Jack Sparrow Posted May 30, 2009 Share Posted May 30, 2009 Just in case anyone is interested I was persuaded to buy a house yesterday by Mrs BF. Now before you start giving me a hard time let me explain that:1. We have just purchased ( well offer accepted ) a dilapidated two bed bungalow. This is, for us, a self build project. I really wanted a virgin site but even now a good one where you want it, is hard to come by so we've settled for sticking another floor on a bungalow. Building yourself works out a whole lot cheaper than buying 'ready made.' The site is almost ideal for our needs / wants - they don't come up very often. 2. We did negotiate 16% off the asking. 3. We are lucky enough that we can afford it without any borrowing. 4. Our children are growing up fast and I wanted to them to have bedrooms that they can decorate themselves and a dog. 5. I want to stay married to Mrs BF ! 6. I accept that we will probably loose money on this ( possibly a six figure sum ) but somethings are more important than money. 7. I have been biding my time for 5 years now and I'm not getting any younger. 8. For what its worth I am still convinced prices have a way to go - probably another 20-30%. I accept/ expect that we will take a hit. What's happening now is a suckers rally - I have no doubt about that. 9. Mrs BF ( works in local EAs) tells me that they are begining to put deals together and sales are being made albeit at much reduced prices. Buyers are almost exclusively cash buyers. 10. Where we are prices have come down 20-30% - no question. Some vendors are in denial but their properties stick out like sore thumbs and just sit in the agents windows gathering dust. Thank you to all I have had the pleasure of 'conversing' with over the years. I have learnt a huge amount from the posters on this site and you all ( well the bears anyway ) have been vindicated. To the speculators and rampers I say get a life / real job - do something worthwhile and productive , stop sponging off the young and generations to come. To young potential FTBs I say hang on in there - although we might experience a bit of a pause due to freakishly low interest rates, printing of money and a suckers rally - your time will come - interest rates are going one way only, so too taxes and unemployment. Moving sharply in the opposite direction will be disposasble incomes and house prices. Although I post infrequently I have read this site virtually every day for the last 5 years, so now I think I need to give it a break. I will be back with updates from Mrs BF when / if I have anything interesting to report. Good luck to you all ............. Its a wise move............. you wont regret it.................unless Mrs Bf divorces you in the future........ statistically the odds are not in your favour,,,,,,,,,,,,,,,in which case you lose everything..........but what the hell.....good luck . Quote Link to comment Share on other sites More sharing options...
singlemalt Posted May 30, 2009 Share Posted May 30, 2009 Good luck Bearfacts, hope it works out for you and your family. (btw no need to justify your reasons to the forum but thanks anyway). Let's face it people, everyone has a set of circumstances peculier to them. For me, I'm not jumping back in until 2011 at the earliest basically because I know I'll need a mortgage. Should I get it wrong in a few years it'll feel like a millstone, for cash buyers things are always different. Since I STR in 2007 I've been convinced that 2011 will be the bottom whereupon prices will languish for a couple of years. Quote Link to comment Share on other sites More sharing options...
fiddlethefigures Posted May 30, 2009 Share Posted May 30, 2009 absolutely gutted your leaving Quote Link to comment Share on other sites More sharing options...
BufferBear Bitcoin Bull Posted May 31, 2009 Share Posted May 31, 2009 +1 +2 Goodluck.. Quote Link to comment Share on other sites More sharing options...
Bardon Posted May 31, 2009 Share Posted May 31, 2009 Building yourself works out a whole lot cheaper than buying 'ready made.' The stress that comes with home building is also free as well. All the best with it though. Quote Link to comment Share on other sites More sharing options...
Dubai Posted May 31, 2009 Share Posted May 31, 2009 Well done BF.... it's a difficult decision to make the "buy" choice in this climate.... but as you infer, life is for living. Why do you have to leave the board? Because you've bought? I bought a year ago, for the same reasons as you, but I still believe in HPC (I will now be a victim rather than someone who makes a killing!). Being an owner doesn't make your opinions invalid to this community.... your anecdotal posts were really interesting and will be missed.... Quote Link to comment Share on other sites More sharing options...
aussieboy Posted May 31, 2009 Share Posted May 31, 2009 May lose six figures on a 2 bed project? Crikey - is it in Mayfair? Quote Link to comment Share on other sites More sharing options...
