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Guest Shedfish

A Tale Of Peer Pressure

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Guest Shedfish

i thought this might be an interesting snapshot...

An old friend of mine moved back up here with his wife and 2 kids, from London last year - he did ok on the sale of a flat down there, and put the small net proceeds into buying a house in a posh part of town, for 270k.

in the meantime i'm renting away in a crap place, saving for a deposit (currently approaching the equity my friend put in, and rising). the interest on this knocks enough off my measly rent to make living cheap. his place meanwhile is on an IO mortgage, and the monthlys are quite high, but not terrible.

our families were friends years before either of us were born - goes back a long way. we're both self-employed, earning a similar amount generally, but lately i've just had a 'happy time' (like the Uboats in 41). i'm single, he has the aforementioned young family. despite London changing his life outlook, and staying 'home' decimating mine (my heart is in a bodybag, which i kick daily), we remain good friends. but

i'm at the point where i almost dread us getting together, as he puts a lot of pressure on me to buy, both indirectly (irrepressible smugness, family chatter), and directly (he mentions houses he's seen locally to me, saying they're a good buy etc etc). now he is generally quite financially astute - running your own business demands this generally - and none of the above is really my point...

my point is that on top of his already considerable commitments, he fancies himself as a flipper, or BTL. he recently took advice from his IFA on buying a nearby house, valued at 300k+, either as a move-up or a flip. glad to say the IFA said NO. but he's still thinking about it, or another 'project'. he's basing this on a recent estate agent 'valuation' of 290k on his place.

meanwhile i've found a house on Rightmove, almost identical to his, at the other end of the same road, which is on the maket for 210k. every time we meet, i try to urge him to wait and see how the market goes for the next year at least, for it's obvious to me that he's not been paying even the slightest attention to it. i've decided not to show him the rightmove link unless he says he's going ahead. for him to see the link would scare him to death, i think.

one of us is clearly mad. any comments welcome on which one it is, and why...

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I think there are a few subjects in this world which are not worth talking to people about. This definately seems to be one of them.

Any negative comments to him will be a challenge to his whole life, you would in his eyes be calling him an idiot.

I'd say only ever offer people advice if they ask for it, but if they do don't pander to them and tell them how you see it. In my experience 90% of people asking for advice actually want reasurance rather than advice. It's also better to give the person a doomsday scenario (if thats what you believe in) because if the worst did happen they wouldn't be able to shift any of the blame on to you.

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i thought this might be an interesting snapshot...

....his place meanwhile is on an IO mortgage, and the monthlys are quite high, but not terrible.....

...we're both self-employed, earning a similar amount generally...

.......now he is generally quite financially astute - running your own business demands this generally....

meanwhile i've found a house on Rightmove, almost identical to his, at the other end of the same road, which is on the maket for 210k....

Youre selling yourself short there Shedfish.

You've researched the market, he obviously has not.

The fact is that an almost identical house can be had for an asking price 80k less than his 'valuation'.

'nuff said.

Put simply, there are alot of people already in trouble - they just dont know it yet.

I'm sorry to say your mate sounds like one of them.

Edited by needle

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Guest Shedfish

Put simply, there are alot of people already in trouble - they just dont know it yet.

I'm sorry to say your mate sounds like one of them.

this is what i think too - i think the work he has coming in shortly will see him through his present situation, digging a deeper hole is another thing...

but:

Any negative comments to him will be a challenge to his whole life, you would in his eyes be calling him an idiot.

In my experience 90% of people asking for advice actually want reasurance rather than advice

yep.

and yep. i think the latter is what i'm doing by posting this, and finding this forum, because when i talk to him i could almost BELIEVE. halleluyah etc

but right now (the first time i've ever been in a position to buy period.) to paraphrase Han Solo

i have a very bad feeling about this

any bulls left out there?

Edited by Shedfish

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meanwhile i've found a house on Rightmove, almost identical to his, at the other end of the same road, which is on the maket for 210k. every time we meet, i try to urge him to wait and see how the market goes for the next year at least, for it's obvious to me that he's not been paying even the slightest attention to it. i've decided not to show him the rightmove link unless he says he's going ahead. for him to see the link would scare him to death, i think.

Therein lies the answer.

Next time you meet ".........maybe I should buy, I've seen an almost identical one to your's for £60,000 less than you paid, what do you think?"

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i'm at the point where i almost dread us getting together, as he puts a lot of pressure on me to buy, both indirectly (irrepressible smugness, family chatter), and directly (he mentions houses he's seen locally to me, saying they're a good buy etc etc). now he is generally quite financially astute - running your own business demands this generally - and none of the above is really my point...

That might not have been your point but you aren't the only one in this situation. My in-laws are property porn perverts and are puttting real pressure on my wife to buy. When my brother in law got into the buy-it-tidy-it-sell-it game and the only discussions were about how much money they could make from it ("yes you could have made money except you are johnny-come-lately types!") it got unbearable. He never got it off the ground and is now back applying for jobs with the council. I would like to say rude words at this point but I won't.

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Shed, the guys in dream world. IO'd up the kazoo, and looking to 'buy' and try and flip another property?

Mate, he doesn't even own the one he sleeps in at night!

FWIW, and I'll maybe start a thread with the reasons why, I, on the QT, put all my rental properties (bar one) up for sale in June. They have now all sold.

The last cheque with the monies from the solicitor hit the doormat today. Not quite in Property Guru's league, but not so shabby none the less. Maybe I called top? Maybe not. I dont care. I have the cash, and its looking good in the bank ready for the next project.

Your mate, however, is a dollar short and a day late, in the nicest possible sense. Enjoy the show.

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Shedfish, for what it's worth I'm STR-ing as we speak. Leaving London for Wiltshire where I will rent and see what happens. I think prices will get more affordable. I could of course be wrong but I have done my research and so I am prepared to wait and see.

I think if your friend had done his research he might have kept his powder dry too, as you say he might have been able to get a better deal already. Even if you decide now is the right time to buy at least with your more rounded view of where the market is at you're not going to take everything an EA says at face value, enabling you to drive a harder bargain than if you just believed that prices are going up, up, up.

Stick to your guns, avoid discussing housing if you can - and good luck.

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Guest Shedfish

thanks all - i think i'll hold back sending him the link until i absolutely have to. wish i could afford the 210k place in a way, but at the end of the day it is only an extended 3 bed semi, and i'm just not that stupid (yet)

FWIW, and I'll maybe start a thread with the reasons why, I, on the QT, put all my rental properties (bar one) up for sale in June. They have now all sold.

i reckon that would be invaluable info

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  • 302 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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