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renter1

Buying

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I am getting so fed up, my husband and i have just renwed out lease for 12 months but have been told by landlord he will be selling up after this. We have been renting 4 years have combined income of 55K not bad for our age and really would like to start a family. Not much to rent in our area and even harder as we have two springers! Hubby is adamant we should buy next year when lease runs out, he reckons if market hasnt crashed by then its not going to and hes not putting life on hold forever, he thinks we will waste more money on rent than the minimal amount the prices will drop. Gues he fed up of waiting as we all are - wots going on.

I can see his point of view but also fear this could be a big mistake?

Does anyone think that if the market doesnt make a serious drop in next 12 months its jus going to be a small correction not worth hanging on for? I am sick of media, advice from bank or EA no good and work-mates are all on the buy front.

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Does anyone think that if the market doesnt make a serious drop in next 12 months its jus going to be a small correction not worth hanging on for? I am sick of media, advice from bank or EA no good and work-mates are all on the buy front.

I don't think you will have to wait till the bottom of the market to buy. You just need for sentiment to change; in 12 months time sentiment should have changed significantly.

Once sentiment has changed then it will be easier to find yourself a motivated seller and negotiate a reasonable price.

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bad for our age and really would like to start a family. Not much to rent in our area and even harder as we

Funny, I am not buying a bigger house because my first kid is due in the new year. Enough stress without the worry of being massively in debt.

I know plenty of people who have done the big mortgage thing. I could'nt be arsed with that struggling at the end of every month to pay the bills and the interest on an over priced house.

House prices will fall as they must. You know it yourself. If it has not happend in the next three years then I will evaluate my decision again.

Good luck

Edited by jellybean

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Been there done it, in five years 2 children and 4 rentals, my children aren't bothered. All they need is four walls and for your sanity a back yard/garden. I would much rather wait another 3 years and gat a nice big back garden than the postage stamp we would get now.

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Interesting. I was having dinner with my girlfriend's parents and her family last week, when the great middle class obsession with property cropped up, again.

They were surprised I had not decided to buy as "you'll never get on the property ladder if you don't buy now" etc etc. I could see the look on the father's face, "he won't be able to provide for my daughter".

It's no wonder that so many people are still buying property, when there's this unremitting pressure from all and sundry. Fortunately, I'm very arrogant and said prices will, more or less, halve and the economy will tank, so I wouldn't be crippling myself with ludicrous mortgage payments.

I don't think the market is in for a "serious drop" over the next 12 months, rather that the savage falls will occur in the latter stages of the bear market. My advice would be, don't panic, start a family and don't be pressured.

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I am getting so fed up, my husband and i have just renwed out lease for 12 months but have been told by landlord he will be selling up after this. We have been renting 4 years have combined income of 55K not bad for our age and really would like to start a family. Not much to rent in our area and even harder as we have two springers! Hubby is adamant we should buy next year when lease runs out, he reckons if market hasnt crashed by then its not going to and hes not putting life on hold forever, he thinks we will waste more money on rent than the minimal amount the prices will drop. Gues he fed up of waiting as we all are - wots going on.

I can see his point of view but also fear this could be a big mistake?

Does anyone think that if the market doesnt make a serious drop in next 12 months its jus going to be a small correction not worth hanging on for? I am sick of media, advice from bank or EA no good and work-mates are all on the buy front.

Not only do I think there will be no significant falls, I think there'l be rises at least in most of the UK.

So I think you should get out of your lease by finding a new tenant for your landlord & buy as soon as you can.

Didn't I see a prediction of 4 rate cuts next year a few days ago?

If that happens, you'll wish you took my advice.

Edited by Time to raise the rents.

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Well TTRTR, I agree with you you that we may see interest rate cuts next year. Where I differ from you, is that this is yet further confirmation of the British economy in deep trouble and a prelude to an era of destructive deflation.

Obviously, you're the type of chap who reckons 0 IRs and 0 inflation is a good thing. I don't happen to share the belief that low IRs are a good sign as they will reflect terribly weak consumer spending, a stagnating/falling housing market and general asset deflation.

So, perhaps enough gullible morons will be jumping for joy if/when the BOE reduces interest rates and stretch themselves to buy a box in Hackney, but it won't do them much good if they're out of job (I see unemployment has risen again , today).

The British and American economies are in the s**t, not the least of it being unseen levels of debt, and their only hope of getting out of this mess is by an inflationary upsurge, which won't happen.

Karl Marx, the only Marx brother I didn't like!!, said something about history repeating itself, and although inexact, the parralels between the late 1920s and even more starkly, late 80s Japan are noteworthy. From what I read, Japan in the 80s was a place of conspicuous consumption andspiralling property prices, rather like the last 10-15 years in the US and UK. We all know that that party ended (when most 'experts' were talking about new paradigms etc etc) and there was a hell of a hangover.

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I don't think you will have to wait till the bottom of the market to buy. You just need for sentiment to change; in 12 months time sentiment should have changed significantly.

Once sentiment has changed then it will be easier to find yourself a motivated seller and negotiate a reasonable price.

I think that in 12 months it will be hard to negotiate a discount large enough to compensate for further falls. Get 10% off, only another 20% to loose!

