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lagos36

Is This The Worst Possible Time To Buy A House?

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Does it depend on what you want to buy, house ,flat whatever and where you want to buy it,or is it a case of you must be the mother of all mugs to buy at all, economics wise is it suicidal to buy now. :blink::blink::blink::blink::blink::blink::blink::blink::blink:

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Does it depend on what you want to buy, house ,flat whatever and where you want to buy it,or is it a case of you must be the mother of all mugs to buy at all, economics wise is it suicidal to buy now. :blink::blink::blink::blink::blink::blink::blink::blink::blink:

I think so, but then I live in the south east and have happily been watching falls in prices and feel that we're nowhere near the bottom yet. I will be amazed if property round here out performs my investments so will sit tight in my lovely but cheap rented house and watch for now. As someone else once said on here, no-one ever has to buy. Sometimes people have to sell.

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If all the VIs are right now is the worst time to invest in a BTL. With return on invesment of 3% in 2006 and not much better (or slightly worse) in 2007 only a fool would buy. Factor in that most BTL investors are losing money on rents in the hope of capital appreciation it appears to be a disaster to me. :lol:

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I too live in the SE. Am STR and with my heart would love to buy & get settled as have had 11 moves in the last 20 years & what I buy will, hopefully, see me out into the eventide home :lol: . However, I am very, very, reluctant to take my hard earned cash out of the bank and put it into property right now. The rental property I live in is far from ideal, but I just have to remind myself that it's waterproof, the heating works (well) and that will do. Head has to rule heart here.

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The problem with BTL is that many of these people see it as their pension.

So they are happy to make monthly contributions to subsidise the operation as you would do with a normal pension.

Therefore I dont see them looking at anthing other than the long term.

If you pay £300 quid a month into a conventional pension year on year to be told each and every year its worth less and less. Then you are going to have no problem in buying a BTL and maybe taking a 1000pcm mortgage with 700 paid by tenants and 300 paid by yourself instead of lining the Chancellors and Fund Managers pockets!!!.

J

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The problem with BTL is that many of these people see it as their pension.

So they are happy to make monthly contributions to subsidise the operation as you would do with a normal pension.

Therefore I dont see them looking at anthing other than the long term.

If you pay £300 quid a month into a conventional pension year on year to be told each and every year its worth less and less. Then you are going to have no problem in buying a BTL and maybe taking a 1000pcm mortgage with 700 paid by tenants and 300 paid by yourself instead of lining the Chancellors and Fund Managers pockets!!!.

J

That's £300 if it stays let - you need to allow for periods of changeover. There are of course management fees to take into account, repairs etc.. If you average the year out I wouldn't be surprsied if on the deal you describe a BTL landlord is putting in nearer £500 pcm. Why not just put this money on deposit somewehere and get nearly 5% guaranteed instead of risking possibly massive capital loss at present? It makes no sense.

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If you take property as an investment over 25yrs then for sure you are on a winner.

I think Property is a comfortable investment for most as they know the ropes and they can understand how it all works.

When you start talking ISAS, SIPPS,Equities,Spot Trading,Futures, well the average Joe like myself just falls asleep as I dont have much of an opinion on it because we know nothing about it.

Property is something tangible, you can see it, touch it, walk around inside it. It can be good fun investing in property if you do it right!!.

I would not suggest it is always the best the investment, however many people are loathe to keep switching between one thing and another they are just far too busy working for a living.

In todays market for some property is a good investment, for others its dire. It just depends on your circumstances, how long you intend to invest for, and how much you expect to make over a given period of time.

If you can retire in 25yrs time with say 10 houses paid off and generating rent then you will have a good retirement and something to leave the children.

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People thought nothing of sending £ 500 + a month into black holes of pensions so whats the big deal.

You may think they are wrong but thats a tough mentality to break given disasters with other investments. Thats why you have not seen huge sell offs by btl'ers.

They may be wrong long term bears but they will only know that twenty years from now , too late for any of you bears.

Edited by mercsl

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If you take property as an investment over 25yrs then for sure you are on a winner.

I think Property is a comfortable investment for most as they know the ropes and they can understand how it all works.

When you start talking ISAS, SIPPS,Equities,Spot Trading,Futures, well the average Joe like myself just falls asleep as I dont have much of an opinion on it because we know nothing about it.

Property is something tangible, you can see it, touch it, walk around inside it. It can be good fun investing in property if you do it right!!.

I would not suggest it is always the best the investment, however many people are loathe to keep switching between one thing and another they are just far too busy working for a living.

In todays market for some property is a good investment, for others its dire. It just depends on your circumstances, how long you intend to invest for, and how much you expect to make over a given period of time.

If you can retire in 25yrs time with say 10 houses paid off and generating rent then you will have a good retirement and something to leave the children.

I agree with the last paragraph. I think this website is more about timing and whether now is the right time to be buying property when the spectre of a devastating correction lurks ominously at the door ready to inflict what it has always inflicted on markets that overreach economic fundamentals.

People thought nothing of sending £ 500 + a month into black holes of pensions so whats the big deal.

