How much reduction would tempt you to buy now?

VFR-Rider

30% for me and I'd probably buy.
Basically I know the sort of property I want and what I am willing to spend a month to own it.

But I have the luxury that I have absolutely no rush to buy and a deposit that is increasing quite nicely.

JanCee

meester wrote: »

The FTBs who are waiting of course might have missed the mortgage boat to an extent, assuming they have no deposit, but that will just mean prices will fall further, because if the FTBs can't get the credit, who one earth is going to buy all those 1-bed flats and starter homes?

.

Possibly the government, according to another poster on here. Now that really would set the cat amongst the pigeons.

moanymoany

Where we are looking it has certainly not hit them that prices are going down! There is a place needing doing up that is on for £180,000 - cheap for there so I think there may be a problem. I would pay no more than £150,000. There is another nice place on for £245,000, it's more realistic price would be £225,000. I would offer them £200,000 and maybe go to £205,000.

There is a house in the same road that is on for £232,000 - on with 2 agents and has been on for several months. What is interesting is that the price has stayed the same. Clearly the vendors believe their house is worth this and offering them a realistic price would be a waste of time.

Whatever the vendor reduces to they know they will be given an offer rather than full asking price.

m00m00

I'm seeing more and more sellers go down the 'different agent but same price' route.


Denial, Kübler-ross stage 1.

PasturesNew

I might be lucky ... as I am probably only looking for a 2-bed property there might have been a lot of BTL dumping going on, so people might be fed up with seeing so many for sale and so they might be another price casualty.

IveSeenTheLight

meester wrote: »

The only one who is going to lose out is the homebuilders and BTLers.

Ok, I understand the homebuilders, but can you qualify your statement for BTLers?

I have some BTL properties which I rent out.
Both take in much more than the mortgage payments and associated costs.
Prices may go down, but in the long term they will surpass todays prices.

So how do we lose out?
I'm still projecting that one of the properties I bought in Jan last year will be paid off in 2017.
From then on, I have a very nice additional income boost

posh*spice

IveSeenTheLight wrote: »

Ok, I understand the homebuilders, but can you qualify your statement for BTLers?

I have some BTL properties which I rent out.
Both take in much more than the mortgage payments and associated costs.
Prices may go down, but in the long term they will surpass todays prices.

So how do we lose out?
I'm still projecting that one of the properties I bought in Jan last year will be paid off in 2017.
From then on, I have a very nice additional income boost

Hi

I thought rental yields were only about 5%? Do you make more than this?
Not trying to enter the debate, just curious.;)

IveSeenTheLight

posh*spice wrote: »

Hi

I thought rental yields were only about 5%? Do you make more than this?
Not trying to enter the debate, just curious.;)

My yields are just short of 6%, partially because of my marketing strategy.
This strategy has resulted in only 2 weeks void period since I started renting out.
I guess the yield would go up if the paper valuation comes down

More importantly for me, the rental income is more than 125% of the mortgage and the extra I take I have in the past used to reduce further the LTV.
I'm now banking the extra to increase my cashflow in preperation of when I find the next property that fulfills my figures.
If I can buy at the right price in a strong rental area, then I will, if not then the cash will be available for the outstanding mortgage loan

mwhitt

we just sold subject to contract this week after 3 1/2 months we were up for 220k, sold for 175k 2006 average price .i think we got ahead of the curve, & we bought for 60k 14 years ago. so will be looking/hoping for 15% -25% off peak prices to buy hopefully will get a nice 4 bed detached below 250k currently 280-320 though after a few weeks living with mother in law that may change:rotfl:.

lostinrates

mwhitt wrote: »

though after a few weeks living with mother in law that may change:rotfl:.

ROFL I know what you mean. My DH lodges in London through the week but comes 'home' to where I am living with my parents at weekends. Its really weird how I have to stop myself behaving like a grumpy teenager living here, and how despite keeping a spotless house away from home since my late teens my room in my parents house is as disgusting as it was in my teens too Thats before we start looking at anything my mother does :rolleyes: :rotfl:

Thank god its an option though!:rotfl: