What Are The Rules Of The Game?

[ʎqɐqɹǝʞɐɥs]

Is there any simple way to express how people are best to play the housing market? In an attempt I have drawn up a few rules below. Can anyone add or amend them until we have a definitive guide to 'playing the market'?

The Rules:

1. Buy at or as close to the bottom;

2. When buying in step 1 buy as large a property as you can reasonable afford;

3. Sit back monitor the market and wait while maybe adding an extension or converting the attic;

4. Sell at or as close to the top;

5. After selling in step 4 buy as small a property as possible that your family can reasonably live in;

6. Invest profits from step 4 minus step 5 into a new market and wait for housing market to crash;

7. Return to step 1.

Comments please.

[FaTB]

Sounds easy when you put it like that !!

[the don]

my dad reckoned the rules of business are simple:

sell when everyone else is buying,

buy when everyone else is sellling.

[Take me to the cleaners]

What about buy what everyone else is selling?

Or am I just being silly?

[SE1]

5. After selling in step 4 buy as small a property as possible that your family can reasonably live in;

Comments please.

<{POST_SNAPBACK}>

Why? I mean, why not just buy a house at the bottom of the market and, er, live in it?

[VacantPossession]

Is there any simple way to express how people are best to play the housing market? In an attempt I have drawn up a few rules below. Can anyone add or amend them until we have a definitive guide to 'playing the market'?

The Rules:

1. Buy at or as close to the bottom;

2. When buying in step 1 buy as large a property as you can reasonable afford;

3. Sit back monitor the market and wait while maybe adding an extension or converting the attic;

4. Sell at or as close to the top;

5. After selling in step 4 buy as small a property as possible that your family can reasonably live in;

6. Invest profits from step 4 minus step 5 into a new market and wait for housing market to crash;

7. Return to step 1.

Comments please.

<{POST_SNAPBACK}>

Are you serious? This is a website promoting the idea that house prices are too high. And you are enquiring about "how to play the game"? It is this VERY game which has resulted in millions having to jump through hoops to get a grotty roof over their head and all you are interested in is how to play a game.

For goodness sake......

VP

[oracle]

Is there any simple way to express how people are best to play the housing market? In an attempt I have drawn up a few rules below. Can anyone add or amend them until we have a definitive guide to 'playing the market'?

The Rules:

1. Buy at or as close to the bottom;

2. When buying in step 1 buy as large a property as you can reasonable afford;

3. Sit back monitor the market and wait while maybe adding an extension or converting the attic;

4. Sell at or as close to the top;

5. After selling in step 4 buy as small a property as possible that your family can reasonably live in;

6. Invest profits from step 4 minus step 5 into a new market and wait for housing market to crash;

7. Return to step 1.

Comments please.

<{POST_SNAPBACK}>

....AND FOR THE BTL'S READING THIS SITE,AN IMPORTANT POINT.

step 7 may not come about immediately so in the interspersing few years the profit should be put to work in AN APPRECIATING asset class!!!!!....and by that I mean positive return after inflation adjustment.

SECTOR-SWAPPING is the only way to make serious money,but timing entry and exit is critical,as Kirsties little lambs are about to find out(THE HARD WAY!)

[ʎqɐqɹǝʞɐɥs]

Are you serious? This is a website promoting the idea that house prices are too high. And you are enquiring about "how to play the game"? It is this VERY game which has resulted in millions having to jump through hoops to get a grotty roof over their head and all you are interested in is how to play a game.

For goodness sake......

VP

<{POST_SNAPBACK}>

Sir you get me wrong I am not interested in how to screw other people over a la BTL who may or may not be in the market as I have no interest in owning more than a family home however I am more interested in how one can NOT BE SCREWED BY THE MARKET. ie Safe and sensible buying and selling.

[Once in a lifetime]

I’m glad you posted this thread shaker.

I was going to wait to see how long before it slid off page one into oblivion.

Not enough debate about what to monitor or gauge the signs when to jump back in.

Everyone thinks it will be simple, (just wait until you can cash-buy a castle!)

It’s what it says on the label I suppose ‘Housepricecrash’ nobody wants to talk

About buying. (Which is a mistake!)

I have sold and bought 3 properties during the boom and bust of the 80’s - 90’s

But I have to say the most important influence’s in deciding when, came from

Outside house prices or interest rate factors.

[bull mode]

Your life tends to dictate to you. Marriage, Children, job prospects, Schools, redundancy, divorce, bereavement, etc.

Sometimes the luxury of timing the market right, is a luxury you don’t get.

Some you win some you lose.

[/bull mode]

But it is really different now, many are genuinely priced-out.

My fear is if Blair gets his house price correction plan working, my children

Wont have much of a future. I feel very strongly against selling your soul into debt

For a roof over your head.

