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  • FIRST POST
    archived user
    I am a cash buyer. Buy now or buy later??
    • #1
    • 17th Sep 19, 8:32 PM
    I am a cash buyer. Buy now or buy later?? 17th Sep 19 at 8:32 PM
    With the Office of National Statistics reporting that property price falls have now rippled out of London and into all three areas of southern England, from Land's End to Dover, and up to Milton Keynes, why would I buy now, when in 6 months, or a year's time, I will either get more property for my money, or the same property for a cheaper price? Patience is a virtue, and in the current market it could well be profitable, too.
    Last edited by Diocletian II; 17-09-2019 at 8:35 PM.
Page 3
    • Davesnave
    • By Davesnave 18th Sep 19, 10:11 AM
    • 29,803 Posts
    • 102,876 Thanks
    Davesnave
    My only advice is to find something you like that's cheap for its type and buy it, especially as I think you're looking for something not run-of-the mill that might be many months turning up again if you miss it.

    We bought bang at the bottom of the last recession, but we didn't know that at the time. Nobody, apart from the clairvoyant earlier in the thread, does. All we knew was that the place ticked difficult boxes and it was being sold cheaply by an extremely motivated seller. The last one like it, which we lost due to our own sale collapsing, came up a whole year and a bit before.


    Even then it was a compromise, though fortunately, with hidden charms!
    Last edited by Davesnave; 18-09-2019 at 10:13 AM.
    Things are more like they are right now than they've ever been.




    • hazyjo
    • By hazyjo 18th Sep 19, 10:17 AM
    • 12,459 Posts
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    hazyjo
    Only a small mortgage here.


    Didn't cross my mind to come off the market and rent when I last sold/bought.


    I've done well over the years - it's swings and roundabouts. I've certainly not tried to play the market and sell high and buy low. It's usually gone in my favour. If I've sold low, I've bought low and bigger. Didn't matter if the market fell a bit more. I'd have wasted far more on rent.


    If you were maxed out on a mortgage, I could understand your concerns. But a cash buyer? How can renting be cheaper? I'd be paying around £1500 a month for the equivalent property in rent vs £300 for my mortgage (zip if 100% cash buyer).
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn; Moisturising 'M&S Time Capsules'; Case of Boost Sport + £30 Just Eat voucher; Battle Proms tickets and hotel; under-eye serum...

    "Should know better." Apparently.
    • RelievedSheff
    • By RelievedSheff 18th Sep 19, 10:18 AM
    • 688 Posts
    • 692 Thanks
    RelievedSheff
    Everyone here says prices are falling but is this the same everywhere?
    Originally posted by bouicca21
    No it is not.

    According to the latest data house prices in the West and East Midlands rose by around 3% during the same period that London was experiencing a drop of 0.2%.

    The UK housing market has never reacted as a single unit. It is made up of hundreds if not thousands of "micro climates" that each react differently with regards house pricing.

    Different areas in the same city for example will see different degrees of pricing change, so it is clear that different areas of the UK will react differently as well.

    Too many people are fixated on London and the South East.
    • RelievedSheff
    • By RelievedSheff 18th Sep 19, 10:21 AM
    • 688 Posts
    • 692 Thanks
    RelievedSheff
    Only a small mortgage here.



    If you were maxed out on a mortgage, I could understand your concerns. But a cash buyer? How can renting be cheaper? I'd be paying around £1500 a month for the equivalent property in rent vs £300 for my mortgage (zip if 100% cash buyer).
    Originally posted by hazyjo
    He is a troll and just fishing for arguments.

    He has no intention of buying a property.
    • ReadingTim
    • By ReadingTim 18th Sep 19, 10:23 AM
    • 3,468 Posts
    • 5,194 Thanks
    ReadingTim
    Are you looking for a home to live in, or an investment to live off?

    For many people, owning their own home is far more preferable to renting it, almost completely irrespective of the price they paid for it and its present value; whereas a purely financial investment can take a more dispassionate approach.
  • archived user
    Are you looking for a home to live in, or an investment to live off?

