Sybil13 Posted March 9, 2009 Share Posted March 9, 2009 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. Just seemed important to say that in actual fact a house being sold at a sensible price isn't a BARGAIN. Just a few short years ago a house worth £250000 was said to be worthy "a quarter of a million" it was considered EXPENSIVE. 10 years ago you could get a family sized 3 bed property for £90000 or less. I think it is important to consider things from this perspective, bargains say we SHOULD SNAP THEM UP, sensible house prices, when they finally start to happen will be something that will eventually be here to stay Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 9, 2009 Share Posted March 9, 2009 The time to buy is when you can buy a property cheaper than it would cost to build, and thats with the land thrown in for free. Quote Link to comment Share on other sites More sharing options...
Selling up Posted March 9, 2009 Share Posted March 9, 2009 You have a fixed amount of time to live, getting a screaming bargain on your next house won't make it any longer. True, but the price you pay for your house will have a huge influence on the quality of that life. Buy with a big mortgage: Commit to 25 years of wage slavery. Buy with a small mortgage: More flexibility. Can switch to a lower-paying job if it appeals, or reduce hours. Live better. Buy with no mortgage: "Freedom"! Quote Link to comment Share on other sites More sharing options...
the flying pig Posted March 9, 2009 Share Posted March 9, 2009 (edited) despite what this board's resident 'mystic meg's will have you believe [and there are several on here] no-one will ever, other than by pure chance, correctly call the bottom. even if you could, your chances of benefiting from this insight would be sketchy at best... it can easily take quite a few months to agree a price and seal a deal with a vendor, and if, at the very end of that process, there are signs that prices are moving upwards, any half-sensible vendor will gazump you anyway, putting you back to square one. i personally am waiting for real falls of around 30-40% from peak. this will be the point at which i would consider houses to represent half-decent value given the level of wages. if this doesn't ever look like happening i will give serious thought to emigrating. i'm not interested in bringing my children up in an environment where you have to earn double the average wage to be able to afford to live in a house that is no better than the one that their average or below-average earning grandparents lived in. i thought that living standards were supposed to be getting better over time? Edited March 9, 2009 by the flying pig Quote Link to comment Share on other sites More sharing options...
blankster Posted March 9, 2009 Share Posted March 9, 2009 The time for a cash buyer to buy: For investment: ...........when prices are at bottom For somewhere to live ...........when you can afford it! Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted March 9, 2009 Share Posted March 9, 2009 Houses are deflating, food is inflating. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 9, 2009 Share Posted March 9, 2009 True, but the price you pay for your house will have a huge influence on the quality of that life.Buy with a big mortgage: Commit to 25 years of wage slavery. Buy with a small mortgage: More flexibility. Can switch to a lower-paying job if it appeals, or reduce hours. Live better. Buy with no mortgage: "Freedom"! Pay attention at the back! We are talking about cash buyers here, I have already made the proviso that anyone who needs a mortgage should wait for the bottom to minimise the debt burden. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 9, 2009 Share Posted March 9, 2009 Pay attention at the back! We are talking about cash buyers here, I have already made the proviso that anyone who needs a mortgage should wait for the bottom to minimise the debt burden. What if the when we arrive at the bottom interest rates are 16% ? whereas today they are the lowest since the Bronze Age ? Calling the bottom is not hard, its pretty much plain to see, but calling a low house price coupled with cheap finance, thats the call. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted March 9, 2009 Share Posted March 9, 2009 What if the when we arrive at the bottom interest rates are 16% ? whereas today they are the lowest since the Bronze Age ?Calling the bottom is not hard, its pretty much plain to see, but calling a low house price coupled with cheap finance, thats the call. If IRs get to 16% the bottom will be a very low, floor-scraping bottom. Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 9, 2009 Share Posted March 9, 2009 Sorry laurejon i'm not on your case, but if interest rates hit 16% then house prices will have another 50% falls to go. imo. Quote Link to comment Share on other sites More sharing options...
time 2 raise interest rates Posted March 9, 2009 Share Posted March 9, 2009 (edited) Snap. or as my granny used to say " a letter in the post, bless her. Edited March 9, 2009 by time 2 raise interest rates Quote Link to comment Share on other sites More sharing options...
Selling up Posted March 9, 2009 Share Posted March 9, 2009 Pay attention at the back! We are talking about cash buyers here, I have already made the proviso that anyone who needs a mortgage should wait for the bottom to minimise the debt burden. Sorry Sir... or Miss... Quote Link to comment Share on other sites More sharing options...
Lepista Posted March 9, 2009 Share Posted March 9, 2009 Sorry laurejon i'm not on your case, but if interest rates hit 16% then house prices willhave another 50% falls to go. imo. ...but house prices DO have another 50% to go to get to 60% drops. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 9, 2009 Share Posted March 9, 2009 Yep 16% would be a catalyst to push them further down. How about 7%, thats double the mortage rate today. My point being that there is a period of time that is not the bottom when its optimum to buy taking into account the financing costs. Quote Link to comment Share on other sites More sharing options...
Pessimist Posted March 9, 2009 Share Posted March 9, 2009 When they have the cash, and they see something they really want to live in at a price which seems reasonable. I'd also add to buy before the banks collapse (and you lose your cash), or hyperinflation caused by the printing of money kicks in (and your savings become worthless). Look to buy a house in an area that is unlikely to have groups of yobs kicking your door in, and where you can still find work in times of extreme depression. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 9, 2009 Share Posted March 9, 2009 I'd also add to buy before the banks collapse (and you lose your cash), or hyperinflation caused by the printing of money kicks in (and your savings become worthless). Look to buy a house in an area that is unlikely to have groups of yobs kicking your door in, and where you can still find work in times of extreme depression. Is property cheap in Monte Carlo now ? Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 9, 2009 Share Posted March 9, 2009 there may not be a future time for the next couple of generations to buy property. this has been an illusion of wealth. were going to watch what happens when you sign up for an out of control mortgage and it may put people off for life. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted March 9, 2009 Share Posted March 9, 2009 When they have the cash, and they see something they really want to live in at a price which seems reasonable. Agreed... which may or may not turn out to be the statistical bottom of the market. Quote Link to comment Share on other sites More sharing options...
abharrisson Posted March 9, 2009 Share Posted March 9, 2009 Is property cheap in Monte Carlo now ? It's pretty reasonable now... I saw a central 5 bed flat for £32million the other day, so there are some absolute bargains to be had if you move quickly. Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 9, 2009 Share Posted March 9, 2009 It's pretty reasonable now... I saw a central 5 bed flat for £32million the other day, so there are some absolute bargains to be had if you move quickly. I think I will wait a while, when it drops to 25m I will make a move. I am guessing laminate flooring is popular in Monte Carlo, and with inflation heading our way soon I reckon it might turn a few Euro's being let out to Students. Quote Link to comment Share on other sites More sharing options...
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