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Alba

To Buy Or Not To Buy?

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I thought I knew what I was doing until I happened upon this site. Most of the threads have influenced me to re-think my future strategy. I now feel that I would welcome advice from members before proceeding.

This is my situation: I am 59 years old and recently retired. We were house poor in a modest house, which we sold to realise capital in order to change our lives. We bought a small flat in France (where we are at the moment) with the intention of buying another flat in Scotland, as well as releasing a small amount of capital, so that we could have an enjoyable 50/50 life style. However, the flat prices in our home town are still very healthy, so we decided to wait until the end of the year in the hope that there would be a seasonal downturn at the very least. As the prices have not dropped thus far we fear that we will retain little or no capital, if we purchase as intended, by the end of the year. We therefore seek advice with regard to the following: As we have existing accommodation, should we hold our nerve and wait it out until prices hopefully come down? Alternatively, as the total interest from the remaining capital sum would pay the rent on a decent, one/possibly two bed roomed flat, should we consider renting for the rest of our days and gradually draw down on the capital sum, in order to have a more enjoyable life? If the consensus is the latter strategy, are there any recommendations on the best way to maximise the capital sum invested that would permit monthly rental draw down? Finally are all you ‘bears’ so convinced that a significant UK housing downturn ripple will imminently spread to all parts of the UK? Incidentally we do not have a requirement to retain property for family inheritance purposes. We do get home sick from time to time thus feel we need a UK base. It also provides security in the event of serious illness or whatever, for both of us. I look forward to receiving your opinions.

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Finally are all you ‘bears’ so convinced that a significant UK housing downturn ripple will imminently spread to all parts of the UK?

Depends on your definition of imminent. I think we are in the early stages of a crash (if there is to be one) while we have seen large drops in some areas of London we are still to see anything like a crash.

I personally still think we are a year or so away from what will be seen as a crash (or significant drop) in london prices and for that to spread would take maybe a year or so more. But if there is a downturn in London prices you can be sure it will filter out eventually.

As for what you should do.... you seem to be saying that you have more than enough money to rent indefinatley, so my advise would be to do so, if prices do drop you can jump back in, if they don't you're doing something you considered doing anyway.

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My opinion is such that ive just printed your post out on some cheap A4 paper and wiped my a** with it.

Constructive? nah , just the youth of today

Edited by theChuz

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I thought I knew what I was doing until I happened upon this site.  Most of the threads have influenced me to re-think my future strategy.  I now feel that I would welcome advice from members before proceeding.

This is my situation:  I am 59 years old and recently retired.  We were house poor in a modest house, which we sold to realise capital in order to change our lives.  We bought a small flat in France (where we are at the moment) with the intention of buying another flat in Scotland, as well as releasing a small amount of capital, so that we could have an enjoyable 50/50 life style.  However, the flat prices in our home town are still very healthy, so we decided to wait until the end of the year in the hope that there would be a seasonal downturn at the very least.  As the prices have not dropped thus far we fear that we will retain little or no capital, if we purchase as intended, by the end of the year.  We therefore seek advice with regard to the following:  As we have existing accommodation, should we hold our nerve and wait it out until prices hopefully come down?  Alternatively, as the total interest from the remaining capital sum would pay the rent on a decent, one/possibly two bed roomed flat, should we consider renting for the rest of our days and gradually draw down on the capital sum, in order to have a more enjoyable life?  If the consensus is the latter strategy, are there any recommendations on the best way to maximise the capital sum invested that would permit monthly rental draw down?  Finally are all you ‘bears’ so convinced that a significant UK housing downturn ripple will imminently spread to all parts of the UK?  Incidentally we do not have a requirement to retain property for family inheritance purposes.  We do get home sick from time to time thus feel we need a UK base.  It also provides security in the event of serious illness or whatever, for both of us.  I look forward to receiving your opinions.

I'm afraid you've come to the wrong place for a constructive reply as Chuz has shown so well.

My opinion is such that ive just printed your post out on some cheap A4 paper and wiped my a** with it.

Constructive? nah , just the youth of today

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I thought I knew what I was doing until I happened upon this site.  Most of the threads have influenced me to re-think my future strategy.  I now feel that I would welcome advice from members before proceeding.