Timm Posted May 31, 2009 Share Posted May 31, 2009 May lose six figures on a 2 bed project? Crikey - is it in Mayfair? Or Boars Hill? Quote Link to comment Share on other sites More sharing options...
Kazuya Posted May 31, 2009 Share Posted May 31, 2009 Good luck Bearfacts! Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 31, 2009 Share Posted May 31, 2009 BF all the best. I can understand what you are doing. I don't think building plots are as overpriced as houses as many come from liquidated firms. Also it is frustrating not having a home you have the sole discretion to do with what you want and 5 years is a long term. At some point I will almost certainly follow your path, though being 18 month STRer I think there is still some patience left in me and I will have been luckier than many who STRed too early. Some may say hang on BF, you are doing this too early, probably true, but I don't think we are too far from the bottom in percentage terms especially for self builds. Quote Link to comment Share on other sites More sharing options...
juvenal Posted May 31, 2009 Share Posted May 31, 2009 Good move BF. You'll be making on that place not losing. Perfect time to buy just before they go up again. Good morning, Sibley Quote Link to comment Share on other sites More sharing options...
grumpy-old-man-returns Posted May 31, 2009 Share Posted May 31, 2009 BF all the best.I can understand what you are doing. I don't think building plots are as overpriced as houses as many come from liquidated firms. Also it is frustrating not having a home you have the sole discretion to do with what you want and 5 years is a long term. At some point I will almost certainly follow your path, though being 18 month STRer I think there is still some patience left in me and I will have been luckier than many who STRed too early. Some may say hang on BF, you are doing this too early, probably true, but I don't think we are too far from the bottom in percentage terms especially for self builds. this is an area that I disagree with you on ML. I think we are no where near the bottom yet. But dependant on your situation it's not always about the money. So for Bearfacts & his wife, they have got a discount & made a decision that suits them. It all depends on your age & financial position. For example Mrs GOM & I will likely buy in 2010 before the bottom, that's just because we will be sick of renting by then & need a solid base. We have moved approximately 12 times in 20 years, I kid you not. I think the bottom will be 2012 & will stay in place until 2020 at least.... Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 31, 2009 Share Posted May 31, 2009 this is an area that I disagree with you on ML. I think we are no where near the bottom yet.But dependant on your situation it's not always about the money. So for Bearfacts & his wife, they have got a discount & made a decision that suits them. It all depends on your age & financial position. For example Mrs GOM & I will likely buy in 2010 before the bottom, that's just because we will be sick of renting by then & need a solid base. We have moved approximately 12 times in 20 years, I kid you not. I think the bottom will be 2012 & will stay in place until 2020 at least.... GOM, I am sure much relies on definitions. My definition of near the bottom is nominal percentage terms. I reckon 15%-20% more. But half of this by the end of this year. After that who know inflationary holocaust or deflationary nightmare - I recommend everyone read the Gilt thread to learn and discuss. Quote Link to comment Share on other sites More sharing options...
keef Posted May 31, 2009 Share Posted May 31, 2009 6. I accept that we will probably loose money on this ( possibly a six figure sum ) but somethings are more important than money. I ******ing despair. Am I surrounded by morons? Quote Link to comment Share on other sites More sharing options...
Wol Posted May 31, 2009 Share Posted May 31, 2009 I ******ing despair. Am I surrounded by morons? Easy, tiger. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted May 31, 2009 Share Posted May 31, 2009 Good luck dude! Quote Link to comment Share on other sites More sharing options...
piece of paper Posted May 31, 2009 Share Posted May 31, 2009 I ******ing despair. Am I surrounded by morons? Morooned? p-o-p Quote Link to comment Share on other sites More sharing options...
yellerkat Posted May 31, 2009 Share Posted May 31, 2009 I ******ing despair. Am I surrounded by morons? Years of encountering apostrophe abuse on the internet have made me have to stop and think about something that was once automatic. Judge not etc. Morooned?p-o-p Quote Link to comment Share on other sites More sharing options...
Mikhail Liebenstein Posted May 31, 2009 Share Posted May 31, 2009 I ******ing despair. Am I surrounded by morons? Two possible meaning in your comment. Quote Link to comment Share on other sites More sharing options...
