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concerned_money

Would You Buy If.......

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Howdy forum.

Well I'm one week from exchanging on a property, curious to hear views from the forum on my deal.

I'm selling to upgrade a better property.

It's in the same area & in the same condition.

I'm puttting an additional 30% cash into the deal for almost 100% more sqm's

Also I'm getting a garage, better views and a slightly better area.

When I run the numbers, even in the event of a 50% crash I'd only loose 15% of todays sale price.

would you do it ?

ps I think it's my 'dream home' (cringe)

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They say, buy when theres blood on the streets or buy on weakness and sell on market strength.

I believe now is the just the start of a buying window which should last 4 years.

Check:

1. There is fear

2. Normal people can't get mortgages (if you can, great, no worries about bidding wars)

3. Job losses in the private sector + public sector

BUT prices will continue to go lower, as there's no capitulation yet.

When the window closes then you have the hassle with other bidders etc.

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When I run the numbers, even in the event of a 50% crash I'd only loose 15% of todays sale price.

would you do it ?

ps I think it's my 'dream home' (cringe)

If you'd waited until there is a 35% correction, you'd have saved 35% of today's price. Well, you did ask.

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If you'd waited until there is a 35% correction, you'd have saved 35% of today's price. Well, you did ask.

And it is a financial + geographical commitment, you sure you won't have to move? With 1 week to go, why are you asking strangers on the Internet about what is probably the biggest financial decision of your life? Just buy the damn thing.

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Howdy forum.

Well I'm one week from exchanging on a property, curious to hear views from the forum on my deal.

I'm selling to upgrade a better property.

It's in the same area & in the same condition.

I'm puttting an additional 30% cash into the deal for almost 100% more sqm's

Also I'm getting a garage, better views and a slightly better area.

When I run the numbers, even in the event of a 50% crash I'd only loose 15% of todays sale price.

would you do it ?

ps I think it's my 'dream home' (cringe)

You are asking a relative value question as you are already in the market. From this perspective, it appears that the answer is yes.

Most of us here care about absolute value. The answer would be no. Sell your existing place, rent for a while and then buy. The 30% premium for 100% more space could turn out to be a 0% premium (or even a discount) for 100% more space if you are patient. Of course, prices could also rise and this trade could be the best thing that you ever do although most of us do not expect this to be the case. We have been wrong before.

The argument could be strengthened further if you had a high LTV mortgage on your first place and are financing the price gap with debt rather than savings. The reverse is also true. Risk increases with leverage and decreases when you are "only" spending your savings.

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I'm puttting an additional 30% cash into the deal for almost 100% more sqm's

Also I'm getting a garage, better views and a slightly better area.

30% extra for 100% more sqm is good if the size of the house is still appropriate for the plot.

Buy it.

I'm exchanging this week and paying -15% less [2003 price] for -20% less sqm but getting views/privacy and an extra 0.3 acre of garden to extend on. So I'm paying 5% more per sqm but can easily add more sqm to get to 20% below my 2003 sqm cost.

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If you'd waited until there is a 35% correction, you'd have saved 35% of today's price. Well, you did ask.

No if you wait for a 35% reduction the house you want may not be there anymore....

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No if you wait for a 35% reduction the house you want may not be there anymore....

But one just like it, or possibly even better might be .....

EAs have really ingrained the idea that there is only one "perfect" house out there.

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When I run the numbers, even in the event of a 50% crash I'd only loose 15% of todays sale price.

Can you elaborate on the maths of that as it doesnt make sense on the face of it - unless are you already getting it at 35% below supposed current value ?.

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Can you elaborate on the maths of that as it doesnt make sense on the face of it - unless are you already getting it at 35% below supposed current value ?.

He's paying 70% of it with the proceeds of his present house. So compared to not moving, he's only exposed to an additional 30% (assuming both properties crash at same rate if there is a crash).

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But one just like it, or possibly even better might be .....

EAs have really ingrained the idea that there is only one "perfect" house out there.

Sorry you're just wrong, at lower price points yes lots of similar houses, but as you go up in price, houses that suit your tastes and particular desires get rarer and rarer. You can wait years to find certain types of houses in areas you like on the market

In my particular search of 300-450K from mid 2009-2010 in cardiff only 1 house of the type, size, location and price we wanted have appeared on the market in 1 year.

while there are masses of near identical houses and flats under 200K

And then the buyer need to be in a position where they can actually move, and you house needs to be sold as well....etc etc

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You are asking a relative value question as you are already in the market. From this perspective, it appears that the answer is yes.

Most of us here care about absolute value. The answer would be no. Sell your existing place, rent for a while and then buy. The 30% premium for 100% more space could turn out to be a 0% premium (or even a discount) for 100% more space if you are patient. Of course, prices could also rise and this trade could be the best thing that you ever do although most of us do not expect this to be the case. We have been wrong before.

The argument could be strengthened further if you had a high LTV mortgage on your first place and are financing the price gap with debt rather than savings. The reverse is also true. Risk increases with leverage and decreases when you are "only" spending your savings.

Tar for all the responses, very useful to have objective views, the last 2 months have been super stressful.

That logic pretty much encapsulates my choice to 'upsize' Luckyone.

The move is financed from savings, so no leverage - actually I'm concerned about our STR fund from my partners house.

It's become so obvious that the only ones who can pay are the folks with something ie savers.

I no longer trust the banks, governement....err actually almost anything & everything.

I fancy a nicer home, you only live once, Im not prepared to move into rented, I just want a nice place to live.

If I decide to move I'll post a piccie of the view - it's really very special.

TBC

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Well if it's your dream house and [if] you can afford it, go for it!

This is the correct answer. Most people never get those two ifs together.

Congratulations, you just won.

Now go away and stop gloating. :)

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To the OP - you buying somewhere to live - or are you a serial house doer-upper looking for a bargain and profit.

If you are buying somewhere to live - what people quaintly call their 'home' - just buy it.

Yeah, just buy it......... :rolleyes:.

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  • 261 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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