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Anecdotal - More Idiots Than You'd Believe

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I've been watching properties in Berkshire like a hawk. There is now a record low in stock and unbelievable we're back to sealed bids and POA rubbish. The fundamentals may be awful but in the SE of England (well this bit) waiting for a bargain is like waiting for a free dance from a stripper.

My bet is that Haliwide shows gains for the next two months and the LR lagging as it does shows the same. purging the bubble money is going to take longer than I want it too. Bottom 2010-11. Unfortunately you won't ge4t 2011 process now. Restricted supply means that vendors can justafiably tell you to sling your hook.

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I think most of us know we have to settle in for a long wait. It will pay off though. I don't care how long it takes, I do not see owning as preferable to renting, and will continue to take the most financially sensible option, no matter how long it takes.

If prices do not come down to the point I project, then I will simply rent forever. A mortgage is not such a wonderful thing that I would live a lifetime in poverty just to have one.

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I nearly cracked the other day but came to my senses thank god. Offered 190k for a 220k 4 bed detatched, luckily though the EA told the vender not to take any less that 213k as the market had now bottomed out and prices will soon start to rise. My offer was turned down as the vender thought it to be insulting! I took pleasure saying no after I was asked by the EA if I wanted to offer more.

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I think most of us know we have to settle in for a long wait. It will pay off though. I don't care how long it takes, I do not see owning as preferable to renting, and will continue to take the most financially sensible option, no matter how long it takes.

If prices do not come down to the point I project, then I will simply rent forever. A mortgage is not such a wonderful thing that I would live a lifetime in poverty just to have one.

The way things are panning out, if you rent for long enough and put the extra you can save to good use you will eventually be able to buy a property outright for cash. ;)

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I nearly cracked the other day but came to my senses thank god. Offered 190k for a 220k 4 bed detatched, luckily though the EA told the vender not to take any less that 213k as the market had now bottomed out and prices will soon start to rise. My offer was turned down as the vender thought it to be insulting! I took pleasure saying no after I was asked by the EA if I wanted to offer more.

All they - sellers and EAs - are doing is protracting their own pain. Nuts.

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I've been watching properties in Berkshire like a hawk. There is now a record low in stock and unbelievable we're back to sealed bids and POA rubbish. The fundamentals may be awful but in the SE of England (well this bit) waiting for a bargain is like waiting for a free dance from a stripper.

Ahh, the 'topless teaser'...

Shouldn't worry yourself about the current halt to proceedings. The select few cash buyers are still buying, but their is no 'real' market (i.e. involving first time buyers). There are no green shoots to rescue this. Massive job losses in the offing (e.g. brother-in-law's successful business went to the wall last week, with forty redundancies) and plenty more to come (steel industry, etc). Not wishing for it to happen you understand (I would buy a house tomorrow if I really thought they had bottomed), just stating the reality of the situation.

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I've been watching properties in Berkshire like a hawk. There is now a record low in stock and unbelievable we're back to sealed bids and POA rubbish. The fundamentals may be awful but in the SE of England (well this bit) waiting for a bargain is like waiting for a free dance from a stripper.

My bet is that Haliwide shows gains for the next two months and the LR lagging as it does shows the same. purging the bubble money is going to take longer than I want it too. Bottom 2010-11. Unfortunately you won't ge4t 2011 process now. Restricted supply means that vendors can justafiably tell you to sling your hook.

Lots and lots and lots of new rentals in Berkshire though........ methinks we have a low supply due to th large increase in unplannedlords..... IR's WILL start going up at some point, and then these bods are in for a reality shock. Where are you looking in Berkshire?

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Exactly. At these prices you will end up richer.

the dream is to be mortgage free by your pension age - do you suggest continuing to pay rent till your last days?

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Ahh, the 'topless teaser'...

Shouldn't worry yourself about the current halt to proceedings. The select few cash buyers are still buying, but their is no 'real' market (i.e. involving first time buyers). There are no green shoots to rescue this. Massive job losses in the offing (e.g. brother-in-law's successful business went to the wall last week, with forty redundancies) and plenty more to come (steel industry, etc). Not wishing for it to happen you understand (I would buy a house tomorrow if I really thought they had bottomed), just stating the reality of the situation.

