Ticked Off Waiting

[AgeingBabyBoomer]

I used to buy the Daily Telegraph but it has now reached 60p. This is unacceptable to me and so I am going to wait for the price to drop to at least 40p before I buy it again.

<{POST_SNAPBACK}>

Which indeed it will, you may have to wait for inflation to reduce the purchasing power of 60p back to 40p though

ABB

[Guest horace]

>> Durch

`I cannot afford this scenario, so I will rent until I am certain it is not going to happen, or it has happened. `

But what will you do if your landlord goes `tits up`?

horace

[Montauk]

I'm getting ticked off waiting for prices to slide. Whilst over the last 9 months I have seen prices slide slightly, it seems ever so slow. I know in 9 months I can continur saving and add 8-9K to my pot, but I'm ever so tempted to start going in with cheeky 20%+ off offers. Anyone else feeling like this or is it just lil impatient ol' me? 

<{POST_SNAPBACK}>

Downslides historically take about 5 years to hit bottom. We're all waiting. Be patient and don't buy.

[Elizabeth]

Downslides historically take about 5 years to hit bottom. We're all waiting. Be patient and don't buy.

<{POST_SNAPBACK}>

If you buy in 2 years, then you probably only loose 10% over a 2-3 year timespan and then pick it back up within another 2-3. If you want a house because you actually want to live somewhere nice and that is yours, then that is probably no loss at all really.

Of course, if you can convince someone to give you a 30% discount now that would probably work even better.

[Catch22]

in response to the original topic, yes I am ticked off too.

been renting for 2 years, and i'm looking again for a new place to rent which is just so depressing

have decided it means more to me to be settled than constantly in flux

as a second time ftb i've  learnt a lot but i need some consistency and my logic is this:

my next housewill probably cost around 200k, but i don't expect that to be the most i spend on a house, so if house prices fall when i upgrade the losses will be mitigated

e.g. my 2nd next house will cost at today's prices say 300k.

if prices half, then my 100k house will have a 200k mortgage but if i upgrade to a currently priced 300k fallen to 150k then so what

might be nuts but hey.... enough is enough...

<{POST_SNAPBACK}>

Assuming a 100% IO mortgage:

1st house 200k mortgage, prices drop 50% [your example]

Sell house for 100K, still owe mortgage provider 100K.

Buy house for 150K on a 100% mortgage [as I presume you have no equity only an existing 100K liability from the last house]

So even if you could get a deal done with your mortgage provider, you would in essence have just bought a 150K house with a 250K mortgage....is that smart ?

[Montauk]

If you buy in 2 years, then you probably only loose 10% over a 2-3 year timespan and then pick it back up within another 2-3.  If you want a house because you actually want to live somewhere nice and that is yours, then that is probably no loss at all really. 

Of course, if you can convince someone  to give you a 30% discount now that would probably work even better.

<{POST_SNAPBACK}>

I agree. Therefore, it's probably a good idea to play the numbers game. Submit silly offers to 100 houses. Chances are, one out of 100 will accept. You can't know until you try. As for myself, I will not begin this particular process untill the downslide actually begins here in the US. If I were you and I really wanted to buy in the UK, I would be out there offering lowball prices every day. Of course. I am happily renting at a bargain, so I have NO incentive to waste my time even offering silly prices on real estate bought in the middle of an unsustainable credit bubble. No incentive whatsoever. Meanwhile, the bank pays ME.