It can make a lot of sense to buy now.

Procrastinator333

HAMISH_MCTAVISH wrote: »

Renting is always dead money over the long term, and buying is cheaper over the long term even if rent is less than a mortgage payment to begin with.

100% of people benefit from buying, and rent is wasted money in all but the very short term.

I think it is someting like any 25 year period of the last 50 years, buyinh has always been the better option. Agreed.

So I guess the statement that 100% of people benefit in the long run is fair.

However the caveat that should be there is the degree to which you benefit can be very very different depending on when you jump on and step up the ladder.

Imo, most FTB's should not be buying now, low to zero chance of rising house prices vs lower rental costs compared to interest rates coupled with a chance of some further falls.

Imo, it doens't make sense to buy now as a FTB.

ess0two

Chaos_A.D. wrote: »

Lol, the reductions are still happening, a look around numerous postcodes as seen no rises whatsoever in prices in the last year or so, only stagnation & reductions.

Area dependant on that front,some great stuff to be had local to me.

ess0two

Graham_Devon wrote: »

There are loads of reasons for "whinging" that house prices are too high. And as I have just stated, just because prices drop 10%, it don't mean all of a sudden everyones worries have gone away, they can withdraw their stashes of money, and enter the housing market.

What about all those posts, from specific people on here, laughing at others because when house prices fell, mortgages dried up and got harder and harder to get?

The above is taken into account when laughing at others who couldn't make the most of lower prices. Apparently bears did it to themselves getting the crash they wanted. But it's conviniently forgotten in situations like now, when you want to suggest people did nothing about it and it's all their fault.

Everything but everything. You can attach a simple word to every situation. Relative. It needs to be used more on here instead of fixating on one point in one thread, and then totally going against the same point in another thread...from all sides of he forum.

You can't laugh at people locked out, saying they bought it on themselves. Then moan at the very same people for not doing something about it when they had the chance.

Either they had the chance, and you can't laugh at them for locking themselves out, or you laugh at them for locking themselves out, but don't whinge they didn't take the chance.

I aint laughing at anyone,reductions are abound,yet its the same old scenario.
I've done it myself,you see a reduction on an object yet strive to find it even cheaper when really its within your budget,at some point you pay the same or miss out altogether on the discount.

Except in this case it'll be IR'S that scupper the majority,or the years ticking away losing the pay back term.

dopester

silvercar wrote: »

Now it makes no difference if you bought somewhere in 1963 for £4,000 or £4,200 or whether you waited til 1964 and paid £4,300. What does matter is if you put off buying, to wait for the cheapest moment and then failed to buy for £4,500 in 1965 and had to rent until the next house price crash in 1970 or whenever. The point is that at some point you need to stop prevaricating and just do it - in 20 years time, after a bit of inflation the only difference will be between those that did and those that didn't.

Some houses in some areas are heading back to their 1963 values in my opinion.

A pattern that has held for a certain amount of time doesn't necessarily mean will continue to be into the future. Instead of inflationary heaven and "no worries", some people will be shocked as heavy deflation scuppers their absolute beliefs in inflation.

silvercar

dopester wrote: »

Some houses in some areas are heading back to their 1963 values in my opinion.

That puts the house I grew up in at £4,000. For a 3 bed detached in nice area. Last one to be sold in the road went for £320k in 2007. Bet your wrong.

PasturesNew

jennihen wrote: »

... I was at the solictors that the vendors of the property I am buying

*spots party/BarBQ opportunity*

I just need the address now!

dopester

silvercar wrote: »

That puts the house I grew up in at £4,000. For a 3 bed detached in nice area. Last one to be sold in the road went for £320k in 2007. Bet your wrong.

"Some areas."

It was also a bit of an exaggeration in countering your view there being little to be concerned about buying now, because of your "general inflation" long-view for house prices. Because that has been the experience of the past.

"General inflation" makes the buying risk "insignificant" ? I would strongly bet against, and am actively doing so by not buying. I think your position is flawed, and you think mine is, but we shall see. Maybe quite soon in some areas, because rapid and deep falls in value from near peak are not out of the question.

nembot

ess0two wrote: »

Whats wrong about it,the same people who sat thru 08/09 reductions and did nothing, are still sat here now whinging / cheering a crash on,that has been and gone..

Suggesting that todays prices are perfectly acceptable is something only someone with BTL properties or a huge mortgage would do....

So which one of the above is applicable to yourself?

Thermidor

Conrad wrote: »

I was pondering some applications I'm currently dealing with. At the same time I was thinking back to people I know who bought in past recessions, particulary in 1973, 1978 and 1991.

Current case - apllicants have sold thier home for £500k, having paid £140k in sept 1999.
It's a semi in Surrey.
They are buying a detached wreck for £615k on a huge plot.
He will do it up himslef in evenings (did this with last home) and it could easily be worth £1m in todays market, let alone 5 or 15 years time.

The new mortgage is £300k on C&I basis, fixed for 3 years at £1390 pm which for them is about 1 third of net income.
Sure rates may rise after 3 years (a certainty) but they will cope and will be sitting on a mass of equity. He really does transform a property.

Back to 1973. I have an applicant aged 68 who bought a big pile bear Jamie Oliver for £2,500! It's now worth £700,000.

Imagine you were on this forum and we were in the same economic times as 1973 - all the bears would say it was reckless to buy!

1978 - a current client bought a huge detached home with 20 acres back then for £60,000. It's now valued at about £3m.
Again if we were experiencing the economic tapestry of 1978, the bears here would be urging restraint.

THE POINT - It's always difficult to see the light when times are dark, but the brave / carefree will be investing now and sitting pretty in 20 years time.

So so true!

chucky

nembot wrote: »

Suggesting that todays prices are perfectly acceptable is something only someone with BTL properties or a huge mortgage would do....

todays prices are perfectly acceptable to those that can afford them