Feeling I have overpaid

Crashy_Time

Davesnave wrote: »

Complete nonsense. Tell that to the people who invested in some of the Icelandic banks. Oh yes, they got their money back....eventually rather than immediately, if they were the unlucky ones.

When those banks collapsed, there was panic because the situation was unprecedented in modern times and few had any idea where the financial crash was leading.

Of course, you, with your superior knowledge, would have behaved differently. However, that's just theory.

We'd sold to rent, so there was >£400k sitting in the bank, and it's not terribly reassuring when your entire life savings are just pixels on a screen in times like those! Our reasoning was that a house was always going to be worth 'a house,' whereas we all know about times in history when fiat currency has become worthless.

So, we were on a mission to buy. It was nice receiving about £22k a year in interest without lifting a finger; indeed, we'd never been so well-off, but all temporary situations must pass. They did. Try getting 6% interest today!

As above, we stopped looking for the 'perfect' property, found a house with land that ticked a lot of our boxes and bought it at a bargain price, even though we didn't love it. We're still here and loving it 10 years on, having found it in 2009, at the very bottom of the price curve.

Lucky eh? Well that's what people tell us now, especially people who've never done anything particularly interesting with property, but I'd say the reality is much more complex.

Thinking that something like the Icelandic banks with their well dodgy rates, even then, could be the only possible alternative to buying property to "keep money safe" show that there is probably no point at all in discussing this topic with you.

Doozergirl

Davesnave wrote: »

Complete nonsense. Tell that to the people who invested in some of the Icelandic banks. Oh yes, they got their money back....eventually rather than immediately, if they were the unlucky ones.

When those banks collapsed, there was panic because the situation was unprecedented in modern times and few had any idea where the financial crash was leading.

Of course, you, with your superior knowledge, would have behaved differently. However, that's just theory.

We'd sold to rent, so there was >£400k sitting in the bank, and it's not terribly reassuring when your entire life savings are just pixels on a screen in times like those! Our reasoning was that a house was always going to be worth 'a house,' whereas we all know about times in history when fiat currency has become worthless.

So, we were on a mission to buy. It was nice receiving about £22k a year in interest without lifting a finger; indeed, we'd never been so well-off, but all temporary situations must pass. They did. Try getting 6% interest today!

As above, we stopped looking for the 'perfect' property, found a house with land that ticked a lot of our boxes and bought it at a bargain price, even though we didn't love it. We're still here and loving it 10 years on, having found it in 2009, at the very bottom of the price curve.

Lucky eh? Well that's what people tell us now, especially people who've never done anything particularly interesting with property, but I'd say the reality is much more complex.

I didn't reply to Crashy's post, but I will say what I was going to say now.

Our best man and his wife, our good friends had sold their first London flat, moved into rented and had ALL the proceeds sitting in Icelandic banks in 2008. The flat looked beautiful, but was a new basement conversion that started leaking.

Thankfully, they decided to buy again as a result of that leak and completed on their new purchase *just* before the banks went caput, The flat is worth twice what it was.

I appreciate that everything else around them has also appreciated, but they did buy back at the right time.

Doozergirl

Crashy_Time wrote: »

Thinking that something like the Icelandic banks with their well dodgy rates, even then, could be the only possible alternative to buying property to "keep money safe" show that there is probably no point at all in discussing this topic with you.

Just normal people, Crashy, doing what people do. With all of us relying on luck and circumstance.

Davesnave

Crashy_Time wrote: »

Thinking that something like the Icelandic banks with their well dodgy rates, even then, could be the only possible alternative to buying property to "keep money safe" show that there is probably no point at all in discussing this topic with you.

Ouch! You twist my words, but people can see that and I don't care anyway.



TLDR (remembering what the thread is actually about!)


Buy when you are ready; don't attempt to to time the market.


Have a list of 'must haves' and 'nice to haves' and distinguish between the two.


Try to get as many must haves as possible, but don't expect perfection or to 'fall in love' with a property.


