Unrealistic vendors?

breadlinebetty

bitsandpieces wrote: »

I'm not sure where the idea that people who are holding off on buying houses are depriving themselves of a dream home comes from - you can rent nice homes, too. The insecurity is sometimes annoying, but you avoid lots of the hassles that come with home ownership (e.g. if structural problems come up someone else gets to fix them, or if you get nightmare neighbours you can move within months). I couldn't afford to buy (or rent) anything like what my ideal is, anyway - I have unrealistic demands! - so any option is a compromise.

As for rent being 'dead money', my rent at the moment is a smaller percentage of my property value than I can earn in a savings account - let alone the percentage I'd pay on a mortgage - and I don't pay for maintenance etc. The main reason to buy would be if I were confident property values were going to rise - I'm not sure either way.

If people are 100% confident that house prices will rise or fall, I'm never sure why they have to mess around with investing in the property market directly anyway - you could easily make a fortune spread betting on things like the average house price. Of course, if you're wrong you could easily bankrupt yourself, too - not something I'd touch with a bargepole.

Rents are CONSTANTLY rising with inflation - mortgages don't - they go DOWN over time...........

At the moment many mortgages are cheaper than rents, and as the interest rate is so incredibly low, even if they were to rise a percent or few, the repayments would still be cheaper than many rents are.:)

As for maintenance on a property - are you talking decorating? That's rather fun! General maintenance of a property you do in stages, and unless you need something like a new roof (once every 50-100 years?) there's not usually much maintenance that needs doing, except for general upkeep. Okay, you'll need a new boiler every 10 years or so, but you keep a little savings account for things like that, plus insurances of course!:money:

bitsandpieces

breadlinebetty wrote: »

Rents are CONSTANTLY rising with inflation - mortgages don't - they go DOWN over time...........

At the moment many mortgages are cheaper than rents, and as the interest rate is so incredibly low, even if they were to rise a percent or few, the repayments would still be cheaper than many rents are.:)

As for maintenance on a property - are you talking decorating? That's rather fun! General maintenance of a property you do in stages, and unless you need something like a new roof (once every 50-100 years?) there's not usually much maintenance that needs doing, except for general upkeep. Okay, you'll need a new boiler every 10 years or so, but you keep a little savings account for things like that, plus insurances of course!:money:

Rents tend to rise with inflation (though sometimes faster/slower, and sometimes fall if there's a glut of places on the market). Mortgages get smaller if you have a repayment mortgage, but that's effectively an enforced form of saving - all well and good, but you can also save money while you rent.

Maintenance on a property will be more or less depending on the property (I've been unlucky with roofs, I think :eek:) but even minor things can add up. This isn't a reason not to buy a play, just something to bear in mind when comparing the cost with renting. Of course, if people enjoy decorating (or more significant DIY) and are good at it, this may make it a better option for them to buy; I've done DIY when I've previously owned a place, but would much rather have someone else paid to do the work :rotfl:

Buying may be the best option for many people - and where rents are high compared to property prices this will be something they should consider. But I'm not particularly missing home ownership at the moment, and renting does bring plenty of advantages.

Davesnave

breadlinebetty wrote: »

You previously said you 'sold cheaply'. That doesn't sound like courage to me - that sounds like neediness........

And let's be honest, you're not a charity doing good deeds for strangers -so why sell cheaply and do yourself out of money???;)

Most 'determined' people get the best price they can;)

Determined people often :wall:too, but I shan't make that mistake here.

You didn't read my post properly. I don't rent. Renting was only a means to an end. I own outright.

My point was that sellers (and buyers) who just wait around hoping for things to improve are passive, non risk-takers. They deserve what the passive & cautious generally get.

breadlinebetty

bitsandpieces wrote: »

Rents tend to rise with inflation (though sometimes faster/slower, and sometimes fall if there's a glut of places on the market). Mortgages get smaller if you have a repayment mortgage, but that's effectively an enforced form of saving - all well and good, but you can also save money while you rent.

