Page 3 | Will the bubble pop or am I mad to not buy?

User112 · 2021-12-31T01:01:38+00:00

Houses around here are coming up for silly prices compared to what similar properties sold for last summer. Should we just suck up and buy now ?

WulyJmpr · 31/12/2021 18:22

In my view prices will continue rising for the following reasons:

Property is like a piggy bank and a great hedge against high inflation rates particularly if you can get a lower mortgage rate. Inflation will decrease the capital mortgage sum in real terms.

There are new global investors to contend with as well who see UK property as a solid investment.

Too few new properties are being built as we all know.

WulyJmpr · 31/12/2021 18:25

Oh one more.

It is said that banks are beginning to buy up properties to let out as they are becoming institutional landlords. More competition in the market!

Toon123 · 31/12/2021 19:36

Depends on what you are trying to time. A lot of people saying to buy now…but I wouldn’t buy a Labrador puppy for £4k nor would I buy a house tomorrow at a daft price just because supply is low at the moment. Things will soften, more choice….I would wait.

However, I wouldn’t wait for ‘the big crash’. It may happen but the timing of that is very difficult. It could be next month or 5 years.

So plenty or research, take your time and buy something that is suitable for 10 years at least and make sure you buy well and don’t pay £50k more just for a wood burner and a posh painted blue and grey kitchen.

footcushion · 31/12/2021 20:33

@Toon123

Depends on what you are trying to time. A lot of people saying to buy now…but I wouldn’t buy a Labrador puppy for £4k nor would I buy a house tomorrow at a daft price just because supply is low at the moment. Things will soften, more choice….I would wait.

However, I wouldn’t wait for ‘the big crash’. It may happen but the timing of that is very difficult. It could be next month or 5 years.

So plenty or research, take your time and buy something that is suitable for 10 years at least and make sure you buy well and don’t pay £50k more just for a wood burner and a posh painted blue and grey kitchen.

If you are good at figuring out the local price, you’re doing well - what other people are willing to pay is a bit of a gamble and you can observe but fail to play and you will miss out

BernadetteRostankowskiWolowitz · 31/12/2021 20:39

We bought at the peak in 2008. Thankfully we managed to stay for 10 years (shoehorned in) to ensure that we made a decent profit for the next property.

So I'd say buy now if you can give 10 years plus to the property.

Player20868 · 31/12/2021 20:39

I've been waiting for the bubble to pop since the early 1990s...It really isn't going to, the government will keep propping up the housing market forever, it seems. If you can afford it, and you want a home rather than just a cash machine, would it be worth it for you to grit your teeth and buy? If I could go back to the early 1990s or even the early 2000s I'd certainly tell myself to do so!

PurplePansy05 · 31/12/2021 20:44

Really, not many people can say for certain they'll stay in the same property for 10 years, especially if it's their first one. I don't think that's helpful. Just make sure you buy a house you're happy to live in now and for the foreseeable.

Toon123 · 01/01/2022 10:04

@PurplePansy05

Really, not many people can say for certain they'll stay in the same property for 10 years, especially if it's their first one. I don't think that's helpful. Just make sure you buy a house you're happy to live in now and for the foreseeable.

That’s the whole issue though. You ‘aim’ to buy something that would/might last 10 year, whether you can or can’t is another matter. Just never ever buy an unsuitable studio flat (ie if you are planning a wedding and 2 kids etc) as a temporary hold just to get on the ladder. Don’t fight to buy whilst puppies, second hand cars and houses are going through a covid premium. Patience, lots of viewings and comparisons and gain that local knowledge.

It’s twice as expensive to buy badly due to moving costs but more importantly you never want to be stuck in something that is not suitable. Big mistake if the 90’s.

So what you buy now may never be ‘perfect and ideal’ but ensure it will be modestly suitable for a decade if it needs to be.

Guttedbuyer · 01/01/2022 10:06

Unless you’re planning to sell in a few years I would buy now.

earsup · 01/01/2022 16:07

@PurplePansy05

I'd really not rely on Zoopla estimates...

OP, I've heard for years the market would crash because of Brexit, pandemic, prices being too high already, whatever else. It didn't happen. In fact, I think what will likely happen now is an increase in wages alongside a significant increase in the cost of living. Properties will become more expensive to build, this will drive competition not only in respect of new houses, but all houses so the demand will not decrease, quite the opposite. I can't see any of this leading to any price decreases any time soon.

Agree..Zoopla estimates are bonkers....way off....they estimate our other rental house at 800k....sold prices flat and steady at 650k or less !!

forcedfun · 01/01/2022 16:14

If you want a home I would just get on and buy, if you want to try and make a quick buck then by all means try and win the system. But the peaks and troughs are notoriously unpredictable, even by those who claim to know.

YourenutsmiLord · 01/01/2022 16:17

Anyone who could correctly predict the way that the market is going to move would be lounging on the beach in the Bahamas in front of their luxury home and estate ........ bottom line is no one knows.

forcedfun · 01/01/2022 17:07

Agree @YourenutsmiLord

MondayYogurt · 01/01/2022 17:10

Wait until spring and more stock comes on. Use the time to make contacts with agents so you're offered the off books properties.

happilybemused · 02/01/2022 18:16

All three of the houses I bought I've been told the same.

All have been 'full priced' 'top of the market' etc etc.

I've made a sizeable profit over time on each of them.

The key is over time. You need to buy something future proof so that if the market does dip you and/or your family can ride it out.

In my opinion/experience the property market always wins in the long term but not always the short.

lastqueenofscotland · 02/01/2022 20:29

I’d buy. I have met/known of people who’ve lost money or been in negative equity. But I know ALOT more who’ve not bought because of waiting for a crash/worried about brexit, and it never happens, and they get left behind by the market. If prices really really crash banks dont lend so only people with cash for the full or majority of the value so only need to borrow tiny amounts can buy, causing a bottle neck and prices getting back to normal when lending opens up again.

Jessie75 · 02/01/2022 20:47

My Tesco shares are rising at a greater rate than house prices are so in terms of investment vehicles housing isn’t your only option and I do know people who rent and put the difference between what they would be paying in a mortgage and rent into stocks and shares and they’re doing very well with it but they are people that could pack up their stuff into a range Rover and move a weeks notice most families it’s not really about the investment is it it’s about knowing where you’re gonna be leaving for the next five years