grumpy-old-man-returns Posted March 5, 2009 Share Posted March 5, 2009 Cash buyer, I have had enough of the unknown waiting game. Going to throw out offers and see what comes of it. QE and its effects scare me. I am in Sterling cash and feel more comfortable knowing I own something rather than crappy bits of paper money. I don’t know enough about Investments re stocks/shares and don’t trust some goon of a Financial Adviser to play with my hard earned funds. I am diving in to the unknown and yet standing still in 1% savings accounts with this lot looming also seems just as scary. Maybe if an offer is accepted I will back out as I am just very very scared of the whole crappy mess we are in. I am sure some of your responses will be "Mug" "Doughnut" etc etc however we are not all blessed with crystal balls or brains which fully understand Economics. I await your abuse however do any of you STR feel the same ?? you remember me ? I remember you. the French Connection..... Quote Link to comment Share on other sites More sharing options...
nest Posted March 5, 2009 Author Share Posted March 5, 2009 I know how you feel.I am getting jittery too. But I am seeing lower rents round our way, for better properties. So, not losing out there. And prices still dropping. I'm still hanging on. For now. Well I havent done it yet, maybe my offers will be rejected and then I will panic as I wont pay the going rates, that does feel barmy. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted March 5, 2009 Share Posted March 5, 2009 At the moment i'm struggling to get vendors to concede 10% let alone 30%. I think you'll find you'll only get 30% off places noone would want and therefore depreciate more over time. However at least you will have something. I'm a FTB so would need a big mortgage, this doesn't seem advisable as currently fixed rates are at 6% and the tracker i've been approved for is 1.49% now. (+0.99 BOE). If i got a house on the tracker whose betting in 12? months down the line my nuts are held up by the tories and slapped with 8%+ interest rates. Uncomfortable times. I read this and was just wondering how you have managed to "secure" a tracker at 0.99%..... it may be that you did a decision in principle a while ago with a product in mind.... but I think unless you have actually submitted an application (with the house details in and paying the valuation with an offer accepted, signing the app, including your dd details etc) then I fear what you'll find is that while the lender will probably still honour their decision in principle, they'll ask you to choose from their current range of products... I fear we have moved on and this now will not include a 0.99% tracker.... I suspect something like 2-3% over base is now more likely. Hopefully you haven't been led to believe by a third party that mortgage rates can be secured prior to submitting a full app including all the details of the property and getting the val under way etc..... becasue it'll be the first I've heard of it. Sorry to be the bearer of bad news Quote Link to comment Share on other sites More sharing options...
Hip to be bear Posted March 5, 2009 Share Posted March 5, 2009 If it is right for you, go for it, but remember that as a cash buyer you are in a strong position now, in 6 months and will still be in 2 years if you hang on. Before you jump, consider that 1% in a bank is better that -17% in bricks and mortar. Good luck! Quote Link to comment Share on other sites More sharing options...
Mugwump Boy Posted March 5, 2009 Share Posted March 5, 2009 do any of you STR feel the same ?? Same position myself - and I hear your pain. I would gladly buy (mortgage free) tomorrow at a 30% discount off peak just to have security for myself and my family (although I expect 40-60% falls by 2010). BUT sellers in my area are still demanding sales at 10% off peak and my -30% offers are being laughed at by EAs. I'm 100% £ cash (worried about gold volatility in the short term vis a vis buying a house quickly) and it's hard not to cack me pants. It's all very well saying that STR funds in the bank are earning 17% interest against house falls (as some have pointed out on here today) but that's really only a reality if you're seeing those falls on the ground. I'm sure they'll come (and then some) eventually but what if systemic collapse, currency failure comes first? Price falls in my area are definitely picking up pace recently but it's gonna be a close race IMHO between which happens first 30% falls or GBP wipeout. Feel pretty trapped to be honest - there doesn't seem a safe place to put the STR fund at all... Quote Link to comment Share on other sites More sharing options...
nest Posted March 5, 2009 Author Share Posted March 5, 2009 you remember me ?I remember you. the French Connection..... Hi Grumpy, so nice to hear from you. France didnt work (We love the UK warts and all). Well as you see I am tempted to go back in if I can get 30% off something I have my eye on. Your views always welcome and appreciated. Quote Link to comment Share on other sites More sharing options...