    For many people, owning their own home is far more preferable to renting it, almost completely irrespective of the price they paid for it and its present value; whereas a purely financial investment can take a more dispassionate approach.
    Originally posted by ReadingTim
    I am looking for a home, but I am thinking that it is silly to buy now, when I could get something better for my money or pay less by waiting 6 months or a year. It would be unpleasant to discover with time that I had settled for something that was sub-standard and prices had continued to fall. That way I would not only have lost money on my purchase, but I could have bought something nicer if I had I waited. As it is I haven't found anything I much like yet.

    It's very good to get an insight into the thinking of the few other cash, first time buyers here. But I am amazed buyers are so few on the ground here. I think that speaks volumes.
    Last edited by Diocletian II; 18-09-2019 at 10:44 AM.
    • caprikid1
    • By caprikid1 18th Sep 19, 10:42 AM
    • 902 Posts
    • 972 Thanks
    caprikid1
    Where are you looking OP and what are you looking for ??
    • MobileSaver
    • By MobileSaver 18th Sep 19, 10:48 AM
    • 1,967 Posts
    • 2,994 Thanks
    MobileSaver
    I am looking for a home, ... by waiting 6 months or a year.
    Originally posted by Diocletian II
    So you are going to keep paying your landlord's mortgage for 6 months or a year when you could be living rent free?
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • tom9980
    • By tom9980 18th Sep 19, 10:55 AM
    • 1,523 Posts
    • 4,242 Thanks
    tom9980
    My only advice is to find something you like that's cheap for its type and buy it, especially as I think you're looking for something not run-of-the mill that might be many months turning up again if you miss it.

    We bought bang at the bottom of the last recession, but we didn't know that at the time. Nobody, apart from the clairvoyant earlier in the thread, does. All we knew was that the place ticked difficult boxes and it was being sold cheaply by an extremely motivated seller. The last one like it, which we lost due to our own sale collapsing, came up a whole year and a bit before.


    Even then it was a compromise, though fortunately, with hidden charms!
    Originally posted by Davesnave
    I bought for the first time in April 2009 with cash from inheritance, until this point we were poor and on benefits. This was at a time during the height of recession when many were unsure about the economy including house prices. However we knew the local market and the house we bought was solid if unspectacular a 3 bed ex-council semi that we felt was excellent value after having a hefty price cut by a motivated seller, so we bought it.

    10 years on we lived in it for 5 years saving rent (£30k), have seen its price increase from £100k to £160k (£60k) and have rented it out for the past 5 years for a net income of £35k. It has more than paid for itself. Now we were in many ways lucky and past performance certainly should not indicate future performance.

    Now if you ask me should i buy a BTL in 2019 the answer is NO due to the mooted legislation changes for landlords in the near future and for me it has been a firm no since 2016. However if you want to buy a home to live in for a minimum of 5 years then it is almost always YES.

    Sadly the OP doesn't post to seek real advice.
    “In order to change, we must be sick and tired of being sick and tired.”
  • archived user
    I am one.

    Strangely, most of the houses I view turn out to be people who have inherited a lot of money and are moving to a bigger/nicer house. Some have so much money they have a fixed price for their empty house and are quite happy to wait. e.g. one I viewed, £300k in January 2019. It did go down £10k, then up £10k. It's just changed from its 2nd and 3rd agents back to its original agent, still £300k.

    The market and buyers are made of all sorts.

    Is their house worth £300k? Clearly not as others around theirs have sold in recent months.... I'd say theirs was worth about £280-288k when I viewed it 5-6 months ago.

