bandrui

Here's what I have said:
I wouldn't be buying for the short term.
I will not buy into the current UK market since I think prices are going to fall... perhaps substantially.
I too will hold off from buying for now. In fact, I have a lot to do here before I list, so I am not feeling any pressure to hurry up with this.

Even if the market worsens here, which is not very likely due to the lack of banking deregulation, I will have made a lot of money on this house. I bought in a low market for a very good price 10 years ago and it has appreciated substantially. Had I rented, I would now have nothing. Rents are very high here. Apart from that, I rent out a suite in my house which covers the small mortgage I have left.
I think we have to bear in mind that we are not talking about buying at any time in any kind of market. Hopefully we will make wise choices.

Giantaxe

I guess I don't see the relevance of this to current market conditions. Yes, I think that we can all agree that buying ten years ago turned out to be a fabulous deal in comparison to renting. My property, for example, tripled in value in 14 years before I sold it. That experience has basically no bearing on my views on rent vs buy moving forward, and in fact may actually be negatively correlated to them.

cheers

Sally, did you read this about the end of a drought in Cambria.

http://www.dailymail.co.uk/news/arti...dry-spell.html

bandrui

I was only trying to say that of course one would not be wise to buy into today's property market in the UK, but to wait for better conditions when you can expect some long term appreciation of your property, and to make good decisions on timing since I keep hearing about today's UK market.

Pistolpete2

Beat me to it! I'll scrub my reply which is almost identical, apart from

"and in fact may actually be negatively correlated to them" which is also correct.

cheers

Just sayin.....I like to hear discussions on here because I may learn something and I hope it isn't at the expense of anyone getting offended.

Pistolpete2

I tend to think that where for example the issue of renting versus buying is being put forward, the reasons those who currently consider renting the most viable option try to prevail is because they don't want to see somebody charge into buying in what is clearly a very difficult market only to have to regret it. It's not about one-upmanship. If they don't think somebody critical has got the message they persist until they feel they have.

Let's face it, it has been the traditional view, particularly in the US, that buying into real estate is fulfilling the American Dream and what is more, real estate is a solid investment even if it is simply a roof over your head which you can barely afford. This view appears to be fundamentally changing, even as we speak.

Similarly, the rent/buy issue needs to come into the open because it is not a generally shared view that renting makes financial sense but rather rent is dead money. I've seen this numerous times, even in the Guardian and Telegraph comments. Hopefully nobody gets offended when others have their best interests at heart.

Some of these forums are simply for chit-chat and others folks need feedback and help. Other posters typically respond with advice to an individual and maybe also for consumption by the masses, often carefully thought out beforehand, as is the case here. Aside from Take it Outside responses are typically made in good graces.

A problem arises in that nobody really knows anybody else's specific circumstances or there specific plans already carefully thought out or pre-ordained. We just have a rough outline and therefore when responses are in general terms as they have to be they may not really apply to the specific posters being responded to. PMs asking for more info are far too pokey!

bandrui

[QUOTE=Pistolpete2;9353117]I like your property in Chilmark by the way. I spotted it myself three weeks ago I think but never posted. I've become more keen on nicely laid-out bungalows of late, particularly that one bandrui spotted in Charmouth.

Pete, can you point me to the link to that bungalow. I can't remember it and now I'm curious. Thanks.

Pistolpete2

[QUOTE=bandrui;9353805] Cheers:
http://www.rightmove.co.uk/property-...-33046166.html

Yours:
http://www.rightmove.co.uk/property-...-16426332.html

Bungalow tick Cemetery cross (LOL)

bandrui

[QUOTE=Pistolpete2;9353818] Ah right. That's why I didn't save it in my Rightmove folder.

bandrui

I don't disagree with anything said here. I raised this because I would like to be convinced that renting is a good option for the long term. I can see certain advantages in renting and will likely do this in the short term but I still can't see the advantages of renting in the long term given certain other conditions. i.e. that one buys in a lower priced market than the current one in the UK, that one has a hefty downpayment, that one is looking for a long term situation, plus others. I still haven't heard anything to convince me that renting is a better solution.
I am trying to remain open but admit I get a bit frustrated when I read things like "I don't know what you are basing this on" when I gave my figures in detail, and talk about the current market in the UK when we all know the prices will likely come down.
I would be very interested to know what investments you are all considering that would offset the amount of money you are willing to throw at rent?

Plus I asked 2 questions in my original post that I don't as yet have answers to, unless the fee is a registration fee:
I am not sure what this 1% mortgage fee is. I have never paid one for any of the 5 properties I have owned. I usually go through a mortgage broker who is paid by the mortgage holder. Is this not the way it works in the UK?
The estate agent's commission is paid here by the seller. Is that the same in the UK?

There are also options for minimising the real estate fees on sales; I have sold a property myself in the past, and here there is a company called "1% realty" that charges 1% commission. They are responsible for more sales on the island than other companies.
One Vancouver buyer put out a sheet offering a reward for finding a buyer for their property. It was sold in a day and made the local news.
There are always "outside the box" options to consider.

In my own case I would be looking at a cash purchase so all these carrying charges and interest rates are not applicable to my situation.

cheers

I remember many years (20+) ago when a realtor said to me that we would never see interest rates for mortgages go below 10% again. My point, people can say anything they want and be sincere in what they say but I can say these years later he was wrong.

I read that article about the crash in UK real estate and I doubt it but I have nothing to substantiate my doubts. The exception is that all expensive property can take a hit due to limited qualified buyers.

Cheers

bandrui

I remember that too Cheers. I can remember an investment broker saying "You'll never see 6% mortgages again!" So much for that.

bandrui

My Minchinhampton property has been taken off listing so here's another Cotswold:

http://www.rightmove.co.uk/property-...ummary33727220

... and I have a feeling for the sea again. I could see myself in Swanage. (Was that your tip Pollyanna?)
Love this one... lots of personality.
http://www.rightmove.co.uk/property-...-30022643.html

I've never really considered a park home but those views!

http://www.rightmove.co.uk/property-...-27731410.html

Somehow I found myself looking at Lewes again.

http://www.rightmove.co.uk/property-...?premiumA=true

Pistolpete2

I can get over 7% by investing in high quality dollar preferred shares. Equities are quite likely to be entering a bull market - though of course there are no guarantees on any stock purchases.

Since the decline in UK interest rates, the banks have introduced arrangement fees which can be up to 1% of the funds borrowed and these could be levied each and every time you renew mortgage terms as there is no such thing as a lifetime fixed, only a lifetime tracker which at this point is very risky and expensive in itself.

IF you are looking at a cash purchase then as has been described by myself, shirleysimmons and giantaxe, there is opportunity cost associated with the money being tied up in the house when it could instead be out there making a market return of a minimum of 4% with no downside risk which you do incur by buying a house.

Looking at it from the renter's viewpoint, as I mentioned, you can rent in certain parts of Cornwall at a 3% GROSS return to the landlord. If the landlord (which is YOU if you own that house) could make the assumed 4% by instead putting his cash in the bank the property has to appreciate by 1% per annum just to breakeven without even considering ANY of the other owner associated costs. Clearly the renter is well ahead of the game by renting in this instance. This is quite aside from all of the other reasons to consider renting. It really doesn't matter how big or small your deposit is as you are ending up having money tied up in a house which could be invested at a better return (with far more flexibility) elsewhere.

Typical estate agent's fees in the Uk are 2.5% plus 20% VAT. You can get these down by negotiation and by offering an exclusive, to say 1.75% plus 20% VAT.