Is it a bad time to buy a house as an investment? If so why?

smamst

Yes bad time to invest because house prices are at least 50 percent overpriced.

Average house price should be 90k, not the ridiculous £165k it is now

Loopgames

It is ALWAYS a good time to invest....at the RIGHT price. Focus on PRICE of your investment.

If you are a savvy investor then you will find that although the outlook seems sobering right now and for a few years to come - it IS a buyers market..and that is perfect time if you find the right investment (matched to your personal circumstances making it viable ie large enough deposit).

So it's about pricing pricing pricing...have a strategy (e.g BMV at 30% below asking price - depends on asking price), get to know EAs in the area, and get to know the area...also are you doing up or renting out? All sorts of qns to ask yourself before you start investing...what's your exit strategy - are you short term/medium or long term investor?

But as far as I can see you're not asking the right question which probably means you're not really a serious investor..no offence...just means you don't understand opportunity today and will probably feel more comfortable going with the flow of masses when making a decision rather than based on your own due diligence.

Loopgames

smamst wrote: »

Yes bad time to invest because house prices are at least 50 percent overpriced.

Average house price should be 90k, not the ridiculous £165k it is now

Then offer that! What's stopping you?...Don't wait for the market to change...change it! lol..they can only say no. But if enough people realise this then the market will recover faster...:D

homelessskilledworker

The time too buy property or put it another way, when I see the property market operating as it should be is when the norm is to see average working people buying there first home between 20 to 35.
I remember buying my first victorian terrace on 3 x income at the age of 21.

wotsthat

homelessskilledworker wrote: »

The time too buy property or put it another way, when I see the property market operating as it should be is when the norm is to see average working people buying there first home between 20 to 35.
I remember buying my first victorian terrace on 3 x income at the age of 21.

Foxy, you'll be paying other people's mortgages forever with that logic.

I bet you bought your first house in the '90's. History will likely show that people who bought in the '90's were the jammiest buyers in generations with affordability ratios at very low levels.

21 year olds buying houses on 3 x income has never been the 'norm' and it never will be.

homelessskilledworker

wotsthat wrote: »

Foxy, you'll be paying other people's mortgages forever with that logic.

I bet you bought your first house in the '90's. History will likely show that people who bought in the '90's were the jammiest buyers in generations with affordability ratios at very low levels.

21 year olds buying houses on 3 x income has never been the 'norm' and it never will be.

Troll/Bruno


Nah, cant be bothered........:)

RenovationMan

Graham_Devon wrote: »

Come on now Hamish.

25k for maintenance, voids, insurances, legal fee's etc?

1k a year?

Lift the tint-acles off your nose. You haven't even touched on remortgaging fee's and increased interest rates etc.

It's easy enough to determine this Graham, just look at your own home outgoings over, say, the last 5 years.

How much do you spend on your house each year on maintenance?
How much have your mortgage payments changed?
How much have remortgaging fees cost you?

It'll be interesting to see a 'real-world' example, though I know they are largely discedited on here in favour of wacky theoretical ones that fit a particular VI.

FTBFun

smamst wrote: »

Yes bad time to invest because house prices are at least 50 percent overpriced.

Average house price should be 90k, not the ridiculous £165k it is now

House prices are determined by supply and demand, not arbitarily pulling figures out of thin air.

abaxas

FTBFun wrote: »

House prices are determined by supply and demand, not arbitarily pulling figures out of thin air.

You cannot use the supply/demand argument with a market that is neither open or free.

FTBFun

abaxas wrote: »

You cannot use the supply/demand argument with a market that is neither open or free.

Yes I can. Why can't I, and why is it not "open or free?" There are no restrictions on whom I can sell my property to, just they have to afford it (obviously).