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nicebuyer

Well, I've Jumped In And Bought A House!

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Like everyone else, after selling at peak I was selfishly hoping for 30%+ falls in prices but it's just not happened nor do I see it happening. The price level at which I'm buying ~£600k hasn't seemed to move much in London over the past year, £50k here, £50k there, nothing to get too excited and write home about.

So rather than continue renting I've finally gone and made an offer, got it accepted and bought a house about £60k under what it would have been last year. With a young boy needing to settle into a permanent home and a wife fed up of renting we've made the decision.

As much as I can see and spin the figures to make buying now look silly and as hard as I can argue you just can't change sentiment. I know £600k for a 3 bed house is ridiculous but unfortunately the general sentiment is that although we may all be right, it's just the way things are.

The fact is the 'man on the street' sees the latest news story talking about house price increases and BINGO, suddenly sentiment has changed and people believe in housing again. You just can't argue against sentiment.

So I'm now a homeowner again, happy that I made a bit of cash during my brief time as a HPCer, sold at the right time and perhaps bought at the right time. If prices do decline then so be it, I'll be a few quid out of pocket but then again, I made enough on my sale. Finally I can stop worrying about house prices, arguing about what will happen, spend time reading forums about them and just enjoy life.

So good luck everyone!

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Like everyone else, after selling at peak I was selfishly hoping for 30%+ falls in prices but it's just not happened nor do I see it happening. The price level at which I'm buying ~£600k hasn't seemed to move much in London over the past year, £50k here, £50k there, nothing to get too excited and write home about.

So rather than continue renting I've finally gone and made an offer, got it accepted and bought a house about £60k under what it would have been last year. With a young boy needing to settle into a permanent home and a wife fed up of renting we've made the decision.

As much as I can see and spin the figures to make buying now look silly and as hard as I can argue you just can't change sentiment. I know £600k for a 3 bed house is ridiculous but unfortunately the general sentiment is that although we may all be right, it's just the way things are.

The fact is the 'man on the street' sees the latest news story talking about house price increases and BINGO, suddenly sentiment has changed and people believe in housing again. You just can't argue against sentiment.

So I'm now a homeowner again, happy that I made a bit of cash during my brief time as a HPCer, sold at the right time and perhaps bought at the right time. If prices do decline then so be it, I'll be a few quid out of pocket but then again, I made enough on my sale. Finally I can stop worrying about house prices, arguing about what will happen, spend time reading forums about them and just enjoy life.

So good luck everyone!

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Congratulations.

There is zero point putting life on hold waiting for house prices to drop just to try and make a buck so I think you have made the right decision. 600grand is wack of money for a 3 bedroom house but obviously you would rather pay that than move out of london - some people like apple pie with ketchup on it.

Completely different situation to a first time buyer panic buying a crappy studio flat on a 6 x salary mortgage in the current market.

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Splitter !!

You have been distracted by domestic stability, a happy environment, the bonds of family and a balanced life.

You are going to be missing out. This is where it is at, hunched over a computer, curtains closed, keeping it real !

Hope it all works out for you.

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As much as I can see and spin the figures to make buying now look silly and as hard as I can argue you just can't change sentiment. I know £600k for a 3 bed house is ridiculous but unfortunately the general sentiment is that although we may all be right, it's just the way things are.

The fact is the 'man on the street' sees the latest news story talking about house price increases and BINGO, suddenly sentiment has changed and people believe in housing again. You just can't argue against sentiment.

erm - yes you can, or rather macro-economic forces can, really quite cruelly. but good luck in your new home anyway.

at least the argument has moved on from one myth ('suply and demand' 'market forces') to another, even less justified one ('can't change sentiment')

Edited by Si1

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Can't really say if it's a good move or not without more information.

If it's mostly a cash buy then fine, if massive mortgage though.. not such a smart buy.

Edited by DementedTuna

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The fact is the 'man on the street' sees the latest news story talking about house price increases and BINGO, suddenly sentiment has changed and people believe in housing again. You just can't argue against sentiment.

Absolutely right, crowd psychology is one of the most powerful factors in setting market prices.

Also zero interest rate are here to stay for some time, and as long as interest rates are that low (1% trackers, 3% SVRs, 2% rates for buyers with large deposits) prices wont be going down any time soon..

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Absolutely right, crowd psychology is one of the most powerful factors in setting market prices.

Also zero interest rate are here to stay for some time, and as long as interest rates are that low (1% trackers, 3% SVRs, 2% rates for buyers with large deposits) prices wont be going down any time soon..

I have yet to find a 1% tracker that I could get for a new purchase?

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Absolutely right, crowd psychology is one of the most powerful factors in setting market prices.

long term no, I'm afraid.

Also zero interest rate are here to stay for some time, and as long as interest rates are that low (1% trackers, 3% SVRs, 2% rates for buyers with large deposits) prices wont be going down any time soon..

really? what about Japan? house prices all over the world have excelent records of falling during eras of low or falling interest rates.

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We were buying a house (price agreed) but the sellers tried to get an extra 10k out of us (which we could have paid). Told them to eff off - they tried to go back to agreed price but told them if they were messing around a couple of weeks after the price was agreed then what would happen on exchange. Estate agent was all "prices are going up" but they were well pi**ed off as well. Why is buying and selling houses so difficult in this country?? grrrrrrr

Bizarely, round my way (W. Mids) there is a bit more choice around lately - think someone said on another thread that because people see house prices increasing that more come on to the market. So prices seem to be a bit lower than a few months ago. Lots of mixed messages out here

We're cash buyers so wouldn't hesitate in buying the right house at the right price - lifes too short. I agree with a previous poster though - i'd be cautious about borrowing a lot.