    If it drops to, say, £290k again - has it dropped? No, it was always overpriced.
    Originally posted by PasturesNew
    I, and probably a lot of other buyers, tend to be put off houses that languish on the market for years, because I think there must be something wrong with the house that makes nobody want to buy it. Even if I liked it, I tend to think that nobody would want to buy it off me if I was the owner, and I would be buying a very expensive chain round my neck. In reality, it is probably just the price that is wrong, and puts people off, but you just don't know if there is not something else that you can't quite grasp.
    • hazyjo
    • By hazyjo 18th Sep 19, 11:02 AM
    • 12,459 Posts
    • 17,055 Thanks
    hazyjo
    He is a troll and just fishing for arguments.

    He has no intention of buying a property.
    Originally posted by RelievedSheff
    I know. I'm just trying to show the flaws in his argument. I don't mind playing along, but it's frustrating when people like this never ever want to see or consider another POV. They just repeat the same ol' crap like a broken record without listening to what you're actually replying with. I've agreed the market is static/slow/dropping, I predicted it too, but it's not a black and white argument - people still need homes. I'm more than happy to pay for that luxury. I'm savvy enough to buy clever and add a bit of value anyway.
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn; Moisturising 'M&S Time Capsules'; Case of Boost Sport + £30 Just Eat voucher; Battle Proms tickets and hotel; under-eye serum...

    "Should know better." Apparently.
    • ReadingTim
    • By ReadingTim 18th Sep 19, 11:04 AM
    • 3,468 Posts
    • 5,194 Thanks
    ReadingTim
    I am looking for a home, but I am thinking that it is silly to buy now, when I could get something better for my money or pay less by waiting 6 months or a year. It would be unpleasant to discover with time that I had settled for something that was sub-standard and prices had continued to fall. That way I would not only have lost money on my purchase, but I could have bought something nicer if I had I waited. As it is I haven't found anything I much like yet.

    It's very good to get an insight into the thinking of the few other cash, first time buyers here. But I am amazed buyers are so few on the ground here. I think that speaks volumes.
    Originally posted by Diocletian II
    Therefore it really depends on whether home ownership makes for better or worse living circumstances than the ones you're currently in. Many people are living in sub-standard rented accommodation with ever rising rents which they're keen to get out of at all costs - look at the number of threads on this very board complaining about letting agents and landlords if you don't believe me.

    Furthermore, the number of cash FTBs are extremely rare as they're limited to the bank of a very rich mum & dad, a dead wealthy granny, or a lottery winner.

    So, which are you?
  • archived user
    I am looking for the views of other cash or first time buyers, not owners (who, unhelpfully, swarm on this board encouraging buyers to throw caution to the wind). There seem to be very few other cash buyers here, which actually speaks volumes about the market, when they are in such short supply on a big public buying forum.

    Please would cash buyers leave there views, not owners who are shill-ing the market.
  • archived user
    Therefore it really depends on whether home ownership makes for better or worse living circumstances than the ones you're currently in. Many people are living in sub-standard rented accommodation with ever rising rents which they're keen to get out of at all costs - look at the number of threads on this very board complaining about letting agents and landlords if you don't believe me.

    Furthermore, the number of cash FTBs are extremely rare as they're limited to the bank of a very rich mum & dad, a dead wealthy granny, or a lottery winner.

    So, which are you?
    Originally posted by ReadingTim
    I am a cash third time buyer. But many of the issues I am facing also apply to first time buyers, although they are not identical. Lots of buyers will also be living in quite adequate rented accommodation or with parents, so I think the argument that bought accommodation is always better than rented is not accurate. In London it is quite possible to rent something better than people can afford to buy.
    • ReadingTim
    • By ReadingTim 18th Sep 19, 11:15 AM
    • 3,468 Posts
    • 5,194 Thanks
    ReadingTim
    I am looking for the views of other cash or first time buyers, not owners (who, unhelpfully, swarm on this board encouraging buyers to throw caution to the wind). There seem to be very few other cash buyers here, which actually speaks volumes about the market, when they are in such short supply on a big public buying forum.

    Please would cash buyers leave there views, not owners who are shill-ing the market.
    Originally posted by Diocletian II
    There are very few other cash buyers out there not because of the market, but because very few people have £200k+ in cash sitting around doing nothing, and those that do probably own property already.

