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"loads Of Cash Buyers"


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EA phoned up just now so I did my usual schtick, total cash buyer no unrealistic sellers please.

She came out with the line that there where loads of cash buyers in the market at the moment so I'm nothing special (well that was the implication rather than the actual words). Anyone come across this line before?

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EA phoned up just now so I did my usual schtick, total cash buyer no unrealistic sellers please.

She came out with the line that there where loads of cash buyers in the market at the moment so I'm nothing special (well that was the implication rather than the actual words). Anyone come across this line before?

so why are they phoning you at home if they have all these people with cash to burn???

(that would have been my question anyway)

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so why are they phoning you at home if they have all these people with cash to burn???

(that would have been my question anyway)

I hate to say this but my uncle, who is a retired doctor and recent buy-to-let amateur, has been talking about buying more properties (he has 5 at the moment - plus one in Dubai in construction :rolleyes: ) because interest rates have been slashed and he thinks property will give him a better return.

I told him rents won't look like much of a return if property values fall by a half. He just laughed.

I worry that if there are too many numpties like him going about then they may well prop up prices and/or end up own most of the properties.

Is that possible, or are there too few people with such cash to spare?

Edited by waitingscot
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There is an article in Today's Times saying much the same thing - that FTBs will lose out to "investors" because the FTBs do not have the cash required for deposits, so are still frozen out. The article is based on a report by Savill's, the London-based estate agent.

A load of bull in my opinion. House prices are falling rapidly and we have all heard the news that the average EA is selling less than one property a week.

Perhaps there are people who have the cash, or are chain-free, mortgage approved, but they can only be a tiny minority of normal makret participants.

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There is an article in Today's Times saying much the same thing - that FTBs will lose out to "investors" because the FTBs do not have the cash required for deposits, so are still frozen out. The article is based on a report by Savill's, the London-based estate agent.

A load of bull in my opinion. House prices are falling rapidly and we have all heard the news that the average EA is selling less than one property a week.

This is the remnants of the psyche of the boom - the whole flawed logic of 'property is so very scarce, must rush to buy now, might lose out forever' - even a moments reflection on economic history shows this is completely false but property commentators, estate agents, developers etc have been living with this belief for the last 5 or more years, it'll take a while for them to adjust to reality.

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I hate to say this but my uncle, who is a retired doctor and recent buy-to-let amateur, has been talking about buying more properties (he has 5 at the moment - plus one in Dubai in construction :rolleyes: ) because interest rates have been slashed and he thinks property will give him a better return.

I told him rents won't look like much of a return if property values fall by a half. He just laughed.

I worry that if there are too many numpties like him going about then they may well prop up prices and/or ending up own most of the properties.

Is that possible, or are there too few people with such cash to spare?

Matey has a point, if these interest rates do keep coming down, people may well buy up cheap housing for the purpose of getting a better rate of return for their money.

Mind you if the house prices keep coming down then in the short term, the invester is losing as much money a month, if not more than they are gaining.

Though from their view, they would be gaining on their initial investment every month no matter what others value the property at.

As long as it is a desireable letting property that remains letted.

With up to a Million more people becoming unemployed in the next year or so, if that forcast is correct, THAT is going to have a BIG impact on the property market.

More property being rented out I would imagine for sure.

More homeless as well.

THAT would be a good investment, a shelter for the homeless, tax payers subsidised of cause.

Nothing like sucking the money out of the tax payer to fund an investment.

Make it a 'themed' homeless hostel, call it 'Tin Pan Alley' and have the residents sitting around on the steps of the place in designer hob nailed boots with holes in. they could bring their own.

Drinking gin from prison issue metal mugs waiting for the big saucepan of soup to be doled out of an evening.

Passing around roll ups and having a good old sing song.

As long as the local Council is ok about it, you can all make packets on it.

Take a trip to Osaka to see how it is done. (try and fiddle it out of the tax allowance)

A lucrative business in the offering.