It’s a basic human right in a 21st century wealthy country that housing is affordable

To the majority of the population, without slavery.

[Guest Riser]

Here's my rules derived from the Nationwide's House price data.

Sell when HPI turns from positive to negative as it will do this September - October

Buy when Annual House Price Inflation(HPI) turns Positive

In practice you should try and sell just before HPI turns negative the reduced liquidity of the market is likely to prevent you from getting top price.

You should also consider buying before HPI urns positive as you should still be able to negotiate a discount and the rate of price falls is likely to slow near the bottom causing you to wait perhaps 2 years for the last 5-10% drops

[David]

2. When buying in step 1 buy as large a property as you can reasonable afford;

<{POST_SNAPBACK}>

Er, why? Why not just buy a property that is sufficient for your needs? Buying a property that is in excess of what you actually need to live your life strikes me as being little better than a BTL purchase.

Maybe I'm wrong but to be honest your post sounds like you will be quite happy to hype up the next housing bubble just as long as you had previously bought at the bottom. I thought the general consensus was that in an ideal world housing is too important to be treated as an investment game. I will accept that I'm flying in the face of centuries of reality here but a guy's got to have principles!

[VacantPossession]

Sir you get me wrong I am not interested in how to screw other people over a la BTL who may or may not be in the market as I have no interest in owning more than a family home however I am more interested in how one can NOT BE SCREWED BY THE MARKET. ie Safe and sensible buying and selling.

<{POST_SNAPBACK}>

In that case I apologise.

VP

[Elizabeth]

In that case I apologise.

VP

<{POST_SNAPBACK}>

The simple solution is, if you want to buy your own home wait till Kirsty and friends are screaming not to. If you want to buy anyone elses home, then buy now avoid the rush!

[laurejon]

Always buy small 2 bed bread and butter houses, these are the ones that are easy to liquidate and rise the most when the recession is over.

They are easy to let out as they are always in demand. As soon as they return a positive against loans then get as many as you possibly can.

Dont ever sell them, remember since the last recession and today property has increased over 400%. Thats just 10 years!!!!.

If they fell back to a 30% fall then that would be just a drop in the ocean.

But you will have to be quick when the time is right, I know of many many people with hard cash big bucks who are going to be doing just this.

[murpaul]

Here's my rules derived from the Nationwide's House price data.

Sell when HPI turns from positive to negative as it will do this September - October

Buy when Annual House Price Inflation(HPI) turns Positive

In practice you should try and sell just before HPI turns negative the reduced liquidity of the market is likely to prevent you from getting top price.

You should also consider buying before HPI urns positive as you should still be able to negotiate a discount and the rate of price falls is likely to slow near the bottom causing you to wait perhaps 2 years for the last 5-10% drops

<{POST_SNAPBACK}>

I remember a few years back somebody on the FT forum saying its best to sell just before the peak, let someone else get the last 10% of growth in the bull run.

[ʎqɐqɹǝʞɐɥs]

Er, why?  Why not just buy a property that is sufficient for your needs?  Buying a property that is in excess of what you actually need to live your life strikes me as being little better than a BTL purchase.

Maybe I'm wrong but to be honest your post sounds like you will be quite happy to hype up the next housing bubble just as long as you had previously bought at the bottom.  I thought the general consensus was that in an ideal world housing is too important to be treated as an investment game.  I will accept that I'm flying in the face of centuries of reality here but a guy's got to have principles!

<{POST_SNAPBACK}>

I personally wont be hyping up the market but as sure as night follows day it is likely that another bubble will eventually grow. What I am looking for is general advice on buying as I propose to do in a few years. We all talk about crashing here but whats so wrong about wanting to talking about buying. I have never bought a house before so I am not sure how best to approach the market without getting roasted as I nearly did last year until I found this site.

[Without_a_Paddle]

The Rules:

1. Buy at or as close to the bottom;

2. When buying in step 1 buy as large a property as you can reasonable afford;

3. Sit back monitor the market and wait while maybe adding an extension or converting the attic;

4. Sell at or as close to the top;

5. After selling in step 4 buy as small a property as possible that your family can reasonably live in;

6. Invest profits from step 4 minus step 5 into a new market and wait for housing market to crash;

7. Return to step 1.

Comments please.

Step 5 is the bad bit. You could be stuck in a shoebox for 5 years!

I prefer:

1. Buy at or as close to the bottom;

2. When buying in step 1 buy as large a property as you can reasonable afford;

4. Pay the mortgage off ASAP. (within 7 years if poss)

5. Save + invest and wait for the crash. (many years???)

6. enjoy the freedom from debt and also enjoy the security this strategy brings

7. Buy a nice big house with little or no mortgage in the price dip.

8. There is no step 8...

This is less efficient but at least you don't spend 5 years in a shoebox.