Maintenance on a property will be more or less depending on the property (I've been unlucky with roofs, I think :eek:) but even minor things can add up. This isn't a reason not to buy a play, just something to bear in mind when comparing the cost with renting. Of course, if people enjoy decorating (or more significant DIY) and are good at it, this may make it a better option for them to buy; I've done DIY when I've previously owned a place, but would much rather have someone else paid to do the work :rotfl:

Buying may be the best option for many people - and where rents are high compared to property prices this will be something they should consider. But I'm not particularly missing home ownership at the moment, and renting does bring plenty of advantages.

But with rents constantly rising with inflation it can be very difficult to save money too. Whereeas when your mortgage repayments are going DOWN with time and inflation, besides that 'savings plan' as you call it buying you your own property - the money you're also saving from not having to pay expensive rent each month can also go towards a savings plan. So you have TWO saving plans going on!

A win-win situation!!!:j

bitsandpieces

breadlinebetty wrote: »

But with rents constantly rising with inflation it can be very difficult to save money too. Whereeas when your mortgage repayments are going DOWN with time and inflation, besides that 'savings plan' as you call it buying you your own property - the money you're also saving from not having to pay expensive rent each month can also go towards a savings plan. So you have TWO saving plans going on!

A win-win situation!!!:j

The interest due on a mortgage can go up, of course (it's not as if the base rate can fall significantly), unless you have a very long-term fix - people should assume that the only way is down! If the cost of home ownership (not just mortgage payments, but maintenance and the loss of the interest one's deposit could otherwise earn too - and, for those who may need to move occasionally, sale and purchase costs) is less than rent, this is an obvious benefit to buying. In some areas this may be the case, in others it won't.

I've nothing against home ownership - I've owned a place myself in the past, and imagine I will again. It makes sense to calculate the costs and benefits carefully, though.

Thrugelmir

breadlinebetty wrote: »

Rents are CONSTANTLY rising with inflation

Rise with wages.

Rents aren't linked to petrol prices nor gas or electricity either.

If anything consumer inflation will squeeze rents downwards.

breadlinebetty

Thrugelmir wrote: »

Rise with wages.

Rents aren't linked to petrol prices nor gas or electricity either.

If anything consumer inflation will squeeze rents downwards.

Rubbish!

Wages haven't risen for over 2 years - but rents have!!!!!

breadlinebetty

bitsandpieces wrote: »

The interest due on a mortgage can go up, of course (it's not as if the base rate can fall significantly), unless you have a very long-term fix - people should assume that the only way is down! If the cost of home ownership (not just mortgage payments, but maintenance and the loss of the interest one's deposit could otherwise earn too - and, for those who may need to move occasionally, sale and purchase costs) is less than rent, this is an obvious benefit to buying. In some areas this may be the case, in others it won't.

I've nothing against home ownership - I've owned a place myself in the past, and imagine I will again. It makes sense to calculate the costs and benefits carefully, though.

You seem to be fogetting a couple of very important things.............rent is dead money and properties ALWAYS go up in value - albeit eventually. Okay, there's been a worlwide economic depression, but that ain't gonna last forever:)

We've had slumps, crashes and downturns in the past (we usually have one every decade!) but it ALWAYS picks up again - always. And I guarantee not one person on here can find me a property that is LESS than it cost 10 years ago!

Rest my case:money:

Thrugelmir

breadlinebetty wrote: »

Rubbish!

Wages haven't risen for over 2 years - but rents have!!!!!

And the connection to inflation?

Will rents continue to rise in the future. Or was the past 2 years down to a switch away from buying as mortgage lending contracted.

Will rents rise as interest rates do.

HAMISH_MCTAVISH

sw_jay wrote: »

I have made what I believe to be reasonable offers and these are just being immediately turned down. In one case I was told that my offer was insulting

Then they're not reasonable offers.

The value of a home is the price that can be agreed between both a willing and able buyer and a willing and able vendor.

People seem to think that buyers hold all the cards, but this is obviously not true. If enough vendors are not willing or able to sell for a lower price, then prices will rise as the market is forced up to meet them.