This is my situation:  I am 59 years old and recently retired.  We were house poor in a modest house, which we sold to realise capital in order to change our lives.  We bought a small flat in France (where we are at the moment) with the intention of buying another flat in Scotland, as well as releasing a small amount of capital, so that we could have an enjoyable 50/50 life style.  However, the flat prices in our home town are still very healthy, so we decided to wait until the end of the year in the hope that there would be a seasonal downturn at the very least.  As the prices have not dropped thus far we fear that we will retain little or no capital, if we purchase as intended, by the end of the year.  We therefore seek advice with regard to the following:  As we have existing accommodation, should we hold our nerve and wait it out until prices hopefully come down?  Alternatively, as the total interest from the remaining capital sum would pay the rent on a decent, one/possibly two bed roomed flat, should we consider renting for the rest of our days and gradually draw down on the capital sum, in order to have a more enjoyable life?  If the consensus is the latter strategy, are there any recommendations on the best way to maximise the capital sum invested that would permit monthly rental draw down?  Finally are all you ‘bears’ so convinced that a significant UK housing downturn ripple will imminently spread to all parts of the UK?  Incidentally we do not have a requirement to retain property for family inheritance purposes.  We do get home sick from time to time thus feel we need a UK base.  It also provides security in the event of serious illness or whatever, for both of us.  I look forward to receiving your opinions.

Alba, there are other ways to have a place of your own. A block of land & a mobile home would be enough for a short term place in the UK and would leave you with money in the bank as well.

Just a thought, not really advice of any type.

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I'm afraid you've come to the wrong place for a constructive reply as Chuz has shown so well.

This person is wanting a whole life plan, if i do this, if i do that, what do you think, i was convinced until, shall i do this, shall i do that, whats the consensus.

Ask a stupid question get a stupid answer.

What point exactly would be requiring a constructive answer?

No? Yes? Dont have all the facts?

House poor but now i want two so i can be house poor again? so long as everyone can agree that prices wont fall nationaly it will be ok.

I mean ffs its just a crap post that has recieved a "crap answer"

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Sorry that you haven't had many constructive replies, this forum is getting bigger and bigger, which itself is an indicator of sentiment changing toward the bear views.

They have been so many posts from people new to the forum asking whether they should buy or sell, that sometimes these posts just get ignored, because many of the discussions have been had many times.

I would suggest you look at previous pages, perhaps using the search function at the bottom of the forum using buzzwords.

I personally think that you are already in a hedged position with one property in France, hedged, as in, if prices generally go up (and the markets appear to be linked globally) then you will see appreciation on your French property. If prices fall, then you will be able to buy in Scotland cheaper in the coming months/years. So no need to put all your eggs into the property basket right now, and have 2 properties. If you are asking these questions then you are undecided about the future path of the market and therefore your current position is the perfect half way house.

There are large time desparities between regions, and Scotland was a late bloomer, so it may lag other regions whatever happens next.

I would also look carefully into currency hedging, because if you have all your funds either in Sterling or Euro, then there maybe volatility ahead. Its a difficult one to call, but you need to be aware and warned.

You can synthetically hedge your currency exposure using spread betting. That might sound scary but economically it is the easiest way to protect yourself. I can't go into this now, but maybe you could study the mechanism. Cantor Index offer many such products.

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If the interest on your capital sum would pay the rent at the moment then why don't you rent and see what happens. It doesn't have to be a decision for the 'rest of your days' it can just be a decision based on what is sensible now. If in a year's time interest rates have dropped and prices are looking stable then you may be best buying. If prices have dropped then you have allowed yourself to retain some capital that may help to make your retirement a lot more enjoyable.

Obviously the decision depends on your exact circumstances but I don't see it as an all or nothing decision. I have no knowledge of the market in Scotland and so my view may be based skewed towards the market in the SE England but it seems that the worst case is that prices stay static in which case you've lost nothing by waiting.

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My opinion is such that ive just printed your post out on some cheap A4 paper and wiped my a** with it.

Constructive? nah , just the youth of today

Chuz,

You had better keep some of that cheap A4 paper for the other end, because your mouth and anus are obviously interchangeable. The undertone of envy probably extends to another part of your anatomy if it is proportionate to the size of your brain. Mind you as your anatomy seems to be interchangeable a quick glance at it protruding from your forehead would result in instant verification. You must be a real asset to this forum when you manage to get the other brain cell fired up.

Thanks to those who have taken time to post the constructive comments.

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Chuz,

You had better keep some of that cheap A4 paper for the other end, because your mouth and anus are obviously interchangeable.  The undertone of envy probably extends to another part of your anatomy if it is proportionate to the size of your brain.  Mind you as your anatomy seems to be interchangeable a quick glance at it protruding from your forehead would result in instant verification.  You must be a real asset to this forum when you manage to get the other brain cell fired up.

Thanks to those who have taken time to post the constructive comments.

