Should I buy my first Flat???
Discussion
Hi all,
I know prices will drop, I've seen the thread on here too but:
After much mostly window shopping based looking I seem to have found a development which is both comfortably in my price range and likable with a good offer.
Its a one bed flat on a new development with a scheme where they pay 25% deposit and you owe 25% when you sell or in 10 years. In return they pay legal fees and providea f unished apartment.
However they didnt want to shift on price, at all - not even a smidge.
But the price does seem very good, the 25% payed deposit deal means I dont have to spend my deposit and most importantly I can afford it and like the place - A first so far in my hunt.
Given that this flat is around 20k less than all other I would want to consider I feel the price is fair - but am I best simply returning in 3 months when they havent sold any more flats??
Long waffleing post I know but any advice opinions greatly appreciated!!
Thanks,
Sam
I know prices will drop, I've seen the thread on here too but:
After much mostly window shopping based looking I seem to have found a development which is both comfortably in my price range and likable with a good offer.
Its a one bed flat on a new development with a scheme where they pay 25% deposit and you owe 25% when you sell or in 10 years. In return they pay legal fees and providea f unished apartment.
However they didnt want to shift on price, at all - not even a smidge.
But the price does seem very good, the 25% payed deposit deal means I dont have to spend my deposit and most importantly I can afford it and like the place - A first so far in my hunt.
Given that this flat is around 20k less than all other I would want to consider I feel the price is fair - but am I best simply returning in 3 months when they havent sold any more flats??
Long waffleing post I know but any advice opinions greatly appreciated!!
Thanks,
Sam
If you can afford to do it now go for it.
Theres never a right time to buy property, the markets can and do go both ways, nobody gets the benefit of hindsight, if they drop a bit in price it doesnt matter if your buying a home, but it seems to me its a good time to buy and i dont think the good deals will last forever.
main thing is that you can afford to do it.
Theres never a right time to buy property, the markets can and do go both ways, nobody gets the benefit of hindsight, if they drop a bit in price it doesnt matter if your buying a home, but it seems to me its a good time to buy and i dont think the good deals will last forever.
main thing is that you can afford to do it.
If you can afford to do it now go for it.
Theres never a right time to buy property, the markets can and do go both ways, nobody gets the benefit of hindsight, if they drop a bit in price it doesnt matter if your buying a home, but it seems to me its a good time to buy and i dont think the good deals will last forever.
main thing is that you can afford to do it.
Theres never a right time to buy property, the markets can and do go both ways, nobody gets the benefit of hindsight, if they drop a bit in price it doesnt matter if your buying a home, but it seems to me its a good time to buy and i dont think the good deals will last forever.
main thing is that you can afford to do it.
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
Ray Luxury-Yacht said:
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
Do you work for an estate agency? I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
I disagree with pretty much everything you've written above. Guessing you're looking at property from an investment perspective. Do you really think that prices are going to firm this year?!??!
We're entering one of the worst economic downturns ever. No way are prices going to firm this year nor the next.
Nine years experience might be helpful but it conveniently starts in 2000 - right at the start of the period where anyone buying any property no matter how poor the condition could not fail to make money.
Just reread the above.....comes over far more harsh than I mean it too.
Edited by Gemsbok1000 on Saturday 24th January 23:41
Gemsbok1000 said:
Ray Luxury-Yacht said:
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
Do you work for an estate agency? I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
I disagree with pretty much everything you've written above. Guessing you're looking at property from an investment perspective. Do you really think that prices are going to firm this year?!??!
We're entering one of the worst economic downturns ever. No way are prices going to firm this year nor the next.
Nine years experience might be helpful but it conveniently starts in 2000 - right at the start of the period where anyone buying any property no matter how poor the condition could fail to make money.
Just reread the above.....comes over far more harsh than I mean it too.
Obviously it's nice to buy your first place at a good price, but in the long term prices ONLY go up.
martinnitram said:
I think the guy is just looking to buy him self a home.
Obviously it's nice to buy your first place at a good price, but in the long term prices ONLY go up.
