Grief From The Other Half

[VeryMeanReversion]

Anyone else getting grief from the other half about not buying a house?

At this rate, I'm going to be a forced buyer. Either that or get CSA'd and end up living in a bedsit.

Must resist, must resist.....

VMR.

[jonewer]

Anyone else getting grief from the other half about not buying a house?

At this rate, I'm going to be a forced buyer. Either that or get CSA'd and end up living in a bedsit.

Must resist, must resist.....

VMR.

Haha. Its actually my OH acting as the brake at the moment.

[Guest Steve Cook]

Anyone else getting grief from the other half about not buying a house?

At this rate, I'm going to be a forced buyer. Either that or get CSA'd and end up living in a bedsit.

Must resist, must resist.....

VMR.

Jesus wept!

Unless you wish to run the very real risk of being a debt slave for the rest of your working life due to the negative equity that will not recover for possibly decades....

don't buy a house now

Edited September 8, 2008 by Steve Cook

[Badger]

Teach her to learn to read (numbers as well as letters) and she should change her mind.

[VeryMeanReversion]

Jesus wept!

Unless you wish to run the very real risk of being a debt slave for the rest of your workign life due to the negative equity of your house thaty will not recover for possibly decades....

don't buy a house now

I'm a cash buyer, well aware of future 30% drops but at some point, its going to be a choice between buying a house or filling out forms for the CSA.

VMR.

[Leonard Hatred]

Yes - unfortunately it took her umpteen months of consecutive price falls to make her realise that if she had got her own way, we would be mortgaged up to the hilt and trapped in a tiny house until the next boom.

[indebted]

For goodness sake man - GROW A PAIR!

Drive o/h around all the crappy sink estates and point out that this is where you'll be living once NE and repossession bites! Then drive around the better areas and point out what you'll be paying for a nice place in 2-3 years!

Stand up for yourself, no woman respects a guy who backs down - trust me on that one!

p.s.

I make these comments as a woman by the way .....

[loon]

I worked with a good guy in Harlow, last year. He STR-ed about two and a half years ago, I think. His other half did not like the renting lifestyle however, and I think she was pushing to buy. I hope they held on - he was bang on the money.

Suggestion - using the graphs linked from HPC front page (the income multiple vs average price in particular), try to agree how much you are both are prepared to lose when moving house. Only after agreeing that, then try to find houses that might accept an offer where only your agreed amount of money will be wiped out when the market hits 40% / 50% under its peak.

You might both agree that the amount of money you are willing to lose is very little, so its time to wait.

Or, you can't find any house that match your criteria and are within the price range from above, so time to wait.

Or, you do look at some houses, but there aren't good or nice enough, or outside your agreed money-loosing range, so time to wait.

You may just find the house you are looking for, and within your agreed money-loosing range.

Disclaimer - I haven't tried this out, many back-fire, harm animals, etc

[VeryMeanReversion]

Drive o/h around all the crappy sink estates and point out that this is where you'll be living once NE and repossession bites! Then drive around the better areas and point out what you'll be paying for a nice place in 2-3 years!

We can currently afford a 4-bed standard detached for cash. With a 30% drop, we can afford a top place with a good plot and no mortgage. We had one of those back in 2003 but had to sell up for a move to get work when my employer went bust.

Stand up for yourself, no woman respects a guy who backs down - trust me on that one!

A close friend got booted out of the house last November (they have 4 young kids). After he checked his position with the CSA, he realised it was bedsit time for him. That reminded me of the potential consequences.

My best plan of action is to lock the money up in another 6/12 month bond so we can't get at it. I'm also ready for viewing crap overpriced housing to dampen any hopes.

VMR.

[Tiger Woods?]

I'm a cash buyer, well aware of future 30% drops but at some point, its going to be a choice between buying a house or filling out forms for the CSA.

VMR.

Marry in haste, repent at leisure.

Try pointing out what further price drops would mean in terms of extra holidays, uni fees for the kids etc. This is the rest of your lives, and what is another year or 2 of renting in that context? If it is a real problem of space, and you would be a cash buyer, rent a bigger house for a couple of years. If worst came to worst point out how she would feel if you pissed away 20k a year on the ponies...because it is more or less what she is wanting you to do with a house.

[VeryMeanReversion]

Suggestion - using the graphs linked from HPC front page (the income multiple vs average price in particular), try to agree how much you are both are prepared to lose when moving house. Only after agreeing that, then try to find houses that might accept an offer where only your agreed amount of money will be wiped out when the market hits 40% / 50% under its peak.

Tried that, I have a whole library of graphs, historical research on asset price booms and busts but predicting it early blows all credibility.

HPC views are still widely seen as delusional, even in the presence of the bl**ding obvious falls so far.

At some point, I'll have to make offers but just set them low enough so they will get refused. Offering 40% of asking price for land is my record low so far.

VMR.

[loon]

Tried that, I have a whole library of graphs, historical research on asset price booms and busts but predicting it early blows all credibility.

Out of interest, how much did you both agree you were willing to loose?

[AteMoose]

Tried that, I have a whole library of graphs, historical research on asset price booms and busts but predicting it early blows all credibility.

HPC views are still widely seen as delusional, even in the presence of the bl**ding obvious falls so far.

At some point, I'll have to make offers but just set them low enough so they will get refused. Offering 40% of asking price for land is my record low so far.

VMR.

