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kara gee

If You Had Cash - Would You Buy?

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I know this has been covered in one form or another several times before but.....

If you had the cash to buy a property outright now, so no mortgage and no rent, would you? and why/why not?

Thanks

KG

Edit to say - To buy a house to live in rather than rent

Edited by kara gee

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yes if it meant I had loads of spare cash as well.

No if it wipes out the savings we will need to get through these next few years.

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Saved cash,

Inherited cash

or STR cash

You know, it really shouldn't make any difference, but I bet it does!

Edited by sbn

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Guest Fedup
I know this has been covered in one form or another several times before but.....

If you had the cash to buy a property outright now, so no mortgage and no rent, would you? and why/why not?

Thanks

KG

No, houses are still overpriced. I think of it this way: if most of the people trying to sell their overpriced houses now were trying to buy the same house based purely on their savings and their salaries they wouldn't have a chance. Why should I help them get free money.

Edited by Fedup

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I have to say that yes, I would buy property.

It's guaranteed income stream, for years and years and years.

If you're willing to rent out out and accept well below market rates you may get away with it

Otherwise it depends if you gat a property at the right price. there are still too many vendors/EA's asking silly prices

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If you had the cash to buy a property outright now, so no mortgage and no rent, would you? and why/why not?

If I had the cash to buy something acceptable, yes, I probably would. It wouldn't be a rushed job though.

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Guest X-QUORK

No, because prices will continue to fall for another couple of years at least.

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If you had the cash to buy a property outright now, so no mortgage and no rent, would you? and why/why not?

Only if it was somewhere I was certain I wanted to look after for the next 50 years. I'd not want the hassle of selling a place - if I have to re-locate, it is much easier when renting.

The right property, at a price I can afford - yes, I'd buy. To assure me of that option, however, high end properties would need to fall in price by around 90%.

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If it was cheap I'd consider taking a hit for a bit of permanence. Then again I saw a nice 45 foot narrowboat on ebay for £29k with a mooring.

Edited by rover2000

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No, because prices will continue to fall for another couple of years at least.

+1.

I have the cash together now for a 4 bed detached in Wiltshire. Will I be buying? Will I F*ck. I want those F*ckers that priced me out the market to feel the PAIN...

Had a call from the EA this morning, for the properties I viewed last week. Consensus? Overpriced, unrealistic expectations. I was tempted to put an offer in but will let them sweat it another couple of months for them to realise they are overpriced. Besides, this time next year, I will be sitting on 110K, which will make the banks pi$$ their pants with joy. I actually love the old drears face each month I pop into Britannia and unload another 3K in crisp notes in savings.

Personally, not looking to buy until 2010-2011 now, as at best the market is levelling. At best. If all carnage breaks loose, I want to make sure I am as liquid as possible and have the ability to turn the lot into Platinum ETFs at the drop of a hat. Onwards and upwards. Or downwards as the case may be.

Edited by mbga9pgf

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"Never try and catch a falling knife"

Lets say you have 200k to spend. You spend 190k on a house today and prices drop 10. In 6 months you have a house worth 170k and 10k still in the bank.

Alternatively, wait for up to 6 months and prices have risen. By the time they've risen 5% you can see they're rising and buy at 200k. So in 6 months you have 200k worth of assets.

Of course, if you wait 6 months and prices fall then you get the house and 320k in the bank.

Wait and see.

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"Never try and catch a falling knife"

Lets say you have 200k to spend. You spend 190k on a house today and prices drop 10. In 6 months you have a house worth 170k and 10k still in the bank.

Alternatively, wait for up to 6 months and prices have risen. By the time they've risen 5% you can see they're rising and buy at 200k. So in 6 months you have 200k worth of assets.

Of course, if you wait 6 months and prices fall then you get the house and 320k in the bank.

Wait and see.

Must rush out and buy then :blink:

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Guest มร หล&#3
yes if it meant I had loads of spare cash as well.

No if it wipes out the savings we will need to get through these next few years.

Right answer Surrey boy!

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No, houses are still overpriced. I think of it this way: if most of the people trying to sell their overpriced houses now were trying to buy the same house based purely on their savings and their salaries they wouldn't have a chance. Why should I help them get free money.

I have the cash but am living off my savings. I would not buy now for two reasons:

1. No idea how dire this economy will become so feel safer with cash in the bank.

2. I honestly and utterly think that the worst is yet to come. I think the last 6 months of 2009 will see a huge shock in the global economy resulting in a stock market crash and rapidly rising unemployment. I think a few banks will go bust or bust enough to need another Govt bail-out.

We have had the biggest credit bubble in history. QE is not working. This will not be corrected in 6 or 12 months.

As for the permanence thing, well, surely being mobile is preferable in the current economic climate?

