House buying... Oh god Ive just Offered & had acceptance

[Welshbeef]

Adding another to the portfolio... big risk now and very highly leveraged.. but Ive been watching the local market for months now and really do believe that here we have hit the bottom so have taken the plunge...

I was amazed at how easy it was to secure further Buy 2 let funding.

Anyway this will be the "family" home so will let out the currnet house.
I know I can hold out for 3/4 years and then if pushed be forced to sell @ hopefully a big profit or if things go well no need to sell just keep them going and let those lovely renters pay off my debts :P

Any other LLords here had enough of keeping their powder dry and decided to take the jump?

(Here's hoping the bank donsnt withdraw the funding it has promised!!)_

[DjSki]

It is highly unlikely that we are at the bottom but if you know your area, good luck.

I am debating offering on a home, it's not an investment, I'd want to live their for at least 5 years but I'd still want to price in at least a 10% discount on what its "worth" today.

If you are investing then there are probably better places for your money at the moment.

[Rob_T]

Welshbeef said:

Any other LLords here had enough of keeping their powder dry and decided to take the jump?

yes. and as i result i lost over £400k. it has probably taken 5 years off my life. i have learned many things from my experience, lessons i would not wish on my worst enemy. my advice would be withdraw the offer. however, you probably won't listen to me, just as i didn't listen to those that warned me at the time. i only hope it works out for you. it sounds like you are right on the limit. i was nowhere near the limit, and i also had my chips on both red and black. and yet when the roulette wheel stopped spinning, i couldn't believe the ball landed on green. GOOD LUCK

[Welshbeef]

DjSki said:

It is highly unlikely that we are at the bottom but if you know your area, good luck.

I am debating offering on a home, it's not an investment, I'd want to live their for at least 5 years but I'd still want to price in at least a 10% discount on what its "worth" today.

If you are investing then there are probably better places for your money at the moment.

Well no this place to buy is the "Home" and the place we are in would become the investment bought a good 4/5 years ago now.
The other thing with respect to offer price...well many people in this area seem to be sensible with their asking price/have factored in the decreases. So Im happy with the price.

Lastly - with houses I never buy with the intention of selling anytime before 7 years. I'd say this one will probably be a 10-15 year house...

[Welshbeef]

Rob_T said:

Welshbeef said:

Any other LLords here had enough of keeping their powder dry and decided to take the jump?

yes. and as i result i lost over £400k. it has probably taken 5 years off my life. i have learned many things from my experience, lessons i would not wish on my worst enemy. my advice would be withdraw the offer. however, you probably won't listen to me, just as i didn't listen to those that warned me at the time. i only hope it works out for you. it sounds like you are right on the limit. i was nowhere near the limit, and i also had my chips on both red and black. and yet when the roulette wheel stopped spinning, i couldn't believe the ball landed on green. GOOD LUCK

It is a stretch and frankly we could stay here it would be adequate - but we want to get the family house now and hope it turns out ok. We've not bought in the last 3 years & looking at the market here it seems worst case currently is we'd get out money back on that one and the rest are still up.

Note - stretching to this sadly means 535d 123d are now pipe dreams. Instead there is a long term investment.

[funk odyssey]

until more people feel secure (ish) in their jobs no-one is about to start buying houses

if the rental market demands your house - go for it -- will the income cover the mortgage?

[eldar]

Welshbeef said:

Adding another to the portfolio... big risk now and very highly leveraged.. but Ive been watching the local market for months now and really do believe that here we have hit the bottom so have taken the plunge...

I was amazed at how easy it was to secure further Buy 2 let funding.

Anyway this will be the "family" home so will let out the currnet house.
I know I can hold out for 3/4 years and then if pushed be forced to sell @ hopefully a big profit or if things go well no need to sell just keep them going and let those lovely renters pay off my debts :P

Any other LLords here had enough of keeping their powder dry and decided to take the jump?

(Here's hoping the bank donsnt withdraw the funding it has promised!!)_

I suspect there is a bit more falling to go, possibly 10-15%. Looking at houses, low end, tatty, reasonable position. Offered what I think is sensible, so far been turned down. I'm in no rush, and there are plenty of houses.

[quyen]

Welshbeef said:

Adding another to the portfolio... big risk now and very highly leveraged.. but Ive been watching the local market for months now and really do believe that here we have hit the bottom so have taken the plunge...

I think we are at least a year and 10% from the bottom but good luck with your purchase. I am itching to bag a bargain too but am having to use every ounce of self-restraint to avoid buying at the moment.

[gingerpaul]

Surely you would be better off waiting for the prices to start rising as an indication of the housing market recovering? I would be happier to have to pay an extra £10k in a rising market than the possibility of losing a lot more in a falling one, particularly if you are stretched as it is.

