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Am Buying, And Trepidation All Round


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have been looking and commenting on this site now for years, and have decided to buy.

is a little worrying but i have completely lost faith that anyone in authority has any sense of morality towards what is the right thing to do.

the property was originally on the market at 295.000, hopelessly optimistic according to the agent, then reduced to 225,000 and am buying at 200,000.

sounds ok but these are worrying times. am paying cash. my real concern is the cash part, i am getting increasingly worrried that the way of the political world is so corrupted that holding cash is probabilly more dangerous than holding a property.

am i convinced that i am doing the right thing, not really . i have bored people ridged about why i think houses are stupidly over valued. but when the facts change one should change ones opinion with them. is 200,000 for a house in the se of england ,an hour from london a lot of money. ???? i dont know anymore.

a rolls royce, the cheapest is 250,000. an equivalent bentley is 240,000, a weeks hire for 10 on a super yacht is 190,000, a business class return ticket to australia is 6,000, a new range rover is 70,000 (and no shortage of them on the road) . it just makes one wonder if 200,000 is a lot of money anymore.

what is of concern is that the rich, for all their annoyance, are not stupid. thats why they are rich. and they are spending money like water at the moment, 20m here on a flat 30m there. 40 m on a painting, 20m on a vase.

i have often pondered as to why the rich seem to have been getting richer and richer over this crisis. but have concluded that they haven't been. its us, we've been getting poorer and poorer, its just been hidden in the figures. in 2007 bread was bout 50p a loaf, now 120p. butter 45p now 160p, petrol 79p now 132p. inflation for things you actually need has sky rocketed. i remember thinking about a citeon c1 in 2005, new was 4995 on the road. now nearly 8000. and this is all during the biggest financial crisis since the 30s.

two years of this govenment has convinced me that the polices of brown and new labour are still with us.isee no sign whatsoever of change. while interest rates are this low there is not going to be a huge crash, and rates are not going to go up for years. this might mean the japanese route but with inflation to boot. are houses really going to be 70.000 again ? or £20.000 flats above shops. are we really going to see that again?

i am not trying to convince anybody either way about buying, just airing thoughts i suppose. and trying to get my head around what might actually be happening out there.

still there we are , any thoughts appreciated.

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hedi,

Would you be happy to be in the same place long term and will it meet future requirements 10 years out.

If so then maybe ignore the comparisons with the rich - what has gone on is state and central bank sponsored fraud and theft, simple as that and it will be highly damaging to the country and popualtion as a whole. Do whatever makes best sense for you.

Edited by OnlyMe
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well ...I needed a home too ......

.....what I have noticed recently is the number of posts with rental issues

end of the day ...do what you think is what's best for yourself ...everyone else is ....!

...I also think the inflation figures are being manipulated too .......

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well ...I needed a home too ......

.....what I have noticed recently is the number of posts with rental issues

end of the day ...do what you think is what's best for yourself ...everyone else is ....!

...I also think the inflation figures are being manipulated too .......

I've rented for 4 years. I have no issues. I've seen greater number of such threads than any other time.

Prices are starting to collapse and you are unsure if you should commit your hard earned cash to the state sponsored ponzi scam...Has your account been hacked by the local E.A.

Good luck though...as those people who are lending crazy money to idiots who can't pay it back ( the bankers ) know...everyone needs a house.

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I want to buy a Mars Bar...but Im concerned they have got smaller over the years.

Should I buy one now before they get more pricey and smaller. I may have to do it soon because other people have Diabetes.

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I'm starting to think my money might be safer in a building than in a bank too....

It's a scary prospect to finally take the plunge!

However, that's a sturdy discount you've got there, and if it's a house you can see being happy in, then go for it! You're buying a home, not a property that you're renting out, or planning on flipping. Paint it, make it yours, make memories, enjoy! Congratulations!

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(...) am paying cash. my real concern is the cash part, i am getting increasingly worrried that the (...)

I think there are some 10 year fixed offset mortgages around. If there are, it may be a good strategy.

And in what part of the country are you? South/SE/SW? If so, HPs still have a lot to fall down here.

