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mrs marineville

Buy House Now With Savings Or Wait?

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

I have more than enough cash in the bank to buy now but am waiting for house prices to drop to a sensible level.

Cash is not depreciating against house prices, it's appreciating. In the meantime, I'm renting for less than the money I receive from the bank on the amount that I'd need to draw out to buy the house I'm renting.

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There seems to be a sizeable amount of cash waiting in the wings these days, and concerted government efforts (eg. paltry interest rates, QE) to make it move.

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There seems to be a sizeable amount of cash waiting in the wings these days, and concerted government efforts (eg. paltry interest rates, QE) to make it move.

Which makes me all the more determined to hang on to it until the time is right. Wage inflation is the danger and we don't have that.

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With the cost of essentials in theUK rising between 5 and 20% pa and wages rising by 0-3% then hpi is a non starter. If wages rise by between 5 and 20% and the cost of essentials rise by 0-3% then you should buy.

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If you think that is the route the country will be taking, you need to buy with a mortgage and not cash, then invest the cash with inflation in mind.

I have just bought two semis because I was uneasy with the cash sitting in the bank.Had £111 k offer accepted onone that had just been reduced from £139,950 to £129,950.The second was on at £149,995 and reduced to £144,995 they took £125k.I don't see them getting any cheaper with inflation at 5%.

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No one can tell you what to do, as there are so many variables in play.

What rate are you getting on your money?

Are you living at home with parents - or renting and buying someone elses house for them?

What is your opinion of where House Prices will go from here?

You need to answer your own question really - but, for what it's worth, my opinion is this:-

House prices will not increase faster than the 3% Gross interest you are making on your savings, if you are renting then you are effectively throwing good money away to assist someone else (and the rent will never stop, ever! Whilst a mortgage will get smaller and cheaper as the years pan out).

If you can buy a house without a mortgage (and if you are renting) then I honestly think this is the time to do just that, buy. You will lose the 3% on your money before tax, but you will stop paying rent! You own an assett and can do what you wish with that assett.

BUT, if you think that there is another 25% to come off house prices then you should stick where you are. But, come on, will that happen? Really? I've been waiting for a long time and it's just not happening ..... if a property reaches a price where a BTL landlord can return a 7% yield on it, it WILL sell immediately thus putting a floor under prices of a 7% yield.

If I saw a property I liked and the rental yield would be 7% then I'm buying it!! Not to rent out, just that I know thats where the floor is!

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

simple answer - you look at the house price.

thats what the value of a house is in relation to your cash !

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

(1) How much per annum would you and your other half place on the happiness of owning a house and not having to deal with a landlord.

(2) How much per annum would you and your other half place on the worries of having to have a mortgage overhanging and a house to maintain.

Assuming a potential price drop of 25% over 3 years, current rents vs mortgage and take into account (1) and (2) and I hope that give you the answer.

Edited by easybetman

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It does appear sentiment is changing on HPC.co.uk and people are worried and some will end up buying

I don't see much evidence of that on this thread. I will probably end up buying, but not until prices fall another 30% at least.

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I don't see much evidence of that on this thread. I will probably end up buying, but not until prices fall another 30% at least.

Me neither.

There are lots more options for using cash other than buying a house. The NS&I bonds were great at beating inflation, until they pulled them last week. Banks still offer inflation beating bonds. There's the stock market, which is equally a gamble as housing at present. But there's still lots of good in that to be had. ISAs still offer good value, tax free so can beat a bank account.

Some folks even buy antiques, valuable items, gems etc.

Re the title though, if you think house prices have bottomed out and you have found your ideal home then got for it. In fact whenever you find your 'home' then if you think it's worth it get it. It's got nothing to do with us nor falling prices. It's a place to live in.

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I have just bought two semis because I was uneasy with the cash sitting in the bank.Had £111 k offer accepted onone that had just been reduced from £139,950 to £129,950.The second was on at £149,995 and reduced to £144,995 they took £125k.I don't see them getting any cheaper with inflation at 5%.

So your expecting wage inflation then?

You pay cash or mortgage?

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It does appear sentiment is changing on HPC.co.uk and people are worried and some will end up buying

about 60,000 people a month place orders for house purchase.

God knows how many actually complete.

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Which makes me all the more determined to hang on to it until the time is right. Wage inflation is the danger and we don't have that.

I agree......wages pay for houses at the end of the day, and no investor worth his salt would put all their eggs into one BTL basket....static and stagnant wages with increasing unemployment, add to that benefit reductions...does not make for rising house prices.

Anyone with cheap rent be it living with parents or house sitting or with a level headed non profit making landlord...stick with it......your house today will be cheaper tomorrow in real terms. ;)

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

I am also getting a bit worried / restless when it comes to holding too much cash, I’m in no particular rush to buy as I live in a really nice rental but it does cost 14k per year (been renting for 3yrs now) so its starting to feel a bit foolish to keep throwing the money away. I know different parts of the country have seen some significant falls but good property in the south east is still selling albeit slowly.

I don’t like the idea of giving in and buying as I have been committed to the HPC cause since 2005ish but as much as I hate to admit it I called it far too early and was wrong.

The fact is the market has been supported by government & bank of England policy for a number of years now so consequently I do not see there being enough forced sellers of the type of house I am looking for to bring the prices down as quick as I would like.

I just see a slow grind down over the next few years, I hope to be proved wrong!

T

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....I live in a really nice rental but it does cost 14k per year (been renting for 3yrs now) so its starting to feel a bit foolish to keep throwing the money away.....

Renting is not throwing money away. We all have to pay for a roof over our heads and there are three ways of doing it....

1, Rent and pay money a landlord.

2, Buy using borrowed money and pay interest to a lender.

3, Buy outright for cash and lose the interest that you were receiving from the bank.

Whichever way you choose, it always costs to put a roof over you head.

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a question for anyone except goldbugs: what will the value of my cash savings be relative to house prices in the future? if everything else is going to crash too, would my savings be worth more, less or the same if i held onto it for a year or two longer?

i've been saving for most of my thirtar career and could now buy a house (in mainly the wrong areas) without a mortgage. so when would it get the most for its value?

buy somewhere now and just be grateful that i won't be living in a bus shelter or hang on and find out that my money will somehow evapourate? and, yes, i'm aware of inflation but, won't that be countered by the presumed hpc?

Ask your other half.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=156440&view=findpost&p=2828692

this particualr thread is just about the biggest load of tosh i've ever heard... it's the same nonsense that kept the bloke who started it waiting for 12 years (12 YEARS, f'chirst's sake) to get on with his life. presumably, in that time he's seen property prices triple so, well done HPC for continuing the propaganda that keeps the hopeless waiting in the wings!

blaming the EAs, or the market or the good weather or Mammon for property being unaffordable for you is the same as waving your fist at the sun for being hot...

a home isn't something you sit around and wait for unless it's your only option... you may as well wait for your life to improve by just lying in bed and hoping it knocks on the door and asks for you.

there's a cosiness in being on this site that does little but insulate you from the realities of doing stuff.

but, of course, you're all right... it's all going to turn to crap and then you'll be able to buy the thing you should have bought 12 years ago!

or

more anecdotal stuff: i work in property renovation in london... i've been told on several occasions that planning control depts in local councils are so short staffed that they're just saying a flat 'no' to 50% of applications as they just can't handle the workload... but you take your pick whether that's evidence of staff reductions or growth in residential building projects...

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  • 284 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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