I remember Rob T's posts in housing threads a few months ago and he was absolutely confident that he'd be ok. It takes a big man to admit his mistakes and for that I have enormous respect. I would listen to what he has said and really think whether you want to gamble you and your family's future on a roll of a dice. Obviously it depends on your appetite for risk but for me I wouldn't have thought it was worth it.

[selmahoos]

Good for you, Welshbeef, and if the maths make sense (ie you make it profitable)and you can manage to do it, do it again a hundred times over.

[Wings]

quyen said:

Welshbeef said:

Adding another to the portfolio... big risk now and very highly leveraged.. but Ive been watching the local market for months now and really do believe that here we have hit the bottom so have taken the plunge...

I think we are at least a year and 10% from the bottom but good luck with your purchase. I am itching to bag a bargain too but am having to use every ounce of self-restraint to avoid buying at the moment.

Bristol has lots and lots of empty BTLs, so unless a real bargain comes up, will just use savings to give myself and daughter an almost zero mortgage.

[tenohfive]

Rob_T said:

Welshbeef said:

Any other LLords here had enough of keeping their powder dry and decided to take the jump?

yes. and as i result i lost over £400k. it has probably taken 5 years off my life. i have learned many things from my experience, lessons i would not wish on my worst enemy. my advice would be withdraw the offer. however, you probably won't listen to me, just as i didn't listen to those that warned me at the time. i only hope it works out for you. it sounds like you are right on the limit. i was nowhere near the limit, and i also had my chips on both red and black. and yet when the roulette wheel stopped spinning, i couldn't believe the ball landed on green. GOOD LUCK

Sorry to hear that. I've missed the previous posts. Care to link or explain?

[Nolar Dog]

gingerpaul said:

Surely you would be better off waiting for the prices to start rising as an indication of the housing market recovering? I would be happier to have to pay an extra £10k in a rising market than the possibility of losing a lot more in a falling one, particularly if you are stretched as it is.

Why if he has no intention of selling it in the near future?

[tenohfive]

Nolar Dog said:

gingerpaul said:

Surely you would be better off waiting for the prices to start rising as an indication of the housing market recovering? I would be happier to have to pay an extra £10k in a rising market than the possibility of losing a lot more in a falling one, particularly if you are stretched as it is.

Why if he has no intention of selling it in the near future?

He's said he's stretched, and could potentially have to sell.

[Nolar Dog]

tenohfive said:

Nolar Dog said:

gingerpaul said:

Surely you would be better off waiting for the prices to start rising as an indication of the housing market recovering? I would be happier to have to pay an extra £10k in a rising market than the possibility of losing a lot more in a falling one, particularly if you are stretched as it is.

Why if he has no intention of selling it in the near future?

He's said he's stretched, and could potentially have to sell.

After 3 or 4 years.

I don't think there's any doubt that prices then (in 3 or 4 years) will have risen from where we are now or may be in a few months.

[IforB]

I was very surprised when I was chatting to a friend today. He works for one of the big housebuilders as a contracts manager and was telling me that in the last couple of weeks they seen things pick up a fair bit. They are even starting to build again.

It doesn't mean much yet, but it's the first positive bit of news to come out of the house building industry for a while.

[Fittster]

Nolar Dog said:

I don't think there's any doubt that prices then (in 3 or 4 years) will have risen from where we are now or may be in a few months.

Rise before or after inflation?

[gingerpaul]

Nolar Dog said:

tenohfive said:

Nolar Dog said:

gingerpaul said:

Surely you would be better off waiting for the prices to start rising as an indication of the housing market recovering? I would be happier to have to pay an extra £10k in a rising market than the possibility of losing a lot more in a falling one, particularly if you are stretched as it is.

Why if he has no intention of selling it in the near future?

He's said he's stretched, and could potentially have to sell.

After 3 or 4 years.

I don't think there's any doubt that prices then (in 3 or 4 years) will have risen from where we are now or may be in a few months.

Forgive me for saying so but I think there is doubt about that. I certainly isn't a given. To assume otherwise is nothing more than a gamble.

If you are stretching yourself financially to get another BTL (directly or indirectly) with a high LTV at a time where a lot of BTLers are losing everything then I would question the logic in such a move, particularly when the vast majority of data suggests that house prices are still dropping. In the event that the OP has to sell in a years time because he's short of cash then he'll be taking a big hit. By waiting for a rise it gives at least some indication that the housing market is starting to recover. Let someone else test the water and take the lion's share of the risk.

Well that's how I see it anyway.

[gingerpaul]

Fittster said:

Nolar Dog said:

I don't think there's any doubt that prices then (in 3 or 4 years) will have risen from where we are now or may be in a few months.

Rise before or after inflation?

Indeed.

[ACEparts_com]

It's truly amazing the belief that housing will go up and that everything will be alright at a point between the immediate and distant future no matter what is happening in the goo al economy : all roads lead home!

I truly admire your self belief