I am a cash buyer. Buy now or buy later??

System

rash.m2k wrote: »

I'm in a similar situation to you, depending on what I buy I could pay cash. I can only speak about my personal situation, but I think it applies more broadly too.

I do think the market is distorted, interest rates are low so people don't have to move and are staying put, therefore more competition for whats on the market. Hence why the prices are where they are, relatively flat

It really depends if you need to something right now to live in, or if it's for rental etc vs inflation eating away at your money.

I would say wait until after brexit, a no deal brexit would be good for buyers but not sellers and vice versa. Brexit shouldn't be too long now, so unless a really good deal comes up I'd stay put.

Even then I'd be reluctant to put all my eggs in one basket, rather than buy one with cash I'd rather put a small deposit and buy 2 or 3 instead (for rental) and have the money ready for when the market does eventually crash. Like it did in 2008/2009.

So basically my advice would be sit tight - unless something cheap comes up, and then you are in a strong position to squeeze the price down as far as you can.

The news out of the US today about the Federal Reserve's loss of control over US interest rates also looks very serious. The Fed is trying to hold the US interest rate down to its official level, but it has now breached its upper limit by 20bps. It is like the BoE interest rate here rising, despite the efforts to keep it down to the official BoE level. It looks like a second great financial crisis may be underway. Yet another reason to hold off buying.

rash.m2k

I'm not so sure about that, the reason recessions occur is because they don't see them coming (or the vast majority don't see them), now everyone sees it coming so the banks and everyone plans for it. The banks just won't let the market crash.

The estate agents and bankers are working hand in hand, the whole thing is just a damn cycle to get you to buy today rather than tomorrow, hence the threat of inflation eating away at your cash.

It might crash on 1st november, it might not. Who knows, the point is that it will crash at some point.

My plan is to keep buying when I see something good, but still have enough reserves so I can pounce when the market does crash! So I'm sitting tight - but not too tight!

System

rash.m2k wrote: »

I'm not so sure about that, the reason recessions occur is because they don't see them coming (or the vast majority don't see them), now everyone sees it coming so the banks and everyone plans for it. The banks just won't let the market crash.

The estate agents and bankers are working hand in hand, the whole thing is just a damn cycle to get you to buy today rather than tomorrow, hence the threat of inflation eating away at your cash.

It might crash on 1st november, it might not. Who knows, the point is that it will crash at some point.

My plan is to keep buying when I see something good, but still have enough reserves so I can pounce when the market does crash! So I'm sitting tight - but not too tight!

Would another great financial crisis starting to get underway give you more pause for thought? The talk is of central banks losing control this time round. The Bank of England cannot cut interest rates sufficiently to fight off a recession and rescue the markets. Historically, it takes a 4-5% cut to bring about a recovery. It's already on only 0.75%, so it does not have room for much more cutting.

Glover1862

rash.m2k wrote: »

I made a mistake the last time I bought for cash in 2015, what I should have done is bought 2 or 3 (like I said) with smaller deposits (as rentals). I'm determined not the make the same mistake again.

I mean rather than chucking ~105k on one, I could have put 50k and 40k on each and had 2 now!

Why don't you just mortgage the unencumbered property?

Retired_Mortgage_Adviser

I'm currently looking to buy 2 properties to let in the north west. One down (conveyancing in progress) and one to go. I buy for cash, do it up, let it out and remortgage it to 60-75% ltv.

It is slim pickings but generally speaking the changes from my usual approach are that I am steering clear of flats and keeping my eyes open for significantly bmv houses that need a good bit of work done to them.

Diocletian_II wrote: »

That's what my gut instinct tells me. I'd like to know what other cash buyers, or first time buyers are thinking, since similar issue will be relevant - do we wait to get more property/spend less, or do we dive in now, regardless, and get less property/spend more?

Slithery

Diocletian_II wrote: »

Please would cash buyers leave there views, not owners who are shill-ing the market.

What about people who are happy renting? Am I still allowed to post?

Retorical question obviously, that's not how public forums work.

babyblade41

And here we have ladies and gents what is commonly called a Pilchard and totally pointless thread:rotfl:

System

Only prospective cash buyers in the current market will be experiencing what it is like to be a prospective cash buyer in the current market. Their views are therefore far more valuable to me than all the noisy owner-shills, who throw insults and have abusive mini-hissy fits of indignation that someone should ask the question.

hazyjo

babyblade41 wrote: »

And here we have ladies and gents what is commonly called a Pilchard and totally pointless thread:rotfl:

Indeed:rotfl:

"YOU MAY ONLY POST IF YOU AGREE WITH ME. EVERYONE ELSE CAN SHILL OFF"

Love the way I've been here for over a decade. Been through two recessions and seen it ALL before. Don't want prices to rise (have said that on many posts - but apparently I'm a liar LOL). Also pretty much a cash buyer, but my opinion is being listened to with fingers in ears going TRALALALALALALALALA.

Actually think it's taken my number 1 slot for ridiculous posts. And that's saying something.

foxy-stoat

Diocletian_II wrote: »

There seem to be very few other cash buyers here, which actually speaks volumes about the market, when they are in such short supply on a big public buying forum.

There are very few people with hundreds of thousands of pounds sitting in their bank account waiting for the right time to click "buy it now" on a property while renting or living with parents.

Just buy when you feel the time is right. I do not see any prices falling, maybe not rising as fast as in previous years.

Just look on rightmove for previously sold properties - new build estates or older properties. I have seen new build homes sell for over 20% more after the owners sold 12 months after buying it brand new.

Older properties are still selling for more than they were bought for.