Jump to content
House Price Crash Forum
Sign in to follow this  
John Smith

Str/buyer Conumdrum

Recommended Posts

If STR are selling to make a profit (and rent) in the hope prices fall, in order to sell then there must be buyers.

So you have one group gambling on prices falling (STR), and presumably the buyers assuming prices will rise/remain static - else why would they buy only to make a loss.

So either way, one group could lose the gamble ... so as a buyer what makes me want to buy if another group believe prices will fall? And as a seller, why would I want to STR if the other group believes prices will rise?

Seems an odd paradox to me, can anybody enlighten me?

Share this post


Link to post
Share on other sites
If STR are selling to make a profit (and rent) in the hope prices fall, in order to sell then there must be buyers.

So you have one group gambling on prices falling (STR), and presumably the buyers assuming prices will rise/remain static - else why would they buy only to make a loss.

So either way, one group could lose the gamble ... so as a buyer what makes me want to buy if another group believe prices will fall? And as a seller, why would I want to STR if the other group believes prices will rise?

Seems an odd paradox to me, can anybody enlighten me?

There is no paradox. When I sold I had a different view of the market from the 3 people in the chain below me.

Lots of people still think property is a one way bet.

Share this post


Link to post
Share on other sites
Guest Charlie The Tramp
Property still is a one way bet. You buy...you lose.

I have bought four properties during the past 35 years all at the bottom, have been debt free for 25 years, so renting would have been a better option for me? :blink:

Share this post


Link to post
Share on other sites
If STR are selling to make a profit (and rent) in the hope prices fall, in order to sell then there must be buyers.

So you have one group gambling on prices falling (STR), and presumably the buyers assuming prices will rise/remain static - else why would they buy only to make a loss.

So either way, one group could lose the gamble ... so as a buyer what makes me want to buy if another group believe prices will fall? And as a seller, why would I want to STR if the other group believes prices will rise?

Seems an odd paradox to me, can anybody enlighten me?

STR's have decided its better to buy for their landlord than for themselves. Simple.

Share this post


Link to post
Share on other sites
I have bought four properties during the past 35 years all at the bottom, have been debt free for 25 years, so renting would have been a better option for me?  :blink:

I'm sure TMTTC means if you buy now you're going to lose out...

Share this post


Link to post
Share on other sites
Most STR will have already sold, it's a falling market now

The STRs slipped out the back door whilst everyone was watching the propaganda movie. Those who stayed are starting to smell smoke in the building, and are slowly rising from their seats to begin the stampede to the exits.

Unfortunately, there will be casualties.

Share this post


Link to post
Share on other sites

The STRs slipped out the back door whilst everyone was watching the propaganda movie. Those who stayed are starting to smell smoke in the building, and are slowly rising from their seats to begin the stampede to the exits.

Unfortunately, there will be casualties.

Very apt analogy Smell the fear, that captures the situation very well.

It was hard to STR when the world and his dog thought we had lost the plot (june 2004), but from where i'm sitting it was the right, non sheep, thing to do at the perfect time. Nothing around here has sold for months at 2004 levels, the few things that are moving are around 10%+ cheaper (expensive part of the world, that represents £30000+ reductions for decent semis or any detached).

That reduction will continue to fall and there will be a stampede.

This HPC will be no different that the last ones in terms of % reductions, what is very, very different, and will bring on those casualties you talked of, is the massive unprecedented volume of personal debt!

I am not comfortable with the fact that so many are going to suffer, so many dreams are going to be shattered, so many people will have to shelve plans for early retirement. (singing pig emmigrant hopefuls shows that tears are now being shed, it will get a lot worse.) :o:o:o

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.