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Why are people having a go at folk wanting to sell and buy
longforthesun
Posts: 699 Forumite
I have been reading some posts on this forum for some weeks now and cant believe the attitude of some folk. If we were to beleive lots of posters that say its wrong to sell or buy surley that would be a disaster for the country (yes i am fully aware of the current situation). OH and I do not need to move but would like to, so what if my house takes a year to sell or its value goes down (as long as it does not take me into negetive equity),the way i look at it if my house has dropped in price then the house i will buy will also drop in price. Obviously if you are looking to purchse a property to do up and sell on for a profit, then yes that would be a mistake but as someone said we think nothing of purchasing a car that depreciates in value the minute you drive out the car showroom.
So could the posters who tell everyone not to be so stupid and buy now please tell me what do you think will happen to this country if everyone listened to you?
So could the posters who tell everyone not to be so stupid and buy now please tell me what do you think will happen to this country if everyone listened to you?
February 2013 NSD - 4
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Comments
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If you can afford it you shouldn't worry about buying.
Afford it meaning:
- having job security
- having a big deposit - at least 10%
- having additional savings for emergencys
- having found a house in good condition for a sensible price
- not having a silly mortgage that you can't really afford
Houses over way overpriced. Anyone who doesn't agree is either incredibly rich or just not paying attention.
Mortgages are being restricted in such a way as they probably should have been all the time. Being able to save and manage money is important - and it's as important that house prices aren't insanely high too.0 -
I totally agree regarding house prices. The houses we have been looking at (i mean on the interent not actually viewing just yet) are reasonably priced. If we do put ours on the market we will be putting it on at a reasonable price.
I just cant see how telling folk not to buy as house prices are still falling is going to help the housing market. I just get angry reading threads where people are looking to buy a house they plan to live in for 10 years or so and are being shot down in flames by people telling them they must be daft.February 2013 NSD - 40 -
Well it depends on your situation really..
For me, I was going to buy, but decided not to...
I put things into perspective for myself.
we were going to buy a property for £210k, which over 25 years would have cost us around £500k once all the interest was included.
If I could be abolsutely 100% certain that I could make repayments for the next 5 years, I would have probably gone through with it.
The fact is though that I couldn't guarantee that, and me and my fiancée have been saving our asses off for the last few years in order to get onto this so called housing ladder. I didn't fancy blowing all of our hard earned savings, and then 2 years down the line the house be worth less than we paid for it, blowing away all those savings and then some.
To rent is going to be throwing money away in one sense, and it is quite a hard bullet to bite, but when you think about it logically, it is not throwing money away.
Renting at, say, £800 pcm is going to cost around £10k. We will still have all those savings in the bank, plus more hopefully. We will be able to reassess the housing market, and it is very likely that house prices will have dropped more than £10k in our area.
So renting for 1 year will cost £10k. I think that is worthwhile, especially why the market is as volatile as it is at the moment. The savings we have for our deposit + stamp duty + other costs should earn us around £1000 in interest too, so offsetting that against the rental loss it is £9k. Plus the fact that the house were going to buy needed new windows (£5k), would have needed maintenance no doubt which costs money, etc...
That is basically me putting it in perspective for myself. It took a lot for me to work out which way will benefit us more.
If I could buy for cash, I would certainly buy (no chance of the bank repossessing your house! It is almost certain to recover what you paid in cash over the course of time you live there. But stretching myself and taking out a mortgage for 25 years, effectively costing me TWICE what I actually offer for the property over the course of the mortgage term...
Hopefully that disjointed collection of words above will help put some of this into perspective for people buying or considering buying at the moment...
For me it was all about risk, and I couldn't bring myself to take the risk of losing all my savings and possibly losing my job and having the house repossessed...0 -
What would happen if they listen to me? I save most of it for FTB with about 80p deposit and /or so desparate to get on the housing 'ladder' that they will buy grossly overinflated shared ownership properties.. If they listen to me, it saves them from negative equity.longforthesun wrote: »... So could the posters who tell everyone not to be so stupid and buy now please tell me what do you think will happen to this country if everyone listened to you?