Guest AuntJess Posted March 5, 2009 Share Posted March 5, 2009 I say all the luck in the world. hope you get a good deal and if you have the cash and you aint moving again soon, bluddy go for it! I am sick of watching and waiting and have seen a few reasonable ones come and go. I might just jump in myself soon. Depends on if I see a real bargain. BTW anyone ever lived in a house with oil- central heating? What are the ups and downs? Quote Link to comment Share on other sites More sharing options...
Bosh Posted March 5, 2009 Share Posted March 5, 2009 Cash buyer, I have had enough of the unknown waiting game. Going to throw out offers and see what comes of it. QE and its effects scare me. I am in Sterling cash and feel more comfortable knowing I own something rather than crappy bits of paper money. I don’t know enough about Investments re stocks/shares and don’t trust some goon of a Financial Adviser to play with my hard earned funds. I am diving in to the unknown and yet standing still in 1% savings accounts with this lot looming also seems just as scary. Maybe if an offer is accepted I will back out as I am just very very scared of the whole crappy mess we are in. I am sure some of your responses will be "Mug" "Doughnut" etc etc however we are not all blessed with crystal balls or brains which fully understand Economics. I await your abuse however do any of you STR feel the same ?? Being a cash buyer gives you the edge over most. It did me. I managed to get over 30% off. If the time is right and more importantly the house and price then you should go for it. My major consideration was accepting that prices will/have continued to fall. I decided that I got a great deal for me and the family and a settled home life also has huge value. I also had the advantage of knowing I sold in August 07 so benefited at both ends. Each to there own. Good luck whatever you do. Bosh Quote Link to comment Share on other sites More sharing options...
NotMyHouse Posted March 5, 2009 Share Posted March 5, 2009 I'm the one from Cumbria who's just bought a house to live in. Quite happy with the decision, cash buyer, 25% off, enough money to do it up, some gold if the SHTF. Builders and decorators are desparate for work at the moment so didn't have to wait weeks to get someone in (or days to get a quote either). Althought they don't all like Farrow and Ball. "Clunch? That's not a colour, it's a medical condition." I would look for the four D's and go for it if you are happy to be there until this all blows over. Quote Link to comment Share on other sites More sharing options...
nest Posted March 5, 2009 Author Share Posted March 5, 2009 I'm the one from Cumbria who's just bought a house to live in. Quite happy with the decision, cash buyer, 25% off, enough money to do it up, some gold if the SHTF. Builders and decorators are desparate for work at the moment so didn't have to wait weeks to get someone in (or days to get a quote either). Althought they don't all like Farrow and Ball. "Clunch? That's not a colour, it's a medical condition." I would look for the four D's and go for it if you are happy to be there until this all blows over. F&B Clunch is great with F&B Slipper Satin Enjoy your new home. Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted March 5, 2009 Share Posted March 5, 2009 (edited) Hi Grumpy, so nice to hear from you. France didnt work (We love the UK warts and all). Well as you see I am tempted to go back in if I can get 30% off something I have my eye on. Your views always welcome and appreciated. that's the one... don't do it is my advice (obviously), you're a serial nester though I assume. even Mrs GOM wouldn't buy now & that's taken nearly 3 years of me badgering her every day (lost count of how many times I hid the kitchen knives ). Edited March 5, 2009 by grumpy-old-man-returns Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted March 5, 2009 Share Posted March 5, 2009 if you can genuinely, genuinely get 30% off peak, and i mean 30% off actual peak selling prices, not 30% off hopelessly overly-optimistic 2007/2008 asking prices, then you won't have done too badly at all.i'd certainly expect you to lose money in the medium turn, but, well, the worst case imaginable is probably that house prices would fall to 2-3 times average incomes, so, you know, as a cash buyer at least half of what you spent would almost certainly be safe. He's worried about QE yet happy to lose 2% per month for the next year on a house.... yeah, thats a great investment. In another 5 years he may be where he started. Quote Link to comment Share on other sites More sharing options...