Even if you get lots of boxes ticked, there's no guarantee you will come to love a property. No one can be sure of that, because the experience of living somewhere involves much more than just the house.

quantumlobster

Crashy_Time wrote: »

Possibly the worst place to park money in turbulent times TBH, there are safer places where you can get at the money when you want/need it.

Where have you parked your money?

BTW I'm sure the landlord of your bedsit has had a better return on the rent you've paid than you have.

lalala1512

tori.k wrote: »

OP if it makes you feel better we will have spent around 20/25K+ above the ceiling price for our area with the changes we are making to our current property.
The changes we are making wont devalue the property but not add much value other than to us but this is home not an investment.
Painting may well have cost you £700 but if you factor in its another couple of years before it needs doing again that,s less than a months rent for many.
It helps looking at it with a different head if I sold this house in ten years for what I paid for it my extra 25K would have cost me around £200 a month I couldn't rent a bedsit around here for that. and if the market had dropped and i sold for 10K less it will have cost me £300 a month still couldn't rent that bedsit
enjoy your home it really isn't a worry.

Thank you for sharing! That's what I also thought when paying to paint (and the other thought was not having the time and effort to do it myself ). I just noted out the painting as one of the costs I regard as my unavoidable costs and people seems to be judging me for it ahah! The cost to paint didn't bother me one bit, the leak was the part that annoyed me. The seller concealed it so good and they left the house empty so the leak didn't start showing until I started using that shower. I felt so mad about them concealing it but hey, lesson learnt

I actually compiled a spreadsheet (from recommendation on here) to see how much I gain from having a house instead of renting. Since I will also be renting out the other room for sometimes, I found that I will actually gain quite a bit after 5 years if I am to sell the house the price I paid :j The spreadsheet as well as so many nice comments on here really put my mind at ease, thank you all :beer:

Crashy_Time

Davesnave wrote: »

Ouch! You twist my words, but people can see that and I don't care anyway.



TLDR (remembering what the thread is actually about!)


Buy when you are ready; don't attempt to to time the market.


Have a list of 'must haves' and 'nice to haves' and distinguish between the two.


Try to get as many must haves as possible, but don't expect perfection or to 'fall in love' with a property.


Even if you get lots of boxes ticked, there's no guarantee you will come to love a property. No one can be sure of that, because the experience of living somewhere involves much more than just the house.

As I read it you seemed to be saying that "buying a house to live in", which it seems to me you did, was the same as "parking money somewhere safe", this isn`t the same IMO. So we are clear though, do you think property is somewhere safe to park money now, not in 2009 or the 1990`s, but now? (Most people will be taking on debt for their property, but imagine someone had 500k cash to keep safe)

chelseablue

Im in Berkshire too

I've been in my house 3 years and still haven't learned to like it :rotfl:
We're actually thinking of moving to Lancashire to be mortgage free, or MUCH smaller mortgage

Davesnave

Crashy_Time wrote: »

do you think property is somewhere safe to park money now, not in 2009 or the 1990`s, but now? (Most people will be taking on debt for their property, but imagine someone had 500k cash to keep safe)

Yes, I'd be perfectly happy buying today if I had to downsize due to illness or similar, which is the only reason I'd be relocating. What's the problem with that?


I might find it best to rent again first as I did last time, but just like last time, it would depend what was available. I'm quite fussy!

Crashy_Time

Davesnave wrote: »

Yes, I'd be perfectly happy buying today if I had to downsize due to illness or similar, which is the only reason I'd be relocating. What's the problem with that?


I might find it best to rent again first as I did last time, but just like last time, it would depend what was available. I'm quite fussy!

The problem is that you are confusing "buying somewhere to live" with "somewhere safe to park money" (the latter is a favourite of people who seek to talk up the property market as a one way bet that can`t go wrong) We agree that Icelandic banks were not somewhere safe to park money (Flagged well in advance of the collapse on the site that some posters here love to hate) but seem to disagree on what a safe liquid investment is?