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have been looking and commenting on this site now for years, and have decided to buy.

is a little worrying but i have completely lost faith that anyone in authority has any sense of morality towards what is the right thing to do.

the property was originally on the market at 295.000, hopelessly optimistic according to the agent, then reduced to 225,000 and am buying at 200,000.

sounds ok but these are worrying times. am paying cash. my real concern is the cash part, i am getting increasingly worrried that the way of the political world is so corrupted that holding cash is probabilly more dangerous than holding a property.

am i convinced that i am doing the right thing, not really . i have bored people ridged about why i think houses are stupidly over valued. but when the facts change one should change ones opinion with them. is 200,000 for a house in the se of england ,an hour from london a lot of money. ???? i dont know anymore.

a rolls royce, the cheapest is 250,000. an equivalent bentley is 240,000, a weeks hire for 10 on a super yacht is 190,000, a business class return ticket to australia is 6,000, a new range rover is 70,000 (and no shortage of them on the road) . it just makes one wonder if 200,000 is a lot of money anymore.

what is of concern is that the rich, for all their annoyance, are not stupid. thats why they are rich. and they are spending money like water at the moment, 20m here on a flat 30m there. 40 m on a painting, 20m on a vase.

i have often pondered as to why the rich seem to have been getting richer and richer over this crisis. but have concluded that they haven't been. its us, we've been getting poorer and poorer, its just been hidden in the figures. in 2007 bread was bout 50p a loaf, now 120p. butter 45p now 160p, petrol 79p now 132p. inflation for things you actually need has sky rocketed. i remember thinking about a citeon c1 in 2005, new was 4995 on the road. now nearly 8000. and this is all during the biggest financial crisis since the 30s.

two years of this govenment has convinced me that the polices of brown and new labour are still with us.isee no sign whatsoever of change. while interest rates are this low there is not going to be a huge crash, and rates are not going to go up for years. this might mean the japanese route but with inflation to boot. are houses really going to be 70.000 again ? or £20.000 flats above shops. are we really going to see that again?

i am not trying to convince anybody either way about buying, just airing thoughts i suppose. and trying to get my head around what might actually be happening out there.

still there we are , any thoughts appreciated.

Depends upon your age

I've rented for 16 years in the UK, prior to that I moved around for 10 years working in different countries.

If I had 400k and could find a property I was happy with for 200k, and I had no plans to move, then I would consider buying it.

I would want 200k cash though in backup, which would give me 20 years of security.

I like the comfort of a cash cushion. If my job ends tomorrow I'm 'ok'. Removes a lot of worry, frees me to take risks, and I don't have to do as I'm told :)

Personally, I wouldn't sink all my savings in bricks right now as I see big falls coming, hopefully bigger than the erosion of the buying power of my cash in the bank.

200k could be 20-30 years of accommodation, if you rent

Edited by LiveinHope
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Holding fiat currency credit over the longer term also carries a lot of risks - currency collapse, inflation, counter-party risk with the bank holding it.

If you are at the point where you want a house and you figure that it is affordable for you, I don't see that buying it is any less risky than trying to hold on to a financial comfort blanket.

To be fair, in large parts of the UK like SE England, houses are a long way off affordable for most people.

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Hasn't been a lot of money for some time now. £2million isn't a lot either. Or even £5million for that matter.

Yet there are 8 million (and rising) for which a couple of hunderd quid is a lot of money at the end of the month.

Another 10/15% inflation above and beyond wages / income is going to bust this fake economy wide open, the debt bubble has already been smeared across millions who never participated or took an active role in it via inflation.

http://www.thinkmoney.com/debt/news/8-2-million-brits-with-no-disposable-income-0-5370.htm

Over 8 million people in Britain have no money left over once they have paid for their essentials every month - equivalent to 16% of the population, according to the third annual 'Priorities of Life' Index from Scottish Widows.

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My tuppenceworth is that if a place costs £200k and the buyer has £200k in cash, not all the money needs to be sunk into the house purchase.

It's possible to get a very low rate 5-year fixed rate mortgage at a 50% LTV (HSBC 2.99%, NatWest 2.95%), whilst still having £100k to deal with any eventuality that comes along. That HSBC deal is even available on interest only, making monthly payments about £250.