It's the future you know!.

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Laughed my socks off :lol: Investors are banking on property

By Sinead Holland

"CANNY investors are bailing out of banks and putting their cash into bricks and mortar, according to Bishop's Stortford's estate agents.

The credit crash has shaken confidence in the stock market - but buyers still believe property is safe as houses".

http://www.hertfordshiremercury.co.uk/hert...e.asp?ID=364421

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Matey has a point, if these interest rates do keep coming down, people may well buy up cheap housing for the purpose of getting a better rate of return for their money.

Mind you if the house prices keep coming down then in the short term, the invester is losing as much money a month, if not more than they are gaining.

Though from their view, they would be gaining on their initial investment every month no matter what others value the property at.

As long as it is a desireable letting property that remains letted.

With up to a Million more people becoming unemployed in the next year or so, if that forcast is correct, THAT is going to have a BIG impact on the property market.

More property being rented out I would imagine for sure.

More homeless as well.

THAT would be a good investment, a shelter for the homeless, tax payers subsidised of cause.

Nothing like sucking the money out of the tax payer to fund an investment.

Make it a 'themed' homeless hostel, call it 'Tin Pan Alley' and have the residents sitting around on the steps of the place in designer hob nailed boots with holes in. they could bring their own.

Drinking gin from prison issue metal mugs waiting for the big saucepan of soup to be doled out of an evening.

Passing around roll ups and having a good old sing song.

As long as the local Council is ok about it, you can all make packets on it.

Take a trip to Osaka to see how it is done. (try and fiddle it out of the tax allowance)

A lucrative business in the offering.

It's the future you know!.

But property is a long term investment, so you need to compare it to long term interest rates. Rates for > 15 years haven't gone down much, if at all.

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Every cash buyer that removes their money from deposit/savings will further scupper lending as cash reserve ratios on lender's books could plummet.

Somebody really hasn't thought this drill interest rates down policy through.

The seller will either put the money in the bank, or use it to pay off their mortgage. Either way it goes back into the banking system.

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EA phoned up just now so I did my usual schtick, total cash buyer no unrealistic sellers please.

She came out with the line that there where loads of cash buyers in the market at the moment so I'm nothing special (well that was the implication rather than the actual words). Anyone come across this line before?

I reckon she has a point, but the only things definitely shifting quickly for cash are generally 50K flats were you can get a yield of 350 quid a month social rents. Also it must be remembered where the buy to let cash deposits came from; generally mewing the first property and then continuing the domino effect for the next place and the next...with values crumbling there is no flexibility left for most 'portfolio players' as their equity has been decimated. So what you're left with is folk with cash funds who are prepared to dive in now...Despite the myth of savers in this country the average family has no savings bar 2 months wages, tha average savings per person (adult) is approx 6k iirc. Can't see BTL/Landlord investors rising from the pheonix too soon can you?

Having said all that if you are of the minority of having perhaps a 100K cash fund IMHO you could do a lot worse than pick up 4 flats at 50k each late 2009 (originally valued at 120K each) returning 1400 quid a month, before you pay the 100k mortgage at 500-600 quid a month. I can fully understand how that would be tempting. ;)

Edited by Converted Lurker
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The seller will either put the money in the bank, or use it to pay off their mortgage. Either way it goes back into the banking system.

A lot of the mortgages that are to be paid off are the ones that people many are desperate to clear and these are the recent ones as a result of overlending. Those were funded from the MBS pool, when the mortgage is paid off that money is due back to the MBS holder(s) not the lender.

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I hate to say this but my uncle, who is a retired doctor and recent buy-to-let amateur, has been talking about buying more properties (he has 5 at the moment - plus one in Dubai in construction :rolleyes: ) because interest rates have been slashed and he thinks property will give him a better return.