The EAs are managing to convince some cash buyers, who should know better, that now is the time to pick up a bargain while mortgages are few and far between. They are going to get such a shock when prices fall another 30% or 40% and they realise they haven't bought the bargain they thought they had.

My cash is staying firmly in the bank for at least another couple of years.

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I've been watching properties in Berkshire like a hawk. There is now a record low in stock and unbelievable we're back to sealed bids and POA rubbish. The fundamentals may be awful but in the SE of England (well this bit) waiting for a bargain is like waiting for a free dance from a stripper.

My bet is that Haliwide shows gains for the next two months and the LR lagging as it does shows the same. purging the bubble money is going to take longer than I want it too. Bottom 2010-11. Unfortunately you won't get 2011 process now. Restricted supply means that vendors can justafiably tell you to sling your hook.

It's always good to have reports from someone who has been keeping an eagle eye on one particular sector of the market - keep the reports coming. (Note to others, this sort of thing is really useful - depressing, but useful.)

As for vendors - yes, we have to accept that when and where the market turns their way, they are as entitled to play hardball as buyers are. They can make hay while the sun shines.

We've just made an offer on a property which was taken off the market 9 months ago (which we expected to be turned down). They wrote back saying that they might be putting it back on the market in 6 months or so, but in the meantime they'd spent more money on the property (which, I grant, was all necessary maintentance work), which would have to be reflected in any buying price - as would market considerations in 6-9 months' time. I think they expect that the market will have risen by then. I don't. If we're still looking for a house then, we'll see who's right.

Yesterday the new LR figures for the NE showed a 4.3% drop in May - no doubt the figures for June will be less alarming/encouraging (depending on your perspective), but I can't see that prices will have risen much by Q1 2010.

Meanwhile, the market in the Tyne Valley continues to be slow, but there are still quite a few places which have been on the market for months - including some dogs, but some really quite nice houses, but with no sign of significant asking price drops. I would guess that some of them must have turned down offers (as I said, nice properties) and are holding out for something near the asking price. They're not getting it, clearly since we're talking 12m+ on the market.

I'm guessing that we must be close to one of the famous "tipping points", when prices start to go down again. I don't suppose they'll go down much, but even 5% during the rest of this year will, I hope, destroy the "just wait and it will go back to normal" myth.

db

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the dream is to be mortgage free by your pension age - do you suggest continuing to pay rent till your last days?

I am retired, although not yet at state pension age, and have more than enough cash to buy now if I so wished. I choose to rent as its much more cost effective. Will I ever own another house? Perhaps, or perhaps not, I'll buy if and when it makes financial sense.

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Lots and lots and lots of new rentals in Berkshire though........ methinks we have a low supply due to th large increase in unplannedlords..... IR's WILL start going up at some point, and then these bods are in for a reality shock. Where are you looking in Berkshire?

I think you get to copyright that. Be prepared to sue when it turns up in market commentary in the papers!

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Ah, feck em. I am sitting in a nice house which is all mine with a steadily growing pot of money. Sure it's be nice to move, but I can stay put longer than the overextended can stay solvent...

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I think you get to copyright that. Be prepared to sue when it turns up in market commentary in the papers!

You dont need to 'copyright' something to have copyright. You just need to prove you wrote it first.

Of course, there is probably something in the FUBRA small print that copyright on everything we write here is assigned to them.

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The dream is surely to have as much money as possible at each stage of your life. If you can accumulate savings by paying a low rent rather than an over-priced mortgage, you can easily end up with an investment fund able to pay any conceivable rent forever. If at any point rent becomes more expensive than buying, you can at that point buy a house with the fund.

Very true....money, it's not what it can buy you, it's what it can do for you, the experiences it offers you and the freedom it gives you. ;)

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the dream is to be mortgage free by your pension age - do you suggest continuing to pay rent till your last days?

