Found a house but it's 6 mths too soon!

Our plan was to buy a house first quarter next year, we've been looking at alot of houses over the last 6 months, probably seen about 30. To get a feel for exactly what we want which has been a worthwhile exercise.

The problem now is we've seen one we really like! It's an execeter sale which has been sale agreed twice before but each time it's fallen through as the buyers had finance problems. It's been on the market for a year and the current asking price is 33% less than the original. For us to afford it now we'd need it to drop by another 20% Should we just move on and try and forget about it and hope it's still on the market at the end of the year (unlikely I think) or do you think we should chance our arm and put in a bid at 20% below the asking price?

Any thoughts greatly appreciated!!

I am confused.

If this house came on the market in January 2009 at the current asking price, could you afford it then?

Is there something specific which is happening which will allow you to bridge that 20% gap which you can't bridge now?

Will you close this gap gradually through savings or higher salaries or will it be sudden e.g. an inheritance?

If it's gradual, you could put in an offer with a view to a delayed closing.

Brendan

We could afford it next year at the current asking price due to savings and bonuses. The main reason for waiting another 6 months was the feeling that house prices would fall further.

The house is in a lovely area and would need a bit of work done to it (cosmetic only), I know another house could well come up in the same area but unless it's in the same aged state inside I feel it would be out of our price range.

Now I am even more confused.

Bear in mind that we don't speculate about house prices on Askaboutmoney.

You say that you expect house prices to fall.

You can buy the house next year at the current price.

So as your savings and bonus rise and as house prices fall, you will be able to afford it earlier?

Let the estate agent know that you are interested but can't afford the asking price. That you will be able to afford it in January or earlier if the price falls.

Brendan

Thanks for the replies Brendan, I'm probably not explaining it very well!

For ease lets say the current asking price is €1m and we can currently afford €800k in that we'd have a 20% deposit and the mortgage would be manageable.

We save a decent sum each month so by Jan 09 we reckon we'll have another €150k saved and could therefore afford to pay €1m. However our bonus level next year isn't guaranteed, if it's the same as this year we can afford €1m in January if not we could still afford it but we don't want to stretch ourselves to much.

Hope that makes more sense!

no, makes even less sense.

if it's the same as this year we can afford €1m in January if not we could still afford it but we don't want to stretch ourselves to much

Click to expand...

So you can or can't afford it?

Are these figures in anyway representative? You say you'll save another 150k in 7 months, some of that being bonus. In that case how are you concerned about servicing a mortgage of 800k?

Repayments would be max 5k, but you're saving more than twice that in 7 months?

Plus how have you 'only' saved 200k so far if you were on similar bonuses for at least one year, and have been looking for more than 6 months? Is 150k additional savings realistic given economic climate and what it might do to your bonuses?

I guess the question is should we make an offer now at 20% below the asking or wait until the new year but as we can't discuss house prices on this site I can't go there so ...... end of discussion! I guess we'll go down Brendan's route and see what the vendor says thanks for the replies

Nothing to lose by making an offer, but given they have dropped price by 33% already I wouldn't be too optimistic, they might negotiate to 10% reduction or something?

If it's any consolation Shaking I got what you were trying to explain about not being able to afford it now but being able in Jan 09. I'm in a similar situation.