Unrealistic asking price?

Crashy_Time

julicorn wrote: »

2011 is hardly an ideal comparison point. Our flat went up in value from £165k (2011) to £270k (2017). Hard to argue then that it's worth less just because it was sold for less in 2011, when everything comparable in 2017 went for £270k or even more.

Quite easy to argue though that with the backdrop of Brexit, Trump V China and possible JC government it could go back under 165k, that is what future buyers will be thinking about IMO.

vacheron

RelievedSheff wrote: »

I would still wager that even if house prices do fall by say 10% nationwide (which is unlikely) most people who have bought a property in the last 10 years will still be much better off than if they had paid rent for the last ten years instead.

In support of your wagerI will quote up a post I made here two years ago (and since then, the numbers I quoted will have only got better).

Me_on_this_forum_2_years_ago wrote:

".....I rented from 2006 to 2010 and spent those years reading HPC etc. and convincing myself that I'd save a fortune if I only waited another few months.

I was even "safely" renting in 2008 through the greatest global housing mortgage crisis experienced in decades.
What happened to house prices? hardly anything. Did rental rates collapse? no.

As the months of waiting turned into years I eventually decided that life is too short to wait forever and bought in 2010. I've conservatively saved £85,000 in rent over this period and lost about £23,500 in interest making me £61,500 better off over 7 years.

Our house also modestly increased in that time by about £30K, but I'm not even including that in the equation as it is not a liquid asset and is first and foremost our home...

MobileSaver

Diocletian_II wrote: »

You are willing to gamble large amounts on property, and encourage others to do the same.

It's a much bigger gamble to continue paying 1000 pounds month after month to pay off your landlord's mortgage in the forlorn hope of buying your dream home for a pittance.

Crashy_Time wrote: »

Quite easy to argue though that with the backdrop of Brexit, Trump V China and possible JC government it could go back under 165k, that is what future buyers will be thinking about IMO.

Most sane, sensible buyers will be thinking is this the right house for me and can I afford the repayments even if interest rates go up a little.

Only deluded HPC extremists will be worrying that house prices might crash by 40% and they're the ones (just like you) that in truth will probably end up never buying as they're always fearful that the price might drop further tomorrow.

System

MobileSaver wrote: »

It's a much bigger gamble to continue paying 1000 pounds month after month to pay off your landlord's mortgage in the forlorn hope of buying your dream home for a pittance.



Most sane, sensible buyers will be thinking is this the right house for me and can I afford the repayments even if interest rates go up a little.

Only deluded HPC extremists will be worrying that house prices might crash by 40% and they're the ones (just like you) that in truth will probably end up never buying as they're always fearful that the price might drop further tomorrow.

You are entirely free to gamble however much you like on the property market, and good luck with your speculation. However, the current stagnation in the market is proof that buyers are not following your gung-ho lead.

MobileSaver

Diocletian_II wrote: »

You are entirely free to gamble however much you like on the property market, and good luck with your speculation.

Buying a home has little to do with speculating on the property market and the sooner you can get your head around that simple fact the better off you will be.

Crashy Time made the same mistake in the past; you may want to ask him how much prices need to drop for his catastrophic financial prediction to prove him right. (I think at the last count prices needed to drop by 90%+ but perhaps Crashy will confirm? )

System

MobileSaver wrote: »

Buying a home has little to do with speculating on the property market and the sooner you can get your head around that simple fact the better off you will be.

Crashy Time made the same mistake in the past; you may want to ask him how much prices need to drop for his catastrophic financial prediction to prove him right. (I think at the last count prices needed to drop by 90%+ but perhaps Crashy will confirm? )

You talk about wagering money on the market. Please place as many bets as you like. A stagnant market means buyers are increasingly aware of the dangers and are more cautious than you.

shortcrust

Diocletian_II wrote: »

It is always prudent to consider if you yourself could sell that house for that asking price.

If you were to buy it but then you had to sell again, would you incur an immediate large loss? If so, paying that asking price just means making a large free donation to the sellers, in excess of the house's true value.

:rotfl:

How might they go about doing that with any accuracy? People who sell their houses seem to be pretty rubbish at predicting the sale price in my experience.

System

shortcrust wrote: »

:rotfl:

How might they go about doing that with any accuracy? People who sell their houses seem to be pretty rubbish at predicting the sale price in my experience.

Completely agree. The seller of the house the OP mentions is particularly useless at valuing his house. Despite trying for 10 years, he has never got it right.

shortcrust

Diocletian_II wrote: »

Completely agree. The seller of the house the OP mentions in this thread is particularly useless at valuing his house. Despite trying for 10 years, he has never got it right.

Chortle chortle. Your joke doesn’t make your advice any less disingenuous.

System

shortcrust wrote: »

Chortle chortle. Your joke doesn’t make your advice any less disingenuous.

Would be brilliant to see you buy the house the OP mentions, and then try to sell it again without making a loss.