Let us know how many mortgages he get's offered

My moneys on somewhere between 0 and 1

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I also know someone who has bought 6 buy to let properties in the last year. In 2007 she had none. They are all top of the range flats bought at 50% of their 2007 prices.

Mostly reposessions, none made it to auction.

Makes me think of two things;

1) How many rich renters will there be if unemployment soars

2) How about the poor sods who were repossessed. How can the lender say that they acheived the best price for the property if it didn't reach auction?

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There is an article in Today's Times saying much the same thing - that FTBs will lose out to "investors" because the FTBs do not have the cash required for deposits, so are still frozen out. The article is based on a report by Savill's, the London-based estate agent.

A load of bull in my opinion. House prices are falling rapidly and we have all heard the news that the average EA is selling less than one property a week.

Perhaps there are people who have the cash, or are chain-free, mortgage approved, but they can only be a tiny minority of normal makret participants.

Yep all those cash buyers in Amewica buying everything in sight with even lower interest rates there.

Funny how the FSCS protection for bank deposits was raised from 35K to 50K, and this would affect just 2% of savers.

This roughly means that 98% of the potential cash buyers cant.

Still, if youve only seen 6 interested parties in a month, I suppose the 2 that might pop in would seem to be a lot.

Edited by Bloo Loo
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This retired doctor who is a recent buy to let amateur needs his head examined - preferably by someone else.

begging your pardon sir, but How can buy to let be an amateur occupation, as it is by definition a business, making said doctor retired no more.

Edited by Bloo Loo
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I also know someone who has bought 6 buy to let properties in the last year. In 2007 she had none. They are all top of the range flats bought at 50% of their 2007 prices.

Mostly reposessions, none made it to auction.

Makes me think of two things;

1) How many rich renters will there be if unemployment soars

2) How about the poor sods who were repossessed. How can the lender say that they acheived the best price for the property if it didn't reach auction?

There have been a few anecdotals on auction threads from people who have made offers on places that eventually went to auction and they achieved less at auction so I don't think auction necessarily gets the best price every time.

I personally think getting anything else than a 15% rental yield on a flat in a block is a very risky investment. Blocks so often come up with really large service charges that could destroy illusory profit. Moreover, the odd bad tenant who doesn't pay and/or trashes the place can all make for a lot of headaches. Have a read of some of the traumas of dealing with the public as their Landlord here....

http://www.landlordzone.co.uk/forums/forumdisplay.php?f=3

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Let us know how many mortgages he get's offered

My moneys on somewhere between 0 and 1

My uncle was a consultant, he retired at 65 with nearly million pounds in the bank. He bought 5 flats on top of his own home in the last few years to rent out. He does not need mortgages. I think he probably still has over £500 000 to spend if he wants to. Will people like him prevent prices coming down if they keep buying property?

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I personally think getting anything else than a 15% rental yield on a flat in a block is a very risky investment. Blocks so often come up with really large service charges that could destroy illusory profit.

I reckon a brilliant use for a currently empty block of city-centre, NB apartments would be to fill it with escort girls. A prossie in each flat and you would be raking in cash at a staggering rate, especially if they were all as bonny as Billie Piper.

It's not a new idea, either, huge area's of London, Paris and other cities were built on the back (fnaar, fnaar) of prostitution. Nor would it be illegal, either. It's also preferable to having the place fall into disrepair and eventually fall down.

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My uncle was a consultant, he retired at 65 with nearly million pounds in the bank. He bought 5 flats on top of his own home in the last few years to rent out. He does not need mortgages. I think he probably still has over £500 000 to spend if he wants to. Will people like him prevent prices coming down if they keep buying property?

Again, far too few of them.

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I've been wondering if we'll see an increase in sales as prices have started to dip now (about 5 SSTC on my daily local search out of 280 properties which is 5 more than last week) as people see the interest rates drop off on savings and they can see themselves making a feeble 5% on property.

I think it'd be insane to buy now but I know people are thinking about it.

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  • 443 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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