It is quite barmy to send FTB to hell in a handcart to make the likes of you feel good about the housing market. These people need to have negative equity explained, they need to know that even if it costs slightly more to rent, that might be the best financial option for intending FTBs at the moment.
If they get caught by greed and still go ahead, they might be fair game, but only to the same extent as those who are already caught by their greed. Buying houses is still fine if you understand the risks and have a good deposit. But the financial climate of the last few years means that there are few FTBs who have any concept of the need to have savings.
If you think that they should be talked into buying without savings, this is as bad as victims of pyramid schemes working their way out of their own mess by suckering others in to invest in the scheme.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
Chris2685 you sound as though you have thought about this long and hard and I totally understand where you are coming from. OH and I have debt however we are very fortunate to have a enough equity in our home to pay our debt off and still have a decent deposit given the present value of our home.
Perhaps the fact I live in Scotland and at present have not seen house prices fall that much makes me see this differently. I live in a fairly small town and in July 12 houses were sold in my area and although some of the larger properties did not sell for much over the asking price the smaller properties do not seem to have dropped in value since last year.February 2013 NSD - 40 -
Incisor I am not suggesting for one minute someone talks a first time buyer into making a mistake and ending up in negative equity but I have read posts with people saying they have their deposit and mortgage offer and have no intention of moving for 10 years and are being told they should still not be buying, surley these are the people we need to be kick starting the houseing market again.February 2013 NSD - 40
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If you are angry about it, this probably means that you can't muster and post a rational argument against it.longforthesun wrote: »... I just cant see how telling folk not to buy as house prices are still falling is going to help the housing market. I just get angry reading threads where people are looking to buy a house they plan to live in for 10 years or so and are being shot down in flames by people telling them they must be daft.
FTB's in their early 20's do need warning off, in quite clear and logical terms [particularly about the risks of shared ownership]. But everyone can make up their own minds. Everyone can weigh and balance the arguments for themselves. The financial arguments are generally applicable. The personal, family and location aspects vary from person to person. I see no reason to hold off putting the financial argument - the advice taker is in the best position to take the other factors into account.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
I think a lot on here talk a load of bo11ox. Houses are selling and people are buying them as like the O P they want a home etc. The fact is that the market is correcting itself due to getting out of hand. But when everything is all sorted the same will happen again. It always does. And in all walks of life there are folk that talk bo11ox and there always will be.I came in to this world with nothing and I've still got most of it left. :rolleyes:0
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Why? If it doesn't make financial sense for them, I don't think they need to bother for one moment about the good of the market. I am certainly not going to tone down my assessment of the situation for the benefit of the market.longforthesun wrote: »Incisor I am not suggesting for one minute someone talks a first time buyer into making a mistake and ending up in negative equity but I have read posts with people saying they have their deposit and mortgage offer and have no intention of moving for 10 years and are being told they should still not be buying, surley these are the people we need to be kick starting the houseing market again.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
longforthesun wrote: »Incisor I am not suggesting for one minute someone talks a first time buyer into making a mistake and ending up in negative equity but I have read posts with people saying they have their deposit and mortgage offer and have no intention of moving for 10 years and are being told they should still not be buying, surley these are the people we need to be kick starting the houseing market again.
The trouble is, we don't really want the housing market to recover. It may seem a bit selfish (although I would argue people wanting house prices to rise further are the selfish ones) but I really want to see the market fall alot, so much so that houses are within reach of first time buyers without the help of these schemes. I think £20k is a hell of a lot of money to have saved up, and for it to not be enough for a 10% deposit of an averagely priced property is just crazy. People on average wages should be able to afford to buy averagely priced homes in my view... In which case house prices should be falling to around 4x average income, if not lower.
For us to kick start the housing market now would surely make things more difficult for most people? I can't really understand why anyone wants rising house prices unless they're looking to downsize really...0
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