Selling a house quickly

bubblesmoney

one good reason to invest other than in property is that most other investments are liquid. u can get rid of them much much faster than property. also it allows people with much smaller investments a level footing as well like in shares etc and people can get on the rung much earlier than in property and also in smaller increments than in property. also advantage is that one can use the cost averaging techinique while regularly investing in shares etc which is not that easy doing in property. for the average joe like me who saves monthly other investments are much easier managing. also investing in other paper based / online based investments is much easier to manage than property. property especially abroad etc is risky managing (been there done that, won some, lost some, overall big profit, but still wouldnt recommend it to others, big risks involved but big gains as well) especially with encroachments / paperwork problems / etc etc making people make distress sales. such things dont usually affect other investments. u are allowed ur own pace and also amount u invest, and one can do it monthly as well unlike in properties (for the average joe like me) and if u really need money in a hurry u can have it all in a few days for market price. plus u dont have headaches of being a landlord. evicting people from ur property if they dont pay rent and also if they dont have money to recover the damages they cause can be a fun filled exercise for some but not for people like me especially seeing how long the court process takes in many places

(been there done that and had enough for now i.e. once had let out our house and the idiots without our knowledge had sublet the place to students, some of the monkeys living there had somehow mangaged to climb on to the roof using the water pipes to climb and plucked the tender cocunuts / other fruits etc from the 14 trees arround the house and some bums had taken rocks up to the roof to smash open the tender coconuts etc and damaged the concrete roof and used nails / DIY partitions in all the rooms to sublet it as a cheap illegal lodging. tenants from hell, took us nearly a year to repair the roof and rest of the property and couldnt recover any money for all our troubles & decided to sell it rather than suffer a repeat of that)

bubblesmoney

ellielou wrote: »

I can see the merits of what IanRR is saying however, I still feel it has more pitfalls than benefits, and Ian is either failing to mention them or see them. Anyway I still feel it's a misguided point of view but you don't become rich by playing safe (let me know if you can) - I'd like to hear from him in 5 years time to see if he still thinks the same way.

And getting back to my question - do we think it's not a good idea to sell at auction? lol

as long as u r pretty sure ur property is in a sought after area and dont mind the auctioneers expenses (need to pay that i heard even if the property doesnt sell) and set a practical reserve price and factor in the costs of the auctioneer and will be happy with the proceeds at the reserve price (or not selling it if bids are below reserve but still needing to pay auctioneer costs). if u r still happy with that outcome then that route will be a better bet rather than cash buyers. best of luck

IanRR

ukmike wrote: »

So do i.

See above.

Just common sense,worked hard,saved my money,didn't get in to debt.

Mike, you just summed it up perfectly. In common with the majority of people that have decided that my way of doing it was not for you, you have not understood the importance of always playing with other peoples money, as well as your own, if you want to.

I implore you to read the book that I have been banging on about. Every point that I have raised, is covered so much better than I can, in a few lines on here. AND, more important, EVERY question and opinion against my ideas, is answered completely.. ...The risk angles, the tenants, the rises, the figures, the statistics, the rents. THE LOT.

I thought that this may be a good forum to explain my thinking, and help people. I now understand that I have been trying to cover an entire book of knowledge, in a few lines on a forum. Without covering all of the associated points, its no wonder that people cannot take it all in. Thank you for helping me to understand this. I wish you all well.

And a thousand apologies to ELLIELOU, for hijacking her thread! Good luck folks. But I promise, once you understand this method, luck has nothing to do with it!

guppy

IanRR wrote: »

Every point that I have raised, is covered so much better than I can, in a few lines on here. AND, more important, EVERY question and opinion against my ideas, is answered completely.. ...The risk angles, the tenants, the rises, the figures, the statistics, the rents. THE LOT.

Does this include the "government statistic" (which in reality I fear you simply pullled out of your bottom) which states that house prices during the last crash only fell by an average of 3.7% between 1989-1994?

Anyway, getting your facts right has never been a precursor to making lots of money, so well done anyway.

neverdespairgirl

IanRR wrote: »

Average earnings have nothing to do with it.

