I'm Out ...

[LiveAndLetBuy]

Everyone has been far too nice to you. That's not the hpc spirit.

1. You must be crying in your milk that you locked your money in a bank, rather than putting it in gold, which has tripled.

2. You've given the government a very easy way to tax you for ever increasing amounts, as this depression deepens. You can no longer disappear.

3. You won't be able to sell in a hurry. Or move jobs. This explains the sly smile your employer gave when you told him.

4. Your wife will take it off you when you divorce.

5. You've got no insulation worth a damn.

6. Your sewage pipes are 100 years old and about to break.

7. You haven't even looked at the roof. The joke is, neither did the surveyor.

8. The search for a simple life, security if you like, is an illusion. It means your tax rates are about to rise, because the puppet master knows and he takes it away. (I'd put a scary symbol in here, if I knew how).

That's more like a traditional TFH hpc response.

9 You have ruthlessly priced out an FTB (which has a ring of truth to it)

[Bloo Loo]

Bought my first (small) house in a nice part of Warwickshire for £80k in early 2000. Watched property prices go mental for seven years whilst I paid off the mortgage & lambasted Brown to anyone who'd listen (I remember a program on the BBC in 2006 that described him as 'the greatest post-war CoE - I nearly put my foot through the TV).

Decided the madness couldn't stretch any further by any reasonable measure in early 2007 so put the place up for sale - I felt uncomfortable about the economy so wanted to liquidate my assets & be prepared just in case. Sold To Rent that October (the peak month!) for £162k - which is still the highest price paid for a house on that street. Currently similar houses are priced around £140k. Around the same time I discovered this site whilst googling for similar views to those I held. I've enjoyed many hours laughing & learning here over the last 50 months ...

Rented for four years & the interest on my savings just covered my rent over that period, largely thanks to the 2 Year 6.75% Northern Crock Bond I held in 2008-2009. When I was selling my house though there was a row of ten new build three bedroom houses I really liked being built in the area - this was the only viewing I did but the price was ridiculous (£360k) which solidified my resolution to rent. Over the intervening four years just two of the houses sold, one to an investment company which left it standing empty, the other for the asking price to someone who probably wants to jump off something very high these days.

This Summer I broke - fed up of renting & watching my savings deflate ... & I really wanted a home of my own again. I viewed those houses again, the asking price had dropped to £300k, I offered £250k cash, they said no. Last month the asking price dropped to £275k, my 'phone rang, they would accept £260k, this time I said no - I simply wasn't going to pay 3% Stamp Duty to HM Treasury after what they'd done to my savings. But they soon accepted my original offer & I completed last weekend.

I'm happy enough - I now have a lovely new home for a price I find acceptable (although when I remember that I was brought up in a council house I do feel a touch guilty when I say "quarter of a million pounds"). So why have I told you all this? I guess because I think it's a sort of success story - just about - which some may be interested in, it's at least an interesting story in terms of the topic of HPC.co.uk.

But I also owe it to some of the doom-mongers here to allow them a chance to tell me why I'm crazy & should have offered £100k or waited another four years or emigrated or ...

so all that effort and you STILL needed another 100K for an extra bedroom?

so for all the hassle, you have probably saved 20K less costs...every little helps.

[TheCountOfNowhere]

Well done. Hopefully some people will see your perfect negotiating technique and learn from it.

Make an offer. Stick to it. Walk away. Wait.

It's that simple.

[bmf]

Well done. Hopefully some people will see your perfect negotiating technique and learn from it.

Make an offer. Stick to it. Walk away. Wait.

It's that simple.

And also learn the lesson that if you didn't buy before 2000 and can't save up well over 100K you are fooked. Which is the vast majority.

[the stig]

And also learn the lesson that if you didn't buy before 2000 and can't save up well over 100K you are fooked. Which is the vast majority.

Yes the opportunity to build up equity in the boom years, spotting the impending doom and side-stepping the falls (so far at least), has certainly been the key here.

This has similarities to my own story, but i wasn't able to buy my first place until 2004, so missed out on the madness from 2000-2004.

[keef]

So all that effort and you STILL needed another 100K for an extra bedroom?

so for all the hassle, you have probably saved 20K less costs...every little helps.

Basically £90k (that's Brown's devalued sterling, of course) to get an extra 1.5 bedrooms (old house had a double & box room), a garage (always wanted one), a big garden, my own driveway & a separate dining room.

