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Debate House Prices
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to buy or not to buy...
Comments
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vivatifosi wrote: »What about if they fall by a negligible amount that is more than offset by the cost of renting?
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Unlikely whilst you account for current interest payments on mortgages at today's prices.0 -
Procrastinator333 wrote: »I have a question on this one. Is this not determined on when they start school? ?y intent was always to get a house outside of the catchment area to get the cheaper price, then just rent for 6 or 12 months in the catchment area to get them in to the school.
This is really an inkling of an idea rather than something I have investigated as we don't actually have kids yet anyway. Is there anything stopping this? I'm also not actually sure of the difference the catchment area makes to price, so may not even be worth it.
P.S Glad you have found your house!
You could do that, as long as you are willing to move your entire family into the rented house and genuinely live there. They check up on these things - visit you at breakfast time on a school morning to see if the child really lives where you say they live. Even so, what you suggest is generally frowned on, and if you have more than one child, you'd need to check whether the school gives priority to applications from siblings, because otherwise you'd have it all to do all over again for any subsequent children.
Besides which, my son is very keen to go to a local school so he can walk/cycle and have some independence. I want to encourage that.
When we chose his primary school, we were living close to it. He got a place, and then just before he actually started school, our LLs gave us notice. We found another rented house but it was 3 miles away, right next door to a much less nice school. So we kept him at the good school we'd originally chosen, and thought we'd perhaps not stay all that long over this side of town. Then my husband left us, and life got complicated, so I didn't move. I've spent more than 5 years driving to and fro across town every morning to take my kids to school, and we're all fed up with it. The idea of living just across the park from the secondary school is very appealing.
PS Thanks
Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.0 -
vivatifosi wrote: »What about if they fall by a negligible amount that is more than offset by the cost of renting?
Nail, hit, on head!
Although I'm bearish on property prices* this is a very good point. They're a lot of useless !!!!!! on HPC moaning about why the 'crash' hasn't occurred. Some of these have been waiting for nearly 10 years :rotfl:Whilst some have been able to wait on the sidelines, many are seeing their savings (rent) drop to a point their losing money hand over foot!
* Prices only go up in Aberdeen.0 -
vivatifosi wrote: »What about if they fall by a negligible amount that is more than offset by the cost of renting?Aberdeenangarse wrote: »Nail, hit, on head!
It depends where people are in the deposit / equity stakes, but for the FTB, financially, in many places, prices could rise negligibily and they would still be better off renting.
It comes back to the simple question of what is greater and by how much, the rent you would have to pay or the interest element of the mortgage you could get.
Apologies if I have misunderstood your comments, but at first read they appear to be falling in to the rather incorrect notion that renting is dead money.0 -
Procrastinator333 wrote: »Apologies if I have misunderstood your comments, but at first read they appear to be falling in to the rather incorrect notion that renting is dead money.
Mine was purely to say that renting can be dead money in some circumstances, given the blanket and definitive
'It can never be right for you to buy if prices will fall in the following years.'Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
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I wouldn't look too closely at capital losses TBH unless you think there's a chance you'll move soon. Any realistic loss measured over decades of home ownership will be negligible.
Think thats basically right, largest costs are interest on a mortgage and in comparison, cost of rental rather then buying
If buying is the same as renting costs for 15 or 20 years or anything close to that, its a bargain.
You cant know what rental will cost in 15 years but you do know today at least, same with interest and rates can be fixed for 10 years
http://blogs.thisismoney.co.uk/2010/01/house-prices-vs-rents.html
This is pretty much the answer to all the 'should I buy threads?' If a house is valued in the cost of something real to you (not pound notes, they have no fixed value) then you cant really be far wrong.
If the house price drops for the next ten years but not buying and renting would have cost you more, you are still made the right choice.
The boom was result of opposite thinking to that0 -
Procrastinator333 wrote: »My current search area is only a 5 mile diameter. There are 400+ houses that meet our basic criteria.
This is actually an interesting discussion, and probably highlights some of the differences in perspective between many of the bulls and bears.
I just did a search for a typical family home in my area.
Semi detached or terraced 3 bedroom house, garden and garage, and within a 40 mile by 30 mile area in the southern commuter belt for Aberdeen, including the southern Aberdeen suburbs.
There were just 28 results. Within a 700 square mile area.
If you narrow that down further to a specific town or village, or even a 5 mile diameter, then there may be just one or two houses for sale that fit any particular set of "basic criteria".My guess is when we come to buy, we will find 50+ properties that tick the basic requirements. After that it is just a question of getting the one that offers the best value.
I thought the same thing when I bought in Aberdeen in 2007.
The reality was that in a city of 200,000 people, that is the employment hub for an area of 500,000 people, we found just three houses for sale at the time we wanted to buy one that ticked all the boxes for layout, area, price, size, style, garden, etc.
And that was in the city itself..... If I want to buy a period property in a particular village, I may have to wait years for even one to become available, and then bid against 30 other people when it does.
If you're looking to buy a Barrett shoebox in a massive housing estate in central England, then I totally agree with your point. There will be loads available at any given time, and most will be the same.
But there are vast areas of the country where it's just not the case.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
vivatifosi wrote: »
Yes please, strong white, no sugar.
A man after my own heart!...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
They check up on these things - visit you at breakfast time on a school morning to see if the child really lives where you say they live.
The absolute last thing I want at breakfast time is some idiot arriving to add to the confusion (-:...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
HAMISH_MCTAVISH wrote: »If you're looking to buy a Barrett shoebox in a massive housing estate in central England, then I totally agree with your point. There will be loads available at any given time, and most will be the same.
Until we start viewings, maybe I am being naive, we will see.
But for example, in a slightly different search area to the one we are actually looking at, the same thing is true:
http://www.rightmove.co.uk/property-for-sale/map.html?locationIdentifier=STATION^8918&insId=1&minPrice=250000&maxPrice=500000&minBedrooms=3&secondaryDisplayPropertyType=detachedshouses&radius=5.0
Not sure if link will give criteria - Sutton station (surrey) within 5 miles, 3 bed detached, £250k-£500k. 368 houses.
Sure there will be plenty of duds, but I just can't believe that out of that kind of starting position there will only be 2 or 3 that work for us.0
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