house one day could actually benefit from prices staying the same, or perhaps even falling, rather than rising.
Home owners who aspire to move to a better area or a larger house one day could actually benefit from prices staying the same, or perhaps even falling, rather than rising.
We've exchanged contracts. It's happening! 
I can't quite bring myself to believe it yet. We've been working towards this for sooo long.
I can't quite bring myself to believe it yet. We've been working towards this for sooo long.
We've exchanged contracts. It's happening!
So happy for all of you Summers! Will Little Miss need to change schools?We've exchanged contracts. It's happening!
Thank you! No, she's home educated (so far), so she won't have to change schools.
That sounds promising!
This is true, and getting the mortgage and everything else sorted has certainly been very difficult and very stressful. But yes, our situation is that we're probably here in this area to stay now after living here for so long. Everyone needs somewhere to live, and it makes more sense for us to pay on a mortgage for a house that will one day be 100% ours than to pay rent for living in a house we will never own.
Flooding is an issue in this town due to the rivers, but they are fortunately far away from us. Although there is a little brook / stream in the neighbourhood, but not too close to our house.
Woooo hooooo, this is awesome news!We've exchanged contracts. It's happening!
We're getting the keys on 15. February, but probably not really moving until the end of the month.
Congratulations! Having a home that's truly your own is an amazing feeling.
In Germany prices have gone up in more rural areas because of the pandemic. As it seems many people living in rather tiny flats without e. g. a balcony have noticed during the pandemic that this is all fine and dandy when children go to school, the gyms, bars and restaurants are open, one goes to office everyday etc. - however, being caged in a tiny flat is different than being caged in a house with a garden or a big flat with a big balcony.
Thank you!
And yes, it makes sense that house prices in rural areas have increased also because the pandemic has forced many offices to let their employees work remotely, and in doing so have discovered that remote work is actually possible as a permanent arrangement. And since you can often get bigger and better houses for less money in rural areas, then remote working office workers will naturally want to take advantage of this possibility.
