Next Year 40% of Buyers Will Be CASH Buyers- The Times.

PasturesNew

Don't forget, volumes will be seriously down.

The cash buyers will be that those people selling will sell first THEN buy, rather than being in chains. At the moment people are happy to be in a chain, but that's proving to be a problem as one part breaks down, so more people are looking to sell-rent-buy and not do a back-to-back sale/purchase.

So it's not that cash buyers will all suddenly appear, just that people will behave differently.

Downsizers will be a lot of the buyers too I'd imagine.

PasturesNew

A cash buyer is somebody who has the money. No mortgage. Just cash/savings.

This will have come from:
- inheritance
- downsizing
- STR

When I buy I will be a cash buyer.

Premier_2

Whilst a cash buyer should, imo, mean that a person is buying the property without a mortgage, much of the industry uses the term to imply that the purchase of a property is not dependant on the sale of another.

A bit like a first time buyer if you like, but these buyers may already own a property

Max_Headroom_3

pickledpink wrote: »

A report in The Times today says that in one year from now 40% of buyers will be cash buyers.

Surely this will make it even harder for people with just a deposit and mortgage offer to negotiate? Every seller likes a cash buyer - we all know that.

Percentages on their own are completely meaningless in this context.

To exagerate hugely just to explain the point, if there are only 10 buyers of houses next year, and 4 of them are cash buyers, you have your 40% cash buyers. But do you really think the other 6 that are buying with mortgages are going to struggle to find eager sellers?

All that really matters is how many houses are for sale per buyer. If it's a lot, prices are going to have to come down. No good holding out for a cash buyer if there aren't many about, even if they do represent 40% of buyers.

Money is money at the end of the day, no matter where it comes from.

baileysbattlebus

PasturesNew wrote: »

A cash buyer is somebody who has the money. No mortgage. Just cash/savings.

This will have come from:
- inheritance
- downsizing
- STR

When I buy I will be a cash buyer.

You beat me to it.

According to the land registry 25% of all housing transactions are in cash any way - so the Times is saying and extra 15% will be paying cash for their houses.

If people start buying again and it's a big if, we will sell our current house, down size paying cash for the next house and take early retirement. We had hoped for next year - but it might get pushed out another year or two or three or f..........

I imagine quite a few people think that nearly every buyer has a mortgage and that nearly every home is mortgaged. That is not the case. Of owner occupied homes in England about 40% have no mortgage.

A lot of people who sold to rent, like PN, will have a large pot of money waiting to buy when the time is right for them.

bo_drinker

Exactly what we did. We sold to avoid a chain, then moved in to a property my OH owns. Sitting like vultures as cash buyers waiting for the right one to come along. Trouble is the areas that we are interested in they are not coming on in big numbers, slowly slowly catchy monkey as they say.

amcluesent

There will be peeps who've not MEWed, taken their money off the table before the stock-market crashed, saved their bonuses, lived within their means etc. who have money in the bank.

For these buyers, the current slump in perhaps a once on a lifetime chance to buy a des-res and are pretty shameless about exploiting other people's need to sell at firesale prices.

And why not, Clown's sock-puppet chancellor has come right out and said taxation will sky-rocket to pay for Clown's bungling. Saving and investing will be a mugs game, but bricks and mortar will be there for you.

pickledpink

Max_Headroom wrote: »

Percentages on their own are completely meaningless in this context.

To exagerate hugely just to explain the point, if there are only 10 buyers of houses next year, and 4 of them are cash buyers, you have your 40% cash buyers. But do you really think the other 6 that are buying with mortgages are going to struggle to find eager sellers?

All that really matters is how many houses are for sale per buyer. If it's a lot, prices are going to have to come down. No good holding out for a cash buyer if there aren't many about, even if they do represent 40% of buyers.

Money is money at the end of the day, no matter where it comes from.

Wrong again, Maxy Boy!:p

Cash buyers always hold the trump card. A person is MUCH more likely to sell to a cash buyer rather than someone who has to get a mortgage (fat chance these days, eh?).

So your statement that money is money at the end of the day is wrong!

Mortgage approvals can fall through.............but cash buyers have the dosh ready and waiting!:p And that's why cash buyers will hold the trump card and the pick of the crop when prices stabilise in less than 12 months.:D

By the way, you spelt exaggerate wrong:p :rotfl:

lostinrates

We have a reasonable amount saved.
We could buy A property in cash, but not the property we want.

If prices keep falling and we keep saving we could be cash buyers for the kind of property we want to buy next year. There are quite a few of us on this site who night have been mortaged buyers this year but have not bought and the combination of falls and longer saving period takes us nearer a cash position.

Max_Headroom_3

pickledpink wrote: »

Wrong again, Maxy Boy!:p

Cash buyers always hold the trump card. A person is MUCH more likely to sell to a cash buyer rather than someone who has to get a mortgage (fat chance these days, eh?).

So your statement that money is money at the end of the day is wrong!

Mortgage approvals can fall through.............but cash buyers have the dosh ready and waiting!:p And that's why cash buyers will hold the trump card and the pick of the crop when prices stabilise in less than 12 months.:D

By the way, you spelt exaggerate wrong:p :rotfl:

You miss the point (hardly surprising I guess since you're desperate not to see it).

If there aren't many buyers, then cash, mortgage whatever, doesn't make a lot of difference, an offer is an offer. In a very strong market where you've four potential offers on the table then for sure, you might pick and choose. However I think it's fair to say this isn't a strong market.

The point is however, that the percentages don't matter, it's the number of buyers (or lack of) that matter.

Oh, and you're really scraping the bottom of the barrel if you're having to pick up typos to "prove" you're right. :rolleyes: