So who's planning to buy a place in 2011?

stringsmk2

I am keen too, but my money is tied up in the Uk at the moment and the Forex rate is crap. We are having a baby soon so will be down to one income and I dont feel like spending half of my net income on a mortgage. So for now we'll see what happens with the market locally and stick to renting.

I could of course, buy some where cheaper in a different area, but I like the area we are living in and want to buy there.

AndyGuil

2012 at the earliest for me. This year doesn't look like it will recover. I'm not sure all the FTBs have suddenly found a 10%+ deposit in a couple of years. Until then the house prices are not going to show any real, long term increases.

chucky

Graham_Devon wrote: »

Would you though?

Would you really pile in to buying an asset which is basically falling in price JUST because it's hit a magical 40 50 or 60% mark?

On that theory, you'd be rushing in to buy HMV shares today. Forget what's made them fall (same with housing), just pile in and buy them. Or rushing in to buy BP shares when the well was still spewing oil out and the share price was still falling off a cliff.

I just don't think people would be rushing in to buy.....they'd be far to wary after such falls.

yes, because houses are needed HMV shares are not a necessity.

there are resistance levels where property will get to where it will bounce back up automatically as people come back into the market.

Jan 2009 being the perfect example.

Graham_Devon

chucky wrote: »

yes, because houses are needed HMV shares are not a necessity.

there are resistance levels where property will get to where it will bounce back up automatically as people come back into the market.

Jan 2009 being the perfect example.

Yet no one was out there snapping up investment properties when they were down nearly 30%?

Strange that.

Down 50% and falling and it would suddenly be a major free for all? I think not.

mcc100

Blacklight wrote: »

Seems like last chance saloon for those who had been misled into thinking there would be big falls after an initial 'dead cat bounce' and don't want to miss the boat like Feb 2009.

So you're not misleading people into thinking that they are in the last chance saloon and that they must buy now or they'll miss the boat ????

chucky

Graham_Devon wrote: »

Yet no one was out there snapping up investment properties when they were down nearly 30%?

Strange that.

Down 50% and falling and it would suddenly be a major free for all? I think not.

very strange that because they never dropped 30% you fantasist.

but anyway, at least you're not consistent... you don't understand what resistance levels are. well played!!

N1AK

Graham_Devon wrote: »

So your idea of "significant" starts at 70% falls?

Personally I wouldn't even look up at the telly until they are reporting 120%+ falls.



I am actually in the market at the moment (off viewing at the weekend). We're looking at reasonably low value properties, and if we do make any offers they'll account for the instability in the market.

I think the chance of us buying if probably about 50/50. Purely because we'll need to find a place we want where the seller isn't holding out for a peak price sale.

Pete111

Graham_Devon wrote: »

Would you though?

Would you really pile in to buying an asset which is basically falling in price JUST because it's hit a magical 40 50 or 60% mark?

On that theory, you'd be rushing in to buy HMV shares today. Forget what's made them fall (same with housing), just pile in and buy them. Or rushing in to buy BP shares when the well was still spewing oil out and the share price was still falling off a cliff.

I just don't think people would be rushing in to buy.....they'd be far to wary after such falls.

Fair point, but I genuinely think I would. Personally, and maybe it's because I'm a farmers son (!) I have a far greater attachment for land/property than shares.

If I could pick up a decent 2 bed flat in a respectable area of London for approx 150k cash I would be looking at at least a 6% rental return after tax. Not bad in todays climate.

In addition I would also bet that the asset value would rise steadily over the medium term.

However, 50% off in London is not going to happen IMHO.

N1AK

Pete111 wrote: »

If I could pick up a decent 2 bed flat in a respectable area of London for approx 150k cash I would be looking at at least a 6% rental return after tax. Not bad in todays climate.

With property you also need to consider stamp duty, and CGT if you want to sell the asset. It is reasonably easy to keep below the CGT limit on shares by managing when you cash in on your investment. Property makes this much harder to avoid.

Additionally you are assuming that if house prices dropped by 50% in central London you would still receive the current rental income. Obviously you're right that big drops are unlikely, though if they happened property wouldn't automatically become the easy bet investment.

chucky

N1AK wrote: »

Additionally you are assuming that if house prices dropped by 50% in central London you would still receive the current rental income. Obviously you're right that big drops are unlikely, though if they happened property wouldn't automatically become the easy bet investment.

there is a direct correlation between house prices and rents - there is a resistant level where house prices become too cheap that it makes sense to buy rather than rent. inversely there is a point where house prices are too high and it's cheaper short term renting.