Guest Daddy Bear Posted May 31, 2009 Share Posted May 31, 2009 this is an area that I disagree with you on ML. I think we are no where near the bottom yet.But dependant on your situation it's not always about the money. So for Bearfacts & his wife, they have got a discount & made a decision that suits them. It all depends on your age & financial position. For example Mrs GOM & I will likely buy in 2010 before the bottom, that's just because we will be sick of renting by then & need a solid base. We have moved approximately 12 times in 20 years, I kid you not. I think the bottom will be 2012 & will stay in place until 2020 at least.... GOM As you know I too bought last week - 32% off peak, 4.99% mortgage over 10 years fixed. 18 months after string at peak. There is never a wrong time to buy or sell only a wrong price. The price was perfect for me. I know the bond market will collapse in a few months that is why I got out of cash. What I cannot understand is how you reconcile this scenario with continung fall in nominal prices for property. House prices will fall in REAL TERS for many years but nominally the bottom is being reached. This is why I took a 10 year fixed at 4.99% - agreed 6 months ago. when tshtf IRs will rocket along with inflation. Surely protect your cash in an asset. A family house is the best asset for me. Quote Link to comment Share on other sites More sharing options...
Venger Posted May 31, 2009 Share Posted May 31, 2009 (edited) I know the bond market will collapse in a few months that is why I got out of cash. What I cannot understand is how you reconcile this scenario with continung fall in nominal prices for property. House prices will fall in REAL TERS for many years but nominally the bottom is being reached. This is why I took a 10 year fixed at 4.99% - agreed 6 months ago. when tshtf IRs will rocket along with inflation. Surely protect your cash in an asset. A family house is the best asset for me. You sure know a lot. Concerted inflation is not coming. Now is the time to be liquid in money, not invested in property. The scenario you see coming would be an end to advanced economy, and to progress. Financial assets won't be wiped out to support property values, borrowers and debtors. Were it to happen your property won't count for much anyway. Edited May 31, 2009 by friday Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted May 31, 2009 Author Share Posted May 31, 2009 Thanks for all your good wishes. I knew some of you would think I am being stupid buying now ( I have doubts myself ) but as I said there are factors other than money to be considered here. My personal circumstances are such that I have the time to work on this project -that might not be the case in 1 or 2 years time. House is, of course, not in Mayfair - it's on the Kent coast. 'Losing' a six figure sum would require falls at the extreme end of the scale - although I acknowledge it is entirely possible. The property is really very modest, perhaps this just indicates how absurd the property market is when you can lose or gain such huge sums on very ordinary properties. One thing I'm sure we can all agree on ( Ok perhaps not the speculators ) is that buying a property should not be such a huge gamble. The difference between buying at peak and / or at the bottom is enormous and can have a huge impact on people's lives i.e not having children because you can't afford the space / divorce because of the stress of paying a mortgage etc etc. We need to put an end to the boom and bust of the property market - including house prices in the CPI measure would probablty do it but I expect the politicians and bankers will never let it happen as they all get filthy rich during the boom years. As I said I will pop back occasionally with updates as and when I have anything useful to add to the debate. This site is fantastic - educational and a little rebellious / revolutionary - allowing the masses to get to the real facts and fight the media VI spin machine but it is also more than a little addictive ( hell - I am back on today ! ) - I need to go 'cold turkey' for a while but as Arnie said - I will be back. Good luck to you all. Quote Link to comment Share on other sites More sharing options...
Bearfacts Posted May 31, 2009 Author Share Posted May 31, 2009 See, I just can't give it up ! It occured to me belatedly that stating that we might lose a six figure sum might sound dramatic and might make it sound like we are buying in Mayfair but if you consider that according to the Halifax the average property was 'worth' approx £200k at the peak, then a 50% fall would mean that the average property would have 'lost' a six figure sum i.e £100,000. Now that I have cleared that up I really am going. Quote Link to comment Share on other sites More sharing options...
grey shark Posted May 31, 2009 Share Posted May 31, 2009 As you know I too bought last week I think we all know by now , you like to tell us about a dozen times everyday Quote Link to comment Share on other sites More sharing options...
Darkman Posted May 31, 2009 Share Posted May 31, 2009 Good move BF. You'll be making on that place not losing. Perfect time to buy just before they go up again. Quote Link to comment Share on other sites More sharing options...
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