Another anxious post-Brexit first time buyer

TrickyTree83

spunko2010 wrote: »

Buy buy buy!

Don't come on here whining when you're in negative equity though, please. That's my only ask.

Wow.

Sod it, pull out of all deals NOW.

Change your offers to £1 in £10 and lets have a race to see who can get the cheapest deal!

Then those people who are in negative equity can languish in their misery.

(except that'll be everyone who buys at the moment and may need to move in future but can't because they themselves already f**ked the market for a couple of grand :T )

NewHomeOwner_2

9ja4life wrote: »

Our buyer asked for 10% off yesterday when we were supposed to exchange on Friday and she pushed it to yesterday. We've very politely told her to bog off.
We will be renting the house out for the next forseeable future. We currently live in rented so it's no skin off our nose. We've had to pull out of our own purchase but hey ho, cest la vie! It hasn't even been put on Rightmove for rent yet and we have 2 tenants wanting to take it already as it is near a very good secondary school.
It's your call and a gamble only can decide if it's worth it.

The thing is, we're on day 5 of Brexit. NOTHING is happening yet with the housing market other than people are worrying about what is going to happen with the housing market.

There is no current evidence that property prices are going to go down, and if they do how much they're going to go down by.

No seller is going to agree to a reduction of 5, 10 or 20% right now without seeing some evidence.

Say they agree to a 10% reduction and they actually only go down by 5%? Or they agree 20% and they 'only' go down 18%?

That's not to say if prices do go down in the next year then sellers won't have to reduce their prices. Because they will.

But right now why would you accept a 20% reduction by your buyer without waiting to see what happens?

Surely right now you continue with your purchase/sale or you enter a stalemate situation where we all wait and see...

cashbackproblems

NewHomeOwner wrote: »

The thing is, we're on day 5 of Brexit. NOTHING is happening yet with the housing market other than people are worrying about what is going to happen with the housing market.

There is no current evidence that property prices are going to go down, and if they do how much they're going to go down by.

No seller is going to agree to a reduction of 5, 10 or 20% right now without seeing some evidence.

Say they agree to a 10% reduction and they actually only go down by 5%? Or they agree 20% and they 'only' go down 18%?

That's not to say if prices do go down in the next year then sellers won't have to reduce their prices. Because they will.

But right now why would you accept a 20% reduction by your buyer without waiting to see what happens?

Surely right now you continue with your purchase/sale or you enter a stalemate situation where we all wait and see...

Have you not seen how the markets have moved thus impacting peoples wealth, future job prospects and many companies already planning to cut/freeze hiring, your right its only 5 days so this hasn't YET happened, but people are planning for it. You cant offer pre-March prices with such an outlook

People are pulling out of deals as we speak and reductions are being made, we are not talking pre-brexit, the result is now certain and the fact that there will be volatility thus impacting house prices negatively is certain!!

cashbackproblems

TrickyTree83 wrote: »

You cannot equate the global financial crisis to the UK leaving the EU. Liquidity is still there, credit is still available.

By advising to lower offers you're advocating a self-fulfilling prophecy because the only reason to lower the offer is to "get a bargain". These people may not realise that once they've purchased their "bargain", that the next house that sells in the same area as them has the same buyer taking the same approach chancing the price and the price for the whole area lowers even further. So if the original buyers wanted to sell their new acquisition they've lost out already because it won't go for what they bought it for.

It's in the interest of the buyers to maintain a stable if not increasing price. It may not look that way - but it is.

Your logic is so flawed its laughable. If the whole area/city went down, when you then go to buy your next place wont that be lower, so how is it in your interests to keep prices high?

Liquidity is available only due to QE which is going to just depressing the currency further and risks inflation thus higher rates (this cycle takes years to feed through)

There's no issue of "getting a bargain", its about paying the market price, you forget a house is a financial asset like any other and price is derived by more than demand and supply

NewHomeOwner_2

cashbackproblems wrote: »

Have you not seen how the markets have moved thus impacting peoples wealth, future job prospects and many companies already planning to cut/freeze hiring, your right its only 5 days so this hasn't YET happened, but people are planning for it. You cant offer pre-March prices with such an outlook

People are pulling out of deals as we speak and reductions are being made, we are not talking pre-brexit, the result is now certain and the fact that there will be volatility thus impacting house prices negatively is certain!!

