is it good time to buy now ?

la gran siete

Distinguished Member
Is this house for you, or is it a BTL?

If its for you, consider the cost of the current rent you're paying vs paying a mortgage (unless you're living with parents rent free:devil:) - it may be that you would pay a similar amount on a mrtgage as the rent you are paying. It would possibly then make much more sense to buy a house now (I'm assuming that you can reasonably afford it), than wasting another 6-9 months rent money.

However, a BTL, wait until the bottom and then buy!

Joust
No its a BTL.More to do with my wife than me as she wants to pack her onerous job and take on something part time and using rentals to augment her income.Bit impatient, though, as she wants to dive in now:rotfl:I shall have to persuade her to be patient:rolleyes:
 

joust

Well-known Member
When's that going to be?? Crystal ball stuff!!!:D
As it's going to be a BTL, the advice given earlier by Andykn is pretty sound. It's not a good time to buy as an 'investment' - most rental incomes are in the doldrums at the moment, probably won't cover the mortgage outgoing, and until the market picks up, will stay that way.

No no, my crystall ball is as cloudy as everybody elses :rotfl:

Joust
 

Yandros

Novice Member
Because trying to guess the bottom relies on luck is why you shouldn't try and guess when the bottom is but wait for prices to rise. If you miss the bottom on the way up you may miss a couple of percentage points. Miss it on the way down and you could still be out another 10-15%.
Exactly. The last pickup in the market was VERY slow, so you'll probably have plenty of time to pick your moment. I bought a flat in 1990 for £40K. It crashed over about 2 years to a low point of £13K. I bought a house in 1994 at the very bottom of the market for £51K, and rented out the flat till it recovered in value. In 1999 the flat had recovered to £38K, and the house was sold for £67K.

The best option is to wait for a sustained recovery in the market rather than fall into a 'bull trap' (ie a false recovery followed by a further plummet)
 

johntheexpat

Distinguished Member
Paraphrasing a Rothschild or some other rich banker, don't aim to sell at the top or buy at the bottom, you'll never get it right. If you want to make money, be content with selling near the top and buying near the bottom.
Oh and never believe what an Estate Agent tells you.

And consider using other fundamentals to give you a heads up. For example, don't listen to stuff about prices, but note how many mortgage approvals are being given and the value of new mortgages. Then set yourself a target, eg 66% to 75% of 'normal' rather than 'boom time' figures might be a place to start, because that would indicate money is slowly starting to move back into the system.
 

la gran siete

Distinguished Member
but note how many mortgage approvals are being given and the value of new mortgages. Then set yourself a target, eg 66% to 75% of 'normal' rather than 'boom time' figures might be a place to start, because that would indicate money is slowly starting to move back into the system.
how would i get hold of that information and would that be on a more local level than national?:)
 
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Ayub

Distinguished Member
I bought my 11th house last month, the way i see it...

The same house was worth £150-180 in 2004-2005 this was based on its location 5 doors away from the university.

I paid £160k slightly higher than what it may be worth ( needs around 20k of renovating) so i MAY if the housing market wants to put it "loose" a little.

Any house you buy is worth as much as you want to pay for it. I was happy to buy it at 167k ( my max budget for this type of property).

The housing market went tits up a long time ago. Make sure you can afford it ( without a job/wife income) can you manage?
Think it over seriously and GOOD luck my friend. :smashin:
 

la gran siete

Distinguished Member
I bought my 11th house last month, the way i see it...

The same house was worth £150-180 in 2004-2005 this was based on its location 5 doors away from the university.

I paid £160k slightly higher than what it may be worth ( needs around 20k of renovating) so i MAY if the housing market wants to put it "loose" a little.

Any house you buy is worth as much as you want to pay for it. I was happy to buy it at 167k ( my max budget for this type of property).

The housing market went tits up a long time ago. Make sure you can afford it ( without a job/wife income) can you manage?
Think it over seriously and GOOD luck my friend. :smashin:
we can ,just, although it would leave us low in liquidity.Waiting another 6 months or would give us that extra breathing space if, prices actually DO come down,Ideally I'd like to see another 20% drop
 

Yandros

Novice Member
we can ,just, although it would leave us low in liquidity.Waiting another 6 months or would give us that extra breathing space if, prices actually DO come down,Ideally I'd like to see another 20% drop
I see a further 20% as highly likely. Looking at the Nationwide & Halifax HPI curves, I reckon we'll bottom out at -25% annual in a few months time, but that means we still won't see actual net increased in house prices for at LEAST a year.
 

la gran siete

Distinguished Member
Paraphrasing a Rothschild or some other rich banker, don't aim to sell at the top or buy at the bottom, you'll never get it right. If you want to make money, be content with selling near the top and buying near the bottom.
Oh and never believe what an Estate Agent tells you.

