Why FTB should Resisit buying now and Save instead! explained

confused31_2

hey davilown out of interest you have this on the bottom of your signature, Aim - To buy a House at the bottom (or very near it). How are you going to predict that when you was tempted to buy when the market was at its top??

Now tell us when you think houses are going to go up or bottom ??

you couldnt predict the market 14 months ago, but all of a sudden now you can, so why is this???

Kenny4315

In my view and I have said it more than once it is pointless to wait for the absolute bottom and the absolute peak. For example, once house prices have stablised sellers will know movement will be upwards, and thus it offer less chance of the under the market offer being accepted, and the reverse on the top. Which is why around Summer time is the best time to buy, then you pick up property discounted even further below the market.

Obviously sometimes like with the 2 properties I described above, an opportunity springs up at an unexpected time that's so good that timing isn't so important.

davilown

I gave it a few posts ago.

davilown

Kenny4315 wrote: »

In my view and I have said it more than once it is pointless to wait for the absolute bottom and the absolute peak. For example, once house prices have stablised sellers will know movement will be upwards, and thus it offer less chance of the under the market offer being accepted, and the reverse on the top. Which is why around Summer time is the best time to buy, then you pick up property discounted even further below the market.

I agree with you but think it will be six to nine months later

Kenny4315

davilown wrote: »

I agree with you but think it will be six to nine months later

If you wait this time round the investors who pulled cash before the crash will beat you to it.

This crash is a bit different to others, in my view the correction is going to be much sharper and harder, the economy has been well and truly DEKCUF, but I also think the recovery in houses will be much faster, due to lack of housing, freedom of economic movement, etc. ROMANIA vs UK ???, general population expansion, many more living outside a 2 parent 2 children situation, etc. Reduction in new build as profit margin evaporates, over previous years.

confused31_2

i think it will pick up and i think its slowly picking up now ftb's are coming back but they are only looking at bargains, bottom line if people want to sell their houses they have to have them at the right price, and from what ive seen a lot of people have started to drop prices.

If this gets first time buyers back great, ill be able to move, but to predict the peak and the bottom is very hard and i would never predict it.

Back to the original post if a house is a at the right price and you have a decent deposit i see no problems in buying has a first time buyer.

confused31_2

Kenny4315 wrote: »

If you wait this time round the investors who pulled cash before the crash will beat you to it.

This crash is a bit different to others, in my view the correction is going to be much sharper and harder, the economy has been well and truly DEKCUF, but I also think the recovery in houses will be much faster, due to lack of housing, freedom of economic movement, etc. ROMANIA vs UK ??? etc

i think thats a worry as all the people who have spare cash will be buying houses , and has alot of people have been stung with their savings why not buy a house which is at a low price.

these are the people first tme buyers will be competing with, someone whos got a spare 100,000 grand, why stick it in the bank when they can collect rent every week, and still sell it for the same price or more.

Kenny4315

That's absolutely right, there is no point holding cash in bank, going forward I like to keep 12 months of all my mortgage payments, as a fund, but beyond that what's the point, and there's no other options.

confused31_2

especially now with the interest rates, i know if i had a s spare 100,000 pound it wouldnt be i the bank it would be spent on a house which is a bargain, and that the rent would be a lot more than the interest the banks would be giving me.

And to be honest these type of people can afford for a property top drop 20,000 as if they have bought it outright they would get the 20,000 pound back within 2 years as rent.

Kenny4315

In my worst case spreasheet which I use for my purchase decisions, where I have lowest rent, etc, my figures are -20%, 3%, 5%, 7%, 9%, & 9%, just slightly lower but I think once momentum is gained, it more likely to be the ones I posted earlier.

I have just over £250k awaiting some worthy causes, plus my mortgage emergency 12 month slush fund.