Dont sell logic (80% of people don't do logic) sell the dream of what will be.... sell a plan of where you will be when we reach a trough, what house you will buy and when...

Edited September 8, 2008 by moosetea

[VeryMeanReversion]

Marry in haste, repent at leisure.

Right girl, wrong housing market.

Try pointing out what further price drops would mean in terms of extra holidays, uni fees for the kids etc. This is the rest of your lives, and what is another year or 2 of renting in that context? If it is a real problem of space, and you would be a cash buyer, rent a bigger house for a couple of years. If worst came to worst point out how she would feel if you pissed away 20k a year on the ponies...because it is more or less what she is wanting you to do with a house.

Tried that, been renting for 5 years already, large house (2000sqft?), large garden and cheap rent (<£1Kpcm). I've pointed out that current drops are saving us £10K a month. Doesn't help much.

Mrs VMR is not money minded in the slightest but just wants a house and has already waited 5 years, tough when you used to own a good house. She's a keen gardener but there is no point when you are renting and can be kicked out at 2 months notice, not exactly ideal when the kids are starting school.

VMR.

[TeddyBear]

I'm a cash buyer, well aware of future 30% drops but at some point, its going to be a choice between buying a house or filling out forms for the CSA.

VMR.

If you're a cash buyer there isn't a fear of negative equity then? It's more waiting to get a better place for the money?

Edited: posts since I posted answer that....

Well, looks like a quality of life question too then. She's not money minded, just wants to garden etc, however, you could point out that if you need to move again because of job loss, as happened last time, you might get stuck with a place you can't sell and she'll be left on her own doing the garden while you work elsewhere..

Edited September 8, 2008 by TeddyBear

[AteMoose]

Right girl, wrong housing market.

Tried that, been renting for 5 years already, large house (2000sqft?), large garden and cheap rent (<£1Kpcm). I've pointed out that current drops are saving us £10K a month. Doesn't help much.

Mrs VMR is not money minded in the slightest but just wants a house and has already waited 5 years, tough when you used to own a good house. She's a keen gardener but there is no point when you are renting and can be kicked out at 2 months notice, not exactly ideal when the kids are starting school.

VMR.

STR five years ago? I can see her POV.....

[VeryMeanReversion]

Out of interest, how much did you both agree you were willing to loose?

Rather than a £ amount, we had agreed that we would buy a couple of years into the crash. I was hoping that would be enough to get down to -20% from peak.

That leaves me overpaying by ~20%, so burning £100K for nothing.

VMR.

[VeryMeanReversion]

If you're a cash buyer there isn't a fear of negative equity then? It's more waiting to get a better place for the money?

Basically yes. We have owned a nice place in the past and would like something similar again without the mortgage. With 25-30% more drops to come, it would all work out nicely (but take too long!).

VMR.

[VeryMeanReversion]

STR five years ago? I can see her POV.....

So can I!

VMR.

[principa]

I am getting grief too.

It started last year. The drums are beating louder and louder. However, I've heard them before. New carpets...New bathroom...New Kitchen...New house...(repeat)

It's called being married.

To the OP: don't put your life on hold. Nobody can time the bottom of the market - always leave something for the next guy..

Edited September 8, 2008 by principa

[Slumpmonkey Returns]

Basically yes. We have owned a nice place in the past and would like something similar again without the mortgage. With 25-30% more drops to come, it would all work out nicely (but take too long!).

VMR.

The way it is going VMR, I think we will be at least minus 30% from the peak (Aug 07) by spring 2010 (if you can wait that long). I guess I am lucky in that Mrs Slumpmonkey trusted me about the HPC in 2005 and we held off buying (although she was angry and upset that the HPC took so long to materialise). However, she is now eager to buy as she wants to have a baby (I am nearly 33 and she is nearly 32). The sooner we make renting more secure in this country the better IMO! :angry:

Edited September 8, 2008 by SlumpmonkeyII

[loon]

Rather than a £ amount, we had agreed that we would buy a couple of years into the crash. I was hoping that would be enough to get down to -20% from peak.

At the current rate of decline, as advertised by the Halifax, you'll get your 20% before the end of the year.

[loon]

Dont sell logic (80% of people don't do logic) sell the dream of what will be....

Good point.

[gasket37]

She's a keen gardener but there is no point when you are renting

rent an allotment?

better still, get her to start a small gardening business - she'll soon get sick of humping a rotavator around - it'll add to the STR pot as well

[lets get it right]

STR five years ago? I can see her POV.....

Why? I STRed 5 years ago. Everything went swimmingly during 2004/5. Market (in MY area) slowed and started dropping nicely. When the idiots in the BOE realised the (could this be HAPPENING?!) housing market in London and SE was slowing down they dropped IRs - on their own admission - to stimulate the housing market.

And in 2006 the market went nuts again.

As we all know in the late Summer of 2007 it came to a shuddering halt (although it was already slowing down around here as the limits of affordability had well and truly been breached and the few buyers that could afford the insane prices had all bought - there was no-one else left to join the party).

So the decision to STR at the end of 2003 was the correct one (for us). House prices around here are certainly no higher than in 2003 and, if you were buying in the current market, I reckon you could buy slightly cheaper than in 2003. My STR fund has grown considerably. My original intention was to sell and re-buy a few years later and lose the mortgage by buying cheaper.

Turns out if I succeed, probably half of the loss of the mortgage will come from the growth in the STR fund. The other half will come from the market correcting. Either way my decision to STR in 2003 was the right one.