Advice sought buying/renting

[UndercoverElephant]

I just sold my house for 10K more than it is worth, because 2 different buyers wanted it. But the day before I sold it, the house I wanted to buy which had 6 mature fruit trees in its large south-facing garden was bought by somebody-else. So I am left with a choice between allowing the sale of my own house (townhouse, small north-facing postage stamp instead of a garden) fall through, buying somewhere I don't really want and watching it fall in value, or renting. I'm thinking of it like this: if I didn't own a house but I did have ?115K in my pocket, would I buy property right now? I think the answer has got to be "no", hasn't it? If I invest that money in a bank then it will pay me 6-7K interest per year. If I invest it in property then something like 20% of it is likely to disappear over the coming 18 months. Plus I can just sit and wait for the right property to come on the market, or try to get something at an auction.

Any opinions welcome. Why shouldn't I rent?

[eatyourveg]

Rent. There are many who would wish to be in your position right now. Bird in the hand....

[tattercoats]

Yup. Rent and keep your eyes and options open.

[stumuz]

I just sold my house for 10K more than it is worth, because 2 different buyers wanted it. But the day before I sold it, the house I wanted to buy which had 6 mature fruit trees in its large south-facing garden was bought by somebody-else.

Do not post this on Housepricecrash.co.uk or they will call you a vested interest conspiracist.
It does go to show that decent housing is still in demand. As for renting it all depends on how safe you think the currency is. If it devalues relative to other currencies then you will lose, especially as so much is imported. If inflation sets in then savings are eroded. If house prices crash as in the early 90?s then you will gain, but at the moment I have not seen much evidence that the good stuff (large garden, 3-4 decent sized rooms, and leafy road) has crashed.
There is a lot of evidence that it has slowed down, two local estate agents have closed offices, transactions for the last quarter down 40% but no great crash in the decent market.
Some anecdotal evidence of the multifarious housing market is an old farmhouse (in need of total refurb) a short distance away, which was bought in the white heat of 2004 for 235K. Nothing has been done to it and the owners are now thinking of a new start in NZ. The agents have been round and all three have put a 350-370K price tag on it, with the reason being shortage of decent sized house with views and acreage to match.

So renting V buying not at all straight forward. It will all depend on personal circumstances. If you thinking of moving country/county in the near future then rent. If you are staying put get 10 houses you like and put silly offers for all of them, one will accept.

[skeptik]

There is a lot of evidence that it has slowed down, two local estate agents have closed offices, transactions for the last quarter down 40% but no great crash in the decent market.

Give it time. See you at the bottom in 2014.

[UndercoverElephant]

I just sold my house for 10K more than it is worth, because 2 different buyers wanted it. But the day before I sold it, the house I wanted to buy which had 6 mature fruit trees in its large south-facing garden was bought by somebody-else.

Do not post this on Housepricecrash.co.uk or they will call you a vested interest conspiracist.

I tried posting on there before but my post wasn't approved by the authorities. Not a friendly place.

It does go to show that decent housing is still in demand.

Yes. My house was built in 1868 and they don't build them like that anymore. There's no way I'd live in a house which has been built in the last 30 years.

As for renting it all depends on how safe you think the currency is. If it devalues relative to other currencies then you will lose, especially as so much is imported.

I'm not sure that any currency is particularly safe right now.

If inflation sets in then savings are eroded.

But if inflation sets in then the BoE will be forced to put interest rates up, won't it?

If house prices crash as in the early 90?s then you will gain, but at the moment I have not seen much evidence that the good stuff (large garden, 3-4 decent sized rooms, and leafy road) has crashed.
There is a lot of evidence that it has slowed down, two local estate agents have closed offices, transactions for the last quarter down 40% but no great crash in the decent market.

Prices already have dropped 10% in Brighton. I'm expecting them to fall further when the real financial shit starts hitting the fan this autumn.

If you are staying put get 10 houses you like and put silly offers for all of them, one will accept.

Yeah, I'm thinking of trying that one too.

[UndercoverElephant]

There is a lot of evidence that it has slowed down, two local estate agents have closed offices, transactions for the last quarter down 40% but no great crash in the decent market.

Give it time. See you at the bottom in 2014.

I think it might happen sooner than that. By this time next year I think it is going to be quite obvious to all concerned just how bad the financial mess is and also that the price of oil is never going to go back down below its current level. Is it not possible that the result will be a sharp correction in the price of housing, after which the market will stabilise at the new lower level? I reckon we could see the bottom by 2010.

[skeptik]

I reckon we could see the bottom by 2010.

You might well be right. My 2014 figure is purely a personal gut feeling that because of 'special circumstances', the new cycle we are currently at the start of might be deeper and more protracted than is indicated by past experience.

2010 would suit me just fine!. I was figuring on staying in rented for a bit longer than that.

[RenewableCandy]

This might be stating the bleedin' obvious but don't put your >?100K all in one place. Limit for refunds from HMG if your bank should go under is about ?35K I trow.

[Kentucky Fried Panda]

Buy guns, ammo and tinned food.

[Andy Hunt]

Buy guns, ammo and tinned food.

Haggis . . . this is England you know. Where would I get tinned food around these parts?

[snow hope]

Sell it, then rent until you see some houses you really like and then put very low offers in - somebody (under debt pressure) will likely accept and you will be quids up. Bird in the hand is worth everything at the moment. Absolute buyers market.

[Bedrock Barney]

My house was built in 1868 and they don't build them like that anymore. There's no way I'd live in a house which has been built in the last 30 years.

I think that is a bit of a sweeping statement. Ours was built in 1994. Facing brick and stone, cavity insulation, insulated concrete slab, all internal walls in dense blockwork, pantry, large boiler room, living rooms face south with lots of windows, bedrooms face north, 4 working chimneys, single storey so maintenance a doddle, large south facing garden. Bills are a lot lower than our previous Victorian house. I miss the period features but welcome the efficiency of a (well constructed) modern house.

[snow hope]

If you want good insulation and thus heating efficiency, go for a house less than 10 years old. I used to live in a Victorian house and they are a nightmare to heat. Well built, but still a nightmare to heat.

[UndercoverElephant]

This might be stating the bleedin' obvious but don't put your >?100K all in one place. Limit for refunds from HMG if your bank should go under is about ?35K I trow.

I think I'm going to put it in five different accounts, and none of them will be with Bradford & Bingley. Any others I should avoid?