Jump to content
House Price Crash Forum
Sign in to follow this  
underpressuretobuy

I'm Under Pressure To Buy Again

Recommended Posts

Just had a phone call from the parents who I thought had come round to the idea that prices were a bit high.

First thing my Mum said "I'm phoning because I've seen some lovely new build flats in your area that I think you might be able to afford and I know you don't want to hear this but I think prices are rising again."

She then said that not only are prices rising but when SIPPS comes in they will really take off. I have to buy now (apparently) before prices are right out of my reach.

I know there's a whole thread about SIPPS and I don't want to discuss that here, my Mum is convinced this will have an effect and that's that. So, I changed tactics to explain that the number of repossesions and the slow down in the high street indicate that all this money sitting in property is not very good for the economy etc. etc.

Why, do I have to explain myself to people week in, week out?

Everybody knows I think prices are going to drop, why can't they accept my opinion and leave it at that.

I have accepted that they believe prices will keep rising and I don't bother trying to disuade anyone.

I know my parents care and want me to have what they had but why does no one want to listen to the idea that there might be the tiniest element of risk in the property market.

Ok, so after a while I gained an acceptance that the high level of repossessions at a time of low interest rates is a cause for concern and while discussing their original purchase of a property Mum was shocked to recall that their first HOUSE was bought on 2.5x single income.

Mum was astonished that their first mortgage was so low.

When however, I suggested a comparison with what that would mean in relation to income multiples now I was told "It's different now".

Well yes, OK it is different now but that doesn't mean we are establishing a new permanent housing market position that will last forever and ever.

Please say something to me to stop me being driven mad by having to explain myself over and over.

Why does everybody feel the need to try to change my mind?

AAAARGH! :angry: :angry: :angry: :angry: :angry:

Share this post


Link to post
Share on other sites

Who is General Error, and why is he trying to read my hard drive?

Does that help?

Edited by Jason

Share this post


Link to post
Share on other sites

If YOU don't think you want to buy, don't buy!

I'm not convinced we're due for a huge sudden crash but prices aren't going to start rising in the near future so there's unlikely to be much harm in waiting, see what happens over the next 6/9 months then make a decision then.

Share this post


Link to post
Share on other sites

Ask your Mum to explain how, if you stretch yourself to buy a flat in this overpriced market, you ever going to be able to move up the market.

Unless wage inflation beats house inflation - house prices just keep getting more and more unaffordable.

If her answer is that if you don't buy now you never will - you'll have to make the argument 'and if I buy a flat now I'll either live in it forever or spend all my salary on a mortgage.

You need to let her know present prices are unsustainable and will fall - and only got that high because of investors - not because of normal market behaviour.

Now investors cannot get a return, now they cannot rely on capital growth - they are deserting the market - hence the slowdown in transaction volumes and the fact you can buy new 2 bed flats near me for 50k off.

Share this post


Link to post
Share on other sites

You need to let her know present prices are unsustainable and will fall - and only got that high because of investors - not because of normal market behaviour.

Now investors cannot get a return, now they cannot rely on capital growth - they are deserting the market - hence the slowdown in transaction volumes and the fact you can buy new 2 bed flats near me for 50k off.

The solution I suggested before is as follows:-

Ask them if they could afford to buy their current house. If not why not.

Ask them if they are so certain that prices will not fall that if they do would they make up the shortfall and then ask them to sign a legally binding contract to that effect. If they say yes you then ask how much shortfall will they make up (emphasis the value of their house now and what it needs to be so that they could afford it).

I find the mention of £100,000 or so is enough to really put them off.

Share this post


Link to post
Share on other sites

Tell her that you love her and ask if she's lost weight.

If you don't have a partner, hint that there's someone who might become one soon.

If you do have a partner hint that there might be a baby planned/on the way.

If that doesn't distract her I'll eat your hat.

