The Time to Buy property is Now

tradetime

It's quite simple danny. This is a great year to buy property because you can negotiate a decent discount from those who are desprate to sell.

I can see your point, this quite possibly is a good year for buying selected properties, but I think nest year will be better, and no I am not in favour of a 50% property correction, 30% will satisfy me, and spread out over the next 3-4 years.

dannyboycey

Dan: wrote: »

It's quite simple danny. This is a great year to buy property because you can negotiate a decent discount from those who are desprate to sell.

What helps nobody is members who post crap hoping for 50% falls.

50% falls are a real possibility, especially with interest rates set to rise, lenders getting even tighter with criteria and recession. In reality, falls could be even sharper than 50%!! However, for arguments sake, lets just say prices will only fall another 5% - If I managed to get a vendor to knock 10 grand off his 200k property, then prices fall by 5%, I have effectively achieved nothing more than purchasing a house for market value, albeit a month or two ahead of the market itself.

If you really have to purchase a house for whatever reason, negotiating a hefty discount will help provide a cushion against future equity loss but in my book, that is far from being a "great opportunity to buy".

There will be more repos on the market, as people get into financial difficulty, but these often get snapped up very quickly and they often come with a degree of 'baggage' (possible blacklisted address, creditors still chasing debts after tennant has gone etc etc).

formulaonefan

setmefree2 wrote: »

[FONT=&quot]http://www.fool.co.uk/news/property-home/2008/06/09/the-time-to-buy-property-is-now.aspx?source=ioowftxt0010011[/FONT]

Don't know what you guys think of this article?

Guys go easy on me for this crazy comment!

I dont know whether you guys watch F1 racing or not. But in F1 when you have a wet race and sometimes half-way through the race rain stops and the track starts to dry up. Drivers start to gamble by changing from Full wet or Inters to Dry tyres. If they run over a wet part of the track with dry tyres they end up in wall and crash! For some they get on dry tyres at the right time and it works out well and they make up for the lost ground and Win!

If we compare our current property market to that of a Wet F1 race. The current market is not even at the stage of rain stopped and tracks started to dry. The current market trend is still a very wet track and it is still pouring with rain. The above article suggestion feels like asking those F1 drivers to try dry tyres on a very wet track. It won't work. They will end up in a wall and crash!

Why do I think that? Because the market in general is really volatile at the moment.

• High Fuel Prices
• Risk of Very High Inflation
• Food Prices High
• High-risk of Job Losses (Companies not affected by credit crunch are using it as an excuse to lay off employees)
• Lack of confidence in the market
• Low mortgage approval record (Basically Banks are not lending that much. They are being very cautious. So property market is very very slow at the moment)
• All bad financials decisions over these years are coming to light and they all are using Credit Crunch as an excuse. They all are using the current bad news as an excuse to fix past mistake.

So I dont think it is the right time to buy. Not just yet!

HankMcSpank

[sarcasm] Yeah after property rising exponentially for nigh on 10 years, the time to buy is now...after it has fallen for just six months! [/sarcasm]

BenL

The time to buy a property is now



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Whatever Fool.co.uk

tradetime

LOL, also I'd say there is economic fog out there and a touch of inflation black ice.:D

m00m00

it IS a good time to buy property now

compared to 12 months ago


it's a bad time to buy property now when looking at it objectively though

Paul_N_4

LEW wrote: »

Certainly I agree it may soon begin to get to the stage more and more where people are desperate to sell as they need the money. I read in the article '2m homebuyers to take advantage of falling prices' that 1.2 million are planning to upgarde in the next 12 months to take advantage of falling prices, and interestingly many are planning to sell now while they can still make a profit, rent and then buy again and bag a bargain. Guess we will see if this works out or ends in tears! Also does not seem to help first time buyers much!

That's a point worth repeating as many seem to forget falling prices are not bad news for everyone with a home to sell. Upsizers would benefit from selling their home now, either to rent, or get a bigger reduction on the home they'll move into.

I suppose this reflects a recent BBC poll that showed more people want house prices to drop than rise.

Austin_Allegro

ultra10 wrote: »

Some on this board genuinely cannot see the economic storm we are entering !! The fact that inflation is surging ahead, Commodities going through the roof, & a credit crunch resulting in the collapse of (De-facto) a Bank .. not to mention the largest asset bubble in history bursting !!! :eek:

They just dont get it do they !!!

Nah, it's just the media, innit, talking us into a recession....:rolleyes:

setmefree2

dannyboycey wrote: »

This is unsubstantiated rubbish. Please explain clearly and concisley why it is a good time to buy in your opinion, backed up with strong evidence. If you can't, the please don't post crap like this - it helps nobody, and is not doing your reputation much good either.

Hi dannyboycey,

No no no I'm not saying it's a good time to buy. I just thought it was interesting and put it up for discussion as it's a different view point. Certainly don't want to ruin my reputation;)