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If Prices Start To Head Down . . .


tenroom
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. . . or would you wait for the bottom to be called ?

I mean all FTBs-in-waiting have no doubt saved up a tidy sum in anticipation of prices returning to a decent level some time in the short to medium term but would you serious throw that hard-earned into a property whose value was set to diminish thereby wiping out your deposit in a year or two ?

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. . . or would you wait for the bottom to be called ?

I mean all FTBs-in-waiting have no doubt saved up a tidy sum in anticipation of prices returning to a decent level some time in the short to medium term but would you serious throw that hard-earned into a property whose value was set to diminish thereby wiping out your deposit in a year or two ?

I plan to wait until the bottom of the market (if such a thing can be pinpointed!) and then buy as many properties as I can to start refuge's for BTL LL's who have lost it all :ph34r:

AFP

Edited by AwaitingFairPrices
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. . . or would you wait for the bottom to be called ?

I mean all FTBs-in-waiting have no doubt saved up a tidy sum in anticipation of prices returning to a decent level some time in the short to medium term but would you serious throw that hard-earned into a property whose value was set to diminish thereby wiping out your deposit in a year or two ?

Join the queue at the EA with the BTL brigade. The smart ones who've sat back whilst fools rush in will still be competing with FTBs at the bottom of the market.

When does it bottom out?...

Find out what the rent is for a similar property in the area as the one for sale. Take the monthly rental and mulitply this by 12, divide it by the interest rate (e.g 6%=0.06) and there you have the bottom asking price.

e.g. Rent for typical property =500pm x 12 = £6000pa. Divide this by interest rate at time (assume IO) say 6%(0.06).

£6k divided by 0.06=£100k... thats the bottom line.

May seem a bit simplistic and I'm sure that someone will shoot it down in flames but using this calculation house prices are overvalued by about 30% in my area which seems to tie in with current thinking.

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I plan to wait until the bottom of the market (if such a thing can be pinpointed!) and then buy as many properties as I can to start refuge's for BTL LL's who have lost it all :ph34r:

AFP

If I saw a really nice property I would buy it on the way down so I wouldn't be gazumped. If my realistic dream property didn't come along I would wait until the dole queues extended out the benefit office, up around the corner shop, past the tesco metro and into the park...(best indicator of a recession / HPC at it’s worst)

#scoobydoo#

:ph34r:

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I'll think about buying when it becomes comfortable for ME.

But i'll also be looking at the way things are going at the time, if things reach my "comfort" point but are still heading significantly downwards i may hang on just a little while longer.

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I mean all FTBs-in-waiting have no doubt saved up a tidy sum in anticipation of prices returning to a decent level

I'm not so sure there are that many that have saved deposits, resisted the hype and are waiting for the crash, the vast majority that could afford to get on the "ladder" have, many have given up and spent deposits elsewhere, others have never even tried to save a deposit.

I think those of us that saved a deposit, have zero debt, and will get a mortgage offer when lending is drastically tightened, will be a very small minority, giving us ample time to take our pick.

here's to hoping anyway :-)

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There's no point in waiting for the absolute bottom except in pure financial terms maybe - just get the big drops out the way where mega money is lost and then buy into the market. I'm sure most people on here just want to get on with their lives and don't want to wait any longer than they have to - if you see a house you really really like and it's already dropped by 30% then why wait if you can comfortably afford to buy.

There is a point in finding the bottom, if you bought whilst the economy was in decline then you yourself might well become a victim of the recession and lose your job, and find your bargain house back on the market at an even lower price than you paid.

The best plan of action is to wait for the bottom, by watching it go down and then slightly up.

If you watched them rise say 5% then bought in, the you would do very very well out of it.

The bottom can bounce along for years, something well worth remembering.

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