Property is now in a bear market

AG47

Property in the uk is now in a bear market, but why buy now when you prices will be lower if you wait even longer.

All those poor sellers trying to undercut each other.

AG47

chucknorris wrote: »

How has your property investment expertise worked out so far for you?

Very good becauseim not in property until it's much much lower

chucknorris

AG47 wrote: »

Property in the uk is now in a bear market, but why buy now when you prices will be lower if you wait even longer.

All those poor sellers trying to undercut each other.

That is more or less what my (chartered surveyor) colleagues said to me in 1991, when I bought 3 properties for £113k, £70.5k and £58k. I sold the £113k property for £375k in 2003 (and reinvested elsewhere) and I still own the other two properties and they are currently worth approx £600k and £500k. But that isn't the full story, the rents that I receive on those two properties provide yields (based on the purchase prices) of 35.7% and 39.3%. I did buy more in the 90's, those are just the first purchases.

chucknorris

AG47 wrote: »

Very good becauseim not in property until it's much much lower

You had better read my post above then.

System

Where do they sell bears though?...

AG47

This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

Greenspan: "This is the Worst Period I Recall"
http://www.zerohedge.com/news/2016-06-24/greenspan-worst-period-i-recall-theres-nothing-it

System

Maybe interesting rates will go up to bolster the £?...

chucknorris

AG47 wrote: »

This is the worst period, I recall since I've been in public service. There's nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I'd love to find something positive to say."

Greenspan: "This is the Worst Period I Recall"
http://www.zerohedge.com/news/2016-06-24/greenspan-worst-period-i-recall-theres-nothing-it

I can think of something very positive to say, I hadn't even bought my first property back then, I was still a student, but now we have 9 properties, yet you are still waiting:

AG47 wrote: »

Very good because im not in property until it's much much lower

Thrugelmir

AG47 wrote: »

All those poor sellers trying to undercut each other.

Human nature is to hang until the market recovers. Crystallising a loss is something investors find it very difficult to do.

cells

property moves too slowly to be able to call it on one thing a day after that thing. Wait 6 months before its clear and then you will be scratching your head if it was the EU vote or the recent additional property taxes.

PasturesNew

In 2 years mine's "gone up" by 25%, not just on paper, but because my neighbour bought the same day I did and it resold last week.

So, even if it goes down 20% it's still only the same price it was 2 years ago... and if it goes down by 50% then hurrah as I can afford to buy a bigger place!