The Cash buyer

MobileSaver

Crashy_Time said:

MobileSaver said:

All the more worse for the crashaholics is the Bank of England is suggesting there may be the deepest recession on record BUT that it may be over very quickly with a record 15% growth next year

The same BOE that was so prepared for the last crisis?

Yes that same BOE; unlike some people around here perhaps they have learned from their past mistakes?

Crashy_Time said:

MobileSaver said:

Agreed, even some of your fellow HPCers are talking about desirable properties with big gardens and/or in greenbelt areas seeing prices increases once the lockdown is over;

Why do you see demand for more expensive houses increasing when there is more unemployment and tighter lending criteria? 

Firstly because almost by definition more expensive houses are bought by wealthier people and they are much less likely to be affected by unemployment and tighter lending criteria.

Secondly and most importantly because I genuinely believe that after the lockdown more people than ever will aspire to homes with big gardens and/or in rural locations (and I've seen similar comments on the HPC forums so even some crashaholics have come to the same inevitable conclusion.)

Thirdly most experts think this could be a very short sharp shock to the system and that the country will be back to "normal" and then some regarding the economy much quicker than any previous downturn.

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

All the more worse for the crashaholics is the Bank of England is suggesting there may be the deepest recession on record BUT that it may be over very quickly with a record 15% growth next year

The same BOE that was so prepared for the last crisis?

Yes that same BOE; unlike some people around here perhaps they have learned from their past mistakes?

Crashy_Time said:

MobileSaver said:

Agreed, even some of your fellow HPCers are talking about desirable properties with big gardens and/or in greenbelt areas seeing prices increases once the lockdown is over;

Why do you see demand for more expensive houses increasing when there is more unemployment and tighter lending criteria? 

Firstly because almost by definition more expensive houses are bought by wealthier people and they are much less likely to be affected by unemployment and tighter lending criteria.

Secondly and most importantly because I genuinely believe that after the lockdown more people than ever will aspire to homes with big gardens and/or in rural locations (and I've seen similar comments on the HPC forums so even some crashaholics have come to the same inevitable conclusion.)

Thirdly most experts think this could be a very short sharp shock to the system and that the country will be back to "normal" and then some regarding the economy much quicker than any previous downturn.

With the BOE the mistake was interest rates too low for too long, meaning next to nothing in their tank for the next crisis, which has just turned up, too late to fix that mistake now I`m afraid.
 Wealthy people already have a big house, why would they suddenly be in the market for one now?
Most people with a step on "the ladder" aspire to big homes and gardens, why would they suddenly be able to get them now in a time of higher unemployment?
The market isn`t made by "wealthy" people or "aspirational" people who watch property shows on telly, it is made by actual transactions of mostly ordinary property bought by people in average jobs, who are now wondering if that job will still be around and if they will be able to take the next step on the ladder as they hoped.

Phil4432

Richardsondawn said:

What sort of leverage or positives are there when buying a property as a cash buyer, how to manage the buying of a property as a CASH buyer. What is there if anything to apply in this situation?

You have the advantage of being able to move fast, if the cash is in the bank.  I've purchased two properties as a cash buyer, and in both cases having cash worked to my advantage.  In one case, I received preference after the seller had agreed to someone else's offer.  Reason being, I could move quickly as I didn't have a house to sell.

Crashy_Time

Yes, breaking out of a slow moving chain must be worth a discount to many sellers who have been trying to sell for years/months.

hansolo2000

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

All the more worse for the crashaholics is the Bank of England is suggesting there may be the deepest recession on record BUT that it may be over very quickly with a record 15% growth next year

The same BOE that was so prepared for the last crisis?

Yes that same BOE; unlike some people around here perhaps they have learned from their past mistakes?

Crashy_Time said:

MobileSaver said:

Agreed, even some of your fellow HPCers are talking about desirable properties with big gardens and/or in greenbelt areas seeing prices increases once the lockdown is over;

Why do you see demand for more expensive houses increasing when there is more unemployment and tighter lending criteria? 

Firstly because almost by definition more expensive houses are bought by wealthier people and they are much less likely to be affected by unemployment and tighter lending criteria.

Secondly and most importantly because I genuinely believe that after the lockdown more people than ever will aspire to homes with big gardens and/or in rural locations (and I've seen similar comments on the HPC forums so even some crashaholics have come to the same inevitable conclusion.)

Thirdly most experts think this could be a very short sharp shock to the system and that the country will be back to "normal" and then some regarding the economy much quicker than any previous downturn.

With the BOE the mistake was interest rates too low for too long, meaning next to nothing in their tank for the next crisis, which has just turned up, too late to fix that mistake now I`m afraid.
 Wealthy people already have a big house, why would they suddenly be in the market for one now?
Most people with a step on "the ladder" aspire to big homes and gardens, why would they suddenly be able to get them now in a time of higher unemployment?
The market isn`t made by "wealthy" people or "aspirational" people who watch property shows on telly, it is made by actual transactions of mostly ordinary property bought by people in average jobs, who are now wondering if that job will still be around and if they will be able to take the next step on the ladder as they hoped.

I agree, many are wondering if their job will still Ben there after this crisis is behind, but then many are wondering when this crisis will ever be behind us

i don’t know why people are being told off for talking about the coming house price crash furnace to the new Great Depression 

this is money saving website so we should rejoice that from now on people who I’ll be saving money on their rents and house prices 

MobileSaver

Crashy_Time said:

 Wealthy people already have a big house, why would they suddenly be in the market for one now?

I said wealthier not wealthy.

And, yes, unlike crashaholics who put their life on hold and resign themselves to living in a bedsit in an undesirable part of the city for the rest of their lives, wealthier people by definition tend to aspire to bettering themselves and improving their lot which includes living in a nicer/bigger/better house.

MobileSaver

hansolo2000 said:

i don’t know why people are being told off for talking about the coming house price crash

Seriously? Which part of the following moderator's statement are you having a problem understanding?

We’re struggling at the moment with the huge volumes of messages we’re getting from Forumites about coronavirus and the impact it’s having on their finances. We’re a small team and we’re doing our best to manage this spike in demand. As a result, we’ve reluctantly decided to temporarily close the Debate House Prices & the Economy Board so that we can redirect our limited resources to those who need us most at this time.

Anamox

I accepted a cash offer last year and the buyer turned out to be a nightmare, they used their "we're paying cash and don't have to sell" card to try and push me in any and every direction to get the house fixed up where their unprofessional opinion convinced them there were problems... I pulled out after they'd spent over a grand on a full building survey as they began to annoy me and I could see we weren't getting anywhere fast, a month odd later I took a slightly higher offer from a mortgage buyer in a chain and everything was going well until coronavirus hit. My chain is still standing for now, but I'm 100% sure the cash buyer would have pulled out. 

Selling my first property I had two offers of £285k from a cash buyer or £290k from a first time buyer who required a mortgage, I was advised to take the latter by the estate agent and friends who dabble in property. Their general opinion was that you should just take the highest offer, and the friends said cash buyers can sometimes be a little unserious and have less to loose by randomly pulling out.

So from a seller's perspective, I'd still probably go with the highest bidder and I'm now dubious of the advantages a cash buyer offers... especially when many mortgage buyers are also chain free.