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UK Property Market - Good time to buy?

UK Property Market - Good time to buy?

Old Jan 21st 2009, 9:37 am
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Default UK Property Market - Good time to buy?

Contemplating a purchase in the UK while doom and gloom fills the air - is now the right time or do people feel there is plenty more downside to come? Would be interested to gather some learned opinions.....

Thanks

Ron
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Old Jan 21st 2009, 9:45 am
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Default Re: UK Property Market - Good time to buy?

Originally Posted by Ronnie Biggs View Post
Contemplating a purchase in the UK while doom and gloom fills the air - is now the right time or do people feel there is plenty more downside to come? Would be interested to gather some learned opinions.....

Thanks

Ron
I think it depends where in the UK, and what sort of property. If I was you I would be tempted to wait until later in the year.
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Old Jan 21st 2009, 10:23 am
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Default Re: UK Property Market - Good time to buy?

Hi Ronnie,

Now is a good time to send money back if you are putting some cash into the investment (exchange rate at 5.12 today!!) but in terms of actually investing in property, from what I hear from friends back home in the estate agency business, a potential investor should give it another 3 months minimum. Apparently interest in property increases during summer time so just before then would be great or even hang on until Q4 of 2009 to snap up a real bargain. I have heard stories of people desperate to sell up and taking way below asking price to get the property off their hands. I also agree with BC in that it depends on where you buy and also for what reason, if you are buying to let then there are real bagains to be had in certain areas but alternatively you may just be comfortable buying in an area that you already know but this may not be the best investment.
In summary, I would hang fire a little longer, the market in the UK is incredibly flat so keep an eye on properties and if you find a good bargain in the meantime go for it and make sure you haggle hard!
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Old Jan 21st 2009, 11:10 am
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Default Re: UK Property Market - Good time to buy?

Originally Posted by sav1979 View Post
Hi Ronnie,

Now is a good time to send money back if you are putting some cash into the investment (exchange rate at 5.12 today!!) but in terms of actually investing in property, from what I hear from friends back home in the estate agency business, a potential investor should give it another 3 months minimum. Apparently interest in property increases during summer time so just before then would be great or even hang on until Q4 of 2009 to snap up a real bargain. I have heard stories of people desperate to sell up and taking way below asking price to get the property off their hands. I also agree with BC in that it depends on where you buy and also for what reason, if you are buying to let then there are real bagains to be had in certain areas but alternatively you may just be comfortable buying in an area that you already know but this may not be the best investment.
In summary, I would hang fire a little longer, the market in the UK is incredibly flat so keep an eye on properties and if you find a good bargain in the meantime go for it and make sure you haggle hard!
A very sensible response from the newbie
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Old Jan 21st 2009, 1:49 pm
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Default Re: UK Property Market - Good time to buy?

well, I'm over here at the moment and was amazed at the prices down on the south coast (near Brighton)... 2 bed bungalow to be modernised was going for £190-210k back in August and now is the £140-160k mark.

Many properties that were for sale when I left have now been shunted over to "to let" and even then, landlords are willing to negotiate on rents.

Things here are rather doom and gloom-ish, with many more redundancies being announced and lots of uncertainty (but in comparison to the UAE, they have it lucky! lol!). Banks aren't really lending and are now asking for 25-30% deposits, therefore cutting first time buyers and most other people out of the market.

It'll get worse, but I think many people already know that. If you are in a position to pay cash-in-hand in a couple of months, I reckon you'd be able to name your price.
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Old Jan 21st 2009, 4:59 pm
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Default Re: UK Property Market - Good time to buy?

A lot of people are holding on to their cash waiting for further price drops but vendors will not want to sell at prices buyers want to pay in many cases...this could even lead to shortages if you also consider buy to let investors who are comfortably servicing their debts will not want to sell at the current low prices.

Further drops will come in 2009 and with sterling floating around at rock bottom against the dollar we can already see it's a great time for expats to buy in the right locations for investment and a place to live.