That's of limited relevance if it screws you in the short term! What comfort is the fact that the £100k property you bought is worth £200k in 20 years time if next year you could have picked it up for £65k?Obviously it's nice to buy your first place at a good price, but in the long term prices ONLY go up.
Gemsbok1000 said:
Ray Luxury-Yacht said:
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
Do you work for an estate agency? I would warrant that between now and maybe March /April, we will see some of the best buying opportunities on offer this year. The problem is that the majority of people get their buying / selling and sentiment cues from the media (i.e the Mail etc) and that if you're privy to some reliable economcic information (as I am - ok I can't guarantee it's 100% accuracy but i'm damn sure it's more accurate that the media's sensationalist propoganda) then actually, going out on a limb here, things aren't as bad as made out (and I concede, this is a little bit of a generalisation, but i'm talking the property market specifically).
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
But obviously, do your own due diligence and rationalisation too, and if the deal looks good to you individually right now, then go for it.
My tuppence worth.
I disagree with pretty much everything you've written above. Guessing you're looking at property from an investment perspective. Do you really think that prices are going to firm this year?!??!
We're entering one of the worst economic downturns ever. No way are prices going to firm this year nor the next.
Nine years experience might be helpful but it conveniently starts in 2000 - right at the start of the period where anyone buying any property no matter how poor the condition could not fail to make money.
Just reread the above.....comes over far more harsh than I mean it too.
Edited by Gemsbok1000 on Saturday 24th January 23:41
Nope never been in the trade professionally, but my trade allowed me to be privy to accurate economic data about what's really happening at the sharp end of banking, lending and the economy in general.
The funny thing is, even back in 2000, the papers and media were already calling over valued property prices and a crash. Ok, we now have one, but nine years after popularist opinion. Back in 2000, I had many a good friend telling me that I was mad to get involved in property purchasing and development. The raw facts are that I ignored their 'media peddled' advice and continued on my own due diligence and reliance on the hard work I did in fact finding and educating myself at the time. That has paid off in the form of good equity, even now, and in the shape of my lovely 911 which sits on my driveway.
I'm not an economst, far from it, and yes I concede that no one really knows the future. If we did we'd all be millionaires right! I did say it was my tuppence worth, and all I have to back that up is my own decisions made on the data I had available at the time, both then and now.
For what it's worth, I see mega deals to be had now that in my opinion, WILL NOT be available this time next year.
But...I could be wrong. Millions of people have been!
I was just trying to help the OP with my own story and ideas, that's all.
two ways to look at this
first
you buy the flat now, in say two years, you have paid x amount of your morgage and to show for it you have a flat, which your paying the morgage off on
second
you keep renting, in two years, you have paid x amount of money to a landlord, and to show for it you have absolutly nothing, then you buy a flat at 2010 prices
personally i think the prices still have a long way to come down,
if it was me, id hold off for a bit, say a year or two and see what the prices do
that way,
if it goes up, you pay some more for the flat, but its rising in value
if it goes down you get it cheaper
doug
first
you buy the flat now, in say two years, you have paid x amount of your morgage and to show for it you have a flat, which your paying the morgage off on
second
you keep renting, in two years, you have paid x amount of money to a landlord, and to show for it you have absolutly nothing, then you buy a flat at 2010 prices
personally i think the prices still have a long way to come down,
if it was me, id hold off for a bit, say a year or two and see what the prices do
that way,
if it goes up, you pay some more for the flat, but its rising in value
if it goes down you get it cheaper
doug
If the price goes down, is it still 25% of price or 25% of what you paid?
If the firm goes out of business (not that unlikely over 10 years) is your 25% payable immediately to the receivers?
Most importantly, what does an independent valuation say the thing is 'worth'?
Is the firm offering the deal the builder or a separate third party?
Lastly, do you need to buy or could you rent? If prices are going down, the longer you hold off buying the better off you will be. In a low-inflation world, there is not a lot of benefit in borrowing either.
And make sure you get it in red.
If the firm goes out of business (not that unlikely over 10 years) is your 25% payable immediately to the receivers?
