Ugh, stupid credit crunch

Viewing have dried up (apparently on all properties, not just mine) so I have just agreed to drop the advertised price by £10,000 to below what we had hoped to sell the house for a couple of months ago. I guess I’ll be going through all the houses I was researching buying and knocking a load off the list because they are now out of my budget.

Stupid recession. What I am interested in knowing is when the banks are going to realise that if they want to sell the houses they have been repossessing they are going to have to start giving people mortgages.

The BBC had a bit on house prices this morning saying that the average price was about right for the average first-time buyer (in terms of salary, deposit, etc) so all that is stopping them is the lending. I meet one of their average first-time buyer criteria (age) and exceed the average salary by, well a lot (woo, new contract signed today to guarantee income until February), but cannot move because no-one can buy my house – it doesn’t even cost that much.

I’m starting to think that I will never move and I should just take the house off the market (when the current contract with the estate agent ends in a few weeks) and resign myself to living in it for the next 5 years until the economy recovers (if prices drop much further I will be losing money). I should probably also start thinking about what I’m going to do for money. I can continue commuting into London while I live in Reading (I don’t like it, but the money is really quite good) but maybe if I cannot move I should start looking at alternatives.

Fingers crossed the price-drop brings in some more viewings. An offer, even a laughably low one, would be something.

2 thoughts on “Ugh, stupid credit crunch

  1. Jen

    Would renting it out be a viable option? That might allow you to move, and then sell once the market picks up again.

    We’re thinking rather more seriously about extending/re-modelling, because the idea of moving is so far from appealing right now. We’d still make money on our house, just because we happened to buy at the right time, but there’s nothing in the area that’s we’d be willing to spend money on in the next couple of years, not ’til the prices stop falling.

  2. fak Post author

    Unfortunately if I rented the income would have to cover my new rent and the tax on the rented income. The mortgage being paid down means I get no deduction for that and I can’t re-mortgage as I have no permanent job 🙁 All of my money is tied up in the house.

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