Share this post


Link to post
Share on other sites
Guest Winners and Losers

Buy if you want to. Who can stop you? But you asked for advice. My advice is that it is no fun, from personal experience, watching the property you paid X amount of money for start to fall month by month by month. As someone who has trouble letting go of things, I would wait. Pride comes before a fall!

Just had a phone call from the parents who I thought had come round to the idea that prices were a bit high.

First thing my Mum said "I'm phoning because I've seen some lovely new build flats in your area that I think you might be able to afford and I know you don't want to hear this but I think prices are rising again."

She then said that not only are prices rising but when SIPPS comes in they will really take off. I have to buy now (apparently) before prices are right out of my reach.

I know there's a whole thread about SIPPS and I don't want to discuss that here, my Mum is convinced this will have an effect and that's that. So, I changed tactics to explain that the number of repossesions and the slow down in the high street indicate that all this money sitting in property is not very good for the economy etc. etc.

Why, do I have to explain myself to people week in, week out?

Everybody knows I think prices are going to drop, why can't they accept my opinion and leave it at that.

I have accepted that they believe prices will keep rising and I don't bother trying to disuade anyone.

I know my parents care and want me to have what they had but why does no one want to listen to the idea that there might be the tiniest element of risk in the property market.

Ok, so after a while I gained an acceptance that the high level of repossessions at a time of low interest rates is a cause for concern and while discussing their original purchase of a property Mum was shocked to recall that their first HOUSE was bought on 2.5x single income.

Mum was astonished that their first mortgage was so low.

When however, I suggested a comparison with what that would mean in relation to income multiples now I was told "It's different now".

Well yes, OK it is different now but that doesn't mean we are establishing a new permanent housing market position that will last forever and ever.

Please say something to me to stop me being driven mad by having to explain myself over and over.

Why does everybody feel the need to try to change my mind?

AAAARGH! :angry: :angry: :angry: :angry: :angry:

Share this post


Link to post
Share on other sites

Please say something to me to stop me being driven mad by having to explain myself over and over.

Why does everybody feel the need to try to change my mind?

Even if prices stagnate buying just doesn't stack up.

A friend bought a flat in Bristol this year, he would now like to sell but to cover all the costs associated with buying and selling, EA fees, solicitor and stamp duty etc he would need to sell for £15K more. The reality is that he probably wouldn't get as much for the flat either.

Higher prices means higher associated moving costs. You could rent the same property, have none of the above costs so be free to move whenever and not have to pay any repair costs. I've had a new boiler and a new cooker installed in my rental flat in the last 12 months.

My friends situation even if we assume that prices are the same is that he can't move because he doesn't want to lose the £15K paid in moving costs.

Share this post


Link to post
Share on other sites

Just had a phone call from the parents who I thought had come round to the idea that prices were a bit high.

First thing my Mum said "I'm phoning because I've seen some lovely new build flats in your area that I think you might be able to afford and I know you don't want to hear this but I think prices are rising again."

She then said that not only are prices rising but when SIPPS comes in they will really take off. I have to buy now (apparently) before prices are right out of my reach.

I know there's a whole thread about SIPPS and I don't want to discuss that here, my Mum is convinced this will have an effect and that's that. So, I changed tactics to explain that the number of repossesions and the slow down in the high street indicate that all this money sitting in property is not very good for the economy etc. etc.

Why, do I have to explain myself to people week in, week out?

Everybody knows I think prices are going to drop, why can't they accept my opinion and leave it at that.

I have accepted that they believe prices will keep rising and I don't bother trying to disuade anyone.

I know my parents care and want me to have what they had but why does no one want to listen to the idea that there might be the tiniest element of risk in the property market.

Ok, so after a while I gained an acceptance that the high level of repossessions at a time of low interest rates is a cause for concern and while discussing their original purchase of a property Mum was shocked to recall that their first HOUSE was bought on 2.5x single income.

Mum was astonished that their first mortgage was so low.

When however, I suggested a comparison with what that would mean in relation to income multiples now I was told "It's different now".