New build is quietly becoming the best value and the all-important thing for buyers in 2009 is yield. The market generally will firm towards the end of 2009, and strengthen from 2010. Especially if you're in London anywhere near the Olympics (I have a couple of new build units coming up around Canary Wharf if anyone's interested drop me a PM).

The bottom line for expats in particular is that we have to take off our speculative hats and learn again to see property as a medium to long term investment, not something that will make you rich in two years as Dubai tried to do until recently.

I think any buyers in the UK should be ready to stay invested for five to ten years and they must seek out counter-cyclical opportunities in the market.

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Old Jan 21st 2009, 5:51 pm
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Default Re: UK Property Market - Good time to buy?

There was an article about this in last Sunday's Sunday Times- they suggested that prices may fall further in the Summer but there may also be less choice then as sellers delay putting properties on the market until things improve. If you find somewhere you like now I'd be inclined to go for it. It is very difficult to spot the bottom of a falling market.
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Old Jan 21st 2009, 5:56 pm
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Default Re: UK Property Market - Good time to buy?

There is also talk of a glut in the rental market as owners put properties out to let rather than sell because they can't find buyers. I'm still seriously considering buying but I think the old adage of location, location, location still carries weight.

but then, I'm probably wrong!
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Old Jan 21st 2009, 6:04 pm
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Default Re: UK Property Market - Good time to buy?

Depends on location...flats in Brighton Marina are holding steady...limited stock I suppose. Brighton will always be a good place to buy...so many Londoners go down for W/E breaks.
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Old Jan 21st 2009, 6:15 pm
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Default Re: UK Property Market - Good time to buy?

Personally, I wouldn't wait until 'later in the year'.............

............... I'd wait until 'later in the century'.

Nobody can get a mortgage, nobody has a job, people who don't 'need' to sell might do soon enough if they can't get refinanced following (say) a job loss.............. distressed selling has barely started.

Are you a cash buyer? If so, you are in a very powerful position indeed.

If you really do insist on buying soon, try this: If you see a house advertised for, say, GBP 300,000, go straight up to the front door (ignore the pimps - they're useless) and tell the owner "I'm a cash buyer - I've got 150 thou. Take it or leave it."

Many will say 'no', but increasingly you will find more and more of those who cannot afford to refuse................

And start going to auctions, just to get a feel for demand at lower prices - are there hundreds of bargain hunters? Or are the auctions quiet as well?

Good luck.................
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Old Jan 21st 2009, 8:02 pm
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Default Re: UK Property Market - Good time to buy?

yeah, there's already the beginnings of a glut on the rental market.

A 2-3 bed detached house near me has been for sale for the last 6-8 months and is now to let. Landlord's asking £1200/month, but willing to accept £1k... so £900 is probably a fair compromise! That's a fair knock for the landlord by anyone's book, surely?
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Old Jan 22nd 2009, 6:57 am
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Default Re: UK Property Market - Good time to buy?

Rents have come down a lot and will continue to do so, but rental yields are holding up because the property values have come down as well. Now is still a reasonable time to buy a rental property if you have cash or can get finance (I'd avoid the city centre flats which will probably be oversupplied for decades to come!). For investment properties I'd leave it until later on in the year though.
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Old Jan 22nd 2009, 7:08 am
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Default Re: UK Property Market - Good time to buy?

Buy a uk property now = stick your hand in the fire.

2 years, another 30% to come down minimum.

It's nice to talk about medium to long term etc, but it doesn't make sense to buy any asset in a falling market.
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Old Jan 22nd 2009, 7:21 am
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Default Re: UK Property Market - Good time to buy?

It's the difference between buying somewhere for investment and buying somewhere to live in. My parents bought a house about 25 years ago and paid the asking price without haggling. Everybody said they were crazy at the time but they lived there very happily for a quarter of a century and when they sold it it had rocketed up in value anyway. In fact, by the time they sold it they couldn't remember what they paid but they did have 25 years of happy memories.

Buying property for investment- completely different and I agree with you.
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Old Jan 22nd 2009, 10:23 am
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Default Re: UK Property Market - Good time to buy?

I'm waiting till the end of the year. Sending as much money into sterling as I can - and ploughing in...
 

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