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Original poster

Bad news for the global economy....thoughts?

14 replies

Becaroooo · 22/09/2011 18:03

So. Biggest 1 day fall in 2 years. Financial markets in panic.

Bad time to be thinking of buying a house?

OP posts:
CogitoErgoSometimes · 22/09/2011 18:14

If you need a house to live in, buy a house. If you're looking for an investment, buy diamonds or gold or something :) I have a track record of buying houses at 'bad times'. Last one I bought in the early nineties when everyone was panicking about negative equity. Turned out to be the best thing I ever did. Who knows what tomorrow brings?

Original poster
Becaroooo · 22/09/2011 18:25

cog Def not an investment!!

OP posts:
CogitoErgoSometimes · 23/09/2011 06:38

If you've got a reasonable income, your job isn't at risk and enough cash to put down as a deposit, now is as good a time as any to commit to bricks and mortar. There are some bargains to be had because the housing market is very slow and others are struggling to borrow money. You can offer way below the asking price and stand a very good chance of being accepted.

Original poster
Becaroooo · 23/09/2011 09:32

Yes, thats what we thought cog but that hasnt been our experience Sad

We have a deposit, have no chain and can get an AIP within 24 hours, but we are still struggling to find a property whose vendors dont expect full asking price!!!

Maybe I am being unrealistic? I really thought it would be easier than this.

All 3 of the houses we are viewing tomorrow were all bought at the height of the market - circa 2006. They are ALL asking for the the same/more than they paid...does that make sense to you? Because you are clever and I am not and I dont get it

OP posts:
EdithWeston · 23/09/2011 09:36

They may be asking for the sum they need for what they need to do next, or just not want to take a loss. It makes perfect sense to start high.

Prices will only fall when/if property stays unsold, and they have to sell.

fluffles · 23/09/2011 09:36

why are you looking at homes with an asking price above what you can afford? why not look at those in your price band?

i had lots of crazy offers for my flat when i sold earlier this year (some were offering 20% below the asking price)... a waste of everybody's time, the asking price was the price for a reason (i needed to sell at that price to pay off the bank)... sold it eventually for 7% below asking price which i was happy with and the buyer.

so don't believe agents who tell you to view houses way out of your budget and 'make an offer' - save everybody time by sticking to those no more than 10% at very most over what you can afford.

AngryFeet · 23/09/2011 09:37

I bet in a few months when they haven't sold they will drop the price though. People always want to try and get the most they can. Maybe they will be in negative equity if they don't sell at the price they are asking... This is why the housing market is stalling sadly.

Original poster
Becaroooo · 23/09/2011 09:39

fluffles Sorry, havent made my self clear...we can afford it. Easily. just dont think its worth the asking price!

OP posts:
fluffles · 23/09/2011 09:42

ah, ok. well it's your choice then - if you want it enough, if it's your dream home, and you can afford it, then pay more.

if it's not quite right, not perfect, then make an offer but accept that it'll be likely turned down.

you're in a priviledged position if you can afford to pay if you like the house enough... and surely if it's perfect for you and your family you'll pay what is asked.

fluffles · 23/09/2011 09:44

many of those asking the same as they paid in 2006 probably had v. large mortgages (even 100%) and possibly can't discharge the mortgage if they don't sell at same value... they're not being beligerent, they maybe honestly can't sell if it's not for the outstanding amount on the mortgage.

CogitoErgoSometimes · 23/09/2011 10:10

Back in 1990 when there was another recession, a house-price crash and the whole country was obsessed with negative equity I bought the house I live in now. I took a loss on the place I was selling and paid the full asking price for the new property because it was in a good location where houses didn't come up for sale very often and I didn't want to risk losing out. For the next five years, national house-prices continued to decline but my new neighbourhood held its value. When things picked up again, the place I'd bought was suddenly worth double and treble its value.

So the moral of the story is.... if it's a great property in a great location and you really want it... don't miss out purely because you can't get a bargain. .

myron · 08/10/2011 01:03

Never imagined that I would offer full asking price in this climate as a no chain/potential cash buyer but I just have. Why? House in a prime location on a road which rarely has houses come on the market and it was priced to sell. We viewed on the 2nd day of viewing and the house already had 2 offers on it from the 1st day of viewing. We wanted it and was prepared to pay asking price to secure it. However, we were not the only ones to offer full asking price after only 2 days on he market. They accepted our offer on Day 3 after I rushed in to provide documentary proof of our finances i.e. only required a small mortgage. Apparently, we were judged to be the lowest risk of their handful of asking price offers. Relief all around that it didn't resort to sealed bids. Trust me, you are unlikely to get a bargain in a really prime location. At best, you will get a fair deal which is what I believe we got and only because I'm a rightmove addict!

Original poster
Becaroooo · 08/10/2011 16:39

Congrats myron

OP posts:
cazinge · 15/10/2011 20:08

We are in the process of buying a house as we have been renting since we moved to a new area (although we've held on to our previous home & now rent it out)
We have only paid about 3.5% below the full asking price (less than £7k) even though we are not in a chain and already had a 25% deposit and AIP.
But....we liked it, think it could be our family home for a long time, is in a good location, catchment for good schools, etc and after seeing about 30 houses (!) was the only one we both liked enough to put an offer in on so in our opinion was worth it.
I do worry about buying when the market is bad but we need somewhere to live and we're better off paying our own mortgage than someone else's.

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