Well yes, OK it is different now but that doesn't mean we are establishing a new permanent housing market position that will last forever and ever.

Please say something to me to stop me being driven mad by having to explain myself over and over.

Why does everybody feel the need to try to change my mind?

AAAARGH! :angry: :angry: :angry: :angry: :angry:

Why not suggest some kind of house swap with your mum? you buy the flat and she pays your morgage and moves into it, you move into her house and pay her morgage for her?

Fairs fair?

Edited by moosetea

Share this post


Link to post
Share on other sites

If you've got kids, get your mum one of those "Adams family" style photos of the familial unit in their best clothes grimacing at the camera.

My mum has just asked for one for xmas - at least it will get her off your case for a while (your mum that is not mine :unsure: )

Share this post


Link to post
Share on other sites

Say you take your Mum's advice and buy. You find in two years time you need to sell but the mortgage plus the cost of selling is £25k more than the property is worth. Ask your Mum if she will be prepared to re-mortgage the family home to bail you out? This was one of the negative equity exit strategy on offer during the early 90's.

Share this post


Link to post
Share on other sites

Even if prices stagnate buying just doesn't stack up.

This is my arguement too, if it was cost of renting didn't make sense, then yes, she might have a point. But at the moment you probably pay less in rent than you do on the interest of a mortgage.

My Dad has used the SIPPs arguement with me, I told him SIPPS were getting a bad press and would eventually come unstuck as you effectively give up ownership when you put your property into one.

Share this post


Link to post
Share on other sites

If SIPPS is such a great deal why not ask her to buy a flat and let you rent it.

Now that is genius!

Of course, I wouldn't take financial advise of my parents if we were the last people on earth; they have no concept of planning for the future. It is a sad fact that now I am older I am the one with the advise and I learned most of that from sites like this one and the Motley Fool. :ph34r:

Share this post


Link to post
Share on other sites

I think that winter is a good time to buy - anyone who has been trying to sell is getting a bit fed up & likely to take an offer.

The issue about trying to guess the absolute bottom of the market is that once people see a move up - everyone else can see it and there will be a higher demand. The result is that you have more peopele chasing the better properties - which drives up prices. Houses are not like shares, people get emotional and once they commit mentally - they want to have it.

Your parents are probably trying to give you the benefit of their own experiemce.

I believe that the best time to buy is when other people are not - if you are the only buyer - you can strike a deal - if you are competing - you do not get the same deal

That's my two pennyworth.

Share this post


Link to post
Share on other sites

Why not tell the old bag to mind her business.

Explain that you're an adult now and you have to make their own decisions.

Keep it short and sharp, hopefully you'll upset her enough to see some tears.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
Please say something to me to stop me being driven mad by having to explain myself over and over.

Work out how much such a flat would have cost in 2001.

Ask your parents to pay the difference (as a gift, not a loan).

Share this post


Link to post
Share on other sites

The issue about trying to guess the absolute bottom of the market is that once people see a move up - everyone else can see it and there will be a higher demand.

By the time we reach the bottom, everyone will have lost interest in property. No-one will be looking out for it. Everyone will be too busy ramping up the stock market instead. Your mother will be telling you not to "invest", only to buy a place to live in, and only then if you're really sure.

The real problem with waiting for the bottom of the market is that it's going to take a very long time. So boring! Not sure I can wait 5 years for a house we can call our own, permanently, and where we can keep a cat.

The lucky ones are those who don't want to buy now anyway.

Share this post


Link to post
Share on other sites

Your parents are probably trying to give you the benefit of their own experiemce.

UPTB's parents experience is probably very good, if they are anything like my parents. By this I mean that the house they bought for £200,000 about 8 years ago is now worth in excess of £500,000, on paper they are therefore sitting on a capital gain of £300,000.

The problem is that they are implicitly assuming that their son will see a similar gain on his investment; this is clearly unrealistic because it would mean that the average property would cost £300,000 by 2

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.