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  • FIRST POST
    • Diocletian II
    • By Diocletian II 17th Sep 19, 7:32 PM
    • 398Posts
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    Diocletian II
    I am a cash buyer. Buy now or buy later??
    • #1
    • 17th Sep 19, 7:32 PM
    I am a cash buyer. Buy now or buy later?? 17th Sep 19 at 7:32 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 7:35 PM.
Page 1
    • Yalpsmol
    • By Yalpsmol 17th Sep 19, 7:36 PM
    • 190 Posts
    • 213 Thanks
    Yalpsmol
    • #2
    • 17th Sep 19, 7:36 PM
    • #2
    • 17th Sep 19, 7:36 PM
    Is the question rhetorical or genuine?
    • Diocletian II
    • By Diocletian II 17th Sep 19, 7:38 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    • #3
    • 17th Sep 19, 7:38 PM
    • #3
    • 17th Sep 19, 7:38 PM
    A bit of both. I am a cash buyer, but it's the age old question that arises when prices start falling. It's one that is relevant to all buyers.
    • AnotherJoe
    • By AnotherJoe 17th Sep 19, 7:40 PM
    • 15,921 Posts
    • 19,141 Thanks
    AnotherJoe
    • #4
    • 17th Sep 19, 7:40 PM
    • #4
    • 17th Sep 19, 7:40 PM
    I doubt you'll get significantly cheaper outside central london except from people who need to sell.

    This is probably why the housing market is fairy stationary at the moment.
    If i was buying now I'd certainly be actively looking there are some bargains but there's also a scarcity since those who dont have to sell now are waiting to sell, just like you are awaiting to buy.
    Also depends on your situation, if you are renting your rent may be more than a mortgage.
    If you are in a cheap house share or with M&D, well obvs each month you are accumulating cash.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 7:41 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    • #5
    • 17th Sep 19, 7:41 PM
    • #5
    • 17th Sep 19, 7:41 PM
    According to the ONS this month, prices have now started falling across a huge swathe of the country, which means property is getting cheaper by the month. I'd rather get more property for my money by waiting. But then again, I am a fairly patient person. Some buyers may not be so patient, and not really care about getting more property for their money, or spending less money. My current accommodation costs are not expensive.
    Last edited by Diocletian II; 17-09-2019 at 7:46 PM.
    • AnotherJoe
    • By AnotherJoe 17th Sep 19, 7:47 PM
    • 15,921 Posts
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    AnotherJoe
    • #6
    • 17th Sep 19, 7:47 PM
    • #6
    • 17th Sep 19, 7:47 PM
    I suspect the ONS did not say "prices have started falling" which implies an element of predictive ability, eg meaning they will continue to do so.
    I think there's some projection going on here for what you want/believe is happening, and what they actually said was something like "prices fell 1.1% in August" with no implication for what will happen in September.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 7:49 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    • #7
    • 17th Sep 19, 7:49 PM
    • #7
    • 17th Sep 19, 7:49 PM
    No, but property prices are like turning a super tanker. Once they have started moving in a particular direction, as they have now, they are set on course for a good while. The ONS data are also 3 to 6 months out of date, so I doubt the market will have improved since March, more like deteriorated further. The declines by now should really have started to set in, given all the political and financial uncertainty going on.
    Last edited by Diocletian II; 17-09-2019 at 7:57 PM.
    • Vestra
    • By Vestra 17th Sep 19, 8:04 PM
    • 822 Posts
    • 284 Thanks
    Vestra
    • #8
    • 17th Sep 19, 8:04 PM
    • #8
    • 17th Sep 19, 8:04 PM
    Prices around me sinking like a stone, I would wait and see where the market bottoms out.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 8:23 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    • #9
    • 17th Sep 19, 8:23 PM
    • #9
    • 17th Sep 19, 8:23 PM
    Prices around me sinking like a stone, I would wait and see where the market bottoms out.
    Originally posted by Vestra
    That's what my gut instinct tells me. I'd like to know what other cash buyers, or first time buyers are thinking, since similar issue will be relevant - do we wait to get more property/spend less, or do we dive in now, regardless, and get less property/spend more?
    Last edited by Diocletian II; 17-09-2019 at 8:25 PM.
    • Slithery
    • By Slithery 17th Sep 19, 8:39 PM
    • 1,968 Posts
    • 3,284 Thanks
    Slithery
    I'd buy as soon as possible, prices are going to start rising in a couple of months when everyone realises it's still life as usual.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 8:50 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    House prices are like turning a super tanker, their direction never turns on a dime as you are suggesting. It takes a long long while for their direction to change.

    It would be most useful for me to know what other cash buyers and first time buyers are thinking, since owners are too biased towards encouraging buyers to buy without delay and without regard to price (that is only logical, since it is in owners' vested interests to encourage it).
    Last edited by Diocletian II; 17-09-2019 at 8:53 PM.
    • Slithery
    • By Slithery 17th Sep 19, 8:56 PM
    • 1,968 Posts
    • 3,284 Thanks
    Slithery
    House prices are like turning a super tanker, their direction never turns on a dime as you are suggesting. It takes a long long while for their direction to change.
    Originally posted by Diocletian II
    I didn't say it would be quick, I said 'start rising'.

