would you buy just to get on the ladder?

Sarah1Mitty2

MultiFuelBurner said:

I fear the rental system is broken.

For anyone that can get on the ladder now whilst prices have dipped they should and buy whatever they can imo.

The future for a number of landlords is unclear. There is a great proportion of rental stock at EPC grade E potentially needed upgrading to grade C by 2025(this is not law yet) investment will disappear and some landlords will take the opportunity to sell up and get out of the renting business. I personally forsee a severe decline in the amount of rental stock.

Anyone pushing the rent life and all the positives I wonder if they have considered the above.

Who will they be able to sell to? Affordability for the type of borrower looking to buy these properties has changed dramatically in the last few months, and every flat sold is one less renter household.

Sarah1Mitty2

ArbitraryRandom said:

KrystalBall said:

ArbitraryRandom said:

KrystalBall said:

If you can wait and don't need to buy a house now there will be plenty of bargains to be had over the next couple of years.

As you can see the market has taken a downturn since last summer and prices will only drop much further. 

In the House Price Indices chart the main one to look at is The HM Land Registry as you can see prices for January are down 1.1%. Ignore the annual changes as they don't represent what is happening now.

When you are recommending someone delays for an indefinite period of time, why look at a snapshot rather than historical trends...?

Yes I am fully aware of historic trends and I did say if he can wait there will be plenty of bargains out there in the next 12-24 months. There are no more props to keep this bubble going and if you understand anything about the economy you will know that affordability for what most people can afford as changed in the last 18 months. Inflation is rampant and all of these interest rate rises have truly affected what most can afford to pay. The land registry is showing prices have dropped 6% from the peak last summer and the housing market will totally collapse over the next couple of years.

Here is a snapshot of what is happening to mortgage approvals and is showing a collapse.

I'm not sure those charts are showing what you THINK they're showing... and I'm absolutely certain the land registry isn't showing "the housing market will totally collapse over the next couple of years."

Short term turbulence does not allow accurate prediction of future markets - "and if you understand anything about the economy you will know that"

If I'm wrong and you are right, then the month on month increase Jan 23 to Feb 23 (conveniently left off the chart you selected to post) announced on Wednesday would suggest the 'collapse' had already reached the bottom, no? 



There may be some good bargains to be had over the next few months/couple of years. IME there's always some good bargains if you are in a good position and keep an eye open... but that doesn't mean the type of property someone is looking for, in the area they are looking at, will be significantly discounted in the near to mid future.  

Remember that history shows us the one thing that's most likely to act as a 'prop to keep this bubble going' is people who don't have to sell right now simply deciding to wait it out.

I don`t think that is likely due to how markets work, but interested to hear about when that happened, was it in the 1970`s, or later?

Sarah1Mitty2

tiger135 said:

im wondering if anyone considers buying somewhere that either:
1. property isnt exactly what they want because what they want isnt available at the time (due to lack of supply or being fussy) , but has a view to moving on in a few years to something more ideal.
2. cant afford what they want so buys the best they can afford and again plans to upgrade in a few years (example buys a flat when would like a house)
3. just wants to get on the ladder and maybe already lodges or rents somewhere so buys something to rent out with a view in the future to move in or buy elsewhere but not have to go through all the 'getting on the ladder' stress again

alternatively is it best to keep the cash in the bank until the place you want to live comes up and be a cash buyer even if this means renting or lodging for longer first?

Sorry OP your thread is drifting a bit, I think you at least need to wait until interest rates find their ceiling, then wait a bit longer to see the effects of this, moving interest rates the way they are is specifically designed to get prices down.