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About MrRee

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  1. No one can tell you what to do, as there are so many variables in play. What rate are you getting on your money? Are you living at home with parents - or renting and buying someone elses house for them? What is your opinion of where House Prices will go from here? You need to answer your own question really - but, for what it's worth, my opinion is this:- House prices will not increase faster than the 3% Gross interest you are making on your savings, if you are renting then you are effectively throwing good money away to assist someone else (and the rent will never stop, ever! Whilst a mortgage will get smaller and cheaper as the years pan out). If you can buy a house without a mortgage (and if you are renting) then I honestly think this is the time to do just that, buy. You will lose the 3% on your money before tax, but you will stop paying rent! You own an assett and can do what you wish with that assett. BUT, if you think that there is another 25% to come off house prices then you should stick where you are. But, come on, will that happen? Really? I've been waiting for a long time and it's just not happening ..... if a property reaches a price where a BTL landlord can return a 7% yield on it, it WILL sell immediately thus putting a floor under prices of a 7% yield. If I saw a property I liked and the rental yield would be 7% then I'm buying it!! Not to rent out, just that I know thats where the floor is!
  2. Not sure that you read my post accurately ... I gave an example of a bungalow bought for £197,500 in 2009 and sold this year for £325,000 ... only the garden was cleared and the internals decorated. Not sure what your personal markers are but, in my book, that IS a vast profit ....
  3. HA HA HA HA ..... you lot make me chuckle. For 3 years I have been attempting to buy another property, as a Holiday/Weekend retreat and the time to offer, and get 25% OFF, was Autumn 2009. Not before, or since has that been possible. And I thought it had further to fall, while those brave souls who bought in late 2009 are now selling a vast profits! In one case a bungalow by the sea sold for £197,500 - I could have bought for that too, but didn't!! It has just sold for £325,000!!! The time for bargains has passed I'm afraid. I like nothing better than baiting and tormentting EA's - the same as others on here ...... but, I am intelligent to know that I cannot dictate the market ... the market will find its own level. The truth is that some on here will never buy - prices will always be about to fall further .... whilst others get on with life and jump in. I'm the same as you, dithering around with a dream of a second property in my head ...... but, at least I own a home outright already, so I can benefit from both sides of the same coin. Far from EA's thinking you are serious by continuing to put in silly offers and writing pointless letters and e-mails, they think you are the equivalent of a tyrekicker (someone who has zero intention of buying, at any price whatsoever) ... and they laugh at you with their EA mates down the pub. EA's may be the most annoying of people but they do know the market has its own forces - and those forces are not affected by bitter buyers who aren't really buyers at all ....... and that's the plain truth of it all.
  4. If it makes you feel better then do it - I will be interested in the replies (if you get any). You are stating accurate facts and facts the EA is fully aware of ... the statements will come as no shock to the EA concerned. At the end of the day, you are either an active buyer in the current market, at the current prices, or you are not .... you clearly are not and therefore should really spend your time doing something constructive with your family or some hobby - anything that is less negative. IMHO. I am looking to buy too - and, yes, it annoys me a lot that the prices are not falling and the sellers don't want to accept the offers I make (even though I believe those offers to be sensible). BUT - it is a free market .... I don't have to pay the prices asked, and they don't have to sell at the price I ask them to!! Getting all hot under the collar about it changes nothing - only the market will change things. Get out and do something worthwhile is my advice .... you'll just drag yourself down and make yourself mad - for no reason ...... one day the prices may reach your floor and you will buy, until then, chill ....
  5. Excellent, well written and well observed report. There is, indeed, an abnormal property market at the moment - driven by the free market. I am Middle Class, with a large savings pot earning very little in the Bank - maybe 3%. I have looked at the BTL market and the properties which offer 7% before expenses seem attrractive. They also seem like a safe haven for my money - what if the Banks go under? The Compensation arrangements will not be worth the paper they are written on in a crash - I was a part of the Icelandic fiasco where I thought I had lost my money (despite all the Icelandic Government Backed guarantees!) - the Icelandic Government simply walked away from their obligations and promises! So? I know BTL'ers are given bad press on here - but what would you do given the following situation where a lot of Middle Aged, Middle Class people find themselves in? 1. Rental returns at 7% rather than Bank returns of 3% - on a £200,000 investment, that is a difference of £8,000 a year .... what would you do? 2. Property can be touched, lived in, rented - a Banking crisis can, and will, wipe out your above investment savings of £200,000 ..... what would you do? 3. Pensions are being eroded by huge Banking charges and poor performance - do you want to secure an income for old age (rental income) .... what would you do? 4. Buying property buys you flexibility for the future ... a constant income where no income may come in from anywhere else .... what would you do? I know that BTL'ers are stepping in and buying up FTB stock - and it is painful to see the young unable to buy because those who can pay the asking can also make money out of doing so ..... but, the points above show why the BTL'ers are doing it and why they shouldn't really be hated for doing as anyone would in their situation. The single thing which will see the market settle is a rise in Interest Rates. If savers were able to get, say, 8% in a Bank they wouldn't be BTL Landlords ... they would sit on cash. The market would open up for FTB's and with the forced sellers would create a drop in prices of around 25% ..... the market would then free up. But, the Government has a vested interest in keeping house prices high - it helps convince people to borrow and spend on the basis that their houses are worth more than all their debts ................... it's a house of cards and it needs knocking down by high Interest rates! Just my humble opinion - I have been a FTB, I have struggled to pay a mortgage when interest rates were 12%, I have been a house mover, I sold and bought in the last House crash of 1990-1995, I now have savings and would be prepared to step into the BTL arena ... I have been from the pennyless to the affluent and all steps between.
  6. The market has, without doubt, picked up in the past month - in/around Reading. Same is happening on the South Coast along from Milford-on-Sea through Barton to Bournemouth ..... 'new' properties hitting the market at high (yet maybe sensible? prices) are selling within days ...... hours even, in the case of one property I went to see .... sold within the hour it took me to drive there to view!!!!!!! I've been studying the market from Reading down to Bournemouth, and all points inbetween, from 2008 when it all went tits up ...... 2009 saw the absolute bargains (with hindsight) and 2010 saw a minor upturn ..... early 2011 looked bad - but from Q2 it has bounced back and now is getting into a sellers market, strange as it may seem. I hope this doesn't last as I was hoping for more of a downturn!
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