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Not only do I think there will be no significant falls, I think there'l be rises at least in most of the UK.

Face it, we have missed this boat by a couple of years. Not to worry though, they seem to be quite regular. Should be another one allong in the next couple. If you dont want to wait though, you could buy a leaky pair of water wings for 200K and start swimming.

Edited by jellybean

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Not only do I think there will be no significant falls, I think there'l be rises at least in most of the UK.

So I think you should get out of your lease by finding a new tenant for your landlord & buy as soon as you can.

Didn't I see a prediction of 4 rate cuts next year a few days ago?

If that happens, you'll wish you took my advice.

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Not only do I think there will be no significant falls, I think there'l be rises at least in most of the UK.

So I think you should get out of your lease by finding a new tenant for your landlord & buy as soon as you can.

Didn't I see a prediction of 4 rate cuts next year a few days ago?

If that happens, you'll wish you took my advice.

Er, why do you think this?

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Didn't I see a prediction of 4 rate cuts next year a few days ago?

By who? Mickey mouse?

With the £ falling now there will be absolutely no chance of a rate cut next year unless the economy is tanking so much that it requires it- its all wishful thinking by those who have a massive vested interest in keeping interest rates low.

According to Liam Halligan the channel 4 economics correspondent the next move will be up. Liam got a 1st in Economics so he should know his onions.

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Renter 1

You will have seen the topic on kids a few days ago. If you want kids then just get on with it, I don't think there is a wrong time to start. There are of course wrong reasons but that is another issue.

My first was born when I worked in London and my girlfriend lived in a council flat in Birmingham, second arrived when we lived in a pokey two bed flat, all forgotten now.

My only advice is make sure you have somewhere with a second bedroom so you can take turns getting sleep, it is very important for a healthy relationship.

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.... he thinks we will waste more money on rent than the minimal amount the prices will drop.

When will people reasise that when you get a mortgage for a place you are effectively renting it from the bank.

Anything you pay over and above interest WILL reduce your loan, but you COULD HAVE SAVED THIS ANYWAY!

Also, rent is currently a bit less than interest only.

Example:

Lets say you can spend £750 per month.

"Buy" place for £150k and pay bank at 5% = £625 interest only (money DOWN THE DRAIN!). Overpay by £125 to reduce capital a bit, hence saving interest on a small part of the loan at 5%.

By year end you owe approx £148,500 and have a house "worth" £150 (assuming no HP rise/fall).

Rent a place for £500 a month (money DOWN THE DRAIN.....but less than the above). SAVE £250 a month in hi int account (A&L offer 10%, HSBC 8%).

By year end you have no debt, but have SAVED £3,000 plus interest. Plus you have not had to maintain the place (another grand?).

I would say that the downside capital risks are much higher than the upside at the moment and prob for the next few years.

It does not make FINANCIAL SENSE to buy right now, but if you feel you HAVE to buy for emotional reasons then thats another matter.

James.

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Like TTRTR I don't think we'll have significant drops worth waiting for. If anything the BoE seems to be softening it's approach towards inflation so I don't see much scope for any rapid increases in IRs. Also the market is not as weak as bears would like it to be, yeah some houses are sticking but there is no squeeze on most EAs.

Loan approvals are up.

HPI data points to not much if any drops.

In fact, I can just about agree with TTRTR that we may see rises next year!

I used to be a bear...

:huh:

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Its a really difficult decision at any time.

however, depending on where you are (geographically) I would say (& I am no expert) that prices in the SE have been static for 2 years or fallen 10%. They now seem to be moving again (int erms of more properties getting sold) There also seems to be less coming on the market.

The rest of the country may be slightly behind.

There doesn't seem to be a "crash" just a correction

I believe (personally) the best time to buy is when everyone else is not - you get more choice and can get a better deal.

As to whether to buy or rent forever, well I suppose the main reason most people want to buy is so that after 25 when they are 50/60 they do not have to find rent.

So decisions you need to make are:

Do I ever wnt to buy?

If I do - when? The when bit is more difficult.

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Not only do I think there will be no significant falls, I think there'l be rises at least in most of the UK.

So I think you should get out of your lease by finding a new tenant for your landlord & buy as soon as you can.

Didn't I see a prediction of 4 rate cuts next year a few days ago?

If that happens, you'll wish you took my advice.

that's credit junkies advice.

rent somewhere nice and have a family. if man evolved for all these years without ownership im sure you can know.

buying know would be like attaching a weight belt for an elephant and flinging yourself overboard to look at dead coral.

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Nothing wrong with having a baby while in rented.

The baby wouldn't really even notice if you did move.

My rent costs £300 a month less than a mortgage on the same place would cost.

So I save £3600 a year over the cost of a mortgage.

On a repayment mortgage in the same year I would only repay a small amount of the capital. By renting I am effectively paying off more of a mortgage than by buying.

So long as the market is static or falling (-1.4% per month in my area according to Hometrack) then I am laughing.

I have a 9 week old boy. Our rented flat is very nice. The landlady is an old trout but lives in Switzerland so we don't see her, but its very nice of her to subsidise our living expenses while we wait for prices to fall further. :P:lol::D:)

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  • 339 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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