Most importantly, what does an independent valuation say the thing is 'worth'?
Is the firm offering the deal the builder or a separate third party?
Lastly, do you need to buy or could you rent? If prices are going down, the longer you hold off buying the better off you will be. In a low-inflation world, there is not a lot of benefit in borrowing either.
And make sure you get it in red.
Ray Luxury-Yacht said:
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
While I would like to share your optimisium, but we are currently in a contracting economy, which is happening globally. And everyone is risk adverse, with the key player the banks. Sure, they are going to repo, and get it to the market asap, to minimize / recoupe loss. But they are not going to get burnt twice in quick succession, unless you are risking their money, not theirs. My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
Time will tell who got it right and not. Spring bounce didn't happen on '08, and with the economy in the state it is in, I doubt it will happen in '09. Sure, investors will be there, picking up bargains, but your average joe has other things on his mind.
smack said:
Ray Luxury-Yacht said:
I've been in property for 9 years now. FWIW me and my peers are all out scouting to buy like now. The end of last year was a dead duck, but the start of '09 has seen some significant (but agreed not 'frenzied') offers going to completion on property.
My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
While I would like to share your optimisium, but we are currently in a contracting economy, which is happening globally. And everyone is risk adverse, with the key player the banks. Sure, they are going to repo, and get it to the market asap, to minimize / recoupe loss. But they are not going to get burnt twice in quick succession, unless you are risking their money, not theirs. My humble opinion is that the spring, read March / April, will see a firming of the market, lending and cheeky offers. I would suggest, that the most ridiculous offers have got the best chance of sticking right now, and that sililar offers won't stick in a few months time.
Time will tell who got it right and not. Spring bounce didn't happen on '08, and with the economy in the state it is in, I doubt it will happen in '09. Sure, investors will be there, picking up bargains, but your average joe has other things on his mind.
I've been thinking about getting on the ladder this year for about the last 6 months.
Me and a mate (who currently rents)were talking about the best time to buy being about August/September time. Talking to another mate before Christmas and he said the same, however with jobs going all over the place, loads of city jobs looking wobbly I can't see anyone in a position to buy at the moment.
One of my other mates I was speaking to the other night said in the City people used to chop & change jobs regularly, now they are thinking if you are safe in your job stick there, there seems to be no confidence on the job front at the moment. He was also saying that even when the recession bottoms out, there will still be a time before companies start employing again.
I know of two Fund Management Companies that had a cut back of staff before Christmas.
It is far from over, People are not secure in their jobs, others are hanging on until the property becomes affordable.
I have been saying for the last two years prices would drop, my mates were saying they wouldn't because of supply & demand.
IMHO it is governed by affordability, If the average salary is £25k a year and the average house is £160k then something is wrong somewhere. Banks have been thinking up of new ways of lending more & more, which pushed the prices up 5X salaries/self certification, etc.
If banks will only lend 3.5x salary, then property prices will not shoot back up again, I think there is still some downward movement to come. I'm thinking later this year or early next.
Me and a mate (who currently rents)were talking about the best time to buy being about August/September time. Talking to another mate before Christmas and he said the same, however with jobs going all over the place, loads of city jobs looking wobbly I can't see anyone in a position to buy at the moment.
One of my other mates I was speaking to the other night said in the City people used to chop & change jobs regularly, now they are thinking if you are safe in your job stick there, there seems to be no confidence on the job front at the moment. He was also saying that even when the recession bottoms out, there will still be a time before companies start employing again.
I know of two Fund Management Companies that had a cut back of staff before Christmas.
It is far from over, People are not secure in their jobs, others are hanging on until the property becomes affordable.
I have been saying for the last two years prices would drop, my mates were saying they wouldn't because of supply & demand.
IMHO it is governed by affordability, If the average salary is £25k a year and the average house is £160k then something is wrong somewhere. Banks have been thinking up of new ways of lending more & more, which pushed the prices up 5X salaries/self certification, etc.
If banks will only lend 3.5x salary, then property prices will not shoot back up again, I think there is still some downward movement to come. I'm thinking later this year or early next.
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