Godley Posted March 5, 2009 Share Posted March 5, 2009 I say all the luck in the world. hope you get a good deal and if you have the cash and you aint moving again soon, bluddy go for it! I am sick of watching and waiting and have seen a few reasonable ones come and go. I might just jump in myself soon. Depends on if I see a real bargain. BTW anyone ever lived in a house with oil- central heating? What are the ups and downs? I personally haven't, but have friends who just moved out of rented because the oil central heating was so expensive. Quote Link to comment Share on other sites More sharing options...
sympatex Posted March 5, 2009 Share Posted March 5, 2009 I read this and was just wondering how you have managed to "secure" a tracker at 0.99%..... it may be that you did a decision in principle a while ago with a product in mind.... but I think unless you have actually submitted an application (with the house details in and paying the valuation with an offer accepted, signing the app, including your dd details etc) then I fear what you'll find is that while the lender will probably still honour their decision in principle, they'll ask you to choose from their current range of products... I fear we have moved on and this now will not include a 0.99% tracker.... I suspect something like 2-3% over base is now more likely. Hopefully you haven't been led to believe by a third party that mortgage rates can be secured prior to submitting a full app including all the details of the property and getting the val under way etc..... becasue it'll be the first I've heard of it.Sorry to be the bearer of bad news I wonder about this, i filled out the application and opened a bank account with them etc etc but have not had a valuation carried out (there is no house). They have said they would honour the agreed terms until May providing the house fitted their criteria. I phone up once a month to check this hasn't changed. I think if i do get a house within the time frame they will not honour it. But what can i do, i can only accept wht i'm told at this time. Quote Link to comment Share on other sites More sharing options...
Godley Posted March 5, 2009 Share Posted March 5, 2009 He's worried about QE yet happy to lose 2% per month for the next year on a house.... yeah, thats a great investment. In another 5 years he may be where he started. You miss the point, nobody knows what the effect QE will have. You don't know nobody knows........you pays your money you takes your chances. Quote Link to comment Share on other sites More sharing options...
getdoon_weebobby Posted March 5, 2009 Share Posted March 5, 2009 Cash buyer, I have had enough of the unknown waiting game. Going to throw out offers and see what comes of it. QE and its effects scare me. I am in Sterling cash and feel more comfortable knowing I own something rather than crappy bits of paper money. I don’t know enough about Investments re stocks/shares and don’t trust some goon of a Financial Adviser to play with my hard earned funds. I am diving in to the unknown and yet standing still in 1% savings accounts with this lot looming also seems just as scary. Maybe if an offer is accepted I will back out as I am just very very scared of the whole crappy mess we are in. I am sure some of your responses will be "Mug" "Doughnut" etc etc however we are not all blessed with crystal balls or brains which fully understand Economics. I await your abuse however do any of you STR feel the same ?? +1 Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted March 5, 2009 Share Posted March 5, 2009 don't do it is my advice (obviously), you're a serial nester though I assume. actually I am saying that BUT if you have a large sterling lump in the bank I would be sh1tting myself right now. So yes if you can negotiate a good discount perhaps in your situation it would be a better idea. Quote Link to comment Share on other sites More sharing options...
renterbob Posted March 5, 2009 Share Posted March 5, 2009 (edited) Goodluck to the OP, which I think is reflected by all HPCers comments here. This posts makes it crystal clear...HPCers aren't against buying per se, we are against buying at hyperinflated prices. When the price is right, for you, go for it. But the liar loans, 4-10X multiples, massive mewing, is something most here disapprove of. Enjoy your home when you get it...but I'd suggest your home would be warmer if you didn't have to rent out a room to pay the electricity bill, get another credit card to pay this months mortgage etc. Stay within your means and your life will be better for it. If you can do this and buy your home...go for it... My father once stopped a 4x4 from cutting him off and got a load of abuse from the lady chavette. He cooly rolled down his fabias window and shouted 'Mine's paid for love'. Edited March 5, 2009 by renterbob Quote Link to comment Share on other sites More sharing options...
eastleighfan Posted March 5, 2009 Share Posted March 5, 2009 Cash buyer, I have had enough of the unknown waiting game. Going to throw out offers and see what comes of it. QE and its effects scare me. I am in Sterling cash and feel more comfortable knowing I own something rather than crappy bits of paper money. I don’t know enough about Investments re stocks/shares and don’t trust some goon of a Financial Adviser to play with my hard earned funds. I am diving in to the unknown and yet standing still in 1% savings accounts with this lot looming also seems just as scary. Maybe if an offer is accepted I will back out as I am just very very scared of the whole crappy mess we are in. I am sure some of your responses will be "Mug" "Doughnut" etc etc however we are not all blessed with crystal balls or brains which fully understand Economics. I await your abuse however do any of you STR feel the same ?? Well ,if you're a mug ,then so am I , because I am doing the same . I still reckon house prices will fall ,but I got the house at , roughly 20% less than it was advertised for in September (assuming it all goes through ok) . Like you , I am scared too . No one knows what will happen , but , if you like the house ,and are happy to live there , then go for it . Good luck ! Quote Link to comment Share on other sites More sharing options...
