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Johnny Storm

When Would You Buy?

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If we assume that most people on here are wanting to buy a house and waiting for a suitable drop in prices to jump in, then what is your criteria for buying?

Do you have a date cut off? A price point or a salary multiplier that will tell you now is the time. Or will you simply wait till prices start to even out again or slightly go up?

In short, if you have a plan, what is it?

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Houses that I like are about £550k, if they were £300k - £350k I would regard that as a fair price and buy.

At £550k I just think I'm throwing a lot of money away - £200k worth by my estimation of rent, food, holidays, cars, fun - so won't do it.

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If we assume that most people on here are wanting to buy a house and waiting for a suitable drop in prices to jump in, then what is your criteria for buying?

Do you have a date cut off? A price point or a salary multiplier that will tell you now is the time. Or will you simply wait till prices start to even out again or slightly go up?

In short, if you have a plan, what is it?

No plan but will have to act fairly soon if nothing significant happens. The problem I have that I am now beyond the flat in centre of town level (I am at the 'I need a garden/shed/vegetable patch level) but seriously can't afford anything in the suburbs here in Edinburgh so like the other posters here I am relying on the lottery and my premium bonds to get me out of my situation (I have won naff all in the many years I have had them so I am sure I am due a pay out). I have given up the drink so that frees up some money that I was formally wasting on booze to now waste on gambling :)

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I'm looking at small houses up to £180k. When they are going for £130k ish I'll probably seriously start looking. I want as small a mortgage as possible.

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When the market has bottomed!!!

Answers on a postcard please as to when that will be below this one. <_<

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The houses we like start at £300k but we can't afford to pay anymore than £250k. Will buy the first house we like that comes in at that price. We've made some £250k offers on houses but have been outbid each time.

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When a bit of realism hits vendors and the initial asking price reflects the likely current sale value for the property i'll start taking it all a bit more seriously. In money terms, that means to me that a Manchester 3 bed house getting listed today for £170K (that WILL be reduced to around £155K within 4-6 weeks) should be getting listed at £155K to start off with and completing around the low-to-mid £140's. I think that will happen before May 2011 anyway, but that is the timeframe I want to keep saving until - if I am lucky enough to stay in employment. Asking prices are being decimated in Manchester right now by the flood of new property onto the market - the emphasis is definetely on stuff that has been listed in the past 6 months, those old timers kicking about for 2 years want the full bhuna and not a penny less....I keep them on my rm list just to strengthen my resolve in moments of weakness.

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seriously, when the average mortgage approval is 3 times average salary....thatd be £75K.

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When a life long home -- three beds, a garage and a garden -- starts being advertised somewhere around £130K.

This sounds daft, but I live in a cheap region, and £130K for the kind of place I am thinking of would be around the price a home like that would have been today without the cheap credit boom (similar properties were about £90K in 2000; they currently are up for £200K).

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When the market has bottomed!!!

Answers on a postcard please as to when that will be below this one. <_<

^This, kind of.

If it looks like a long, slow decline is the way forward then I'd probably jump if the offers I were putting in now (10-15% below asking) were taken seriously

If the next 6 mon ths see precipitate falls, I'll hold back until it's calmed down a bit.

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Do you not think thats a bit like saying never?

why would I think that?

bankers will have to lend sensibly some day, AND they will have to charge for doing it.

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The houses we like start at £300k but we can't afford to pay anymore than £250k. Will buy the first house we like that comes in at that price. We've made some £250k offers on houses but have been outbid each time.

Stamp duty is a killer. ;)

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Should be completing in about a fortnight. I'm sure it will go down in value, but the itch to have another project is just too tempting, and i've realised that i much prefer owning rather than renting*.

*We're only buying because we've found a great place and are buying from down-sizer boomers who are desperate to sell and the house needs lots and lots doing to it. Otherwise we'd continue renting.

Edited by the stig

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If we assume that most people on here are wanting to buy a house and waiting for a suitable drop in prices to jump in, then what is your criteria for buying?

Do you have a date cut off? A price point or a salary multiplier that will tell you now is the time. Or will you simply wait till prices start to even out again or slightly go up?

In short, if you have a plan, what is it?

Nothing more than the (old) traditional 3 times earnings can do it for me. At that price I would have enough room to handle rising interest rates, something that is critical when all you can get is variable interest rates (I don't consider short term fixes, they're fee generating gimmicks).

Anything above that is poor value/unwise investment.

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In short, if you have a plan, what is it?

Interesting question.

Houses that I like are about £550k, if they were £300k - £350k I would regard that as a fair price and buy.

At £550k I just think I'm throwing a lot of money away - £200k worth by my estimation of rent, food, holidays, cars, fun - so won't do it.

Nigh on exactly the same position as me - the sort of house I want is priced at around £600k currently, I think it's worth around £450k & that's what I'm waiting for, ~25% drops. But I'm currently saving about £40k a year whilst renting so I'll probably meet them halfway as I become more & more impatient to buy a home for life.

Why would I think that? Bankers will have to lend sensibly some day, AND they will have to charge for doing it.

A lot of people quote the old three times salary biz on this site, I think four times will become the norm in the years to come. Just a hunch really.

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Should be completing in about a fortnight. I'm sure it will go down in value, but the itch to have another project is just too tempting, and i've realised that i much prefer owning rather than renting*.

*We're only buying because we've found a great place and are buying from down-sizer boomers who are desperate to sell and the house needs lots and lots doing to it. Otherwise we'd continue renting.

Snap....it will go down...when you are living in it value is irrelevant until you want/need to sell....the future cost of servicing the loan and long term job security would be something more important to consider. ;)

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Snap....it will go down...when you are living in it value is irrelevant until you want/need to sell....the future cost of servicing the loan and long term job security would be something more important to consider. ;)

True. Hopefully it will be paid off in 3-5 years, at which point i intend to go part-time and spend my new spare time working on the house. We're borrowing 3x my salary, or 1.5x joint. The downside is the amount of work required to get the place up to scratch. Nothing too major and it's perfectly habitable as it is, but i have plans...

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True. Hopefully it will be paid off in 3-5 years, at which point i intend to go part-time and spend my new spare time working on the house. We're borrowing 3x my salary, or 1.5x joint. The downside is the amount of work required to get the place up to scratch. Nothing too major and it's perfectly habitable as it is, but i have plans...

Good for you....when you are mortgage and debt free I am sure you do not need that much to live on, you will have more time to upgrade slowly in your own time, working part-time doing something you hopefully enjoy....paying back debt I am sure requires a lot of hard work effort....but once free....your life is then your own.

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If we assume that most people on here are wanting to buy a house and waiting for a suitable drop in prices to jump in, then what is your criteria for buying?

Do you have a date cut off? A price point or a salary multiplier that will tell you now is the time. Or will you simply wait till prices start to even out again or slightly go up?

In short, if you have a plan, what is it?

Well done! That's the first time you've started a thread like this without getting in at least one "renting is dead money" quip.

In answer to your question, no specific criteria, too many economic woes in the system to commit to tying up my money in a depreciating illiquid asset just yet. If and when I think the time is right, I'll buy. Until then I'm happy renting ;).

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Good for you....when you are mortgage and debt free I am sure you do not need that much to live on, you will have more time to upgrade slowly in your own time, working part-time doing something you hopefully enjoy....paying back debt I am sure requires a lot of hard work effort....but once free....your life is then your own.

Thanks. I'm not pretending to be particularly wealthy, but i'm happy to live in an area without stupid house prices, and live with the associated potential social issues if it means i can quit the 9-5 routine.

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  • 141 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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