Tuesday, June 10, 2008

Whaaaaat??

The Time To Buy Property Is Now

"Based on my financial rule ‘make decisions based on what you know only', it is always the right time to buy property, regardless of property predictions... " Please can someone explain the logic of this to me? I no understand!

Posted by renting2 @ 08:48 PM (2593 views)
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20 thoughts on “Whaaaaat??

  • Looking back through Neil Faulkner’s other articles, and his colleagues articles on house prices, Faulkner’s always been bullish and rejected predictions of drops.

    He almost certainly has a maxed-out mortgage on a grotty Streatham flat which he’s trying to shift. Bad luck Faulkner – ever considered estate agency as a career rather than financial advice?

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  • I love the way he says it’s always the right time to buy with such conviction…

    Then goes on to list a series of caveats which pretty much rule out me and everyone I know who doesn’t currently own a property (This coming from someone who works in investment banking – we don’t all earn millions and drive [email protected])

    Gave me a smile for the evening 🙂

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  • • Can I afford to buy the house I want, including all the mortgage costs?

    • Could I still afford it if interest rates went up a couple of points over the next few months or years?
    no

    • Is the property worth the price to me?
    no

    • If property prices fall I may be stuck in that property for a while because I couldn’t afford to move. So: can I stay in that property for many years if necessary? And would I be willing to?
    no and no

    Thanks Neil… Nice one..

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  • I always thought the Motley brand was a good one, with sensible, level-headed advice. I’m afraid my bubble has burst! If the Motley crew can put out this sort of nonsense (even a viewer of News at Ten could disagree with this article) then my respect for their site has just started to slide.

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  • converted lurker says:

    yep they’ve rushed out Cliff D’Arcy to counter Neal’s ‘back frrom the pub, working out his BTL payments’ pile of shite

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  • it_is_going_with_a_bang says:

    4. Crutchley.

    Ye i think hes also missing the ‘bleedin’ obvious which is why pay £200k for something now you may be able to buy in a year/2 or 3 for say £130k?

    Apart from its probably one of his properties he is trying to shift.

    It’s the kind of advice an estate agent would give and not too many people are listening to them at the moment!

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  • Anecdotal: My friend and his partner have just had an offer accepted on a 2 bed flat (conversion) off Clapham High Street. Pictures make it look like you’d need good neighbours (intimate proximity to other flats in the conversion) and it has a crummy little kitchenette..

    Asking price £439,000!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    He tells me his offer was for a ‘lot less’ and is very proud of himself.

    I did try to warn him.

    Sad thing is – he has an economics degree and his partner works for HM Treasury

    Don’t know what to say to him – maybe he’s read this article and got suckered

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  • I wonder if this guy has taken the Fool mantra about it always being the right time to buy shares and has applied it to the stock market? Good to see that the other Fools are giving him a good savaging anyway.

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  • What I meant was ‘and applied it to the house market’

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  • Houses should be sold with a ‘wealth warning’ and picture of where we are on the HPC home page graph. Together with a gruesome picture of a bankruptcy and repossession hearing.

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  • Mytimeisnigh says:

    Get real, there’s a recesion coming and it’s gonna be big. Fasten your seat belts. I feel sorry for those that bought into the dream post 2003, cause, unless they’ve got big wages that are recession proof or they’ve got rich mums n dads, they’re screwed. As for the buy to letters, if the investments pre date 2003…….well ta ta. Hahaahaha, serves the buy to greeders right. So now the shoes on the other foot. They can hear people bragging by saying ‘ I worked hard, I saved hard, I wanted a nice home (just the one) to live my life in and bring my family up in). And now I’ve got one!!! Instead of, I saw a get rich quick scheme and I thought screw society, I’m gonna be rich, I deserve it, cause Ive got two GCSEs in P.E and Art and this makes me an expert and I deserve it, so loads of people can pay me loads and I’ll get rich and richer off their backs and that is what I should have cause I’m sooooooo clever. Pricks, now suffer.

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  • > my respect for their site has just started to slide.

    you obvioiusly were not taken in on their Beating the Footsie formula investing nonsense then?

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  • the guys a real “FOOL”..

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  • @9: crutchley

    £439k. You taking the p1ss? Up here in Bolton you could get something pretty reasonable for that AND still have somewhere to park your horse!

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  • Dude,

    I know… I nearly filled my underwear when he told me..

    All I could think was not “Wow my friends about to buy a great flat” but “OMG my mate’s just committed to nearly half a million of debt”…

    To make things worse I just found out it’s ground floor

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  • With interest payments it’ll be closer to £1m.

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  • Landedgentry says:

    Clapham will revert to what it was in the 70’s, a council infested shithole, but this time more violent with all the trendy bars looted and the hooray henrys will be mugged and stabbed on a daily basis. It’s the jungle baby!

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  • Cautiously Pessimistic says:

    @16

    Agreed! I think they should come under an FSA style set of behavioural rules. It’s a lot of money after all… although fat lot of good the FSA are in practice.

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  • renting2 – yes, how come every investment advert says past performance is no guide…shares can go down in value as well as up. etc yet estate agents and other VIs are allowed to talk up the housing market and actually encourage people to buy in an obviously-falling market? Most people “invest” far more in a house than they do in shares, in a leveraged manner, so the potential loss is very much greater.

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