You may think they are wrong but thats a tough mentality to break given disasters with other investments. Thats why you have not seen huge sell offs by btl'ers.

They may be wrong long term bears but they will only know that twenty years from now , too late for any of you bears.

Its the "margin calls" that the over zealous BTLers have to worry about. Even a flat market can cause difficulties for those who have MEWed unwisely. Many BTL were bought on the assumption that prices will appreciate to offset rental losses. For many BTLers this has not happened and debts have to be repaid.

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Does it depend on what you want to buy, house ,flat whatever and where you want to buy it,or is it a case of you must be the mother of all mugs to buy at all, economics wise is it suicidal to buy now. :blink::blink::blink::blink::blink::blink::blink::blink::blink:

HPI still isn't negative. If you believe the Halifax it's just about keeping up with inflation. There still isn't any sign of forced selling that we would require to have a beating in the property market and no real incentive for most vendors to reduce prices drastically. I guess it depends how much and what you can rent compared to what you can buy in your locality.

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Loserjon trots out his usual crap. Previously BTL was a 'sure fire thing' as yields were so high and there was massive capital appreciation, then 'Im in it for the long term' as yields vanished and capital appreciation disappeared, then 'Its my pension so I dont mind subsidizing my tenants' as it became financially, a disaster.

IN the long term, loserjim, we are all dead. You will die having paid half the rent for all your tenants out of your salary, and witnessed your 'capital' erode like snow on a bright spring morning.

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Its not the absolute worst time. That was about a year ago (in my area at least). Although asking prices haven't changed much, far lower offers are now being accepted. A long way to go (down) yet though IMHO.

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If you take property as an investment over 25yrs then for sure you are on a winner.

I

Absolute rubbish! How can you be onto a winner if you are stuck in negative equity for 10 to 15 of these years, therefore cannot sell in order to chase better jobs elsewhere?

Most first time buyers can now only afford poor houses in poor areas, if they are lucky! Which if they do buy now will probably be stuck in for the best part of their working lives, paying a rediculous mortgage each month, unable to move around, unable to fulfil their true potential and having to make do with dead end jobs just because they are within travelling distance of their sh**ty 2 up 2 down house.

The futures dark, the futures a house price crash.

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If you take property as an investment over 25yrs then for sure you are on a winner.

I think Property is a comfortable investment for most as they know the ropes and they can understand how it all works.

When you start talking ISAS, SIPPS,Equities,Spot Trading,Futures, well the average Joe like myself just falls asleep as I dont have much of an opinion on it because we know nothing about it.

Property is something tangible, you can see it, touch it, walk around inside it. It can be good fun investing in property if you do it right!!.

I would not suggest it is always the best the investment, however many people are loathe to keep switching between one thing and another they are just far too busy working for a living.

In todays market for some property is a good investment, for others its dire. It just depends on your circumstances, how long you intend to invest for, and how much you expect to make over a given period of time.

If you can retire in 25yrs time with say 10 houses paid off and generating rent then you will have a good retirement and something to leave the children.

Have a look at the long term trend line for HPI according to the Nationwide. Over the last 50 years it averages out at just 2.4% pa. This is a seriously rubbish return by anyones standards and therefore to win in this market it is all about buying and selling not just about holding for 25years. Now (18mths ago onwards) is/was the time to sell if you are viewing housing as an investment.

All BTLers should have got shut by now. put money on deposit at 4%pa and then wade back in post HPCrash/correction over time.

Looking at it another way - if landlords are as you say prepared to subsidise rents indefinitely then everyone should be renting. why take out a £1000 mortgage when you can rent for £700.

Which ever way you look at it at present it is a poor position to be in. For many who have been suckered in to this market, BTL = Bought Too Late.

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If I were to buy now even if I may be in it for the long term 25 years,if the price of my property steadily went down it would be a horrible position to be in , especially after watching house prices rise for the last 10 years.

Have a look at the long term trend line for HPI according to the Nationwide. Over the last 50 years it averages out at just 2.4% pa. This is a seriously rubbish return by anyones standards and therefore to win in this market it is all about buying and selling not just about holding for 25years. Now (18mths ago onwards) is/was the time to sell if you are viewing housing as an investment.

All BTLers should have got shut by now. put money on deposit at 4%pa and then wade back in post HPCrash/correction over time.

Looking at it another way - if landlords are as you say prepared to subsidise rents indefinitely then everyone should be renting. why take out a £1000 mortgage when you can rent for £700.

Which ever way you look at it at present it is a poor position to be in. For many who have been suckered in to this market, BTL = Bought Too Late.

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Have a look at the long term trend line for HPI according to the Nationwide. Over the last 50 years it averages out at just 2.4% pa. This is a seriously rubbish return by anyones standards and therefore to win in this market it is all about buying and selling not just about holding for 25years. Now (18mths ago onwards) is/was the time to sell if you are viewing housing as an investment.

Thats assuming you buy a house as an investment, what you dont seem to include in this 2.4% rise for a house also includes you being able to live there for 25 years!

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Thats assuming you buy a house as an investment, what you dont seem to include in this 2.4% rise for a house also includes you being able to live there for 25 years!

In which case its not a btl

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  • 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%



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