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suresh786

Buy or not

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I currently do not own any house. I am currently working and living abroad. I have been saving to buy with-out mortgage and now I am confused.

The reasons to buy are:

  • Money in bank is not giving any profit so rent would be generating some profit.
  • If / when I return to UK then I would have a place to live rather than renting or looking to buy at that time.
  • Long-term prices will rise for example 15-20years.

Reason for not to buy are:

  • Hassle of buying and being a landlord specially from abroad.
  • Prices could drop in near / medium terms.

Any thoughts/advise

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You should absolutely buy. Not only that, but you should supplement your deposit with personal loans and credit cards so you can gain maximum leverage and build up an even bigger BTL portfolio.

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21 minutes ago, NuBrit said:

You should absolutely buy. Not only that, but you should supplement your deposit with personal loans and credit cards so you can gain maximum leverage and build up an even bigger BTL portfolio.

I don't want to take any loan or mortgage. I want to buy it outright.

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1 minute ago, Freezer? Best place for it said:

Are you mad??  "Arseking" a knobber of a stupid question on the internet.  Have you arrived early in the "office" only to find the clocks went back?

Its working day in the country am currently working/living.

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30 minutes ago, bobbo said:

Put money in an interest bearing (possibly non-sterling)  account. 

Problem solved.

Seems a bit risky, Sterling is at historical lows and economic failure is priced in. If we even achieve modest growth Sterling might strengthen. We are competing with a world which is also a basket case and anything that isn't has (like the Swiss) a ball crunchingly strong currency which in reality buys a fraction of Sterling in terms of goods.

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43 minutes ago, bobbo said:

Put money in an interest bearing (possibly non-sterling)  account. 

Problem solved.

I have sterling account but that you know can't give much return.

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Suresh, 

I doubt anyone on this board is going to seriously tell you to buy a property to rent out.

Most people here hope/expect prices to fall in the short/medium term, and buy to let landlords aren’t held in great esteem.

Just keep saving, your time will come.

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7 minutes ago, crashmonitor said:

Seems a bit risky, Sterling is at historical lows and economic failure is priced in. If we even achieve modest growth Sterling might strengthen. We are competing with a world which is also a basket case and anything that isn't has (like the Swiss) a ball crunchingly strong currency which in reality buys a fraction of Sterling in terms of goods.

agreed, sterling will slowly go up over time.

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Are you paid in sterling? I wouldn't go anywhere near sterling or the uk property market this side of brexit. The only reason to currently buy in the uk is if you need a roof over your head, and most on this site would even disagree with that! 

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1 minute ago, Eventually Right said:

Suresh, 

I doubt anyone on this board is going to seriously tell you to buy a property to rent out.

Most people here hope/expect prices to fall in the short/medium term, and buy to let landlords aren’t held in great esteem.

Just keep saving, your time will come.

You are right, probably its wrong bb to ask this question.

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Just now, locky82 said:

Are you paid in sterling? I wouldn't go anywhere near sterling or the uk property market this side of brexit. The only reason to currently buy in the uk is if you need a roof over your head, and most on this site would even disagree with that! 

No i am paid in dollars. But I am converting the savings into sterling as and when sterling falls and i see opportunity then i will transfer my saving into uk sterling account.

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58 minutes ago, suresh786 said:

I currently do not own any house. I am currently working and living abroad. I have been saving to buy with-out mortgage and now I am confused.

The reasons to buy are:

  • Money in bank is not giving any profit so rent would be generating some profit.
  • If / when I return to UK then I would have a place to live rather than renting or looking to buy at that time.
  • Long-term prices will rise for example 15-20years.

Reason for not to buy are:

  • Hassle of buying and being a landlord specially from abroad.
  • Prices could drop in near / medium terms.

Any thoughts/advise

1 - Is money in the back the only asset available? Given that you seem to have a good quantity of money safe (btw, congratulations for archiving financial success!) your money is not protected by any government, unless you have it spread in lots of different accounts. Compare the evolution of the world stock markets to UK housing (converting to the same currency!) and judge performance then. The reason why people buy houses is not because of their return, it's because they are allowed to leverage their position, this doesn't seem what you want to do.

2 - Do you know where in the UK do you want to buy? Within the UK there are lots of possible options, we tend to assume that UK = South East of England.

3 - Why do you assume that long-term prices will rise? You clearly don't live in Spain, Italy or Japan... the reason why this places are so depress is because they carry lots of debt generated during a boom and the economy cannot digest it (is that unlikely to happen in the UK?). At the same time, I challenge you to plot British house prices in USD or EUR terms. Once you do this analysis, please let me know about how things have evolved since 2007.

