Wednesday, January 12, 2011

VI or just stupid?

Now is the time to buy property

Now is a good time to buy your own home, particularly because so many people think it isn't.

Posted by mr g @ 09:37 PM (2597 views)
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22 thoughts on “VI or just stupid?

  • mark wadsworth says:

    Wrong question. The answer is “VI AND stupid”.

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  • “There has never been a better time to buy.”

    was a favorite before the south of England crash of the 90’s.

    I also remember J Mayor saying that they would not allow house prices to rise too quickly again.

    Saying that he would control them with interest rates rises.

    You can’t make this stuff up.

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  • I thought the Rothschilds advised waiting till there was “blood in the streets”. This won’t happen this side of October.

    So…. wait 8 or 9 months and then buy….?

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  • fallingbuzzard says:

    8 months plus 4 years

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  • You want to buy a house in the UK when there’s “blood in the streets”?

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  • The irony is that the very fact that the fools think it’s time to buy, prove that it isn’t.

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  • “it’s wonderful to buy with a clear head at a time when everyone else is making gloomy forecasts – especially sellers.”

    Nope. We are nowhere near capitulation. Most sellers are still doggedly holding out for 2007 prices or refusing to sell and renting out their properties instead i.e. accidental landlords. It seems far to early to talk about breaking away from the herd because the herd is still very bullish.

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  • sibley's b'stard child says:

    Well, that’s me convinced then.

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  • I mentioned the other day we hadn’t seen any articles like this, he must have been inspired by my post !

    It’s actually quite a good read, comments aswell.

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  • US housing market has fallen for the last 5 years(35%)…and its still falling and from a lower peak of lunacy

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  • As a regular visitor to this site since 2007 (and I’ll always be grateful to all you regular commenters and posters (Mark Wadsworth et al) for unknowingly encouraging me not to buy in 2007! Cheers!) I’m actually starting to think that now is the time to start looking again…

    No rush. Nothing bought unless at least 15%-20% under the advertised price. And definitely in a ‘decent’ area. (I’m looking in the commuter belt of Kent. Pretty dull. But a safe bet. I hope.)

    But maybe it is time to start viewing again???

    Because:

    1) There aren’t many people in a position to snap something up at a decent price (they may not be able to secure the mortgage and may be caught in a precarious chain)

    2) I can get a mortgage at 2.99% locked in for seven years via HSBC

    And if I wait and prices go way down, which they well may, there will be far more FTBs in a position to bid against you, and there’s probably no way I’ll be able to get those sort of interest rates.

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  • taffe

    I think the lending was more reckless there than here though.

    They really were lending to unemployed etc. out there where as our self cert mortgages were more of an exageration of income here. Also I’d say the majority of self cert mortgages here were taken out with the ability to cover the repayments.

    I may stand corrected but I also recall that our self cert mortgages required 25% deposits in the main, so there is also some margin.

    Most importantly though I think is the fact that in America the lenders carry the can not the borrower, so people are walking away from negative equity which obviously makes things worse.

    Vearing of subject slightly, it des amaze me that more politicians and bankers who oversaw this nonsense aren’t facing jail.
    Instead we have to be satisfied with a UK MP who swindled £14k on expenses going to jail.

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  • agreed….mps were encouraged to exagerate their expenses based on their pay just £62k which I think is too low.

    uk banking wrote off over £100 billion much of which unsecured and lent to ‘tycoons’.Staff almost certainly got kick backs yet not even an investigation…more worrying is the public aren’t taking any direct action…imo this is because we are more watched and supressed than ever before in history and are scared of having our lives trawled through

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  • I agree with this article completely. I bought a house in December. You have to remember that when buying a house you can’t wait for the prices to trough. Once they hit rock bottom the only way is up. Bargain with sellers now while they’re still flapping about. I managed to knock 30k of the asking price of a 200k home, 10k of which was after we had agreed on price. In a few months time this will not be possible. Look at the land registry figures, prices are not really going anywhere fast and interest rates are being set low for a long time. All you jokers hoping for “blood on the streets” are wasting your time and money buy pumping cash into rentals. Rents are higher than ever.

    I work for the public sector and this whole media driven scare mongering is completely unfounded. If I was the slightest bit scared of losing my job would I purchase a house?

    NOTHING RADICLE IS GOING TO HAPPEN IN THIS COUNTRY!! It never does! Everything is always blown out of all proportion! Even the “burst” of the 10 year housing bubble was what a drop of 16%??? Swiftly corrected by about plus 8%??

    The property market is not going anywhere but up, maybe one step back and two steps forward but never the less up. Just get ahead of the rest of these loons before they realise they don’t want to spend the rest of the life paying off some landlords pension.

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  • ontheotherhand says:

    Time to buy is when mortgage numbers are regularly around 80,000 again, gross rental yield is about 2% more than inflation, and the interest rate cycle has peaked and it looks like the future at that time will be cuts. There is absolutely no need to pick the bottom of the cycle either. Would you be unhappy if you had bought in 1999 and not the perfect 1996?

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  • This guy is taking Buffett’s ‘be careful when others are greedy and greedy when others are careful’ too literally.

    ontheotherhand – true, no need to pick the bottom but jumping in now, as this guy suggests, would be daft.

    str2007 @9 – true, but there’s another difference, which bolsters US prices more – the banks there are sitting on a huge pile of repossessed or not-yet-repossessed houses in order to keep up prices. Many of the people walking away from negative equity in the US are well off – they know the score, use lawyers and treat the house as they would any other investment. I don’t know whether there’s a critical mass of jingle mail such that ordinary folks take it for granted as the thing to do.

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  • Trying to pick bottoms and tops is a mugs game.

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  • I think there’s some merit to his argument. Near us, several houses did end up selling for 40% less than the asking price in 2008. I wish I’d been putting in “cheeky” offers back then, rather than waiting 3 years for no good reason. There’s no need to wait until the bottom as long as you get a good discount and you can afford it. Don’t get me wrong – I think that asking prices are still at least 20% too high, more in some cases.

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  • unfortunately the wife has me strong-armed, so it looks like now is going to be my time whether I like it or not.

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  • sibley's b'stard child says:

    I feel your pain Inbreda, there’s only so long you can put ’em off before your sparkly deposit goes towards a divorce lawyer instead.

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  • I think I have only managed to do it for so long here because prices are so eye wateringly high. We (I) have been putting off buying since 2006. Put in an offer of over 560k this week and it was turned down in favour of a higher bid. Just looked it up and it last sold in sept 2007 for 495k. WTF are people playing at?

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  • sibley's b'stard child says:

    That’s a classic Inbreda; perhaps you should post some press-cuttings from 2008 to remind them what they may have missed. That credit crunch malarkey and attendant near-end-of-the-global-financial-system-as-we-know it might have passed some people by, you know.

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