JonBowden
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| posted on 8/10/08 at 06:19 PM |
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Moving House
What is the best way to move house these days. My problem is this.
If I find a house, then make an offer that is accepted, my current house may take ages to sell. A bridging loan is expensive and probably not
available with the credit crunch
If I sell my house first, I may not be able to find a suitable house for some time. In the mean time, the bank I put the money from my current house
in may go bust (the risk seems quite real).
Am I missing something?
How have others organised moving?
All this hassle just to get a house with a garage so I can build a Locost
Jon
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philw
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| posted on 8/10/08 at 06:31 PM |
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Put your money into Northern Rock.
Must try harder
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James
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| posted on 8/10/08 at 06:35 PM |
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quote:
Originally posted by JonBowden
In the mean time, the bank I put the money from my current house in may go bust (the risk seems quite real).
Doesn't seem too likely to me! Although they've made no garantee (which is potentially illegal under European competition law), it's
been made implicit by Brown that the banks are protected.
If you're really worried just spread the money out in £50k lumps- that really is garanteed! (or £100k in joint accounts).
They've nationalised a couple of little lame banks, can you really see someone like Barclays going bust? 
No one's actually lost any money! Anyone who's withdrawals are stuck in an Icelandic bank will even get it back- the government is talking
about suing the Icelandic government for the money!
To quote the good book:
Don't Panic!
HTH,
James
EDIT: I doubt you'll be allowed to put it in Northern Rock... under the rules they're not allowed more than 1.5% of the UK deposit market
so that they can't take unfair advantage of their privileged position. They're turning away depositors.
[Edited on 8/10/08 by James]
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"The fight is won or lost far away from witnesses, behind the lines, in the gym and out there on the road, long before I dance under those lights."
- Muhammad Ali
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coozer
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| posted on 8/10/08 at 06:50 PM |
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I wouldn't bother atm and thats based on the 3 houses in my street that have a) been for sale for over a year, & b) not attracting any
buyers!
It is coming to the best time for first time buyers tho with house prices dipping so much almost doubling the value of a decent deposit.
1972 V8 Jago
1980 Z750
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eznfrank
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| posted on 8/10/08 at 06:59 PM |
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A bit of a risky move and depends if you can afford to do it but a few years ago we split our mortgage so was just in my name then my missus bought a
second house in her name, we rented it out till ours sold and then moved in.
We then sold that a few years later and bought one bigger house with the proceeds cos we sort of accidentally made quite a bit on the deal.
Not for everyone, and could be risky dependant on relationship issues?
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mackei23b
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| posted on 8/10/08 at 07:39 PM |
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I've just baught in England and sold in Edinburgh, so it's a bit different.
The advice from some solicitors in Scotland is to sell before you buy so you're not exposed to bridging loans etc which are costly, I looked
into that option for an earlier entry date down south.
If you really are looking to move and sell before buying, the worst case would be to rent and put your stuff in storage for a few months.
It's a buyers market and the downturn in Scotland is now beginning to hit (have a look at the GSPC quarterly reports). So you may find that
renting for a while before the market stabalises is a good option then buy before the market picks up maximising your profit from your sale and buying
a house that you may not have been able to buy before the credit crunch.
Hope that makes sence!
Cheers
Ian
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Paul TigerB6
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| posted on 8/10/08 at 08:33 PM |
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As said, its a buyers market right now (for those that find themselves able to) and with the lowering of house prices it might actually be a good time
to look at buying assuming you are trading up (and can buy at the bottom of the dip). Not sure Scottish law is the same but lower purchase prices will
mean a smaller Stamp Duty bill / estate agents fee etc etc and i think you will find it much harder to sell than to buy.
Have a look around at the agents in the area and speak to them about how property is moving in the area you are looking at. If its fairly slow then
that means less competition and the possibility of negotiating the price down, but the downside is you suffer the same risk on your own property.
Swings and roundabouts really isnt it so weigh up the costs to you now (do you have to do a HIPs up there??) and if you feel its worthwhile then see
if you can sell. I wouldnt worry about holding funds until you can find somewhere if you have to but i wouldnt touch a bridging loan myself right now
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adam1985
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| posted on 8/10/08 at 09:18 PM |
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damn good time to buy a house now though if you wanna rent one out or hold on till the prices go back up if i had the money i would do it
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DarrenW
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| posted on 8/10/08 at 10:13 PM |
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This mght sound a bit flippant, but i wouldnt bother at the mo.
As you say current house could take ages to sell, and if it does it is likely to be strong buyer seeking a bargain.
On the assumption you will need mortgage for new place, if you dont have hefty deposit then you could have a problem.
You could sell and spread the cash around, then rent for a while (i reckon some rental deals are to be had to hard up landlords). You are then in a
fantastic position to screw a deal on another house, especially if from a developer that is sitting on stock, if you have mostly cash and can secure
the finance for the rest.
There is cash out there, and loads of it. Its just that people are keen to keep hold of it unless the deal is truly low risk. I know of a guy in my
town who easily secured over 1 million to buy some ex-hospital properties.
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Bluemoon
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| posted on 9/10/08 at 07:32 AM |
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I'd not bother at the moment, I would wait a little longer. Also note that house a auction are 28% down on asking prices in the estate agents
window.. Says a lot about what the houses are really worth at the moment, sellers have an unrealistic value in mind at the moment.
Like said it is coming to a good time to buy sometime soon if you have the cash..
Dan
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