C
HI,
I put a deposit on a new house back in May of this year. I still have not moved into the house because the builder is dragging his heals.
So far I have paid 25k for the house as a non refundable deposit.
Today I found out that the same house is selling for 5-10k cheaper than what I have signed for in my contract. In my contract the house is 500k
I am gutted! What are my options...?
can I pay the cheaper price or the price I agreed and signed for in may?
Has the builder got a lot of units still available for sale?
You could threaten to walk away, and see if the builder will play ball with you, and agree some discount or extras
Legally, I guess you lose your 25 if you walk away, but the builder may prefer
485-490 in the hand, than 25 in the bush.
Today I found out that the same house is selling for 5-10k cheaper
Are you buying as an investor? do you intend to sell tomorrow or have you bought a property to live in?
If the latest, do not be obsessed by the real time price of your property...enjoy it.
This sounds like flawed logic to me. After 5 years of paying a 30 year mortgage, you will typically have paid off less than 10% of the principal. If you are in negative equity, it's not going to make it any easier to trade up. As other posters have already stated, if you're happy to be there for the long term though (+10 years), then you should not worry about annual fluctuations so much.If you want to trade up later and your house is worth 10% less in, say, 5 year. Your new house will also be 10% cheaper (and 10% of a larger sum probably)
If it is to be your residence the market price of the house is immaterial. while it is irritating in the extreme that the price has come down you haven't "lost" money as such as you aren't selling.
Bacchus is right. If it is to be your residence the market price of the house is immaterial.
Are you sure they would really be in a better position though? The shortish term mortgage you chose in your example manages to avoid the buyer being in negative equity however I think they will still have problems trying to trade up.You would be €10,000 better off if the market goes down 10%.
Danish, why can't you share your own experience on the board? I'm sure there are quite a lot of people that might find it useful.ckbny,
PMed you my own experience in this.
I'm sorry, if you have to make assumptions regarding future saving ability and future lending criteria to back up your case then I think your whole argument falls apart tbh. You've simply pointed out that one figure is less than another but that fact on its own does not reveal which scenario will be better for the trader upper.You saw the numbers didn't you?And if you can't save another €10k over 5 years (€150 per month at 4% interest) there is no hope for you.
- Case one, new bigger/better house with a 170k mortgage
- Case one, new bigger/better house with a 180k mortgage
Plus, a smaller mortgage is a smaller multiple of your income, hence easier to get approval.
You can't seriously think that someone who has purchased a property should be glad to see their equity reduced/wiped out? Property price falls will only really benefit those that are not in the market to begin with or have pulled out of it.Why are people so wedded to this belief that rising property prices must be good for them??
I agree with your sentiment but unfortunately that's the reality of the current market in Ireland. The 25 year term in your example is wishful thinking for most of those taking on a new mortage these days.A 25 year term would be considered the industry standard eveywhere in the world (except Ireland).
Bacchus is right. If it is to be your residence the market price of the house is immaterial. while it is irritating in the extreme that the price has come down you haven't "lost" money as such as you aren't selling. Presumably you are there for a number of years at least. The only price that will be of importance to you is the price the houses are fetching when you are selling.
Using your logic every single decision you ever make loses you money.
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