Lessons in House buying from Housepricecrash

Aberdeenangarse

A strange title about buying a House, as the site is usually only discussed on the Debate forum, however I thought it pertinent to make a Post here, as it's about 'timing' the market.

Housepricecrash is a site that was started up 10 years ago next month, for people who thought the Property market was about to go into meltdown, which of course never happened. Prices did go down 20% in 2008, but it wasn't good enough for folk on that site, they wanted prices to drop by over 60% :rotfl:

Yesterday we learn from the ONS that Residential property prices have exceeded there previous peak, and are expected to rise 6% this year.

So what do we learn about those spreading doom and gloom about the Property market? That basically there's never a bad time to buy a home.:money:

cattie

Those of us who have lived through the last 2-3 recessions & the resulting dips in the housing market already were quite aware of that.

The trouble with property prices & home ownership is it's those who want to own & never yet been brave enough to have taken the plunge for one reason or another who really desperately wanted to convince themselves that they would be left laughing at the rest of us who had scrimped & saved for years to get the deposit together to buy.

They had dreams of picking up property for a song & sitting comfortably in their armchairs thinking what mugs the rest of us had been to pay such high prices.

System

While at uni I did an industrial placement in 2003 and my first line manager used to say that he had the funds for a deposit but thought the market would crash in 2005 so was holding onto them.

By the time I rejoined in 2006 he could no longer afford a house as there had been no crash. He now lives in Manchester (he was from London).

It is actually quite sad really but a bit amusing too at the same time.

dtsazza

There's a generally-accepted maxim when it comes to investing in shares - that it's "time in the market" that matters, not "timing the market". The basis being that while there are ups and downs, it's difficult if not impossible to predict exactly when they are going to occur. And so rather than try and wait to get in during a downswing, it's better just to buy now at what is statistically likely to be an average price.

It seems to me that the mechanisms are broadly the same when it comes to house prices (unpredictable short-term ups and downs, but in the long-term broadly flat or slightly rising). And yet people feel, perhaps wrongly, more confident at being able to time their entry in the market.

This isn't a "pile into houses as soon as you can" or a "wait for the crash" approach, simply "buy when you're in a position to own and can afford to".

yorkshire_terrier_owner

dtsazza wrote: »

This isn't a "pile into houses as soon as you can" or a "wait for the crash" approach, simply "buy when you're in a position to own and can afford to".

Couldn't agree more. I lost a considerable amount on the sale of my previous house, but fortunately I wasn't in negative equity and had sufficient in savings to put deposit down on my new house. However, my new house had taken a bigger hit than my old house and that was why I could afford to buy it, although it did mean depleting my savings somewhat....... Swings and roundabouts.

As it is my 'forever home' I really don't care what happens to the value now as I bought it to live in and hopefully see out my days here........ I'm 38 by the way so hoping I've got a long way to go yet!!!!

Aberdeenangarse

Particularly from the resident looney Jonathan Davis. :rotfl:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=194102&st=0

pinkshoes

I lost £10k on my last home, but saved over £10k on rent, and got to live in a lovely home for 5 years.

I will always see a house as a home rather than an investment.

Paully232000

pinkshoes wrote: »

I lost £10k on my last home, but saved over £10k on rent, and got to live in a lovely home for 5 years.

I will always see a house as a home rather than an investment.

Same here, we bought our current house in 2007 and just sold and lost about 12K, but if we had rented the flat we rented prior to 2007 we would have spent over £43K in rent based on the rent we paid in 2007 (so probably more).

Having said that the house we have just bought and hopefully moving into in a week or so was bought by us at about £30K less than similar houses in the area were selling for in 2007.

Not looking for an investment, just a long-term family home. Chance you take I guess.

ging84

Paully232000 wrote: »

Same here, we bought our current house in 2007 and just sold and lost about 12K, but if we had rented the flat we rented prior to 2007 we would have spent over £43K in rent based on the rent we paid in 2007 (so probably more).

Having said that the house we have just bought and hopefully moving into in a week or so was bought by us at about £30K less than similar houses in the area were selling for in 2007.

Not looking for an investment, just a long-term family home. Chance you take I guess.

are you trying to say you were still better of than renting because you didn't spend the £43k? because what about the interest you paid on your mortgage, or the returns you would have got saving or investing your money if you paid cash

Hillbilly2

I usually never comment on housing forums about buying.

Its totally personal and down to your choice and housing stock available.

When OH and I first bought in 2000 in East London it was because it was cheaper to buy than rent. We both bought small 1 bed places so we could move out of shared houses. It felt amazing!

However there were many naysayers - its going to crash/bad area/rates will go up. These same people can't afford to buy what we had to sell!

We landed lucky in the market, but worked hard and saved for it! Now in larger flat in much nicer area. But if the market had changed would have been happy where we were!

Paully232000

ging84 wrote: »

are you trying to say you were still better of than renting because you didn't spend the £43k? because what about the interest you paid on your mortgage, or the returns you would have got saving or investing your money if you paid cash

.......Yes am better off now