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Whens The Optimum Time For Cash Buyers To Buy ?


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BUt what's resonable?

Are we so jaded that we're really hanging on for a proper bargain

House prices @ 3.5x the average salary are not bargains - they are the "proper" price.

People buying now, or in the last ten years, have been buying at vastly inflated prices.

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When they have the cash, and they see something they really want to live in at a price which seems reasonable.

"Reasonable" being about 40% down from the sort of ludicrous prices that are still around today. Another 12 to 18 months should see us there, and anyone who thinks some areas will be exempt are in for a shock.

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"Reasonable" being about 40% down from the sort of ludicrous prices that are still around today. Another 12 to 18 months should see us there, and anyone who thinks some areas will be exempt are in for a shock.

If you are buying with cash (and not a lifetime of debt), does it matter what the relative price is as much? Surely if you really like a place, can afford it without borrowing and feel it will meet your needs you buy it. Obviously many variables to weigh up (how often does this type of property appear, etc.)

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If you are buying with cash (and not a lifetime of debt), does it matter what the relative price is as much? Surely if you really like a place, can afford it without borrowing and feel it will meet your needs you buy it. Obviously many variables to weigh up (how often does this type of property appear, etc.)

You still want the lowest price you can get it for though, don't you?

Unless you're some sort of misguided philanthropist with more money than sense ;)

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You still want the lowest price you can get it for though, don't you?

You have to price up the hidden costs though. The cost of worrying about 'the right time to buy' the cost of constant visits to EAs and the associated bullsh!t that goes with it, the rent paid in the meantime, the cost of uprooting your kids to move them to a new school, or just a new locality where they don't have nearby friends. You can't price it up in pounds and pence but all the hassle and uncertainty can chip away at your enjoyment of life.

You have a fixed amount of time to live, getting a screaming bargain on your next house won't make it any longer.

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You still want the lowest price you can get it for though, don't you?

Unless you're some sort of misguided philanthropist with more money than sense ;)

I am interested in what most people's reply would be to this question. If you had £300000 cash but knew a £300000 property (still on the market at the 2007 price), would be worth £180000 (40% off ) by the end of the year , would you be happy to pay £300000 now ? I have seen on the forum people buying £5 million properties for £1.5 now that IS quite a saving, but not if its actually worthy £500000! So yes I will read with interest because personally I would not be happy, cash or not. to lose £120000 in a year, but from current EA figures it would seem plenty are!

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well i have the potential to buy the average house for cash. 100% outright.

And that's the commonly understood definition of a cash buyer is it? As opposed to someone with a mortgage arranged and no property of their own to sell?

Edited by evictee
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Last post,the time for cash buyers to buy is when inflation is higher then house price deflation which is not

in this current market as the Halifax say house prices are crashing by 17.7% a year.

£200,000 in the bank at 0% will give you £200,000 at year end, CPI inflation is at 3% and falling

so that £200,000 cash at 0% interest in the bank will be worth -3% inflation, if inflation stays at

3% for the year which it will not CPI will be around 0% year end.

£200,000 - say 3% CPI for the gold bugs, would mean your £200,000 at 0% will be worth

£194,000 year end.

BUT

£200,000 cash in property with it crashing by 17.7% a year will give you £200K - 17.7%

£164.600 year end

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You have a fixed amount of time to live, getting a screaming bargain on your next house won't make it any longer.

You don't need to own your own house in order to start living. If more people dropped that (mainly British) peculiar attitude then perhaps they would relax more and houses would stop being over-priced objects of near worship.

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You don't need to own your own house in order to start living. If more people dropped that (mainly British) peculiar attitude then perhaps they would relax more and houses would stop being over-priced objects of near worship.

Of course not. But "the right time to buy" will vary according to each individual's circumstances, that's all.

My understanding of the OP is that they are slightly worried about inflation / financial woes impacting on their STR fund. If you have the cash in the bank to buy but you are still waiting for the ultimate bargain, surely you are showing a love of money above all else (including property)?

Edited by redalert
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Of course not. But "the right time to buy" will vary according to each individual's circumstances, that's all.

My understanding of the OP is that they are slightly worried about inflation / financial woes impacting on their STR fund. If have the cash in the bank to buy but you are still waiting for the ultimate bargain, surely you showing a love of money above all else (including property)?

correct

even in weimar republic (1000% inflation over 8 year period thats inflation at 3% per month)

i think you have time to act even in that kind of scenario

Edited by weebobby_getdoon
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Of course not. But "the right time to buy" will vary according to each individual's circumstances, that's all.

My understanding of the OP is that they are slightly worried about inflation / financial woes impacting on their STR fund. If have the cash in the bank to buy but you are still waiting for the ultimate bargain, surely you showing a love of money above all else (including property)?

It's a bit too early to look for "bargains" ultimate or otherwise, though some reductions of 20% or more may occasionally be had. At the moment prices are still ludicrously high but falling. Why buy now when waiting just another 12 months (or possibly less) could save you a bomb? Still, if some people want to chuck their money away then that's their business.

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It's a bit too early to look for "bargains" ultimate or otherwise, though some reductions of 20% or more may occasionally be had. At the moment prices are still ludicrously high but falling. Why buy now when waiting just another 12 months (or possibly less) could save you a bomb? Still, if some people want to chuck their money away then that's their business.

I'm not advocating anyone buys now, but I'm also not saying rule it out in every case. There is no universal formula that suggests the best time to buy, IMO the 'bottom' will even occur in different regions of the country at different times.

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