Why FTB should Resisit buying now and Save instead! explained

mewbie_2

davilown wrote: »

Yep fair call, will edit my posts to remove it. A tad frustrated yes, But I don't want to be rude

My friend I was posting tongue in cheek. Muppet is positively charming for this board.

geoffky

Kenny4315 wrote: »

I'll have a total, debt of around £750k, but property worth £2.5m, all making money even by the lowest estimates, excepy obviously my main residence, by the time I have made my purchases and rearranged my debt at what I see as the bottom of the market this August. That's betting but I won't be losing.

Heres the man who thinks the biggest boom in history is going to be followed by the shortest bust in history,,:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::T:T:T:T:T

confused31_2

I hadnt thought about it before but surely if you have a home already and savings of 100,000 pounds or more.

It would be a ideal time to buy a property at the right price and rent it out, i mean if someone bought a 3 bedroomed semi for 100,000 pound cash and rented it out for 750 pound a month, you would get 9000 pound a year rent.

I dont know how much tax you would have to pay but this surely has to be better than being in a savings account.

I think you might find a lot of savers buying houses, instead of using banks especially when there are some bargains to be had.

geoffky

And what happens when a surprise tax penalty on 2nd home come in quick and you are left holding a turkey,,:T

davilown

confused31 wrote: »

I think you might find a lot of savers buying houses, instead of using banks especially when there are some bargains to be had.

While I appreciate your reasoning, I think there are too many people who have been stung, not just by house prices but predominantly by the losses in the stock markets. Those people who have savings are, I believe, the minority as they were before the 'cheap credit' came onto the market in the late 1990s/early 2000s.
Those with the money will buy, but I don't think that the FTBs will buy until the bottom of the market, or more likely, when the market is showing signs of no more losses.
Yes they will want to get the most for their money,but they will, I believe, have a different view of investment in property, looking more to the longterm rather than short, thus delaying further any recovery in the market.

b0rker

I have a load of mates with very large deposits saved up. A lot of wholm have been saving for a property for the past 3 years and were not far off affording one at the top of the market. Now that prices are coming down they are within reach.

The very first sign of the market levelling out and they will all be in to try and buy.

A few of them are already making moves to buy now even though we have seen very little drops in house prices in Inverness.

I suppose they are as scared of missing out now as the people who were scared into buying in 2007 at the top of the market.

Fear and the UK housing market go hand in hand.

You would have thought that we could have come up with a far more reasonable system after centuries of property ownership.

confused31_2

geoffky wrote: »

And what happens when a surprise tax penalty on 2nd home come in quick and you are left holding a turkey,,:T

I dont know about the tax, maybe someone can fill us in but you have to pay tax on savings, i was looking at banking over 100,000 pound in 3 seperate bank accounts and you have to pay tax on savings.

theres ways to get around capital gains tax

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=410130&in_page_id=8

i think i would definately consider it if i had asome savings just a shame i havent.

confused31_2

davilown wrote: »

While I appreciate your reasoning, I think there are too many people who have been stung, not just by house prices but predominantly by the losses in the stock markets. Those people who have savings are, I believe, the minority as they were before the 'cheap credit' came onto the market in the late 1990s/early 2000s.
Those with the money will buy, but I don't think that the FTBs will buy until the bottom of the market, or more likely, when the market is showing signs of no more losses.
Yes they will want to get the most for their money,but they will, I believe, have a different view of investment in property, looking more to the longterm rather than short, thus delaying further any recovery in the market.

they will get there money back qucker than what they would from the bank, say they bought a house for 100,000 pound, it would have paid for itself in just over 10 years and thats if rents dont go up, which they will do. They will be laughing.

Kenny4315

geoffky wrote: »

And what happens when a surprise tax penalty on 2nd home come in quick and you are left holding a turkey,,:T

Why would the chancellor do this ? He needs to keep wealth in the country not piZZ it off so they sell up and move all their assets overseas. Which is a fairly sound bet if the chancellor starts bringing in crazy taxes to pay for Mr CLowns C9ck ups.

In fact this will be the case in terms of other taxes also if things like income tax shoot through the roof, those that can will b7gger off.

Kenny4315

geoffky wrote: »

Heres the man who thinks the biggest boom in history is going to be followed by the shortest bust in history,,:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::T:T:T:T:T

You seem like an expert.

What is the value of your current housing portfolio ?

What is your equity position ?

What will it be by the end of the year ?

How much cash have your made in property over the say last 5 years ?