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

Jack_Johnson_the_acorn

PokerPlayer111 wrote: »

Eating healthy is optimum and should translate into the best ROI in the end. If you can do that for cheap great! We often dont eat out because we can make much healthier and better food at home.

Is eating tins of beans and soup healthy? What a life Crashy leads... Can't believe this man is still single.:o

Out,_Vile_Jelly

If the OP was asking for advice about how to start a BTL portfolio with their inheritance, then the responses would be different.

Buying a home outright in an area you like (especially if it holds memories relating to the deceased) and plan to stay in for some time, to focus on career and/or family, is a totally different prospect.

PokerPlayer111

Jack_Johnson_the_acorn wrote: »

Is eating tins of beans and soup healthy?

Depends what crap they chuck in with it i guess.

Crashy_Time

lisyloo wrote: »

Most people with families don’t want to live like that.
If you’re a single bloke who isn’t bothered about attracting a mate then the discount aisle might be fine for you, but you cannot do that year after year. Once you’ve got to bins in year 2 and roadkill in year 3 then you have nowhere to go with your strategy.

Vegan suitable soup isn`t discount aisle, it is priced at that level all the time, stuff just sits there now if it isn`t priced to sell (a bit like property actually :rotfl:) Many people with or without families are going to be using the "Discount aisle" a lot more after Brexit and a couple of rate rises IMO, God knows how many are already down the food bank every other day as it is (Is that "Discount aisle" in your thinking?) You obviously bought some time ago if you are mortgage free, and quite frankly a lot of your advice is a bit pointless for people trying to buy now IMO. To say that you can`t have a strategy of living within your means and always finding value as a lifelong strategy just further undermines any credibility your advice might have. Read a bio on Buffet for example to see examples of really squeezing value (from cars, houses, and even tax returns) I think you just hoped your house would yield a lot of equity return in the future, see that maybe not being the case any more, and just sling insults at "Crashists" to compensate :rotfl:


https://www.theguardian.com/business/2018/oct/31/brutalist-market-flats-at-londons-centre-point-taken-off-market

ukcarper

Crashy_Time wrote: »

Vegan suitable soup isn`t discount aisle, it is priced at that level all the time, stuff just sits there now if it isn`t priced to sell (a bit like property actually :rotfl:) Many people with or without families are going to be using the "Discount aisle" a lot more after Brexit and a couple of rate rises IMO, God knows how many are already down the food bank every other day as it is (Is that "Discount aisle" in your thinking?) You obviously bought some time ago if you are mortgage free, and quite frankly a lot of your advice is a bit pointless for people trying to buy now IMO. To say that you can`t have a strategy of living within your means and always finding value as a lifelong strategy just further undermines any credibility your advice might have. Read a bio on Buffet for example to see examples of really squeezing value (from cars, houses, and even tax returns) I think you just hoped your house would yield a lot of equity return in the future, see that maybe not being the case any more, and just sling insults at "Crashists" to compensate :rotfl:


https://www.theguardian.com/business/2018/oct/31/brutalist-market-flats-at-londons-centre-point-taken-off-market

You still don't understand for the majority of home owners the equity in thier property is not that relevant. I doubt I will ever benefit from equity in my home as I will probably stay here until I die, but I have somewhere to live that Costs me hardly anything. if I didn't live where I do the cheapest property that would be suitable would cost me £800 to £900 a month and that would be nowhere as nice as where I am.

lisyloo

To say that you can`t have a strategy of living within your means and always finding value as a lifelong strategy

I certainly haven't said that and I'm in the position I'm in mainly because we've lived within our means not because I'm lucky when I was born.
For example my car is over 20 years old. That's nothing to do with when I was born, but my lifestyle choices.

I just don't think you can live off baked beans and soup if you want to keep your family healthy and I believe that's medical fact not jut my opinion.

I think you just hoped your house would yield a lot of equity return in the future

If you've paid for it and you have a fmaily (like most people) then it's virtually guaranteed it could yield equity later on in life when you aren't supporting a family.
As well as not needing the same amount if space you can also move to a cheaper area when you retire if you don't need to be near jobs.
Downsizing will be forced upon some as they lose their mobility in later life.


See I am not relying on gains (or even being worth the same although that's highly likely in normial terms over the long term). I'm just relying on repayment and there are only extreme reasons (such as sink hole) that your house wouldn't be worth anything if you've bought it 100%, so it's virtually guaranteed.


No point talking about london prices falling.
I've never denied that.

lisyloo

You obviously bought some time ago if you are mortgage free

I bought my current house in 2003 and and had the money to repay it in 2012.
I am not rich, highly paid or had any gifts.
I can't honestly remember what interest rates were in 2003 but that was before the emergency rate cuts / QE.

Arklight

diggeroony wrote: »

It is very bittersweet for me that my mother's death a few years ago when I was 21 years old left me with enough money to be able to buy a three-bed semi in the local area (north Lincolnshire) at around £170,000.

We are at the stage of signing all the papers for the purchase of this house and the fear of Brexit and a housing crash has come over me.

I appreciate I have been left a great gift and want to ensure my mother's money is spent as wisely as possible. I wholeheartedly wish i had my mum here and no money, but that isn't the situation i am in.

I have read many threads on here and found little advice with regards to a cash purchase in our current climate. (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)

Any help and advice is highly appreciated,
Thank you for your time.

Don't worry, Brexit will be an amazing new dawn of opportunity where every Briton will receive £350 million a week direct to their bank account from the Queen. Pringles will rain from the sky and proper British things will happen in proper British ways once we are free from the tyranny of Brussels.

LydiaJ

lisyloo wrote: »

If you've paid for it and you have a fmaily (like most people) then it's virtually guaranteed it could yield equity later on in life when you aren't supporting a family.
...there are only extreme reasons (such as sink hole) that your house wouldn't be worth anything if you've bought it 100%, so it's virtually guaranteed.

Indeed. Also, even without considering the equity later in life, if the OP waits to see if what the housing market does, the market might go down, or up, or stay the same, or whatever. So might the stock market, and the values of any investments into which they might put the money. So might interest rates. So the OP might get a better house if they wait, or they might find that waiting leaves them unable to buy the kind of house they can currently afford, or that they can still buy the same kind of house but they have a bit more/less money to buy it with depending on how their housing costs in the meantime compare with the performance of their investments. This is the "gamble" option.

If the OP buys this house to live in as a home, they will have an asset with a fixed practical value of "one house". Regardless of what happens to the housing market or the stock market or interest rates, they can continue to live in it without needing to pay rent/mortgage, or they can sell it and buy a house of approximately equal value somewhere else if they can come up with the stamp duty and removals costs. This is the "predictable and safe" option.

The OP gives me the impression of someone who's not "into" investments etc, and just wants to do the "sensible" thing with the money from their mum.

lookstraightahead

The only thing I would say here is beware of 'forever home'. It's fine to make long term plans and if it all works out that's great. Often it doesn't (I don't mean to be negative). I bought young at the top of the market, got thrown into negative equity, got divorced when the market crashed and got into a lot of debt. I personally would have been a lot better off not buying at all. Sometimes plans do actually change from ideal so make allowances in your thought processes for worst possible scenarios just to give you peace of mind.