But I agree with your sentiment, it was indeed four years of hassle. Done now though & I pretty much got what I wanted ... I'll remain in this house for many years.

[JaneTracy]

Well done and good luck in your new home.

[Bloo Loo]

Basically £90k (that's Brown's devalued sterling, of course) to get an extra 1.5 bedrooms (old house had a double & box room), a garage (always wanted one), a big garden, my own driveway & a separate dining room.

But I agree with your sentiment, it was indeed four years of hassle. Done now though & I pretty much got what I wanted ... I'll remain in this house for many years.

wanna buy a lawn mower?...we have a spare flymo and for the keep fit man, a push along.

[crashmonitor]

Bought my first (small) house in a nice part of Warwickshire for £80k in early 2000. Watched property prices go mental for seven years whilst I paid off the mortgage & lambasted Brown to anyone who'd listen (I remember a program on the BBC in 2006 that described him as 'the greatest post-war CoE - I nearly put my foot through the TV).

Decided the madness couldn't stretch any further by any reasonable measure in early 2007 so put the place up for sale - I felt uncomfortable about the economy so wanted to liquidate my assets & be prepared just in case. Sold To Rent that October (the peak month!) for £162k - which is still the highest price paid for a house on that street. Currently similar houses are priced around £140k. Around the same time I discovered this site whilst googling for similar views to those I held. I've enjoyed many hours laughing & learning here over the last 50 months ...

Rented for four years & the interest on my savings just covered my rent over that period, largely thanks to the 2 Year 6.75% Northern Crock Bond I held in 2008-2009. When I was selling my house though there was a row of ten new build three bedroom houses I really liked being built in the area - this was the only viewing I did but the price was ridiculous (£360k) which solidified my resolution to rent. Over the intervening four years just two of the houses sold, one to an investment company which left it standing empty, the other for the asking price to someone who probably wants to jump off something very high these days.

This Summer I broke - fed up of renting & watching my savings deflate ... & I really wanted a home of my own again. I viewed those houses again, the asking price had dropped to £300k, I offered £250k cash, they said no. Last month the asking price dropped to £275k, my 'phone rang, they would accept £260k, this time I said no - I simply wasn't going to pay 3% Stamp Duty to HM Treasury after what they'd done to my savings. But they soon accepted my original offer & I completed last weekend.

I'm happy enough - I now have a lovely new home for a price I find acceptable (although when I remember that I was brought up in a council house I do feel a touch guilty when I say "quarter of a million pounds"). So why have I told you all this? I guess because I think it's a sort of success story - just about - which some may be interested in, it's at least an interesting story in terms of the topic of HPC.co.uk.

But I also owe it to some of the doom-mongers here to allow them a chance to tell me why I'm crazy & should have offered £100k or waited another four years or emigrated or ...

Lest anyone forgets that fixed rate bonds hit 7% in December 2007 with up to five year options. Indeed the Northern Rock had been Nationalised two months previously and the depositors guarantee was (then) unlimited not the FSA 35K (now 85K).

Those that STRed post peak August 2007 could easily have beaten inflation in a package of fixed rate bonds. Unfortunately the clowns that do savings comparison tables always show shares against instant access. Not sure when a share portfolio was supposed to be a short term investment. And most fixed rate bonds have instant access on penalty anyway, probably no more than share dealing commission in most cases, certainly if you taken into account buying and selling commission.

4% pa (net) has been achievable on fixed rate bonds in four years without breaking sweat. Houses have fallen 20%. Full STR fund now at index 117. House at index 80. Purchasing power +50% for anybody who sheltered in a rented small flat, roughly the cost of maintaining a proper home mortgage free. In fact the mortgage free home is more expensive in the provinces 100% guaranteed.

Game set and match to the OP.

Edited December 23, 2011 by crashmonitor

[the stig]

Yeah it's a good example of how timing can either set you up for the rest of your life, or doom you to a life of slavery. Compare the OP's situation to the poor fekker that bought the same house for £360k at peak. Imagine if they'd put down (and let's be generous here), a 20% deposit. Suddenly they've not only lost their deposit, but are £38k in negative equity.

Edited December 23, 2011 by the stig

[keef]

Yeah it's a good example of how timing can either set you up for the rest of your life, or doom you to a life of slavery. Compare the OP's situation to the poor fekker that bought the same house for £360k at peak. Imagine if they'd put down (and let's be generous here), a 20% deposit. Suddenly they've not only lost their deposit, but are £38k in negative equity.

