This is a nightmare. I’m not sleeping at night worrying. I wonder if I can organise my thoughts enough to make a coherent ramble.
Up To Now
I have been flat sharing – it is liveable but ultimately bites. I want a place of my own so that I can fix things that need fixing (landlords rarely care or get this right). But I didn’t have the deposit for a mortgage. Hence flat sharing – saving up my pennies.
Now I have enough for a deposit. Talked to a financial advisor and acquired a mortgage-agreement-in-principle! Great! I thought that was going to be the hard part.
Looking At Places
I’ve found some nice cozy houses I could live in. Well located. But expensive. I mean, these places have multiplied in value (according to the asking price) by 3-4x in the last 10-15 years according to values recorded by the Land Registry.
Can this be right? Three to four times the value? Is London really worth that much?
Agonising Over Value
Look around. Greece might financially collapse. Interest rates might go up. Unemployment is up. So I should be happy I have a bank prepared to lend, right? Actually, I’m not worried about that. I’m worried about buying a place, the housing market crashing, and I’m left with a heavy financial burden for the next 25 years. Perhaps unable to move because I cannot sell. This is keeping me awake at nights.
Maybe I could live further out from London. Instead of Zone 3 I could consider Zone 5 or 6. I pounded the pavement on Friday night in a few of these areas and whilst an equivalent property can be bought for £100,000 less or so the areas appear run-down and are noisy from traffic or trains.
Making An Offer
So maybe I should just make an offer on an expensive property in Zone 3. But then what do I offer? The asking price? Five percent less? Seems cheeky. What about ten percent less? Maybe the agent will tell me to go jump in a lake. It’s really very daunting. So much so that I don’t even want to do it.
The agents know I’m interested, too. They’re not bending over backwards to entice me. In fact it seems like they couldn’t care less whether I was amenable to negotiation in the first place.
The worst part of this all is that I’m doing it on my own. No family friends with house buying experience. Or realtors. Or lawyers. Or builders. So I’m trying to make maybe the most important financial decision of my life without any feedback or help.
There must be so many people out there in a similar situation to me.