Best/most efficient way to buy if you have a lot of cash?

mr.broderick

Walletwatch wrote: »

Maybe the financial meltdown and prices potentially falling to ridiculous levels is the precise reason people are plotting their future purchase

Just amazes me, just passing comment, nothing personal, just keeping my eye on the bears who constantly talked the market down.

mewbie_2

mr.broderick wrote: »

Just amazes me, just passing comment, nothing personal, just keeping my eye on the bears who constantly talked the market down.

Too much credit there Mr.B. They didn't talk the market down, they talked about the market going down. No influence really. Now if you want people who talk the market down you need Mr. Darling with his comment about the worst in sixty years, and Mr. Paulson with his more banks are going to fail, and the IMF with their global recession forecast. These are the things that move markets, not some posters on internet forums.

But ultimately, what goes up must come down, probably as simple as that. Let's just keep fingers crossed that we can ALL get through this.

Walletwatch

mr.broderick wrote: »

Just amazes me, just passing comment, nothing personal, just keeping my eye on the bears who constantly talked the market down.

I feel nothing short of flattered by your comment, so it hurts me when you say that I shouldn't take it personally

I will be honest, I don't consider myself to be much more than an armchair expert on the subject of housing and house prices. I am not a home owner, and that may make me a trifle prejudiced, but that should be offset by the fact that I do not earn a salary in this country, so even if I were to make the decision to buy, not too many banks will put out a red carpet for me with a mortgage. Which is ironic because I plan to have saved enough to buy outright, given a decent fall in prices. If the fall is not as much as I expect, I will just not buy, continue to rent.

I am from India and the prices out there have started going down, so am very close to actually buying an apartment there. Again I am equipped enough to buy outright in India (thanks to the savings ethos and all that), but will be taking a loan just to take advantage of the tax exemption that I get (the Indian version of MIRAS)

mr.broderick

mewbie wrote: »

Too much credit there Mr.B. They didn't talk the market down, they talked about the market going down. No influence really. Now if you want people who talk the market down you need Mr. Darling with his comment about the worst in sixty years, and Mr. Paulson with his more banks are going to fail, and the IMF with their global recession forecast. These are the things that move markets, not some posters on internet forums.

But ultimately, what goes up must come down, probably as simple as that. Let's just keep fingers crossed that we can ALL get through this.

Of course i meant they talked the market down on here.

WTF?_2

mr.broderick wrote: »

Of course i meant they talked the market down on here.

As Mewbie said - the 'bears' talked of the market going down.

It wasn't being negative, it was being realistic. If that happened to be negative, too bad.

And realistically speaking, there will be a time when buying a house makes economic sense. I see that, for me, as being around the 2010 timeframe, unless the breathtaking speed of the crash means the whole process is shortened. Personally, I think it will just make the trough deeper.

When the time comes I hope to get a decent place for cash. But obviously I don't want to leave myself with no ready cash so I'll be using an offset mortgage - unless someone knows of a better approach.

Now the real danger is that the govts just get more and more desperate to kickstart the markets that they overreact and we get a strong inflation (which will eventually collapse and lead to an even more enormous disaster).

Walletwatch

What suits me is the current rate of decline in the range of 1-1.2% continuing over the next year and a half, so I get enough time to add to my existing savings, which by then, should be in the range of 150 to 200 thousand pounds. A rate of decline higher than that would possibly spark the kind of reaction from the Government (though I have my doubts over how effective it would be) and possibly debunk my plans.

ess0two

!!!!!!? wrote: »

Thanks for the info about offsetting.

Like most of the bearish posters here, I have nothing against buying property, it's buying property at the wrong time that I have warned against.

Anyone who bought in the 2-3 years prior to the bursting of the bubble faces real problems now. They paid (borrowed) a whopping amount and have to service a large loan on an asset that is likely to be worth less than they borrowed against it.

That's why I have been so vocal on the board about falling prices and overborrowing. No-one in their right mind would put themselves in the position of being in negative equity with a recession looming but many people walked right into this situation with the encouragement of the media, their peers and various other HPI cheerleaders.

Prices look set to fall back to a sensible level relatively quickly (probably in the next 18 months) and once they stabilise I'm quite happy to recommend buying and I will indeed put my money where my mouth is and buy a house myself.

Your like a stuck record.

ess0two

mr.broderick wrote: »

Isn't this the guy who has just bought a load of gold at its highest point in decades?

A fool and his money are easily parted,Quality,pmsl.

Walletwatch

ess0two wrote: »

Your like a stuck record.

I agree. Although I must say, that's an unusual way of complimenting someone for being consistent with what he's been saying on these forums.

ess0two

I'll phrase it another way,every turn down on the market he seems to be always on top.
Its b-o-l-x............gold,buying houses,money for emergencies,blah blah.
This guy talks it good from the cover of his mothers back bedroom.