Cash buyer: Buy soon or wait it ou

IsErik

Empty_Space wrote: »

I'm in a similar situation. I have a 310k deposit.

Trying to decide between buying a 310k house with no mortgage, buying a 500kish house with big mortgage, something in between or just waiting a while longer.

I'm leaning towards buying mortgage free, I don't buy into this talk of free money. How is it free at 2.6 percent interest....makes no sense to me.
Yes it might be cheaper money but it's not free, I'd rather not pay back interest.

Wow 310k deposit, that is impressive. Well done


I agree, always question the source e.g would i like to swap places with the person advocating it's free money who also has 200k mortgage chained to them or would i like to save a bit more and purchase my forever home nearly outright and be mortgage free in a handful or years. Easy answer


Those who foolishly claim it's free money have helped me make up my mind. A before they come in saying i'm wasting 450 pm on rent, it is not wasted money as i'm paying for a service (having a roof over my head) and also saving at the same time, if i went ahead and purchased now the onus would be on me to cover all bills, insurance and the mortgage on my own place.

IsErik

lastusername wrote: »

You're in an amazing position with that deposit it sounds like, so go for the home you really want. If you can afford the resulting payments, a mortgage is a smart way of getting it while minimising the size of it with that large deposit.

Or he could save a small bit for the next year or so and pick up property at a reduced price with no mortgage. Why borrow when you don't need to


310k is enough for a ok property right now, who knows by the end of the year a property valued at 350 may go for 310.

Claw Hammer

IsErik wrote: »

Bit of a click baity title but it is majority cash buying as the 1st scenario would put it around 30%LTV

A cash buyer doesn't need a subject to loan approval in a contract. Furthermore a cash buyer doesn't need a title of the quality that a bank will insist on or pass a survey/valuation that a bank will insist on.
You can't do any of that no matter how low your LTV is. You would be a borrowing buyer and will have to behave and bid as such.
You seem far too risk averse to buy a house. Put your money in the Post Office and rent a home.

IsErik

Claw Hammer wrote: »

A cash buyer doesn't need a subject to loan approval in a contract. Furthermore a cash buyer doesn't need a title of the quality that a bank will insist on or pass a survey/valuation that a bank will insist on.
You can't do any of that no matter how low your LTV is. You would be a borrowing buyer and will have to behave and bid as such.
You seem far too risk averse to buy a house. Put your money in the Post Office and rent a home.

Hogwash, i am fully prepared to buy but why buy an asset that is very likely to be at least 10% cheaper within the next few months?

Claw Hammer

IsErik wrote: »

Hogwash, i am fully prepared to buy but why buy an asset that is very likely to be at least 10% cheaper within the next few months?

You need a loan to buy You will have to borrow. Who says that you will get the loan for that property in 6 months. If what you are saying is correct, and you want to buy, why are you not putting in offers on properties at the value you think they will be at in 6 months?

IsErik

Claw Hammer wrote: »

You need a loan to buy You will have to borrow. Who says that you will get the loan for that property in 6 months. If what you are saying is correct, and you want to buy, why are you not putting in offers on properties at the value you think they will be at in 6 months?

80k will be the max i will borrow so therefore i'm not giving in and recklessly borrowing hundreds of thousands like some who claim it's "free money"


Gobsh!tes of the highest order.


And to answer your last question, i haven't seen any homes i want to pursue just yet.

Claw Hammer

IsErik wrote: »

80k will be the max i will borrow so therefore i'm not giving in and recklessly borrowing hundreds of thousands like some who claim it's "free money"


Gobsh!tes of the highest order.


And to answer your last question, i haven't seen any homes i want to pursue just yet.

You still have to borrow some money so whatever your view on it, you are not a cash buyer.

If you haven't seen any homes you want to pursue, what is your problem? There is no question of buying at all now, whether prices go up or down in the future.

fret_wimp2

IsErik wrote: »

Hogwash, i am fully prepared to buy but why buy an asset that is very likely to be at least 10% cheaper within the next few months?

