Will Ftbs With Substantial Savings Prop Up Prices?

[pod]

It has been said in the past by the more bullish that prices will at worst stagnate because there are many potential FTBs out there who have substantial savings, and are just waiting in the wings.

Though I would have thought precisely the same circumstances would have existed in 1988/89.

I'm sure there would have been many FTBs in the years just prior to '88 who had hoped to purchase a house, but had been unable to and had gained substantial savings whilst waiting.

I wonder if there were bulls around then too who said these potential FTBs with savings would prop up prices? But as we all know, they didn't...!

[cgnao]

It has been said in the past by the more bullish that prices will at worst stagnate because there are many potential FTBs out there who have substantial savings, and are just waiting in the wings.

Though I would have thought precisely the same circumstances would have existed in 1988/89.

I'm sure there would have been many FTBs in the years just prior to '88 who had hoped to purchase a house, but had been unable to and had gained substantial savings whilst waiting.

I wonder if there were bulls around then too who said these potential FTBs with savings would prop up prices?  But as we all know, they didn't...!

<{POST_SNAPBACK}>

I'm waiting, plenty of cash in hand. Won't buy until I see at least a 30% drop from todays prices.

[Chomp]

A Bank of Ireland report here recently said that average savings for FTB mortgage applicants (joint and single) in Ireland is €16,000 (c. Stg.£10,700).

The same report also said that 25% had average "gifts" of €30,000 (c. Stg.£20,000), while the other 75% had no gift.

Not sure if these kinds of figures are applicable to the UK, but I don't see much reason why it should be massively different.

(And no, the numbers don't make a hoot of sense when you look at the big picture, but that's what they said! Pulling numbers out of their asses IMO).

[non-FTBer]

I don't think there are enough FTBers saving enough money to be a brake on the falling market.

Some professional landlords may consider it a buying opportunity, but why would they bother when it is going to plummet lower.... they might as well wait it out and let it come to its conclusion before buying.

And the BTL brigade won't be in the party anymore, many of them will be bankrupt, some of them will have been burned but manage to get out of the market. Either way, they are not going to be investing in housing again for a long time, if ever.

[JBFTB]

I suspect that the kind of FTB wise enough to save a stack of money is also going to be wise enough to wait a little longer for prices to fall, and not jump in with both feet the second a house drops by a £1000.

[Nomadd]

It has been said in the past by the more bullish that prices will at worst stagnate because there are many potential FTBs out there who have substantial savings, and are just waiting in the wings.

The thing is, if you do have *substantial* savings, then you actually realise how much time and hard work it takes to accumulate that money in the first place. Therefore you realise even more how much property is overvalued. I've been 'saving' for the last 20 years of my working life, and I have absolutely no intention of throwing that 20 years worth of work away on a simple pile of overpriced bricks in the UK; I'd much rather pack in work and *rent* overseas in somewhere warm and sunny and enjoy the rest of my life, rather than sign-up to 25 years of hard-labour paying off a mortgage.

Hope the above made sense!

Nomadd

[Warwickshire Lad]

I suspect that the kind of FTB wise enough to save a stack of money is also going to be wise enough to wait a little longer for prices to fall, and not jump in with both feet the second a house drops by a £1000.

<{POST_SNAPBACK}>

That's very much me anyway .... FTBs are now calling the shots in this market now. Investors are invited to leave and go play with fire somewhere else.

[Ah-so]

We have fairly substantial savings, but do I want to see years of financial prudence gone in a puff of smoke? Those with the sense and ability to save are almost certainly not those willing to risk it. Now that FTB's are the strongest force in the market, I want to use the position to my advantage, and not waste it by propping up over-valued dumps.

FTBs certainly are calling the shots. I watched "Property Chain" last night. The whole thing came down to the FTB's, who were in no rush time and wanted to have the boiler checked. Krusty became quite irate, with comments like, "Of course it is their right to not sign until they are completely happy, but months of hard work look like being lost if they do not decide quickly."