Indeed, Stig - my first conversation with that family will be an interesting one, no matter how much money you earn £110k (+ Stamp) is a Hell of a lot of money.

The next door neighbour bought at £275k & she brought up house prices during out very first conversation

[uncle_monty]

Lest anyone forgets that fixed rate bonds hit 7% in December 2007 with up to five year options. Indeed the Northern Rock had been Nationalised two months previously and the depositors guarantee was (then) unlimited not the FSA 35K (now 85K).

Those that STRed post peak August 2007 could easily have beaten inflation in a package of fixed rate bonds. Unfortunately the clowns that do savings comparison tables always show shares against instant access. Not sure when a share portfolio was supposed to be a short term investment. And most fixed rate bonds have instant access on penalty anyway, probably no more than share dealing commission in most cases, certainly if you taken into account buying and selling commission.

4% pa (net) has been achievable on fixed rate bonds in four years without breaking sweat. Houses have fallen 20%. Full STR fund now at index 117. House at index 80. Purchasing power +50% for anybody who sheltered in a rented small flat, roughly the cost of maintaining a proper home mortgage free. In fact the mortgage free home is more expensive in the provinces 100% guaranteed.

Game set and match to the OP.

Indeed. I used the same mechanism to move from 5% ownership of a 3 bed house to 50%+ ownership of a 5/6 bed house.

[The Masked Tulip]

The next door neighbour bought at £275k & she brought up house prices during out very first conversation

Because she wants to know how much you paid so she can work out what her house is worth.

A friend of mind paid 200K in the Summer for a house in Mumbles on for 250K asking price. Her neighbour was very friendly to her until my friend let slip that she paid 200K - now the neighbour will not talk to her.

[The Knimbies who say No]

Congrats and good luck, I've enjoyed your posts. Don't be no stranger..

[aussieboy]

Lest anyone forgets that fixed rate bonds hit 7% in December 2007 with up to five year options. Indeed the Northern Rock had been Nationalised two months previously and the depositors guarantee was (then) unlimited not the FSA 35K (now 85K).

Those that STRed post peak August 2007 could easily have beaten inflation in a package of fixed rate bonds. Unfortunately the clowns that do savings comparison tables always show shares against instant access. Not sure when a share portfolio was supposed to be a short term investment. And most fixed rate bonds have instant access on penalty anyway, probably no more than share dealing commission in most cases, certainly if you taken into account buying and selling commission.

4% pa (net) has been achievable on fixed rate bonds in four years without breaking sweat. Houses have fallen 20%. Full STR fund now at index 117. House at index 80. Purchasing power +50% for anybody who sheltered in a rented small flat, roughly the cost of maintaining a proper home mortgage free. In fact the mortgage free home is more expensive in the provinces 100% guaranteed.

Game set and match to the OP.

Top post: unemotional, rational and very hard to argue with (unless your STRed in Kensington and Chelsea).

[Mikhail Liebenstein]

Bought my first (small) house in a nice part of Warwickshire for £80k in early 2000. Watched property prices go mental for seven years whilst I paid off the mortgage & lambasted Brown to anyone who'd listen (I remember a program on the BBC in 2006 that described him as 'the greatest post-war CoE - I nearly put my foot through the TV).

<SNIP>

I completed last weekend.

I'm happy enough - I now have a lovely new home for a price I find acceptable (although when I remember that I was brought up in a council house I do feel a touch guilty when I say "quarter of a million pounds"). So why have I told you all this? I guess because I think it's a sort of success story - just about - which some may be interested in, it's at least an interesting story in terms of the topic of HPC.co.uk.

But I also owe it to some of the doom-mongers here to allow them a chance to tell me why I'm crazy & should have offered £100k or waited another four years or emigrated or ...

Sounds like you have made a good call overall.

They key to previous HPCs and it appears this HPC also is to stick to your guns with a lower offer. It is very easy to pay the 2006/7 asking price as most vendors still think this is what their house is worth, and indeed a look at Right Move etc might lead you people to believe this was the case. You needed to make your own crash happen by bargaining hard and being prepared to walk if your terms aren't met - which is what you have done.

I STRed at about the same time as you, but bought in late 2009, luckily for me I was dealing with a developer on a part-ex they had acquired, so I was able to get them to accept a much lower price as they just wanted the house (not one they had built) off their books.