Son of Taeper Posted February 16, 2009 Share Posted February 16, 2009 name...... housepriceRISERposts.......10 so far quote.....Was talking to my conveyancer today Reads like a bored EA who senses a few twitchy STR's & others so in his own little pathetic way tries to ramp the market Yes, I picked up on that too. The op was obviously not talking to my local conveyancer because he shut up shop last week I'm sure there are a lot of cash rich ppl out there though looking for a place to plant their money. I'm also sure there are a lot of fools out there that think now is the time to buy. I'm sure boredom rules in the EA office at the moment though. Quote Link to comment Share on other sites More sharing options...
notthereyet Posted February 16, 2009 Share Posted February 16, 2009 Was talking to my conveyancer today who said things have really picked up in the last few wks, lots of cash buyers picking up cheap btl,ftb type houses. 500 people were at graham penny auctions last wk with 80% of lots selling. Guess cash rich buyers are thinking their money is safer in houses and should be fairly inflation proof over the next 10yrs or so. Cash buyers are out their and they will buy a bargain at bargain prices, this will help keep prices low. Mortgage based FTB buyers are rationed by large deposit requirements,this will help keep prices down. Second time buyers are losing equity because of falling prices,this will restrict the chance of moving up. This will restict HPI. I cannot see house prices rising in percent terms any better than some of the decent fixed rate savings plans which are on offer at present for at least the next 8 years. Quote Link to comment Share on other sites More sharing options...
mirage Posted February 16, 2009 Share Posted February 16, 2009 Hmm, I like your thinking here. Cash has been generated out of thin air during the boom times by banks. Most of this cash found its way into assets and is currently being deflated, but some of this cash has been taken out of the system (i.e. STRs, savings, profits on investments, etc). People are sitting on this cash and it isn't currently being deflated, but once it gets fed back into the system by buying assets of sorts (i.e. housing), it will start being destroyed along with the rest of it that is already in said assets. And there comes even more asset price deflation as prices fall to meet demand in a new world of reduced credit and leverage availability. The cash isn't destroyed or deflated. The cash destroys credit-money if the seller to a cash buyer uses all or part of it to pay off debt (e.g. the mortgage by STR or downsizing). That is why cash buying is deflationary. The least deflationary thing that can happen is that the cash is kept as cash and pays off no debt. Over the whole system this won't happen, so cash buying is always deflationary (unless it is external cash of course) compared to buying using new mortgage credit-money, or compared to leaving it all in the bank where it can be used to "seed" new credit. Quote Link to comment Share on other sites More sharing options...
grey shark Posted February 16, 2009 Share Posted February 16, 2009 Yes, I picked up on that too.The op was obviously not talking to my local conveyancer because he shut up shop last week I'm sure there are a lot of cash rich ppl out there though looking for a place to plant their money. I'm also sure there are a lot of fools out there that think now is the time to buy. I'm sure boredom rules in the EA office at the moment though. Hi ST , good that you picked up on it as well , after all we are HPC twins , hope your doing well mate , still holding out here ....funny how the OP ain't come back , got a few in his net though . Quote Link to comment Share on other sites More sharing options...
Son of Taeper Posted February 17, 2009 Share Posted February 17, 2009 Hi ST , good that you picked up on it as well , after all we are HPC twins , hope your doing well mate , still holding out here ....funny how the OP ain't come back , got a few in his net though . Twins I kind of thought you'd hold out, hope you stashed it away well. Life isn't too bad at this end, quids in on the downsizing and the build plans have taken so long to perfect that every time we get a re quote its come down in price, guess the builders are struggling too. I'm sure the op did come back, just didn't post when he realised his cover was blown Quote Link to comment Share on other sites More sharing options...
duketaz Posted February 17, 2009 Share Posted February 17, 2009 I am sceptical of the idea that cash buyers exist in sufficient numbers to make a difference in the market for very long. There are at least three reasons for my suspicion:Too much cash - These buyers would each need to have £200k to buy a house for cash. Where were they keeping that for the last year? Deposit accounts? Investment funds? Shares? Either they were taking very low returns or losing a lot of money. Too much to buy - Given the presumably depleted surplusses of cash and liquid assets and the relatively high number of places for sale, it is hard to imagine that there are thousands of these "cash buyers" around actually bidding against one another. If they aren't bidding against one another, they're probably not supporting prices by very much. Too stupid - If you're so stupid that you're buying a house just now, how come you're rich? Edit: spellun Wrong northern rock still paying 5.75% on their 12 month bond that expires in april so for the last 12 months good interest could be had so these are the people with the maturing funds who are now looking for a return!!!! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 17, 2009 Share Posted February 17, 2009 Wrong northern rock still paying 5.75% on their 12 month bond that expires in april so for the last 12 months good interest could be had so these are the people with the maturing funds who are now looking for a return!!!! -20%....yep, thats the sort of returns they'll be looking for. Quote Link to comment Share on other sites More sharing options...
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