Is it better to wait?

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InSwansea's picture
InSwansea
Status: Member (Offline)
Joined: May 18 2012
Posts: 1
Is it better to wait?

Hi,

I am new to the forum so I hope it is ok to post my question here.

I wanted a bit of advice. I live in the UK and have just agreed the sale of my house. Assuming it goes ahead then we will shortly have around £70,000 from the sale.

I am now unsure as how to proceed. Our main reasons for moving are to get a larger garden and possibly reduce our mortgage a bit. So here's the questions.

a) Should I wait for a while before buying a new home?  Prices here are vastly inflated and may well be affected by what is happening in Europe although they are currently propped up by the buy to let market.

and

b) If I do wait where can I put my money and know that it is safe? As surely the events in Europe will lead to more banks going down.

Any thoughts welcome.

Thank you.

TreeGap's picture
TreeGap
Status: Member (Offline)
Joined: Feb 27 2012
Posts: 23
Wondering same thing.

Hi,

Welcome.  I'm fairly new myself & have been reading this site for the past 8 months. 

Good question! 

Like you, I have an offer on my property.  I'm equity-rich, cash poor. I have a mortgage of $400/month, including the escrow for property taxes.  I'm also wondering if I should sell it & then buy another property outright (no mortgage) when the SHTF. 

I would guess that there will be a firesale on realestate as property owners become unable to pay their mortgages to the bank. 

I like the idea of not having a mortgage at all.  But, the future has a way of surprising us & maybe this firesale won't happen.

Then, I wonder, should sell at all?  Would it be somehow NOT GOOD to be holding all that cash in liquidity when the SHTF?  

I had posted a few months ago about owning a parcel of land that is an ideal "homestead," access to clean well-water, great solar potetential, good soil, forests for firewood, two streams, and in a rural community.  My only drawback was that it was not in the right school system, but just over the town line.  Currently, I'm thinking of homeschooling as more & more folks in my area are seeing this as a viable alternative to educating their kids.

Don't think I helped much, but wondering the same thing.

 

silviatic's picture
silviatic
Status: Member (Offline)
Joined: Mar 17 2012
Posts: 17
To but or rent

Hi InSwansea,

It is difficult to tell you what is best. These times are uncertain and nobody really knows what will happen in the next months with the situation in the EU.

If you have already sold your house, then you need to think what’s the best way to protect the money you’ll get. Banks are not entirely safe, and you need to live somewhere.

It may be better to buy a house if:

1.       You have enough money to pay it in full or at least give a big enough down payment.

2.       You know you’ll be able to pay the mortgage with easy.

3.       The house is placed in a good community where you can build relationships and resilience among its people

4.       You’ll have a garden and regulations allow you to grow food and keep livestock (even small like chicken and goats)

5.       The house won’t need too many repairs or investments to be liveable

6.       The house doesn’t require you travel long distances to work, acquire food, etc.

It may be better to rent and wait, while you invest your money in gold and/or community banks (in savings accounts if you don’t want to risk it all) if:

1.       Your job is not safe and you know you may lose it soon

2.       You are not sure or where to move to

You may want to check the different transition towns in UK to see which one is more attractive. You can also contact its members to have a better idea of where it may be safe to move. The transition movement can be found here: http://www.transitionnetwork.org/

Good luck!

 

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