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General_Kirby
16th Sep 2011, 14:19
Currently renting, able to buy in a few months. Anyone have a crystal ball as whether that's a good plan?

Storminnorm
16th Sep 2011, 14:24
Always better to buy if you can.
Renting's OK but it's dead money as far as you're concerned.
Property prices are fairly static at the moment, but that won't
last much longer I think.
If you WANT to buy, do it NOW, or fairly soon.

mixture
16th Sep 2011, 14:58
Renting's OK but it's dead money as far as you're concerned.

Aah.... but then you've got all the benefits too, you're merely a tenant.

- A bunch of travellers move in at some site down the road and the value of your property plummets..... not your problem.
- Subsistence, pipe breaks, roof needs replacing, structural problems.... not your problem.
- You change employer, or your employer moves.... you need to move with them.... no worries.
etc. etc.

Renting is a fixed, predictable expenditure that you can budget for. Houses have a tendency of throwing up surprises.


If you WANT to buy, do it NOW, or fairly soon.

Yeah, right, and I'm the pope.

You're not going to see property prices rise suddenly, there's not going to be another property boom like there was for a long time yet !

Just look at the current economic climate. Just look at how strict the banks are being with lending now.

I say...

If you want to buy, buy. But don't feel like you need to rush it, and don't feel like you MUST buy either. This is the property market we're talking about, not the stockmarket ..... there won't be massive price fluctuations, and there will always be plenty of other properties on the market.


You also need to compare the mortgage rates you're being offered against the cost of rental .....for example, if the bank takes one look at you, thinks you're a bit of a risk and hikes the quoted rates, the "savings" incentive of buying may not be so attractive. And of course you need to make sure you're happy that you'll have the job security to pay off the mortgage.... otherwise you'll be back at less than square one as you'll have been paying for a house that you've just lost.

Checkboard
16th Sep 2011, 15:09
The UK housing market is showing a very similar trend to the graph shown in economist Dr. Rodrigue (http://people.hofstra.edu/Jean-paul_Rodrigue/)s Mania and Bubbles chart, which shows the main stages in a bubble:

http://money-watch.co.uk/wp-content/uploads/2009/03/manias-bubbles.jpg.pagespeed.ce.rgAKc-X0Dt.jpg

This is the UK real estate chart, up to September 2011:

http://i.dailymail.co.uk/i/pix/2011/09/07/article-1671748-0DBFF20F00000578-641_468x293.jpg

After that, you can draw your own conclusions as well as any of the "experts" out there - and have just as much chance of being correct!

Um... lifting...
16th Sep 2011, 15:16
I guess my operative questions might include:

Where? For how long? House or flat? City or country? Long-term or short-term? Budget? For what purpose? and maybe about 200 more questions along those lines.

What a bizarre and open-ended question that is... "Should I plan to buy in a few months? The sum total of my analysis is that I can."

If you can seriously pose such a question without seeing how profoundly and deeply silly it is to do so, you certainly have no business taking out a mortgage that someone else may have to assume risk in footing for you down the road.

Free advice is worth exactly what you pay for it.

Storminnorm
16th Sep 2011, 15:31
As I said, If you can you are better off buying your own place
rather than renting.
Yes, there are LOTS of drawbacks to actually committing yourself to
paying the Mortgage, and whatever else comes raining down on you,
but, in the long term, you will finish up with whatever future financial
advantages there may be in having committed yourself to that course
of action.
The money you pay for renting a place just goes, and that's that. Gone!!
I suppose it varies from person to person, but I know what I prefer.

Parapunter
16th Sep 2011, 15:37
You want a home? Buy now. You want a canny investment? Think twice. But a house is a home. It's where you live, feel safe, put down roots. Looked at like that, it should be an easy decision.

Um... lifting...
16th Sep 2011, 17:31
As I said, If you can you are better off buying your own place rather than renting.Simply not true, and to make a blanket statement like that is extremely poor advice.
Not in all circumstances. Often, maybe even generally, yes, but one has to define such mundane terms as "afford". If one can afford it at one moment, based upon one's employment, and one is made redundant, one maybe can't afford it in the not too distant future.
If one has bitten off more place than one can chew and this happens, and it happens in a declining market, one ends up with well... a housing bubble and a mortgage crisis. And, if the situation I've just outlined occurs, you're on the hook. If you fail to live up to your end of the bargain, the bank takes your home, and so much for roots. Whether you stay or go, you or someone else is on the hook for your mortgage.
That said, over time I've owned and currently own my residences, and I'm a strong advocate for owning one's own space. However, if I had needed a place 4 years ago or so (in the U.S.), I would most assuredly have rented, economized and kept my powder dry until such time as the market had normalized. Likewise in Spain, or numerous other places I might name. If the property you have your eye on is plummeting a couple thousand per month, 1500 in rent is, by comparison, an absolute bargain.
To just tell someone whose situation you don't understand that to buy is a universally good thing is simply irresponsible.

Howard Hughes
16th Sep 2011, 22:04
If you want to buy a property for investment, look for the areas where you will receive the highest growth/rental return/both, dependant upon your strategy. You don't necessarily need to live in the place that you buy!:ok:

Checkboard, from your graphs, I read the people who bought in 1991 and sold in 2011 made approx 6% per annum, the people who bought in 1991 and sold in 2007 made almost 8% per annum, are you saying that is a bad investment? Those who bought in 2007 and sold in 2011 are obviously well behind, but I suspect that if you look at the returns in 2017 they will be well in front.

The only certainty in property investing is that property prices have steadily risen since the signing of the Magna Carta!:ok:

D SQDRN 97th IOTC
17th Sep 2011, 12:32
or if you look at the returns in 2017, you might find them even further behind....

vulcanised
17th Sep 2011, 15:13
if you look at the returns in 2017

The way the time stamp thingy's going, that will be next Tuesday.

Howard Hughes
18th Sep 2011, 03:38
or if you look at the returns in 2017, you might find them even further behind....
Not impossible, but I would be very surprise if the 10 year growth figures on property were negative.
The way the time stamp thingy's going, that will be next Tuesday. Love it!:D

Um... lifting...
18th Sep 2011, 08:03
Not impossible, but I would be very surprise if the 10 year growth figures on property were negative.

A lot of people who felt as you do 6 or 7 years ago are currently equally surprised... just sayin'

Sailor Vee
18th Sep 2011, 10:21
If one can afford it at one moment, based upon one's employment, and one is made redundant, one maybe can't afford it in the not too distant futureLooking at the guy's age, I doubt if there will be a mortgage involved, so I think buying is his best bet!!

Um... lifting...
18th Sep 2011, 15:11
If that's really his age. If one has gotten to 76 and is not yet able to take an analysis of a market, one should probably stay out.

But then again, if he's got enough to live on and plans to leave the dwelling in his estate when he pops his clogs... I guess it maybe just doesn't matter.