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long term no, I'm afraid.

really? what about Japan? house prices all over the world have excelent records of falling during eras of low or falling interest rates.

This would be the perfect situation for me.

Ultra low mortgage rates on my flat take the sting out of the tail (plus some) of falling price.

Prices continue to fall hopefully allowing me to buy a proper second home with a much smaller mortgage (ultra low rates not really possible for new purchases).

I wonder if my mortgage provider woud let me leverage up my current mortgage (2%) to buy another house.

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Good luck to you and your family.

The time is right

Impossible to know at the moment from a financial point of view, in a few years we will have your answer.

...crowd psychology is one of the most powerful factors in setting market prices.

Totally agree. You could even argue that it's the only factor.

...zero interest rate are here to stay for some time

I expect so.

IMHO the world is experiencing a severe credit contraction that will mirror previous contractions.

This means swift falls in sentiment and asset prices interspersed with periods of euphoria (like now).

I would be very suprised if this is anywhere close to the bottom.

Good luck.

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This would be the perfect situation for me.

Ultra low mortgage rates on my flat take the sting out of the tail (plus some) of falling price.

Prices continue to fall hopefully allowing me to buy a proper second home with a much smaller mortgage (ultra low rates not really possible for new purchases).

I wonder if my mortgage provider woud let me leverage up my current mortgage (2%) to buy another house.

eh? but equities are (and shall continue to imho) p*ssing all over house prices right now, agree I don't have a crystal ball, but opportunity cost is large in your scenario

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erm - yes you can, or rather macro-economic forces can, really quite cruelly. but good luck in your new home anyway.

It's funny, the financial system was on the brink of collapse, unemployment is sky high, the BOE has had to pump massive amounts into the economy to save it, it's dropped interest rates to record lows, house sale levels are and have been at incredible lows, the country is almost bankrupt and what do we have?

A market sentiment that says 'the house market has recovered, prices are up, times are good.

I'm amazed at what's happening, how people are reacting just a few months after potential oblivion but it's the way that it is. Sentiment has changed, attitudes are different and no matter what we al think, the general public doesn't see things like the average HPCer.

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Good for you, you pays your money and take your chance.

What mortgage did you go for if you dont mind me asking? %, period, etc

Went with the Abbey, put down 40%, I'm buying a Victorian terrace in SW19, 3 bed, 2 bathroom, nice little place, garden too small of course :) Had to pay a bit more because it's close to two excellent schools so there's a bit of a premium there. Going to stay in London for another few years and then moving out and finding something bigger.

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It's funny, the financial system was on the brink of collapse, unemployment is sky high, the BOE has had to pump massive amounts into the economy to save it, it's dropped interest rates to record lows, house sale levels are and have been at incredible lows, the country is almost bankrupt and what do we have?

A market sentiment that says 'the house market has recovered, prices are up, times are good.

I'm amazed at what's happening, how people are reacting just a few months after potential oblivion but it's the way that it is. Sentiment has changed, attitudes are different and no matter what we al think, the general public doesn't see things like the average HPCer.

There were lots of happy chirpy people on the Titanic after the ice berg was struck. Not understanding something and irrational sentiment cannot change the ultimate outcome of a situation.

People spending their money now are simply doing what the amrket expects them to. Interest rates will rise, taxation will rise, unemployment will continue to rise and ultimately the lax lending that powered the market has gone and shows no signs of returning.

Of course those currently participating in the market feel bullish. They'd be idiots to think otherwise. It no more makes them right than a man mistaking a mirage for an oasis.

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when all the "worried we're going to miss the boat" people have bought, who will be the buyers?

if prices move up, people can't afford to buy, in fact most can't afford to buy now unless given a liar loan on high multiples with a long term assurance of ultra low interest rates and a steady job and Govt assurances of paying their mortgage with taxpayer money that is dwindling as unemployment increases and other expenses weigh the govt down. so they print more i guess, then we see what happens...

this is an experiment with people's lives, life savings, roof over their head etc, it's no wonder some people feel insecure and are buying a home even when common sense says it's far from cheap

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It's funny, the financial system was on the brink of collapse, unemployment is sky high, the BOE has had to pump massive amounts into the economy to save it, it's dropped interest rates to record lows, house sale levels are and have been at incredible lows, the country is almost bankrupt and what do we have?

A market sentiment that says 'the house market has recovered, prices are up, times are good.

I'm amazed at what's happening, how people are reacting just a few months after potential oblivion but it's the way that it is. Sentiment has changed, attitudes are different and no matter what we al think, the general public doesn't see things like the average HPCer.

They will...

:lol::lol::lol:

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Went with the Abbey, put down 40%, I'm buying a Victorian terrace in SW19, 3 bed, 2 bathroom, nice little place, garden too small of course :) Had to pay a bit more because it's close to two excellent schools so there's a bit of a premium there. Going to stay in London for another few years and then moving out and finding something bigger.

has it ever occurred to you why they might only want to advance 60% of the RICS valuation? best not think about that one.

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