    The only thing which "speaks volumes" is your nativity, suggesting, to answer my previous question, you're still living at home with mummy and daddy. Shouldn't you be at school? - term started last week.
  • archived user
    There are very few other cash buyers out there not because of the market, but because very few people have £200k+ in cash sitting around doing nothing, and those that do probably own property already.

    The only thing which "speaks volumes" is your nativity, suggesting, to answer my previous question, you're still living at home with mummy and daddy. Shouldn't you be at school? - term started last week.
    Originally posted by ReadingTim
    I am renting a place that is quite adequate. Your insults are unwelcome. I have noticed that owners tend to insult non-owners here.
    Last edited by Diocletian II; 18-09-2019 at 11:19 AM.
    • hazyjo
    • By hazyjo 18th Sep 19, 11:21 AM
    • 12,459 Posts
    • 17,055 Thanks
    hazyjo
    90%-odd equity, so I'll stay, thank you
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn; Moisturising 'M&S Time Capsules'; Case of Boost Sport + £30 Just Eat voucher; Battle Proms tickets and hotel; under-eye serum...

    "Should know better." Apparently.
  • archived user
    I am one.

    Strangely, most of the houses I view turn out to be people who have inherited a lot of money and are moving to a bigger/nicer house. Some have so much money they have a fixed price for their empty house and are quite happy to wait. e.g. one I viewed, £300k in January 2019. It did go down £10k, then up £10k. It's just changed from its 2nd and 3rd agents back to its original agent, still £300k.

    The market and buyers are made of all sorts.

    Is their house worth £300k? Clearly not as others around theirs have sold in recent months.... I'd say theirs was worth about £280-288k when I viewed it 5-6 months ago.

    If it drops to, say, £290k again - has it dropped? No, it was always overpriced.
    Originally posted by PasturesNew
    As cash buyers on this board, we are a very rare breed, almost extinct it seems. Cash buyers amongst a herd (or swarm) of owners trying to shill the market. I find it quite revealing.
    Last edited by Diocletian II; 18-09-2019 at 12:09 PM.
    • MobileSaver
    • By MobileSaver 18th Sep 19, 12:28 PM
    • 1,967 Posts
    • 2,994 Thanks
    MobileSaver
    As cash buyers on this board, we are a very rare breed, almost extinct it seems. I find it quite revealing.
    Originally posted by Diocletian II
    What exactly do you find revealing about the fact that there are not many posters with £200k cash on a site where the biggest financial topic by far is the "how to get out of debt" Debt-Free Wannabe forum?!?!
    Respect to 3 of the greatest actors of all time; amazing people who are totally believable as the characters they play & almost single-handedly make the shows they starred in:

    Peter Dinklage as Tyrion Lannister in Game of Thrones
    Daniel J. Travanti as Frank Furillo in Hill Street Blues
    Claire Danes as Carrie Mathison in Homeland
    • hazyjo
    • By hazyjo 18th Sep 19, 12:34 PM
    • 12,459 Posts
    • 17,055 Thanks
    hazyjo
    As cash buyers on this board, we are a very rare breed, almost extinct it seems. Cash buyers amongst a herd (or swarm) of owners trying to shill the market. I find it quite revealing.
    Originally posted by Diocletian II
    Really?


    I don't. Most people I know max out their borrowing power to buy bigger. Most don't worry too much about paying off mortgages until later in life (40s, 50s, 60s+).


    You may be spending £200k cash. Joe Bloggs somewhere else may be spending £1m with a mortgage. Not sure why you're making such a thing about cash? Unless you're an investor, I don't see why it would make any difference to how or when you would buy a house to live in.
    2019 wins: Bottle of Prosecco; Popcorn Shed popcorn; Moisturising 'M&S Time Capsules'; Case of Boost Sport + £30 Just Eat voucher; Battle Proms tickets and hotel; under-eye serum...

    "Should know better." Apparently.
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