I'm still waiting for you to tell us what area you're in so we can all track these reductions of 100k and 15% you mentioned in another thread on rightmove ourselves as there's very little to see in my area at present.

TrickyTree83

cashbackproblems wrote: »

Your logic is so flawed its laughable. If the whole area/city went down, when you then go to buy your next place wont that be lower, so how is it in your interests to keep prices high?

Because mortgages don't work like that do they!? Jeez..

If you need me to spell it out just ask.

cashbackproblems wrote: »

Liquidity is available only due to QE which is going to just depressing the currency further and risks inflation thus higher rates (this cycle takes years to feed through)

Even if there are inflationary pressures, there will be equal opposite pressures to maintain growth in the economy. A recession would be worse than inflation, the two combined would be very bad. That is why the BoE will be fighting to keep the economy growing, the use of interest rates is their best tool to do that (as evident from the current historically low rate alongside QE post-2008). In terms of forecasting their approach no one really knows, I would bet that rates would stay the same or fall before putting even more pressure on consumers and as a consequence of that, the economy.

cashbackproblems wrote: »

There's no issue of "getting a bargain", its about paying the market price, you forget a house is a financial asset like any other and price is derived by more than demand and supply

Yep, demand which is still there, it's not disappeared in a puff of smoke. So right now, right at this moment in time any games in the market with reduced offers are exactly about getting a bargain. If the predictions of a 20% fall in prices are correct I would expect to see people asking for a 20% reduction if they follow your thinking, they're not, because nothing would sell.

I put it to you that your position is the one that is laughable, and also extremely irresponsible on a board where people come for advice on how to go about making such large purchases.

cashbackproblems

NewHomeOwner wrote: »

I'm still waiting for you to tell us what area you're in so we can all track these reductions of 100k and 15% you mentioned in another thread on rightmove ourselves as there's very little to see in my area at present.

Beckenham a prime London commuter zone and I am even happy to send you the link to the flat from Rightmove. But that is just one example

Read the sellers thread, plenty of sellers just on there complaining of not getting viewings and properties coming back on the market. You are deluded if you think even in this economy (and still very early days) prices wont fall buy large amounts.

NewHomeOwner_2

cashbackproblems wrote: »

Have you not seen how the markets have moved thus impacting peoples wealth, future job prospects and many companies already planning to cut/freeze hiring, your right its only 5 days so this hasn't YET happened, but people are planning for it. You cant offer pre-March prices with such an outlook

People are pulling out of deals as we speak and reductions are being made, we are not talking pre-brexit, the result is now certain and the fact that there will be volatility thus impacting house prices negatively is certain!!

Also on the 10th May you said:
'Either way I don't see the economy crashing we will simply adapt our trading and legal obligations and think most things will stay the same. I feel the vote will be to remain, but will be voting to leave'

Just goes to show things change and none of us can predict the future

TrickyTree83

cashbackproblems wrote: »

Beckenham a prime London commuter zone and I am even happy to send you the link to the flat from Rightmove. But that is just one example

Read the sellers thread, plenty of sellers just on there complaining of not getting viewings and properties coming back on the market. You are deluded if you think even in this economy (and still very early days) prices wont fall buy large amounts.

That is just down to concern and jitters, it's been less than 5 days since the result was known.

Something people saying the same thing as you are propagating which means it will come to pass the more you say it!!

NewHomeOwner_2

cashbackproblems wrote: »

Beckenham a prime London commuter zone and I am even happy to send you the link to the flat from Rightmove. But that is just one example

Read the sellers thread, plenty of sellers just on there complaining of not getting viewings and properties coming back on the market. You are deluded if you think even in this economy (and still very early days) prices wont fall buy large amounts.

I shall keen an eye on Beckenham with interest.

I'm not deluded and I didnt say prices wouldn't go down. I just said right now I don't know what's going to happen and neither do you. Just like on the 10th May you didn't know what was going to happen when you said 'either way I don't see the economy crashing'.:rotfl: