Worried about overpaying on house purchase

Davesnave

Crashy_Time said:

Davesnave said:

MaxJones said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Yes, most people on this thread have suggested buying now could be OK if sufficient account is taken of the the property's long term suitability. Only the OP knows enough about their personal circumstances, so we cant comment on those. Seems a moderate response to me.

But now we have a suggestion that a major investment could return 11% at a time of world turmoil, instead of putting the money into a home. Well, sure, it could, for a time, but how lucky does the OP feel and is this a moderate, measured response, or just something thrown out here to impress? Will holding a portfolio of investments sit easily with the OP and make other things in their life possible? Perhaps that's something they can answer, but it's certainly something Crashy doesn't know.

The point I made was that "putting your money into bricks and mortar" now is not a sensible alternative to a well structured diversified portfolio of equities, bonds, corporate bonds etc. with maybe some cash on hand

And the point I was making is that there is always someone like you on the forum saying, 'Don't buy; the economy's about to tank!".

Back in 2008/9, there were a few MSE posters who foresaw such catastrophes with the economy GB Plc would be plunged into chaos. It would be like Mad Max, but with crap British weather. Those people scared us so much  we thought "Cities are no place to be now; we'll get ourselves a property that we can future-proof, well out in the country."

So we bought rural and basic, which was easier and cheaper than looking for the 'forever' property we'd previously wished for closer to our business interests. We kept money in reserve and waited to see how things would play out.

In 2014 we sunk more money into the property, having discovered so many advantages with it that we no longer contemplated moving on. Now it's easy to maintain and heat. What's more, changes in the law mean we now have a site for two extra properties if we decide we want them here. It's not perfect, but it was a bloody good choice.

So, thanks to the doomsayers we made what turned out to be a very good decision. It was probably naive, but it was the sort of thing real people do, because there were many other considerations, beside the economic ones.

Yes, I'm sure there are optimum courses of action and 'sensible' choices to be made, but we're human. Stick your portfolio wherever you like. While you've waited, we've cracked on.

Do you accept that your "bricks are safer than pixels on a screen" belief was completely wrong?

 I know this isn't a comprehension test, but my personal story began from the premise that our distrust of the stuttering banking system proved unfounded. Surely you got that? It was 12 years ago. House Price Crash people were suggesting here that we shouldn't buy. Fortunately, we didn't listen to them, but we modified our search and made a cautious choice rather than park our lives in neutral.

On this thread I didn't advise people to distrust banks, stop holding savings or sell off investments. If you'd read what I said, it boils down to: "times are uncertain, so make sure that if you buy now, the property is capable of serving you for a good length of time." That seems to be broadly what others have said too.

12 years ago the fundamental problems were not solved but instead pushed into the future and made worse

Which means what, exactly, for the average person on MSE?

My take would be that they are paying way way more than they should be for basic accommodation because instead of propping the bubble up with taxpayers money the government should have let it pop so that ordinary hard working key workers could afford a home without begging money from their family and taking HTB loans, although the big players that were saved back then are now taking a hit on commercial property, and no amount of money printing can make people go to closed shops in a retail park, so maybe there are Karmic forces at work after all?

I think the forces at work are a very long way from Karmic; they're the same ones that have always maintained control over the people and their governments.

The politicians fiddle at the edges; their pantomimes and charades  focusing public attention, but nothing really changes. The average person on MSE has no way of challenging the status quo, so paying down the mortgage is probably one of the more constructive things they can do.

Crashy_Time

I would say things have definitely changed this time, this isn`t a problem money printing can solve.

Davesnave

Ah, so the Revolution's coming at last......

Which wall shall I stand against?

Crashy_Time

 One without a For Sale sign?

Crashy_Time

Davesnave said:

Crashy_Time said:

Davesnave said:

MaxJones said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Yes, most people on this thread have suggested buying now could be OK if sufficient account is taken of the the property's long term suitability. Only the OP knows enough about their personal circumstances, so we cant comment on those. Seems a moderate response to me.

But now we have a suggestion that a major investment could return 11% at a time of world turmoil, instead of putting the money into a home. Well, sure, it could, for a time, but how lucky does the OP feel and is this a moderate, measured response, or just something thrown out here to impress? Will holding a portfolio of investments sit easily with the OP and make other things in their life possible? Perhaps that's something they can answer, but it's certainly something Crashy doesn't know.

The point I made was that "putting your money into bricks and mortar" now is not a sensible alternative to a well structured diversified portfolio of equities, bonds, corporate bonds etc. with maybe some cash on hand

And the point I was making is that there is always someone like you on the forum saying, 'Don't buy; the economy's about to tank!".

Back in 2008/9, there were a few MSE posters who foresaw such catastrophes with the economy GB Plc would be plunged into chaos. It would be like Mad Max, but with crap British weather. Those people scared us so much  we thought "Cities are no place to be now; we'll get ourselves a property that we can future-proof, well out in the country."

So we bought rural and basic, which was easier and cheaper than looking for the 'forever' property we'd previously wished for closer to our business interests. We kept money in reserve and waited to see how things would play out.

In 2014 we sunk more money into the property, having discovered so many advantages with it that we no longer contemplated moving on. Now it's easy to maintain and heat. What's more, changes in the law mean we now have a site for two extra properties if we decide we want them here. It's not perfect, but it was a bloody good choice.

So, thanks to the doomsayers we made what turned out to be a very good decision. It was probably naive, but it was the sort of thing real people do, because there were many other considerations, beside the economic ones.

Yes, I'm sure there are optimum courses of action and 'sensible' choices to be made, but we're human. Stick your portfolio wherever you like. While you've waited, we've cracked on.

Do you accept that your "bricks are safer than pixels on a screen" belief was completely wrong?

 I know this isn't a comprehension test, but my personal story began from the premise that our distrust of the stuttering banking system proved unfounded. Surely you got that? It was 12 years ago. House Price Crash people were suggesting here that we shouldn't buy. Fortunately, we didn't listen to them, but we modified our search and made a cautious choice rather than park our lives in neutral.

On this thread I didn't advise people to distrust banks, stop holding savings or sell off investments. If you'd read what I said, it boils down to: "times are uncertain, so make sure that if you buy now, the property is capable of serving you for a good length of time." That seems to be broadly what others have said too.

12 years ago the fundamental problems were not solved but instead pushed into the future and made worse

Which means what, exactly, for the average person on MSE?

My take would be that they are paying way way more than they should be for basic accommodation because instead of propping the bubble up with taxpayers money the government should have let it pop so that ordinary hard working key workers could afford a home without begging money from their family and taking HTB loans, although the big players that were saved back then are now taking a hit on commercial property, and no amount of money printing can make people go to closed shops in a retail park, so maybe there are Karmic forces at work after all?

I think the forces at work are a very long way from Karmic; they're the same ones that have always maintained control over the people and their governments.

The politicians fiddle at the edges; their pantomimes and charades  focusing public attention, but nothing really changes. The average person on MSE has no way of challenging the status quo, so paying down the mortgage is probably one of the more constructive things they can do.

People already signed up for a mortgage don`t have any other choice, the OP has a chance to pay off a smaller mortgage if they get a price drop out of the seller.