Rosepetal Posted March 5, 2009 Share Posted March 5, 2009 I say all the luck in the world. hope you get a good deal and if you have the cash and you aint moving again soon, bluddy go for it! I am sick of watching and waiting and have seen a few reasonable ones come and go. I might just jump in myself soon. Depends on if I see a real bargain. BTW anyone ever lived in a house with oil- central heating? What are the ups and downs? I have lived in three houses with oil heating and it's no problem at all. You need to be aware of the oil levels left and that takes a bit of getting used to and the price per litre reacts quicker to the market than gas or electric. You can order oil online and the minimum delivery is 500l due to the weights and measures laws. www.scf.co.uk Quote Link to comment Share on other sites More sharing options...
PropertyGuru Posted March 5, 2009 Share Posted March 5, 2009 Cash buyer, I have had enough of the unknown waiting game. Going to throw out offers and see what comes of it. QE and its effects scare me. I am in Sterling cash and feel more comfortable knowing I own something rather than crappy bits of paper money. I don’t know enough about Investments re stocks/shares and don’t trust some goon of a Financial Adviser to play with my hard earned funds. I am diving in to the unknown and yet standing still in 1% savings accounts with this lot looming also seems just as scary. Maybe if an offer is accepted I will back out as I am just very very scared of the whole crappy mess we are in. I am sure some of your responses will be "Mug" "Doughnut" etc etc however we are not all blessed with crystal balls or brains which fully understand Economics. I await your abuse however do any of you STR feel the same ?? make 100 offers at 60% below peak prices. You'll get at least 5 'PLEASE's Quote Link to comment Share on other sites More sharing options...
Nebula Posted March 5, 2009 Share Posted March 5, 2009 (Peter Hun)He's worried about QE yet happy to lose 2% per month for the next year on a house.... yeah, thats a great investment. In another 5 years he may be where he started. Its easy to sit back and criticize but your banging on about the wrong argument here. Yes we all know House prices are falling like a ton of bricks. the point you are missing is that now Sterling is in the same position. But the difference is there could be no end to a crash on the pound it could lose 99.99999% of its value as seen many times before in different economies. At least with a real commodity you can use it and barter with it if times get that bad and it will allways have some value. Im also a cash buyer and trust me when you have all your life savings in sterling and it starts to get f**ked around with, buying a house seems suddenly alluring. I guess this was their intention......but at what cost...... Quote Link to comment Share on other sites More sharing options...
nest Posted March 5, 2009 Author Share Posted March 5, 2009 actually I am saying that BUT if you have a large sterling lump in the bank I would be sh1tting myself right now.So yes if you can negotiate a good discount perhaps in your situation it would be a better idea. I am glad you havent said 100% NO, DONT BUY - Your a wise man and I trust your judgement. I have placed an offer today on something and feel excited about it. I will keep you posted. Agents said offers will be decided at the end of the month, probate/do up job so he reckons a good bit of interest. I can only see what happens. Frustrating wait ahead. I hope being 100% Cash will do the trick. It somehow feels right all of a sudden. Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted March 5, 2009 Share Posted March 5, 2009 I am glad you havent said 100% NO, DONT BUY - Your a wise man and I trust your judgement. I have placed an offer today on something and feel excited about it. I will keep you posted. Agents said offers will be decided at the end of the month, probate/do up job so he reckons a good bit of interest. I can only see what happens. Frustrating wait ahead. I hope being 100% Cash will do the trick. It somehow feels right all of a sudden. If you have 100% cash and you need a house to live in, then I can't see any difference between buying a house and buying any other essential. Once you get rid of the concept of a house as an investment and view it only as a need, then you largely dismiss financial considerations. If you desperately need a cooker, for instance, will you indefinitely defer purchase of same just because tomorrow it might be cheaper, and meanwhile cook on a camp fire or even a rented cooker? Or will you just go out and buy one? The determining factor, imho, is that you are a cash buyer. Quote Link to comment Share on other sites More sharing options...
threetimesdead Posted March 5, 2009 Share Posted March 5, 2009 (edited) Good decision Once most of the STR profit is sucked back into housing market then there will really be nothing left to support it That's when the real crash into abiss will happen Edited March 5, 2009 by threetimesdead Quote Link to comment Share on other sites More sharing options...
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