And consider using other fundamentals to give you a heads up. For example, don't listen to stuff about prices, but note how many mortgage approvals are being given and the value of new mortgages. Then set yourself a target, eg 66% to 75% of 'normal' rather than 'boom time' figures might be a place to start, because that would indicate money is slowly starting to move back into the system.

This . I guess , is the kind of website that would inform me abou mortgage approvals
Forex Calendar @ Forex Factory
 

SanPedro

Well-known Member
The other option is to look at the property auctions if you're looking for a bargain.

There's going to be bargains here as the rise in repossions gathers steam. Or trawl the local agencies looking for distress sellers. The ideal buy to let is probably at the bottom end of the market where first time buyers are struggling with getting together the necessary equity on dilapidated renovation projects.

Me and my partner looked at one the other day. It was an old ladies house who'd just passed away. the place was a complete stae and needed totally ripping out. The old ladies nephew lived some 50 miles away and was looking to get sgut.

It had supposedly been valued at 70k some 18 months ago at the peak of the market when similar properties in mint condition were fetching £90k. we were considering offering £35K and spending up to £20k on it. This would leave us with a £55k outlay and in a decent position if properties drop by 30% overall 'peak to trough'.

We decided against in the end, as the neighbours looked rough and left their dog outside to cover the front garden in poop.
 

la gran siete

Distinguished Member
The other option is to look at the property auctions if you're looking for a bargain.

There's going to be bargains here as the rise in repossions gathers steam. Or trawl the local agencies looking for distress sellers. The ideal buy to let is probably at the bottom end of the market where first time buyers are struggling with getting together the necessary equity on dilapidated renovation projects.

Me and my partner looked at one the other day. It was an old ladies house who'd just passed away. the place was a complete stae and needed totally ripping out. The old ladies nephew lived some 50 miles away and was looking to get sgut.

It had supposedly been valued at 70k some 18 months ago at the peak of the market when similar properties in mint condition were fetching £90k. we were considering offering £35K and spending up to £20k on it. This would leave us with a £55k outlay and in a decent position if properties drop by 30% overall 'peak to trough'.

We decided against in the end, as the neighbours looked rough and left their dog outside to cover the front garden in poop.
one would be hardpressed to find a two bed house round here for less than 150 k unless it was in the grottiest areas even now.One thing that has been impressed on me is the importance of location especially with regard to school catchment areas.People also have certain perceptions which maybe quite unfair, even about a private estate.Ease of letting and any subsequent desire to sell quickly are of paramount importance to me.
Although most people seem to think that we are in for a further fall,judging other forums i visit there do appear to be some diehard optimists out there who think the market is set to kick start again soon or at least will not plunge further although it would depend on which part of the country of course.:confused:
 

andykn

Novice Member
one would be hardpressed to find a two bed house round here for less than 150 k unless it was in the grottiest areas even now.One thing that has been impressed on me is the importance of location especially with regard to school catchment areas.People also have certain perceptions which maybe quite unfair, even about a private estate.Ease of letting and any subsequent desire to sell quickly are of paramount importance to me.
Although most people seem to think that we are in for a further fall,judging other forums i visit there do appear to be some diehard optimists out there who think the market is set to kick start again soon or at least will not plunge further although it would depend on which part of the country of course.:confused:
Take a property priced today at 150k. If we are actually at the bottom of the market and you wait you might have to pay 155k. If we aren't at the bottom of the market it could be worth only 135k soon.
 

la gran siete

Distinguished Member
Six months is waiting :thumbsup:In the meantime i'll buy some premium bonds.:)



Actually no i wont.Just looked at the probabilty factor and hey way underperform good savings accounts
 
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loz

Well-known Member
Can't find a link yet, but on the Sky News ticker, it is saying that according to the Halifax House Price Index house prices rose 1.9% in January.
 

Loftusrd1980

Novice Member
I am tempted at the moment to try and get on the property ladder with a view to future investment. Anybody who is advertising their property to sell obviously needs to sell so I would offer well below the asking price, which might compensate for the continued down turn in the market.

At the end of the day a house is only worth what sombody is willing to pay for it now and with the fact that a lot of people have got a wake up call with the economical situation there may be a more realistic value on property in the near to intermediate future.
 

andykn

Novice Member
Same report:

"Last week, a survey by Nationwide suggested house prices fell by 1.3% in January,...."

No wonder the whole Financial Services Sector is in a mess. I know further down the report they try and make excuses for the different numbers, but even so.
One report, two completely different numbers. What was the point?
At least they are facts - far better than the perennially misleading ramblings of our news workers.
 

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