Cash buyer near completion... brexit housing crash fears..?

MaxiRobriguez

As a cash buyer you won't have an issue with negative equity, so if house prices tank after Brexit you could always potentially trade up.

Also, if house prices go down it's because demand has gone from the market. As the population is relatively stable if that happens it's likely that rent demands will go up, in which case you might get a few more pennies from your partners place to offset any paper declines on yours.

Go for it. You can live mortgage free. Enjoy.

Crashy_Time

LydiaJ wrote: »

If you plan to live in it for at least 5 years, and you're buying it as a home, go ahead and don't worry. Owning your home outright is a reassuring element of stability in uncertain economic conditions, so go ahead, buy your home, and enjoy it. Enjoy the freedom from worrying about interest rates going up, whether or not to fix your mortgage, and all that stuff.

If you expected to move after a year or three, or were buying primarily as an investment, then maybe now would not be the best time. But it doesn't sound as though that's the case.

170k in the bank is also a reassuring element of stability, especially if you are growing it with wise investment decisions. Once you plop it into property it becomes much harder to access and use, and there is a risk that you will lose some or a lot of it. If the OP must buy just get a mortgage and fix as low a rate as you can IMO, don`t throw your nest-egg into a property bubble that will burst completely with a couple of rate hikes.

Crashy_Time

MaxiRobriguez wrote: »

As a cash buyer you won't have an issue with negative equity, so if house prices tank after Brexit you could always potentially trade up.

Also, if house prices go down it's because demand has gone from the market. As the population is relatively stable if that happens it's likely that rent demands will go up, in which case you might get a few more pennies from your partners place to offset any paper declines on yours.

Go for it. You can live mortgage free. Enjoy.

In that case why are property transactions AND rents now falling? And this is before we have even had Brexit :rotfl:

PokerPlayer111

Crashy_Time wrote: »

? Start building a diversified and liquid portfolio of stocks, bonds and cash/other investments, or keep it as a cash cushion in case of emergencies, instead of dropping it into a very illiquid, over-priced asset at one of the most unstable economic points in most of our lifetimes?

So i do not do much traditional investments up to now, only high risk stuff. So lets say they follow this strategy and safely invest 170k. What will their 170k turn into after year 1,2,3 etc approx?

Herzlos

Crashy_Time wrote: »

170k in the bank is also a reassuring element of stability, especially if you are growing it with wise investment decisions.

It depends on how you view stable - that property isn't going to go anywhere, and the price won't move that much. So you could have £170k in the bank but still be paying £1000/month out in rent/mortgage, which means you'd need to be making 7% from the investments just to compensate for the rent payment alone. Then you've got all of the other costs and lack of stability from not owning the house.


Sure it might take a bit longer to liquidate than investment funds but it should save a fortune and provide a lot more intangible benefits.



OP - It's worth injecting a bit of perspective here. CrashyTime sold up his house what, 20 years ago and has been renting since on the basis that the property market has been about to collapse imminently and he'd be able to buy back in and save a fortune. However if he'd just stuck with his mortgage he'd have cleared it off by now. He's so entrenched that there's literally no point at which he'll recommend buying the house, because it goes against his entire ethos now.

Thrugelmir

diggeroony wrote: »

I'm currently living with my partner who has a mortgage, who plans to rent his house when I purchase our future, hopefully forever family home

Then any downturn is going to result in a double whammy. With a portfolio reliant totally on the housing market.

andrewf75

Agree with most others, you only need to fear a crash if you are pushing your finances to the limit and you're viewing the house as a short term investment. If you actually plan to live there at least 5 years and you can comfortably afford it (which as a cash buyer certainly applies to you!) then there really isn't anything to fear.

lisyloo

Crashy_Time wrote: »

In that case why are property transactions AND rents now falling? And this is before we have even had Brexit :rotfl:

Post your evidence please

Rents are a mixed picture and transactions are flat according to my (quick) research

https://www.!!!!!!!!!!!!!!!!!!!!/magazines/are-rents-falling/


property hawk .co.uk


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/749419/UK_Tables_Oct_2018__cir_.pdf

lisyloo

PokerPlayer111 wrote: »

So i do not do much traditional investments up to now, only high risk stuff. So lets say they follow this strategy and safely invest 170k. What will their 170k turn into after year 1,2,3 etc approx?

If it's a home you need to take ac!!!! of the rent required to live somewhere if you invest the money elsewhere.


Not sure why this site isn't letting me say property hawk and account.

PokerPlayer111

lisyloo wrote: »

If it's a home you need to take ac!!!! of the rent required to live somewhere if you invest the money elsewhere.

Oh yeah for sure, as Herloz said you might need to make greater than around 7% to break even - if that is correct.