It does, in that I was pointing out it took over 10 years for houses to be the same value, measured by average earnings. So, had I bought a house at the peak in 1989, it wouldn't have been worth the same in 1999 (on average).

neverdespairgirl

IanRR wrote: »

I use my eyes and ears, in the real world. Apart from nearly all new builds, which have always been dramatically over priced, and Northern Ireland (which has a lot more remaining problems, that we are not told about), there have been absolutely no falls at all, this time round.

That is most certainly *not* the case in WC1, where I live. Prices are most definitely falling, and not in new builds, and this isn't Belfast either.

bubblesmoney

IanRR wrote: »

Certainly not. It dropped about 20%, for a short while. But some areas actually went up at that time, giving an average of 3.7%. This is the official government figure! We are bombarded with figures every day, the Nationwides always being the most dramatic, to grab the publicity. No science applied to them at all. Imagine, just make your figures the most dramatic, and the newspapers will splash your name all over them, free of charge. Very clever marketing, I call it... I use the same no science ethics. I use my eyes and ears, in the real world. Apart from nearly all new builds, which have always been dramatically over priced, and Northern Ireland (which has a lot more remaining problems, that we are not told about), there have been absolutely no falls at all, this time round. Its just that our perceptions are being played with. I would refer you to my earlier comments about Alan Sugar and The Duke of Westminster, not dashing out to sell their property. Why wouldnt these incredibly rich and intelligent people do so? Simple. They know the truth about property. It always rises over time. This is without doubt, the best time in years to buy property. People have a perception that it is going to fall. So they sell.... Great news for the experts who really understand what is going on! The only reason that I want to share this, is because I hate to see people being ripped off by the rich. The people on this site, are here to save themselves money. I just hope that they will listen, instead of listening to the rubbish printed in the papers. Bad news always sells your product best. Just ask the Nationwide......

see this link for details and the graphs might be informative for 'some' who say property never makes a loss.

The 10% decline since August 2007 would therefore appear to be far more acute than the property bust of the early Nineties.

The total fall between the high and low, at 21%, was bigger than for the Halifax index

see this link for all property prices in uk since 1952 and quarterly changes. and see what the changes where between 1989 and 1995

also coming to affordability which i think is the key factor in governing house prices (no matter how much the shortage of houses u keep on banging about). if u cant afford it, then u cant buy it is the motto. nothing is for free.

Housing Affordability Ratings

he housing affordability crisis is most pervasive in Australia and New Zealand, each with an overall Median Multiple of 6.3. Affordability is only somewhat better in the United Kingdom(5.5) and Ireland (4.7), however is still far worse than historical norms. On the other hand,the national Median Multiple in Canada is 3.1, indicating that housing is less than one-half as
expensive relative to incomes as in New Zealand or Australia. The national Median Multiple in the United States is 3.6.

Least Affordable Markets: The least affordable markets are generally in California, Hawaii, the US
East Coast, Australia, the United Kingdom, New Zealand and Canada’s province of British
Columbia.

extract from-

4th Annual Demographia International Housing Affordability Survey: 2008

Ratings for Major Urban Markets

Table 1

Demographia Housing Affordability Ratings

Rating Median Multiple

Severely Unaffordable 5.1 & Over

Seriously Unaffordable 4.1 to 5.0
Moderately Unaffordable 3.1 to 4.0
Affordable 3.0 or Less

see table 3 on page 8 of the link for severely unaffordable areas as per median household income in uk

in the affordable housing (table4) list i cant find even 1 uk city!!! that should be a good indicator of whether the market will crash or not for most people

United Kingdom: The United Kingdom has no “affordable” markets and no “moderately
unaffordable” markets. Twenty-five (25) of the 28 markets in the United Kingdom are “severely unaffordable” and three markets are “seriously unaffordable.” The best ratings are “seriously unaffordable,” in Falkirk (Scotland), Dundee and Middlesborough & Durham.
The most unaffordable markets are Bournemouth & Dorset (8.9), Belfast (8.8) and Exeter & Devon (8.2). Among the larger markets, London (7.7) and the London Exurbs (7.4) are the least affordable. The national Median Multiple is 5.5, which is approaching double the Median Multiple ceiling of 3.0.

see this link

the writing is on the wall as far as i am concerned for the housing market. only those that get a good bargain in the present market will not make a loss, a lot of people will end up in negative equity looking at these figures. or somehow miraculously peoples incomes will have jump by leaps and bounds to make housing affordable or money will have to be grown on trees otherwise the only way is down now i feel