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Dithering Dad

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About Dithering Dad

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  1. Are there significant falls in the UK right now?
  2. I'm afraid I don't really think I understand your reasons, sorry. I had assumed that you have decided not to buy because you were afraid of interest rates rising in future, hence my point about them rising regardless of when you buy but at least you might get a few years respite while you renovate or over pay (or both). Apologies if I have misunderstood your reasons (you'll have to put them into laymans terms for me I'm afraid.). As far as the second half of your post, I'm not struggling for anything. I certainly don't see why people are 'mugs' if they have made the decision to buy a house, just as I don't see them as 'mugs' if they choose not to. Everyone makes their decision to purchase on their own criteria, such as family reasons (school catchment area, settling down to have kids) or financial reasons (renting more expensive than buying, etc.) or whatever. If people have decided to buy (or not) then it's based on their individual criteria and as such the timing may be perfect for them. If you have decided not to buy because of future rising rates, then I guess you're saving up a larger deposit so that you're not as impacted by rates? No problem with that, it's your criteria and your decision.
  3. I don't think posters on that thread and posters on here are too far apart. I found this on something like the second page in: "ToughasoldbootsThu 16-Aug-12 23:12:10 We had it done twice and both times it was a buy to let investor. I suppose that they are less emotionally involved."
  4. No, I saw that and "...and to do some remedial work like damp course, electrics and repointing.", which could have just come to light after a survey and subsequent builders quote (which can often take ages to come through). I think that given the buyer raised these issues just a couple of days before completion that it's highly probable that this is just a gazunder, but the mumsnet lady didn't elaborate so it's best to err on the side of caution as these things are not always so black and white. I agree though with the tone of your post. Negotiations on price should be conducted at the start and after the survey if anything comes to light, not just before completion as a bargaining (aka blackmailing) tactic.
  5. Quality not quantity! Haggling should be conducted at the start and once the surveys have come in. As I said the buyer might only just have gotten back the survey or bulders quotes, so perhaps this isn't as cut and dried as the mums make out? In the current system, I suppose it's all fair game for both sides, but crap if it happens to you. It happened to me once, I had a buyer offer the asking price and then I received a higher offer from someone else, even though the house was off the market. On a point of principle I turned down the higher offer and stuck with my original buyer. What was funny (oh how we laughed ) was that this original buyer tried to gazunder us and we ended up losing the sale. Some people, eh?
  6. The trouble with the mumsnet post is that we're only seeing one side of the story. Perhaps the buyer was rushed through the buying process and had only just received the survey results before the seller's solicitor is pressuring them to sign on the dotted line. It does seem a large drop though for a bit of damp and because the buyer made the mistake in underestimating how much some building work would cost. However, if they can show quotes from a couple of builders and info from a surveyor about the damp (not a damp company because they have a vested interest in 'finding' problems), then I'm sure it can be worked out. If it is pure gazundering, and timing does suggest that, then they are as bad as people who gazzump and I hope that the seller gets a new buyer at the same price and the gazunderer loses out. Hopefully the gazunderer paid for a full survey and so they will be down a grand or so. This just goes to show that we need an overhaul in the way we sell houses to stop the dirty traicks of gazumping and gazunderingfrom happening. A house purchase is probably the largest financial transaction that most people make, it's mad that contract law around it is so lax. The Scots have a much better system.
  7. I think that house will still be up for sale by the next housing boom. You have to wonder who gave it that price, the owners or an estate agent who was after the work - no doubt if it was the latter he'll be advising his clients to lower it quite a bit in a month or two. I think that some people get it into their heads that because they shoe horn bedrooms into lofts, basements, cupboards under the stairs (Harry Potter influence there) and lean-to conservatories that they really do have a 7 (or whatever) bedroomed house. Nope, I'm afraid you just have a 3 bedder with standing room only! It'd be interesting to revisit this thread periodically to see if they keep that house on the market and just how far the price falls.
  8. Ah this is why I didn't understand why you pulled up my post, it's because we're talking at crossed purposes. I was remarking to the other chap that as long as you bear in mind that rates will eventually rise and so you don't overextend yourself (i.e. make sure that you can still afford a mortgage if it goes over 8%), then there is no problem with buying while rates are low. You seem to feel that I'm advising that people should buy now even if they can only just afford the repayments. Clearly I'm saying nothing of the sort. It will be easier in 2 or 3 years time for exactly the reasons I gave in my post. You'll have gotten through a period where you have a lot of 'one-off' purchases and your finances will have settled back down. If you believe that interest rates are going to shoot up, then whether you buy now or buy in 3 to 5 years time, you will still be impacted by these rate rises, but at least someone who bought during a period of low rates will have gotten past that 'one-off purchases' stage. For what it's worth, I think that we will continue to have low rates way beyond 2015. I think the problems the West faces with debt will not unwind for the best part of a decade and Central Banks won't rush to put up interest rates while their economies are still bumping along the bottom. We've had a sustained period of economic profligacy, this will not be repaired overnight, as we have seen already over the past 5 years.