You've answered you're own question a dozen times over in this thread. You asked

Should i stay put hoping prices drop a small bit 

And then argue against any bit of advice that doesn't fit your narrative that prices have to drop by 10-20%

Youre either a troll, or have made up your mind and are hoping thst convincing others of your theory will make it true.

No amount of hoping will make your hope for a drop true. It will happen or it won't, time will tell.

Your options are accept that prices could drop and don't let it bother you if they do, or wait and get that amazing bargain at the bottom of this predicted drop.

You are super worried about buying now and prices dropping. You're not ready to buy, it's been said multiple timea to you now.

You've already made up your mind to wait, you just haven't realized it yourself.

TheW1zard

Lucky you dont live in Dublin

TheSheriff

IsErik wrote: »

80k will be the max i will borrow so therefore i'm not giving in and recklessly borrowing hundreds of thousands like some who claim it's "free money"


Gobsh!tes of the highest order.


And to answer your last question, i haven't seen any homes i want to pursue just yet.

Not really sure why you started this thread; you clearly have your mind made up

Hopefully prices do drop for you and you can still get access to the credit you need to make up the difference.

Also hope all of this QE doesn't cause some type of inflation and your savings are actually worth less in terms of buying powder.

Also hope our infallible soon-to-be government don't decide to interfere in the housing market to make it worse.

Bass Reeves

IsErik wrote: »

80k will be the max i will borrow so therefore i'm not giving in and recklessly borrowing hundreds of thousands like some who claim it's "free money"


Gobsh!tes of the highest order.


And to answer your last question, i haven't seen any homes i want to pursue just yet.

You are right I am a gobsh!the. One of the highest order of gobsh!tes.

I left home with a bit of an education, and playing pocket billiards. I am 58 years of age, I am semi-retired. I worked in a technical area but never went to college got my qualifications through an apprentice type scheme and on the job training. I worked in that area for 40 years and got the option to retire early. I was able to take the option as I have always taken opportunities that were offered to me inside and outside the work.

I subcontracted/self build our house even though I have no experience in construction, about 18 years I bought a farm and after that another bit of land next to our house. At the height of my stupidity I owed over 400k, during that time we drove cars 4+ years old, my better half always jobshared at work. We went on holidays to France and to Florida with our children.

I have put three children through third level and I have two low value rental properties. So ya I am an unapologetic gobsh!the. But the big difference between me and you is I know I am a gobsh!the and I can afford to be one.

30k is still only beer money

lastusername

IsErik wrote: »

Hogwash, i am fully prepared to buy but why buy an asset that is very likely to be at least 10% cheaper within the next few months?

10% cheaper?! 10% more expensive at the very least, in fact prices are already climbing if you check the papers. Prices are only going to go up over the coming months, and the banks are going to get even tighter on lending.

People are hoping the opposite but they aren't getting the nuances of the market, which is demand is higher than ever, supply isn't going to increase significantly for many years and there are a lot of buyers who weren't able to buy over the last few months and who have more cash saved now and still very much ready to buy.

Bass Reeves

Bass Reeves wrote: »

30k is still only beer money

I’d love to know what unforeseen things you are preparing for that 30k would be so massively inadequate for that it’s only considered loose change or “beer money” as you keep saying. Became at 35 I’m not a young lad and I certainly would see 30k as more than enough to have easy access to I have never needed anywhere near that amount of money on a whim.

Bass Reeves

Liliana Full Stock wrote: »

I’d love to know what unforeseen things you are preparing for that 30k would be so massively inadequate for that it’s only considered loose change or “beer money” as you keep saying. Became at 35 I’m not a young lad and I certainly would see 30k as more than enough to have easy access to I have never needed anywhere near that amount of money on a whim.