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1 hour ago, suresh786 said:

I currently do not own any house. I am currently working and living abroad. I have been saving to buy with-out mortgage and now I am confused.

The reasons to buy are:

  • Money in bank is not giving any profit so rent would be generating some profit.
  • If / when I return to UK then I would have a place to live rather than renting or looking to buy at that time.
  • Long-term prices will rise for example 15-20years.

Reason for not to buy are:

  • Hassle of buying and being a landlord specially from abroad.
  • Prices could drop in near / medium terms.

Any thoughts/advise

263?cb=20170428083929

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1 hour ago, suresh786 said:

I currently do not own any house. I am currently working and living abroad. I have been saving to buy with-out mortgage and now I am confused.

The reasons to buy are:

  • Money in bank is not giving any profit so rent would be generating some profit.
  • If / when I return to UK then I would have a place to live rather than renting or looking to buy at that time.
  • Long-term prices will rise for example 15-20years.

Reason for not to buy are:

  • Hassle of buying and being a landlord specially from abroad.
  • Prices could drop in near / medium terms.

Any thoughts/advise

Buy a place in Barcelona 

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2 minutes ago, Burbujista said:

1 - Is money in the back the only asset available? Given that you seem to have a good quantity of money safe (btw, congratulations for archiving financial success!) your money is not protected by any government, unless you have it spread in lots of different accounts. Compare the evolution of the world stock markets to UK housing (converting to the same currency!) and judge performance then. The reason why people buy houses is not because of their return, it's because they are allowed to leverage their position, this doesn't seem what you want to do.

2 - Do you know where in the UK do you want to buy? Within the UK there are lots of possible options, we tend to assume that UK = South East of England.

3 - Why do you assume that long-term prices will rise? You clearly don't live in Spain, Italy or Japan... the reason why this places are so depress is because they carry lots of debt generated during a boom and the economy cannot digest it (is that unlikely to happen in the UK?). At the same time, I challenge you to plot British house prices in USD or EUR terms. Once you do this analysis, please let me know about how things have evolved since 2007.

Thanks for detailed response and thought provoking. I am currently working in middle east so I can not live here forever and I can't own a place here.

1. Majority of money is in the bank in UK. Its not spread so there is risk if my bank goes bankrupt then only 85k will be safe and other lost. I do have some shares and i do buy when i see opportunity. But these are individual stocks so its high risk.

2. I am looking to buy in London zone 4/5.

3. The long-term assumption is based on the last 20 years performance of HPI.  Ok it might not go as high as past but moderate HPI over long-term is still likely.

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3 minutes ago, rollover said:

You can target top London luxury apartments like Battersea power station. Prices there are falling and you can get trophy property for top dollar.

I am not that rich to buy london luxury apartments

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5 minutes ago, suresh786 said:

 

3. The long-term assumption is based on the last 20 years performance of HPI.  Ok it might not go as high as past but moderate HPI over long-term is still likely.

 

Exsqueeze me?

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33 minutes ago, Eventually Right said:

Most people here hope/expect prices to fall in the short/medium term

Yes, been going well for some since 2005 that one. Keep rolling a dice predicting a 6 and you'll be right eventually.

 

I think it's time we all accepted that the market is so screwed the the entire economy has been bent & rigged around it for a decade, and that means none of us really know what to expect in the short or medium term.

Suresh - my advice is simple. Don't buy a property unless doing so will make you happy, and give you a tangible feeling of comfort / achievement, as renting it out will be hassle.

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9 minutes ago, disenfranchised said:

Yes, been going well for some since 2005 that one. Keep rolling a dice predicting a 6 and you'll be right eventually.

 

I think it's time we all accepted that the market is so screwed the the entire economy has been bent & rigged around it for a decade, and that means none of us really know what to expect in the short or medium term.

Suresh - my advice is simple. Don't buy a property unless doing so will make you happy, and give you a tangible feeling of comfort / achievement, as renting it out will be hassle.

Agreed. The hassle of renting out is main point which is putting me off from buying. If I use the EA to rent-out and maintain, then will it still be a hassle? I understand they will charge a hefty amount of fees.

Buying will give the feeling of achievement in front of my wife and relatives. Because when I was in UK, they all told me to buy but i didn't. Now I am trying to prove myself by buying.

Edited by suresh786

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  • 293 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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