I've made an offer - investment rule number one "buy when no one else is2

Dan:_4

ad9898 wrote: »

You're right, they are starting to compete, unfortunately for any bulls out their they are only competing for the "safe business" i.e at least 25% LTV, which is of no use to 95% of FTB's, hence the market is only going one way.

Some banks have started to slightly reduce rates for 90% and 95% LTV mortgages, but only for existing customers.

Paul_N_4

investment rule number one "buy when no one else is"

[sarcasm]Well it worked for that hedge fund and their Northern Rock shares[/sarcasm] :money:

fc123

Microstar wrote: »

Investment rule number one "buy when no one else is"

Hmm. Sometimes no one is buying because its simply not a good investment.

And you won't know that until later on.

Area has no coffee shop. Could indicate a good opportunity for a coffee shop to open there as could indicate a gap in the market......or could be that the areas residents prefer tea.

rammster

Good work Conrad
Myself put offer on 2 , one at 120k last december, now going at 90k
Another house at 140k last decmber now at 105k

as long as you buy 20% BMV
as long as you have +ve cashflow
as long as you can add value.

if the three boxes tick, then the time to buy is now.

WTF?_2

Paul_N wrote: »

[sarcasm]Well it worked for that hedge fund and their Northern Rock shares[/sarcasm] :money:

Seems to have worked out for the Fannie Mae and Freddie Mac investors too.....not

lynzpower

rammster wrote: »

Good work Conrad
Myself put offer on 2 , one at 120k last december, now going at 90k
Another house at 140k last decmber now at 105k

as long as you buy 20% BMV
as long as you have +ve cashflow
as long as you can add value.

if the three boxes tick, then the time to buy is now.

rammster,

I was going to thank you for this, thinking, yes of course that is the basics of property investment -good advice.

The only thing that confuses me is how do you know if you are buying 20% BMV. If the market is falling then what is the market value? Some eas report selling only 3 properties last month, so the volume of comparible sales cant be big enough to determine the market value?

rammster

This brings us to price cycles. What is there to understand is that it will become harder to drive a bargain in a plateaued/rising market later. Right now investor pessimism i.e fear is plummeting prices. Considering last price crash made values fall by 30% (from the peak at 1989) , and here the peak prices are August 2007 , if you bought 20% BMV and had +ve cashflow from the property , it is a worthwhile investment. Its the people who are in it for the short term who should beware.

mewbie_2

What is rule number two? Sell when no one else is selling?

mr.broderick

mewbie wrote: »

What is rule number two? Sell when no one else is selling?

3.Masturbate when no-one is watching.

chrisandanne

I haven't thanked you mr.b because I've banned the oh from that.

On Topic :-

D'ya know every time I see one of Conrads optimistic buying posts I think...that's what I would be posting if I was a Mortgage Advisor.......A x