In Chinese opportunity and danger are the same word. 30K we will see off most danger, opportunity needs more than 30k. I wish I had half what he has in my thirties I either be broke and bankrupt like Sean Dunne or I have 2-3 times what I have now. Real money is made in recessions

IsErik

Liliana Full Stock wrote: »

I’d love to know what unforeseen things you are preparing for that 30k would be so massively inadequate for that it’s only considered loose change or “beer money” as you keep saying. Became at 35 I’m not a young lad and I certainly would see 30k as more than enough to have easy access to I have never needed anywhere near that amount of money on a whim.

He's preparing for nothing but yelling at a cloud, bitter old man is just angry about the fact he found out people half his age are in a better financial position than him.

Bass Reeves

IsErik wrote: »

He's preparing for nothing but yelling at a cloud, bitter old man is just angry about the fact he found out people half his age are in a better financial position than him.

I think you did not read my post

Bitter and old I am not and you will not be in a position to retire in your mid fifties. You do not even own a house you only dream of a so called forever home. It looks like you missed the opportunity to buy in 2012-15 and you more than likely miss the next one as well.

Brego888

OP it's quiet frustrating reading your posts.
You've a terrible attitude towards people giving advice on a question you posed yourself.
Calling people gob****es for giving you an opinion you clearly don't like.

L1011

IsErik wrote: »

80k will be the max i will borrow so therefore i'm not giving in and recklessly borrowing hundreds of thousands like some who claim it's "free money"


Gobsh!tes of the highest order.


And to answer your last question, i haven't seen any homes i want to pursue just yet.

Your posting style is needlessly abusive. You received a warning on another thread, the next step will be a one day ban as I didn't realise how bad your other posts were at the time

TheSheriff

Brego888 wrote: »

OP it's quiet frustrating reading your posts.
You've a terrible attitude towards people giving advice on a question you posed yourself.
Calling people gob****es for giving you an opinion you clearly don't like.

+++++++1 on the above.

OP, every buyer (myself included) wants a cheaper house.

There are many economic indicators which suggest house prices will drop in the short term.

However, there are also a large number of unknowns in these assumptions that you will get a cheaper house such as the huge demand we have, the ability of people to get credit in a recession, how long a recession will last and what a recovery will look like.

You have come on here asking should you buy or not, and essentially have spent this thread and others on this forum debating anyone who tells you prices may not drop.

The fact is, there are arguments on both side of this, and as it stands currently (at least in Dublin) we have only seen minor house price increases. Anything else is a prediction.

You clearly have no intention of buying a house, and seem hell bent on convincing others not to buy either.

Empty_Space

Watching iserik and bass Reeves argue who is more successful is quite amusing. Grow up guys.

Bass Reeves

Empty_Space wrote: »

Watching iserik and bass Reeves argue who is more successful is quite amusing. Grow up guys.

Not really I know I am a gobsh!the, a well off gobsh!the but still a gobsh!the. He is one as well but thinks he is not and got annoyed when it was highlighted to him. If he gets to where I am at 70 fair play to him but he has obviously sat on the fence towards the end of the last recession and did not buy and now thinks he will get a second chance.

Remember opportunity and danger are the same

Empty_Space

Bass Reeves wrote: »

Not really I know I am a gobsh!the, a well off gobsh!the but still a gobsh!the. He is one as well but thinks he is not and got annoyed when it was highlighted to him. If he gets to where I am at 70 fair play to him but he has obviously sat on the fence towards the end of the last recession and did not buy and now thinks he will get a second chance.

Remember opportunity and danger are the same

Maybe work on being a well off person who is not a "gob****e" then.

Doesn't really matter how wealthy you are if people don't like you.

Bass Reeves

Empty_Space wrote: »

Maybe work on being a well off person who is not a "gob****e" then.

Doesn't really matter how wealthy you are if people don't like you.

I be popular enough. I just call it straight at times. Some people do not like that. It never worries me. If people fall out over something being called straight that grand.

Graham

Mod Note

as the OP has made up his mind about buying and the thread has descended into name calling, I think this it's probably better to close the thread here.