I think the line is you rent the in your 50s inherit a property from your parents or close relatives (a house unlike the 1 bedder you could afford to buy) so you end up owning a property before you retire. So you have no housing costs.

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I nearly cracked the other day but came to my senses thank god. Offered 190k for a 220k 4 bed detatched, luckily though the EA told the vender not to take any less that 213k as the market had now bottomed out and prices will soon start to rise. My offer was turned down as the vender thought it to be insulting! I took pleasure saying no after I was asked by the EA if I wanted to offer more.
Great to hear that. :)

That's the story of my life. When things seem not to go according to the ideal plan, it turns out later that I was much better off for the way things turned out. Like losing a job, and then getting a better more secure job with a nicer company, admittedly after a considerable time, and looking back and realizing that the company which let me go had done me a favour, as it was a shit company.

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The dream is surely to have as much money as possible at each stage of your life. If you can accumulate savings by paying a low rent rather than an over-priced mortgage, you can easily end up with an investment fund able to pay any conceivable rent forever. If at any point rent becomes more expensive than buying, you can at that point buy a house with the fund.
Except it is not always so easy to sell again when renting becomes the better choice, especially if you missed the peak and end up in negative equity.

Unless you are lucky enough to be a cash buyer, which might be so if you accumulated enough by your policy.

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the dream is to be mortgage free by your pension age

Yes, that's my dream too and exactly what I plan to do. I have an STR fund of £65,000 and I anticipate being able to buy a Victorian terraced cottage, such as the first of two the houses I have owned and loved, for cash, in 2011 (They are currently around the £95,000 mark, asking price so that's currently £80,000, maximum offer, CT11 postal area and with a lot further to fall in a town where most FTBs are on the minimum wage)

When I retire in 2024, we will be at the at the top of the next boom, so I will sell that house and rent again, but this time forever,with around £200,000 to play with in my dotage and while the Sheeple see their life savings wiped out again.

Oh, and I'll be back posting on HPC after my long absence! ;)

I'm 50 in September and this is my pension plan. I think it's a cracker!

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Yes, that's my dream too and exactly what I plan to do. I have an STR fund of £65,000 and I anticipate being able to buy a Victorian terraced cottage, such as the first of two the houses I have owned and loved, for cash, in 2011 (They are currently around the £95,000 mark, asking price so that's currently £80,000, maximum offer, CT11 postal area and with a lot further to fall in a town where most FTBs are on the minimum wage)

When I retire in 2024, we will be at the at the top of the next boom, so I will sell that house and rent again, but this time forever,with around £200,000 to play with in my dotage and while the Sheeple see their life savings wiped out again.

Oh, and I'll be back posting on HPC after my long absence! ;)

I'm 50 in September and this is my pension plan. I think it's a cracker!

I applaud you. You have an understanding of economic cycles and a good plan there - something similar to mine, in fact, although I'm luckily 'only' 39.

I've had a couple of small discussions this week with people about the housing market and all I can say is I know more about 18th century Bulgarian poetry than they seem to know about economics. I kid you not!

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I applaud you. You have an understanding of economic cycles and a good plan there - something similar to mine, in fact, although I'm luckily 'only' 39.

I've had a couple of small discussions this week with people about the housing market and all I can say is I know more about 18th century Bulgarian poetry than they seem to know about economics. I kid you not!

and thats exactly why you can guarentee the cycle.

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A dream is to be mortgage free by your pension age.... :o

If I buy a house I plan to be mortgage free by half my pension age. And that should only include 5 years of saving hard.

Mortgage free by 65.... :blink:

May as well shoot yourself in the face IMO.

Must be more things to life than paying through the nose for a debt.

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The select few cash buyers are still buying, but their is no 'real' market (i.e. involving first time buyers).

the way i see it only people with *magic money* (ie HPI STR proceeds!) can buy. its a problem for those needing real money. there isn't enough magic money to go around!

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Must be more things to life than paying through the nose for a debt.

yep, like trying to find ways that your kids actually inherit what you had when you snuff it rather than the government stealing 40% of what you waisted your life struggling to pay for.

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