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If it was cheap I'd consider taking a hit for a bit of permanence. Then again I saw a nice 45 foot narrowboat on ebay for £29k with a mooring.

Ooooo......if I didn't have little 'uns I'd be all over that idea.

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Guest มร หล&#3
I have the cash but am living off my savings. I would not buy now for two reasons:

1. No idea how dire this economy will become so feel safer with cash in the bank.

2. I honestly and utterly think that the worst is yet to come. I think the last 6 months of 2009 will see a huge shock in the global economy resulting in a stock market crash and rapidly rising unemployment. I think a few banks will go bust or bust enough to need another Govt bail-out.

We have had the biggest credit bubble in history. QE is not working. This will not be corrected in 6 or 12 months.

As for the permanence thing, well, surely being mobile is preferable in the current economic climate?

Same situation right now and I'm worried too. No claim on benefits even if I was in the UK.

One thing's for sure. I won't bother again.

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Despite being an uber bear, yes if I had sufficient cash to buy somewhere I would be living in for many years (preferably forever) then I would be trying to negotiate a good deal now.

In the current climate, with a big pile of cash I assume you would be a very exciting prospect to anyone that wanted to sell a house and could get a very good discount.

Current life circumstances (all good) are such that I have a heavy time preference for a house of my own and would therefore pay a premium over my expected bottom of the market which I beleive is some way off.

(http://en.wikipedia.org/wiki/Time_preference)

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In the current climate, with a big pile of cash I assume you would be a very exciting prospect to anyone that wanted to sell a house and could get a very good discount.

Problem is that we seem to be living in a country where some kind of mass denial is going on re house prices.

I suspect the majority of sellers would be miffed if you offered them 10% below their ridiculous asking price let alone 30% below.

The myth of being able to negotiate a very good discount now is merely that - a myth.., or rather a dream.

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I have to say that yes, I would buy property.

It's guaranteed income stream, for years and years and years.

Unless you get tennants who don't pay the rent and trash the place.

Plus the property could be empty for months on end, thus costing you money

and at the same time it could be depreciating in value

I am getting over 5% return on my capital at the moment with no hassle

I will probably trade up to a more expensive property when the market hits rock bottom in a few years time.

No rush though because it will probably bump along the bottom for 10 years or more IMO.

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I have the cash but am living off my savings. I would not buy now for two reasons:

1. No idea how dire this economy will become so feel safer with cash in the bank.

2. I honestly and utterly think that the worst is yet to come. I think the last 6 months of 2009 will see a huge shock in the global economy resulting in a stock market crash and rapidly rising unemployment. I think a few banks will go bust or bust enough to need another Govt bail-out.

We have had the biggest credit bubble in history. QE is not working. This will not be corrected in 6 or 12 months.

As for the permanence thing, well, surely being mobile is preferable in the current economic climate?

Exactly

A small city centre flat is a millstone not a home IMO.

Young people need to be mobile in order to take advantage of the jobs market

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Unless you get tennants who don't pay the rent and trash the place.

Plus the property could be empty for months on end, thus costing you money

and at the same time it could be depreciating in value

I am getting over 5% return on my capital at the moment with no hassle

I will probably trade up to a more expensive property when the market hits rock bottom in a few years time.

No rush though because it will probably bump along the bottom for 10 years or more IMO.

Is this a BTL thread?

I thought it was about buying a home?

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Yes, and I have. I wanted to move somewhere that did me for a long time - ideally forever. This may well be my last move, so it needed to be right. We searched for two years in the area, turned up the odd house, usually flawed and we were always outbid. Then we found something that was spot on (how about 6 acres and you can be at your desk in central london in 50 minutes?). We went for it, and thanks to the beginning of the crisis (late 2008), all of the silly offers came unstuck and we got it.

Financially it was probably nuts, but we had the cash and life is too short. I've got maybe 25 years left in me where 6 acres is enjoyable (much beyond 65 and it becomes a pain....), and I couldn't be bothered to spend another few years trying to fine tune the price. If it had come on now, maybe we'd have got it for 10% less, but ultimately, who cares? I like living there....

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Unless you get tennants who don't pay the rent and trash the place.

Plus the property could be empty for months on end, thus costing you money

and at the same time it could be depreciating in value

I am getting over 5% return on my capital at the moment with no hassle

I will probably trade up to a more expensive property when the market hits rock bottom in a few years time.

No rush though because it will probably bump along the bottom for 10 years or more IMO.

If I won £1 million on the lottery, I would buy a few properties outright and rent them out (and one for myself)

Of course I'd expect the properties to fall in value but it wouldn't bother me as they'd be a permanent income stream investment, at least as much as I currently earn.

And I'd never have to work again, except to look after the properties.

Easy street! :-)

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