So tell me Alba, are you now happy to make your critical life decissions based upon replies from people on the internet? Oh i mean constructive comments.

On a serious note could you not of thought of the constructive replies yourself? Its just none were exactly rocket science now were they?. Usually it is nieve FTB's in thier mid 20's that ask for house advice, you are after some life plan?

You had made up your mind until you found this site - didnt look to hard for any relevant information yourself then did you? wanted it spoon fed to you?

You ask subjective questions which are of no use for you to form a valid opinion on. Your post would pretty much pointless. Unless you say otherwise?

Once again even in attempting an insult you go on and on without saying anything of relevance, you make assumptions which you have no grounds to.

Oh and your basically saying a have a little willy? and that from a 59 year old.

Edited by theChuz

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I thought I knew what I was doing until I happened upon this site.  Most of the threads have influenced me to re-think my future strategy.  I now feel that I would welcome advice from members before proceeding.

This is my situation:  I am 59 years old and recently retired.  We were house poor in a modest house, which we sold to realise capital in order to change our lives.  We bought a small flat in France (where we are at the moment) with the intention of buying another flat in Scotland, as well as releasing a small amount of capital, so that we could have an enjoyable 50/50 life style.  However, the flat prices in our home town are still very healthy, so we decided to wait until the end of the year in the hope that there would be a seasonal downturn at the very least.  As the prices have not dropped thus far we fear that we will retain little or no capital, if we purchase as intended, by the end of the year.  We therefore seek advice with regard to the following:  As we have existing accommodation, should we hold our nerve and wait it out until prices hopefully come down?  Alternatively, as the total interest from the remaining capital sum would pay the rent on a decent, one/possibly two bed roomed flat, should we consider renting for the rest of our days and gradually draw down on the capital sum, in order to have a more enjoyable life?  If the consensus is the latter strategy, are there any recommendations on the best way to maximise the capital sum invested that would permit monthly rental draw down?  Finally are all you ‘bears’ so convinced that a significant UK housing downturn ripple will imminently spread to all parts of the UK?  Incidentally we do not have a requirement to retain property for family inheritance purposes.  We do get home sick from time to time thus feel we need a UK base.  It also provides security in the event of serious illness or whatever, for both of us.  I look forward to receiving your opinions.

Interesting situation. My other half's parents are a similar age and are selling up the family home to retire to France. They aren't even considering buying in France, just renting for a few years to check out different areas. One of their reasons for choosing France (apart from being incorrigible wine drinkers and general francophiles) is the great healthcare.

I would guess Scotland is not typical of the UK, because there are fewer jobs, and there is less money to pump into the market. Great quality of life though. I think many areas will crash, e.g. Edinburgh, St. Andrews, Aberdeen, but some other very nice places probably have not had large amounts of HPI so might just have a flat period while the rest of the UK is crashing.

If you are interested in living in Scotland (in the summer presumably), why not try a few summers renting in a few different locations so you don't have to commit yourself? The islands and sealochs of the west highlands are nice, but can you stand the midges? The benefits over buying are you can just rent for a few months, so you aren't paying for winter housing you aren't using.

frugalista

Edited by frugalista

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So tell me Alba, are you now happy to make your critical life decissions based upon replies from people on the internet? Oh  i mean constructive comments.

On a serious note could you not of thought of the constructive replies yourself? Its just none were exactly rocket science now were they?. Usually it is nieve FTB's in thier mid 20's that ask for house advice, you are after some life plan?

You had made up your mind until you found this site - didnt look to hard for any relevant information yourself then did you? wanted it spoon fed to you?

You ask subjective questions which are of no use for you to form a valid opinion on. Your post would pretty much pointless. Unless you say otherwise?

Once again even in attempting an insult you go on and on without saying anything of relevance, you make assumptions which you have no grounds to.

Oh and your basically saying a have a little willy? and that from a 59 year old.

Sorry Chuz,

It is just not worth the effort to play in the nursery with someone who obviously has an IQ that matches his age in years. I have checked some of your other responses to posts!!!! Most illuminating.

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Sorry Chuz,

It is just not worth the effort to play in the nursery with someone who obviously has an IQ that matches his age in years.  I have checked some of your other responses to posts!!!!  Most illuminating.

Once again you make assumptions when you have no grounds to. Base some of what you say in fact and you might be more credible.

Youve checked some of my other posts? so you should be aware then that i dont like people especially the ones one outright refuse to think for themselves. Its people that that make posts like yours that i have no time for.

This pointless banter must end so i concede.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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