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

Slithery

Diocletian_II wrote: »

House prices are like turning a super tanker, their direction never turns on a dime as you are suggesting. It takes a long long while for their direction to change.

I didn't say it would be quick, I said 'start rising'.

It would be most useful for me to know what other cash buyers and first time buyers are thinking, since owners are too biased towards encouraging buyers to buy without delay and without regard to price (that is only logical, since it is in owners' vested interests to encourage it).

I don't own any property, but if I was looking to buy I'd always do it as soon as I could afford to because long term prices always rise. It's better to have a home to live in than risk trying to guess the market for years and ending up like Crashy.

System

I am currently living very comfortably, thank you.

Falling prices mean cheaper prices going forward. A turn around in direction twice in a few months would be exceptionally quick for the super tanker property market. It usually takes a few years to change direction.

I'd like to know what other cash buyers and first time buyers are thinking about whether they would wait 6 months to a year to get more property or spend less.

big4split

Diocletian_II wrote: »

With the Office of National Statistics reporting that property price falls have now rippled out of London and into all three areas of southern England, from Land's End to Dover, and up to Milton Keynes, why would I buy now, when in 6 months, or a year's time, I will either get more property for my money, or the same property for a cheaper price? Patience is a virtue, and in the current market it could well be profitable, too.

If you need somewhere to live now, buy now.

System

I'm living quite comfortably, and I doubt many cash buyers, or even first time buyers are homeless. Maybe they would prefer to be owner occupiers, but is it something that cannot wait for 6 months in order to take advantage of falling prices and pay less?

epinjy

Eventually the crash will come and make all those extra months or years of rent worth it!...

It is meaningless looking at house prices as an absolute £ figure only without also considering wage growth, availability of credit and interest rates. Wages are running above house price inflation, interest rates are low and seemingly look like they will kept low going forwards for years, and availability of credit is good (i.e. banks are lending) with post MMR affordability checks keeping a lid on house price inflation in recent years.

Really why even bother look at house prices for capital gains at all, as the majority of the "profit" in housing is not having pay rent (and for comparison, instead interest on the mortgage and any maintenance, which is typically a lot less than rent).

I wouldn't expect much from a "ripple from London either", it is a different market dynamic completely. Key workers/average wagers can afford a house outside of the south east still and London has been flat for 3 years already - no crash in sight even for London. Cash in a bank hasn't done much better than London over the last 3 years, has it?

System

The ripple has taken its time but is now definitely covering the south, where price reductions are increasingly plentiful, just like they have been in London for several years now.

Employment rises are also slowing down to a halt, and unemployment will soon probably start rising from its historic lows, which will add further pressure to the property market.

I'd like to know what other cash buyers are thinking.

System

FTB here. I need to buy ASAP as getting older and currently live in a cold flat, yet another winter will be depressing for me. Reason I am not buying now, is because even with prices low, all I can afford in London, even by a stretch, would be a s**thole, but I want a home sweet home. So as soon as I can afford something nice, I will be grabbing.

Crashy_Time

Vestra wrote: »

Prices around me sinking like a stone, I would wait and see where the market bottoms out.

Do you have a link to the general area so we can follow the price declines? I am amazed at how many people all over the country are accepting that 25, 50 or even 75k needs to come off their asking price before they even get views now, things are definitely looking more positive for genuine Money Savers out there!

System

readysteadysell wrote: »

I currently monitor the 'cash buyer' market as far as companies go, and get some insight into their transactions. I would say Brexit is a huge influence and a number of cash buying companies are holding out until the result of Brexit.


My website simply offers advice for homeowners considering a cash sale, and has advice on what to watch for when dealing with a cash buying company; therefore i'm outside of the property world so to speak other than my insider knowledge of these companies.


However, I know first hand the companies I speak to are concerned about Brexit and holding out on big transactions.


Ready Steady Sell.

The astonishing impression I get from this forum is that other cash buyers of property are nowhere to be seen, and not even hovering waiting to buy. Their previous existence seems to be a dim and distant memory, something of folklore and legend. Even first time buyers seem to be getting thinner on the ground, or more likely inhabiting the new build market.

Are there any other cash buyers out there?

System

dijango wrote: »

FTB here. I need to buy ASAP as getting older and currently live in a cold flat, yet another winter will be depressing for me. Reason I am not buying now, is because even with prices low, all I can afford in London, even by a stretch, would be a s**thole, but I want a home sweet home. So as soon as I can afford something nice, I will be grabbing.

Every month now prices are getting cheaper and cheaper. How long do you reckon you will be waiting for them to come down to a level you can afford?