Who are buying now?

Paulinuk

one day its all going to crash again,then lots of people will once again be able to buy a property theses prices never do any good

adr0ck

who's buying now??????

umm people that want to move

ooooohhhhhhhh i love hard questions

did i get it right did i?

Dead_Eye_Jones

movilogo wrote: »

Yes, lots of people are still actually buying houses :rolleyes: I spoke with few of them and they are confident that price will never come down :mad:

Nothing wrong with buying a house if you want it and can afford it. Whatever the market is doing. Heres an anology. Why does anyone buy a PC when they know they can get it cheaper in 6 months? Because they want it now!!

At the end of the day the market will move very very slowly and you have to weigh up whether waiting x number of years is worth it. We've never had a situation quite like this before so who knows how long it will take before we see any real difference in the market - by which time peeps like me who ahve bought will have paid off in full and be living "rent" free.

Maybe after doing the math I would have saved 10/20k? Maybe I wont. How much utility we as individuals derive from owning is also important and massively variable for each one of us. In 40 years time, thanks to career progression and wage inflation its all going to seem very unimportant anyway!

Of course I wouldnt recommend anyone try and buy if they cant afford it.

GL

hgllgh

IveSeenTheLight wrote: »

Seems to me that you are speculating how long and how low prices will drop by.
This is okay, but by speculating you risk losing money as well/

Lets speculate that house prices drop 20% over 5 years before starting to climb again. A 200,000 pound house is now worth 160,000.

However you would have to pay rent on that property for 5 years (not including any costs if you have to move during this time). Lets say the rent is 1,000 per month, this means you spend 12,000 per year and 60,000 on rent, (without including any rent increases) over five years.

So a very short speculation would result in you spending 60,000 to save 40,000 and have not reduced the amortization period during that time.

Sure this is very basic and does not include and interests etc, but just pointing out that speculating on house price drops can mean you pay more in the long term depending on by how much prices drop by and for how long.

Of course, when the cycle is at the bottom, you are going to see a massive swing in buyers who are trying to get ono to the ladder, back on to the ladder or by investors

Hope it works out for you though

Ignore the warnings and buy now for 200K.
Total paid back over 25years is approx 400K

Heed the warnings and wait 5 years and buy for 160K
Total paid back over 25years is approx 320K + 60K = 380K

You saved 20K by waiting!

Also, if you can save while you are renting then the saving is even greater.

Curv

Who are buying now?

We are!

We are buying a home, not an investment.
We anticipate staying there a long time - until all our children have left home at least.
We can afford the monthly repayments.
We can afford to make lump-sum capital repayments on a fairly regular basis.

If we wait another 6, 12, 18 months to 'see what happens' the house we are selling will be affected equally by any change in the market so it would be a swings and roundabouts situation.

Yes, if we waited we could potentially save some interest in the long run by taking a slightly smaller mortgage but during that wait we would have to live with the lack of benefit we will gain from our new house e.g. huge garden, en suite, dining kitchen, study, bedroom for each of the kids.

In short, we want the facilities the new house gives us and we are happy and able to pay the associated cost.

gallygirl

mystic_trev wrote: »

The Tenants in one of my 2 BTL's has just served notice to my Agents and are moving out the begining of December. I've decided to sell it and invest the money elsewhere. It's been a nice little earner and the values more than trebled in the last 10 years, however the nett yield is just over two and a half percent and I can get much better sticking the cash in the Bank.

A low yield is often quoted by those who are anti BTL as an investment. Here's a classic example of when a low yield represents success, with capital growth reducing yield. Our yields are currently 3.77% and 4% - but I prefer this to the 7+% we started with as it represents good capital growth.

I too am beginning to think there will be a correction - I still think there are bargains to be had though which would tempt me in. Watching & waiting......

hgllgh

Curv wrote: »

We are!

We are buying a home, not an investment.
We anticipate staying there a long time - until all our children have left home at least.
We can afford the monthly repayments.
We can afford to make lump-sum capital repayments on a fairly regular basis.

If we wait another 6, 12, 18 months to 'see what happens' the house we are selling will be affected equally by any change in the market so it would be a swings and roundabouts situation.

Yes, if we waited we could potentially save some interest in the long run by taking a slightly smaller mortgage but during that wait we would have to live with the lack of benefit we will gain from our new house e.g. huge garden, en suite, dining kitchen, study, bedroom for each of the kids.

In short, we want the facilities the new house gives us and we are happy and able to pay the associated cost.

My illustration doesn't really apply to you as an owner ... it's more for the beleaguered FTB showing that waiting is not necessarily money down the drain

carpetbelly

My illustration doesn't really apply to you as an owner ... it's more for the beleaguered FTB showing that waiting is not necessarily money down the drain.

But that's one illustration of prices dropping by 20% over 5yrs. No one strictly know's what's going to happen, that's the poor thing for FTB'ers at the moment.

I bought, I thought it was worth the risk. But then I bought in June and a lot has changed since then.

Hands up who wants a crystal ball? *raises hand*

pinkshoes

One minute they report prices are dropping, the next minute they report they're going up...

One minute it's a potential national housing market crash, then next it's potentially stagnation in some areas of the UK...

Personally my money is on stagnation then slow climb over several years, unless we have a complete economic crisis with job cuts left right and centre, and people being forced to sell as they're jobless and can't pay mortgage.

If prices drop, most people I know would just hold onto the property as opposed to selling.

hierrodaknuckles

hgllgh wrote: »

Ignore the warnings and buy now for 200K.
Total paid back over 25years is approx 400K

Heed the warnings and wait 5 years and buy for 160K
Total paid back over 25years is approx 320K + 60K = 380K

You saved 20K by waiting!

Also, if you can save while you are renting then the saving is even greater.

that is of course making the presumption that the prices will fall and that you are estimating the fall % correctly.

they could however, end up paying more for the house if the market increases or not saving much if it only decreases slightly

it's all a gamble imo, everyone should do what is right for them in their own personal situation and accept the responsibility for their own decision.

personally i am in the process of selling and buying. I'm planning to stay in my new home for at least 10 years, maybe more. I've been where i am now for 7 years, my first property. I'm glad i got on the ladder when i did - it was the right decision for me and i feel confident that even in the current market, the next move is also the right move. if/when it eventually happens