The window where you can put off buying a home is tiny

AG47

triathlon wrote: »

For those who are constantly spouting on about hold off buying property, the worst are those who are now committed from having made that awful decision years ago and even decades for some, who now are conning the younger generation now of house buying age to do the same as they did.
In 2019 there is probably the smallest ever window to make a start on house buying before you have left it too late, leave it only five years as a very young person and finished. This is not the 1950' to 1980's when you could buy property on one wage and easily do it in a 25 year period, those days have gone.
I urge you for your own happiness, if you can afford to buy your 1st home today,

DO IT

Cycles swing back and forth, you try to make out those times have gone forever.

You don’t understand the part of the cycle we are in.

Of course you are trying to justify your decision to have bought right at the top.

lisyloo

Crashy_Time wrote: »

just be aware that most property cheerleaders are heavily invested in it not going pop.

This isn’t necessarily true.
Personally I have bought my home which I can now live in rent free for the next 40 years.
This is a mathematical no brainer for most people (unless you are economically mobile) and I’d say an essential component of a comfortable retirement.
On the pension boards people talk of fund in the range £400k - £1 million for retirment and that’s usually without a mortgage so it’s next to impossible to be comfortable if you’re paying rent.
I am anything but invested in the value as it’s a home and we live in it rent free. If it did “pop” I doubt it would have any effect on us and over 40 years with an increasing population it’s likely to rise at least with inflation as a minimum.
Having bought a home i now have more invested in other asset types so not overweight in property.

Chucknorris also doesn’t care that much if it goes pop as he bought his properties for 5 pence

Of course a buyer wants to avoid a crash right after they buy, but we know for a fact that no one that time this accurate and there’s real opportunity lost if you wait a long time.
I wouldn’t go as far as triathlon as saying it must be done ASAP. But constantly waiting for the next crash for 20 years and being out of a bull market is dangerous and doing nothing is the easiest thing in the world.

Personally I like to learn from people who’ve done well not people who failed over a long period of time.

lisyloo

Crashy_Time wrote: »

The chances of selling a BTL in a severe downturn would be less not more, and the chances of rent increases also less. Not about you specifically, but everyone is in love with the dream house until circumstances change and they want to get rid, and in a bubble that has turned volatile it gets harder to sell when you might like to at a price you might like. I don`t mean don`t buy, just be aware that most property cheerleaders are heavily invested in it not going pop.

Property is not a liquid asset.
It needs to be part of a balanced portfolio so people aren’t forced to sell in desperation.
Equities are no different in that respect, although they can be sold in smaller chucks, you still need to keep cash so you aren’t forced to sell.

You can also make sensible efforts to make sure circumstances don’t change to the extent that that is under your control.

For example we bought our first and second homes in a sensible location for commuting. That meant that when either of our jobs changed we did not have to move. There are various examples e.g. people buying houses with the option of extended.

If you plan property you shouldn’t need to move all the time. This is exactly what Scottishsaver is saying. Wait until you’re in a stable relationship rather than changing house with each partner.

lisyloo

AG47 wrote: »

Of course you are trying to justify your decision to have bought right at the top.

You are missing the point that you can make enough money over the long term that the downturns don’t matter.
I’ve been through negative equities but overall it was a good decision to buy my own home.

Also missing the point that if you have a home you can live in it eventually rent free. That’s a massive benefit.

vivianbrave

Depends on your lifestyle and how long you plan to keep it up. When you're designing a space, you're designing a lifestyle. The more rigidity you assign to a space, the more you're committing the inhabitant to that lifestyle. So which wil you design first, the efficient home or the efficient lifestyle?

Consider whether you really need more than one source of running water, more than one set of dining utensils, or anything bigger than a mini fridge. Can you design your lifestyle such that they are really all you need?

triathlon

vivianbrave wrote: »

Depends on your lifestyle and how long you plan to keep it up. When you're designing a space, you're designing a lifestyle. The more rigidity you assign to a space, the more you're committing the inhabitant to that lifestyle. So which wil you design first, the efficient home or the efficient lifestyle?

Consider whether you really need more than one source of running water, more than one set of dining utensils, or anything bigger than a mini fridge. Can you design your lifestyle such that they are really all you need?

While I have got people paying for the properties that I OWN then it really is a non brainer for the future for me and others.

chucknorris

Crashy_Time wrote: »

1) You know nothing about me economically.

2) If the worst happens now a lot of people will still be living in a house they didn`t expect to be in because they can`t sell it to move on, that could be critical if the work has already moved on.

3) You can`t predict future interest rates so why should your experience of buying in the 90`s be relevant to someone buying now?

1). I know that you don't own your own property, and that you are ever unlikely to, so you will be renting forever, and never reach that no mortgaged stage on a home in your lifetime. I got there almost 14 years ago (at 47), and still counting.

2). There are no guarantees in life, hiding under the bed and taking no chances won't pay off. If I had found myself in that position, I would have rented my home out, and rented another property where I needed to be.

3) I was not relating what I was saying to my experiences back in the 90's. Nobody can (accurately) predict interest rates, just look at all the perma property bears (adjusting AG47's phrase) including you, that were saying that the base rate could only go one way, then it was cut to 0.25%. But the thing is, interest rates vary, whereas rents (over the long term) increase, see the difference? Not only that, but the amount that is borrowed to which the mortgage rate is applied does not increase with inflation.

Newnoel

Crashy_Time wrote: »

1) You know nothing about me economically.

You sold up in the mid to late 90's, fearful that prices would never rise after the great crash of 1989-1993, and have missed out on one of the longest bull runs in history - even accounting for the 2008-09 crash.


You now live alone in a rented bedsit, and claim your LL hasnt put the rent up in 10 years


Is this correct?


Now in your 50s, single, and evidently angry... you sound like you belong more on HPC than MSE

chucknorris

Newnoel wrote: »

You sold up in the mid to late 90's, fearful that prices would never rise after the great crash of 1989-1993, and have missed out on one of the longest bull runs in history - even accounting for the 2008-09 crash.


You now live alone in a rented bedsit, and claim your LL hasnt put the rent up in 10 years


Is this correct?


Now in your 50s, single, and evidently angry... you sound like you belong more on HPC than MSE

That's him alright, but I would say not necessarily angry, just possibly merely misguided.

Newnoel

chucknorris wrote: »

That's him alright, but I would say not necessarily angry, just possibly merely misguided.

Or pathetic?