My wife is desperate for her own house but..

rach83

meanmachine wrote:

Aaaarrrrgh!

How many inaccuracies can one post contain?

In a stabilising market renting is NOT dead money.

When has the housing market in this country ever "stabilised"?

Real interest rates - as opposed to nominal rates - are the SAME as they were in the 80s.

If you have a large debt (ie a mortgage) it is MUCH better to have a high inflation high interest rate economy than a low inflation economy.

Etc etc etc

It really is true that, to be an estate agent you don't need ANY qualifications. Although even a basic grasp of economics would be quite handy.

To the OP I'd say that, if the issue is causing you personal problems, then buy. But if the market does crash, how will you feel then? If the answer is thaty you won't be bothered, then buy.

Some things are too precious for money to spoil.

I work in the property industry and have done for the last five years. I have first hand experience as opposed to all the crap you read in the media. And for your information I am taking my NAEA exams in a weeks time which is equivalent to an A level. The reason the general public never see stability in the property market in this country is because they are too led by what the media say. If your happy to give your money away to a landlord thats fine but in my opinion you can never beat being a homeowner.

mimi_money_saver

Have people not been saying for ages (like 2 years) that a downturn is immenent and to hold on for prices to come down? In fact I have been waiting since 2001 for the downturn to come (and saving the deposit on the sideline) Now I'm ready and as our estate agent friend here says there is a huge choice of properties out there with the possibility to negotiating hard.

Many analysts have modified their predictions from "crash" scenario to a correction period maybe drawn out over the next 5-7 years. So I see now a good a time as any to start making steps towards my first purchase. I don't want to stay at home with mum and dad for another 5 years - as great as they are!

In addition there are whisperings of an interest rate cut in the next round to bolster retail and aid manufacturing. I'm not an economist but some are saying this could result in a resurgence in confidence in the property market.

PS: This is my first post depsite following these chats for the best part of a year!

Fairdo_2

Welcome aboard mimi money saver. Well said.

meanmachine_2

Hi Mimi and welcome

Ask yourself why it's a buyers' market and why there are literally 100s of 1000s of properties on the market.

Because they're overpriced and because people like me - a potential rival - won't touch the market until prices have corrected.

Why buy a falling asset?

by the way, hometrack's figures are out for June. Another fall. That's 13 months in a row. If you don't think a correction is under way, you must be blind!!

rach83

mimi_money_saver wrote:

In fact I have been waiting since 2001 for the downturn to come (and saving the deposit on the sideline)

Hi I have to say I brought my property at the end of 2002 (December) and since that time i have made £40,000 on it I am now 21 and I think that’s pretty good going. Obviously I do not know your circumstances but there is no way I could have saved that amount of money in 2 and a half years? May be I am wrong? I know you do have to look at the financial side of things but at the end of the day it is a home and somewhere to live as well as an asset!!!

mimi_money_saver

Hi Meanmachine,

Absolutely agree that a correction is underway but as I said we have no way of knowing how long it will take for the gap to return to a "historical average" between average earnings and average house price. In the end is personal circumstance that dictates how long someone will wait.

The scenario that house prices are largely static for a number of years while wages increase to close the gap is also a possibility.

mimi_money_saver

Well done Rach83,

I wish I could have done the same and bought in 2002 but having just left uni saddled with a load of debt and a low paid job I couldn't even contemplate it at that time.

ancasta_2

meanmachine wrote:

Aaaarrrrgh!
It really is true that, to be an estate agent you don't need ANY qualifications. Although even a basic grasp of economics would be quite handy.

Thats a bit out of hand i think. The poster made her comments and obviously thought about what she was posting, if she wasnt a good estate agent she would be out of a job (which i hope shes not)

meanmachine_2

rach83 wrote:

mimi_money_saver wrote:

In fact I have been waiting since 2001 for the downturn to come (and saving the deposit on the sideline)

Hi I have to say I brought my property at the end of 2002 (December) and since that time i have made £40,000 on it I am now 21 and I think that’s pretty good going. Obviously I do not know your circumstances but there is no way I could have saved that amount of money in 2 and a half years? May be I am wrong? I know you do have to look at the financial side of things but at the end of the day it is a home and somewhere to live as well as an asset!!!

Wow, you bought at 18? How did you manage that?

Now that is impressive.

As for whether you've "made" £40,000, that's again rather debatable, since you still need somehwere to live. I'm guessing. Nonetheless, for someone your age, that's pretty good.

However, having a mortgage at 18 - sounds far too young to me. I wasn't thinking about property at that age. I was getting an education and travelling the world having fun.

Maybe if I'd done the same as you, I wouldn't now be a priced-out FTBer!!

eurows

Anybody who thinks a cut in interest rates is going to bring a rush to the EA is as daft as a brush