What to do with the remaining cash is the big question - could keep it in cash at the bank (check deposit protection scheme limits) and earn around 3% interest minus tax (OK, a tiny bit of money is lost this way versus buying outright, but a lot of peace of mind comes from having £100k to fall back) or you could go for something riskier. Offset mortgages are also available, which provide maximum flexibility.

Me? I would buy 50%, keep the remaining cash in savings accounts or as an offset mortgage and wait to see if inflation spikes - if it does the low-rate debt is being slowly wiped out, and more favourable savings rates/bond yields/equity yields will become available, and there will still be a cushion in case of unemployment.

That's just my opinion in general terms, I am in no way shape or form a financial adviser, this is not investment advice, do your own research, etc.

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If its a nice home you want and can afford it then buy it - we bought a home 2 years ago and i've got to be honest I dont even think about house prices now - got a great house in a nice area. Lifes too short - do what your heart tells you and be happy in your decision.

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My tuppenceworth is that if a place costs £200k and the buyer has £200k in cash, not all the money needs to be sunk into the house purchase.

It's possible to get a very low rate 5-year fixed rate mortgage at a 50% LTV (HSBC 2.99%, NatWest 2.95%), whilst still having £100k to deal with any eventuality that comes along. That HSBC deal is even available on interest only, making monthly payments about £250.

What to do with the remaining cash is the big question - could keep it in cash at the bank (check deposit protection scheme limits) and earn around 3% interest minus tax (OK, a tiny bit of money is lost this way versus buying outright, but a lot of peace of mind comes from having £100k to fall back) or you could go for something riskier. Offset mortgages are also available, which provide maximum flexibility.

Me? I would buy 50%, keep the remaining cash in savings accounts or as an offset mortgage and wait to see if inflation spikes - if it does the low-rate debt is being slowly wiped out, and more favourable savings rates/bond yields/equity yields will become available, and there will still be a cushion in case of unemployment.

That's just my opinion in general terms, I am in no way shape or form a financial adviser, this is not investment advice, do your own research, etc.

thank christ

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Go for it, if you have any morgage get a fixed rate, Fiat or something real, tough decision, it would take me nearly 1/2 a second to work that one out, TBF the 295 is a bit irelavent, its what 200 gets you in the area that counts, walk around with the surveyor and check all the cupboards taps, well worth a day off.

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am paying cash. my real concern is the cash part, i am getting increasingly worrried that the way of the political world is so corrupted that holding cash is probabilly more dangerous than holding a property.

I too am a potential cash buyer, but there is no way I would buy a house at the moment.

Why exchange liquid cash that is earning over 3% interest for an illiquid, depreciating, asset?

In these difficult times, liquidity is the key to peace of mind.

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Go for it, if you have any morgage get a fixed rate, Fiat or something real, tough decision, it would take me nearly 1/2 a second to work that one out, TBF the 295 is a bit irelavent, its what 200 gets you in the area that counts, walk around with the surveyor and check all the cupboards taps, well worth a day off.

depends if its fair value for the 200k,

depends if you consider your 200k Fiat will depreciate faster than the asset, or vice versa.

so much to work out in 1/2 a second

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If its a nice home you want and can afford it then buy it.....

I would no more buy an overpriced house, just because I could afford it, than I would pay £10 for a bag of crisps.

I have a nice home which I rent for less than the interest I would lose if I were to draw sufficient cash out of the bank to buy it.

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I too am a potential cash buyer, but there is no way I would buy a house at the moment.

Why exchange liquid cash that is earning over 3% interest for an illiquid, depreciating, asset?

In these difficult times, liquidity is the key to peace of mind.

If you can get 3% safe liquid cash retuen after tax on £200k+, let me know. ISAs, sure, and they mount up over years, but at once?

To OP: if the house looks good and u can afford it, fine. The rent saved would be ~3% at least. If its fallen by ~30% thats good too. You may hold off and get 50% off, but then again... No one catches the last 10%. I would take the advice and keep your ISAs - up to 50% of the 200k and borrow. You might well be able to borrow at less than the ISA return...

Good luck!

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  • 415 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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