    It would be most useful for me to know what other cash buyers and first time buyers are thinking, since owners are too biased towards encouraging buyers to buy without delay and without regard to price (that is only logical, since it is in owners' vested interests to encourage it).
    I don't own any property, but if I was looking to buy I'd always do it as soon as I could afford to because long term prices always rise. It's better to have a home to live in than risk trying to guess the market for years and ending up like Crashy.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 9:00 PM
    • 398 Posts
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    Diocletian II
    I am currently living very comfortably, thank you.

    Falling prices mean cheaper prices going forward. A turn around in direction twice in a few months would be exceptionally quick for the super tanker property market. It usually takes a few years to change direction.

    I'd like to know what other cash buyers and first time buyers are thinking about whether they would wait 6 months to a year to get more property or spend less.
    Last edited by Diocletian II; 17-09-2019 at 9:11 PM.
    • big4split
    • By big4split 17th Sep 19, 9:01 PM
    • 9 Posts
    • 4 Thanks
    big4split
    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.
    Originally posted by Diocletian II
    If you need somewhere to live now, buy now.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 9:06 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    I'm living quite comfortably, and I doubt many cash buyers, or even first time buyers are homeless. Maybe they would prefer to be owner occupiers, but is it something that cannot wait for 6 months in order to take advantage of falling prices and pay less?
    • epinjy
    • By epinjy 17th Sep 19, 9:16 PM
    • 35 Posts
    • 57 Thanks
    epinjy
    Eventually the crash will come and make all those extra months or years of rent worth it!...

    It is meaningless looking at house prices as an absolute figure only without also considering wage growth, availability of credit and interest rates. Wages are running above house price inflation, interest rates are low and seemingly look like they will kept low going forwards for years, and availability of credit is good (i.e. banks are lending) with post MMR affordability checks keeping a lid on house price inflation in recent years.

    Really why even bother look at house prices for capital gains at all, as the majority of the "profit" in housing is not having pay rent (and for comparison, instead interest on the mortgage and any maintenance, which is typically a lot less than rent).

    I wouldn't expect much from a "ripple from London either", it is a different market dynamic completely. Key workers/average wagers can afford a house outside of the south east still and London has been flat for 3 years already - no crash in sight even for London. Cash in a bank hasn't done much better than London over the last 3 years, has it?
    • Diocletian II
    • By Diocletian II 17th Sep 19, 9:26 PM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    The ripple has taken its time but is now definitely covering the south, where price reductions are increasingly plentiful, just like they have been in London for several years now.

    Employment rises are also slowing down to a halt, and unemployment will soon probably start rising from its historic lows, which will add further pressure to the property market.

    I'd like to know what other cash buyers are thinking.
    • dijango
    • By dijango 17th Sep 19, 10:44 PM
    • 3 Posts
    • 0 Thanks
    dijango
    FTB here. I need to buy ASAP as getting older and currently live in a cold flat, yet another winter will be depressing for me. Reason I am not buying now, is because even with prices low, all I can afford in London, even by a stretch, would be a s**thole, but I want a home sweet home. So as soon as I can afford something nice, I will be grabbing.
    Last edited by dijango; 17-09-2019 at 10:46 PM.
    • Crashy Time
    • By Crashy Time 17th Sep 19, 11:17 PM
    • 8,390 Posts
    • 2,973 Thanks
    Crashy Time
    Prices around me sinking like a stone, I would wait and see where the market bottoms out.
    Originally posted by Vestra
    Do you have a link to the general area so we can follow the price declines? I am amazed at how many people all over the country are accepting that 25, 50 or even 75k needs to come off their asking price before they even get views now, things are definitely looking more positive for genuine Money Savers out there!
    • Diocletian II
    • By Diocletian II 18th Sep 19, 4:08 AM
    • 398 Posts
    • 113 Thanks
    Diocletian II
    I currently monitor the 'cash buyer' market as far as companies go, and get some insight into their transactions. I would say Brexit is a huge influence and a number of cash buying companies are holding out until the result of Brexit.


    My website simply offers advice for homeowners considering a cash sale, and has advice on what to watch for when dealing with a cash buying company; therefore i'm outside of the property world so to speak other than my insider knowledge of these companies.


    However, I know first hand the companies I speak to are concerned about Brexit and holding out on big transactions.


    Ready Steady Sell.
    Originally posted by readysteadysell
    The astonishing impression I get from this forum is that other cash buyers of property are nowhere to be seen, and not even hovering waiting to buy. Their previous existence seems to be a dim and distant memory, something of folklore and legend. Even first time buyers seem to be getting thinner on the ground, or more likely inhabiting the new build market.

    Are there any other cash buyers out there?
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