  9. Well, only you know how prices are moving in your area and so if they are moving down, your rent is less than the return you get on your house savings, and your other half isn't nagging you, then it does seem to be the right course of action. I would put one caveat around that comment though. Often if you keep an eye open you can bag a bargain at either auction or estate agent sale that could knock years off your waiting time. I bought my first house in the 90's crash that was up for sale because the owner had died (in hospital thank god) and his niece and two nephews had inherited the place. The house was a mess, but structurally sound and was 'priced to sell' at £50k. I offered £40k with the idea that as the money would be split 3 ways, they would concentrate more on the £13.33 they stood to gain than the £3.33k they stood to 'lose' (remember it wasn't their house so they had no emotional attachment to it). After initially rejecting my offer, they must have gone away and mulled over the £13k they stood to gain (and perhaps needed it in a recession) and the estate agent called me back to see if I were still interested. The market never fell below the price I paid for that house, and in the meantime I took advantage of the recession to get the house renovated by desperate workmen at virtually cost price. Rather than looking at an index it's better to become pally with estate agents (if you can stand to) and let them know you're a serious buyer - but at the right price. That estate agent told me all about the niece and nephew situation that I based my decision on. You might be waiting around for a particular house price index to hit a certain level when there are already properties out there that beat it out of hand. Good luck though with your house hunting.
  10. Well the discussion when I made the point you quoted had very tight parameters. Namely whether to buy a house while mortgage rates we so low, knowing that rates are bound to climb. The other criteria that come into a decision on whether to buy (mortgage vs rent, nagging partner, etc.) were not factored in because you wouldn't care about interest rates if you weren't looking to buy. Your question about whether to buy now as a cash buyer is so open ended and full of conjecture as to be impossible to answer. Certainly if you were a cash buyer you wouldn't be worrying about interest rates, though you'd still have all the other criteria to work through (investment return on savings vs rent, house price movement in your chosen area, nagging WorG, etc). I'd suggest though that as a cash buyer you would have access to properties at auction and as these are uniquely priced then you'd have to make a judgement call on whether you think you could get a comparable property at a comparable price in the traditional market (via estate agent) by waiting. It really all depends what the 'cash buyer's' trigger is for buying. Everyone has their own unique reasons why they buy at a point in time.
  11. Sorry, I don't understand which part of my post you had a problem with?
  12. Would you be able to get a mortgage at such low rates anymore? I know there are a few lucky souls with those super low trackers, but they were withdrawn from the market shapish once the credit crunch unfolded. The best lifetime trackers I can see with a quick google are around the 3% mark but with 25% deposits. If you had such a large deposit and if house prices in your target area were static (and had been for a while), then a 3% tracker would help you through the first 2 or 3 years of home ownership which are traditionally the most financially difficult, as your personal finances get used to the new outgoings and you decorate & buy furniture for the new home. I agree with your view that if you could only just afford a mortgage on current rates, it'd be madness to buy (though if that was the case then I'd imagine you'd fail to get a lender to agree to give you a mortgage) but if you budget for rates around 8% but have rates around 3% for a year or two, surely that's to your advantage?
  13. As far as I can see, all the Indices are pointless anyway, no one buys an 'average' house in an 'average UK location', it just seems to be a device that allows the red tops (the Daily Mail being a good example) to publish screaming headlines about 'surges' or 'crashes'. A clued-up prospective buyer will know his/her target area inside and out and know exactly what is happening with house prices in that area. Does it matter to someone looking to buy in Manchester what house prices are doing in Richmond? I also don't understand the problem about the Land Registry and forced sales. If you are looking to buy a house via the traditional estate agent/mortgage method then you would surely want to examine the LR figures for your target area (rather than nationally or regionally) to see prices for houses that are sold in the traditional manner. If you are looking to buy via auction then each house will be unique and your offer price will be based on a survey/inspection and would bear no resemblance to what other properties in the area would sell for - hence you wouldn't look at LR figures.
  14. Sounds like sour grapes because we won more Golds than the mighty (and united) Germany.
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