The ludicrous situation of stitching up FTB's

fimonkey

3 times I have made an offer on property as a FTB. Each time the vendor has chosen a MUCH lower offer from a cash buyer who is an investor (as in 5K lower than my offer on properties at the 140K mark)

The investors are going for these properties because the yield is better than the stupidly low interest rates. The vendors are choosing cash buyers because the mortgage market is so unreliable depsite having a decision in principle - that guarantees nada apparently.

Oh but I could buy an overpriced tiny newbuild with a stupid new scheme intended only to help the developers - what on earth am I moaning about?

Thanks a HEAP coalition Government - no one voted you in and you are not wanted (and that's my opinion of their mess up with the housing situation - don't even get me started on the Health and Social Care Act!!)

neas

Shouldnt this be in the Debate forum?

Buying a house cause Interest rates are low isn't a decision most savers would take.. as it involves extra work (management). We bought our home as FTBers easily no risk of Investors 'stealing' it.

CLAPTON

fimonkey wrote: »

3 times I have made an offer on property as a FTB. Each time the vendor has chosen a MUCH lower offer from a cash buyer who is an investor (as in 5K lower than my offer on properties at the 140K mark)

The investors are going for these properties because the yield is better than the stupidly low interest rates. The vendors are choosing cash buyers because the mortgage market is so unreliable depsite having a decision in principle - that guarantees nada apparently.

Oh but I could buy an overpriced tiny newbuild with a stupid new scheme intended only to help the developers - what on earth am I moaning about?

Thanks a HEAP coalition Government - no one voted you in and you are not wanted (and that's my opinion of their mess up with the housing situation - don't even get me started on the Health and Social Care Act!!)

how is 3.57% 'much lower'?

BitterAndTwisted

I understood your post I think but I don't get where the "ludicrous" or the "stitching up" parts come in. Vendors have a choice about who they sell to and they're not choosing you. Perhaps that's got more to do with the way you're presenting yourself as a buyer rather that the other potential buyers you're competing against?

Mortgage offer in principal? Proceedable? Getting the survey arranged soon enough? Coming across as a numpty who doesn't know what they're doing?

If I was a vendor with no time-constraints I'd be going for whoever offered me the most money, no question.

Jennifer_Jane

1) I would always go for a cash buyer who probably isn't very fussy about the survey and such, over a first-time buyer who may or may not understand that houses are not perfect things, and who may or may not get the money to pay for the house. So I would certainly reduce my price for a cash buyer.

I would also choose a FTB over someone in a long chain. So you do automatically have some advantages over other buyers.

2) Re the Coalition, if there had been an opportunity to vote for a Coalition of Tory/LibDem, I probably would have voted for it as a 'Tory lite' option, and I like some of the things LibDems have contributed to the Tories (increased personal allowance, for instance).

I do not believe that Government should interfere much in housing and I cannot understand your bitterness. I was a 'first-time buyer' 10 years ago, and had no problems. We are a mixed capitalist/socialist society and that is reflected in housing. Doesn't suit you? Well, life isn't designed just for you.

fimonkey

BitterAndTwisted wrote: »

If I was a vendor with no time-constraints I'd be going for whoever offered me the most money, no question.

You would think so wouldn't you? But I have a DIP, my sols ready to go, no contract on where I currently rent so ready to move ASAP and get on with surveys etc, and certainly no numpty FTB as I've spent a good few years reading these and other boards.

3.75% is quite a difference given that the properties in my area which I am interested in pretty much sell for asking price if there is no cash buyer involved.

I would do the same if I had the cash - no point in the bank with low interest rates, stock market still wobbly - property is a tangible and solid investment especially as the number of renters increases - cos even if they can get a mortgage vendors choose cash buyers.

And yes as a vendor I would choose cash over mortgage - but 3 times to accept lower offers? - That's why I feel stictched up - by the Government not any individual.

fimonkey

neas wrote: »

Shouldnt this be in the Debate forum?

Buying a house cause Interest rates are low isn't a decision most savers would take.. as it involves extra work (management). ' it.

But even given management costs it is better than the rates attracted from savings - and the stock market is no better at the moment with the wobbles still being felt. - Or perhaps savers in my area are kicking the trend you suggest cos the properties which are good rental properties are being snatched up.

fimonkey

Jennifer_Jane wrote: »

1)
I do not believe that Government should interfere much in housing and I cannot understand your bitterness. I was a 'first-time buyer' 10 years ago, and had no problems. We are a mixed capitalist/socialist society and that is reflected in housing. Doesn't suit you? Well, life isn't designed just for you.

And yeah life isn;t designed for me - does that mean I have to sit back accept it and not have a moan on this forum cos for the 3rd time I have missed out? Should I be applauding all those who bought easily so long ago and who would now sell to a cash buyer for a lower price? Great for you Ms J_Jane - have a cup of tea to celebrate - but don't berate me for using a forum to have a moan on when I am pretty peeved its happened for the 3rd time. Life in other ways is great for me (my job is ultra secure and pays well for instance) - but I still show empathy for those who are not as fortunate and even understand their bitterness - even though the mixed society obviously isn't for them ;-)

BitterAndTwisted

The government is not stitching you up or anyone else for that matter. What on earth are you proposing that they should be doing for you? I suspect the problems are a great deal closer to home than you acknowledge. Get down to the estate-agents in your area and impress on them that you are fully committed to buying and buying as soon as possible.

fimonkey

Bitter - they know I am committed, so no problem there. It is all about the fact that so many ppl with DIPs do not get the mortgage and then have to try again (EA's words not mine).

And yeah its not the 'Government' per se - but their hairbrained scheme for FTB's and new builds helps developers more than FTB's, the BoE which sets interest rates is 'influenced' by Gov policy and so interest rates not going anywhere soon - which leads to the situation I described.

How that is close to home I do not know. Nothing to sell, no contract to end with renting, good deposit, friends with local EA's, solicitors ready and a DIP. - GO cash buyers! I would do the same - especially if you have a public service pension

betmunch

Are you prepared to use the Estate Agents in house adviser?

If so you will be the prefered buyer for any Connells/Countrywide agent, and few of the smaller chains that follow the "all under one roof" blag.

Not saying its right, I'm just saying it happens and is a means to an end.