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Time to buy?

Posted: March 27th, 2020, 4:31 pm
by Clariman
Last year we were mulling over another holiday let property, decided against it a few months ago, but started giving it serious thought again last month. Given today's announcement to delay completions on properties amidst concerns over property prices etc., might this be a good time to buy one? I say that because mortgage lenders and banks are taking cold feet (worried about house prices) and the government also wants to reduce human contact. IF (big IF) we were to buy one, we would not need a new mortgage and would also leave it unoccupied until this was all over. So we are probably one of a small number of people who COULD buy a property now (if solicitors etc were available). I know of a property where a recent sale has fallen through because of the current situation, so wondering whether to put in a low but fair offer.

Thanks
C

Re: Time to buy?

Posted: March 27th, 2020, 4:43 pm
by AsleepInYorkshire
Clariman wrote:Last year we were mulling over another holiday let property, decided against it a few months ago, but started giving it serious thought again last month. Given today's announcement to delay completions on properties amidst concerns over property prices etc., might this be a good time to buy one? I say that because mortgage lenders and banks are taking cold feet (worried about house prices) and the government also wants to reduce human contact. IF (big IF) we were to buy one, we would not need a new mortgage and would also leave it unoccupied until this was all over. So we are probably one of a small number of people who COULD buy a property now (if solicitors etc were available). I know of a property where a recent sale has fallen through because of the current situation, so wondering whether to put in a low but fair offer.

Thanks
C

I assume you mean fair to you :roll:

And I assume you're going to stick to that offer when the counter offer is made.

In which case what have you got to lose?

AiYn'U

Re: Time to buy?

Posted: March 27th, 2020, 4:49 pm
by Clariman
AsleepInYorkshire wrote:
Clariman wrote:Last year we were mulling over another holiday let property, decided against it a few months ago, but started giving it serious thought again last month. Given today's announcement to delay completions on properties amidst concerns over property prices etc., might this be a good time to buy one? I say that because mortgage lenders and banks are taking cold feet (worried about house prices) and the government also wants to reduce human contact. IF (big IF) we were to buy one, we would not need a new mortgage and would also leave it unoccupied until this was all over. So we are probably one of a small number of people who COULD buy a property now (if solicitors etc were available). I know of a property where a recent sale has fallen through because of the current situation, so wondering whether to put in a low but fair offer.

Thanks
C

I assume you mean fair to you :roll:

And I assume you're going to stick to that offer when the counter offer is made.

In which case what have you got to lose?

AiYn'U

'Fair' point :) . I suppose I don't want to make an offer and then find values drop by 30% .... or find that Coronavirus continues to impact next year's holiday let business. Also, will there be a glut of holiday homes on the market as people struggle to maintain a second home financially - without guest income - in which we'd be better waiting a month or two.

Re: Time to buy?

Posted: March 27th, 2020, 5:12 pm
by AsleepInYorkshire
Clariman wrote:
AsleepInYorkshire wrote:
Clariman wrote:Last year we were mulling over another holiday let property, decided against it a few months ago, but started giving it serious thought again last month. Given today's announcement to delay completions on properties amidst concerns over property prices etc., might this be a good time to buy one? I say that because mortgage lenders and banks are taking cold feet (worried about house prices) and the government also wants to reduce human contact. IF (big IF) we were to buy one, we would not need a new mortgage and would also leave it unoccupied until this was all over. So we are probably one of a small number of people who COULD buy a property now (if solicitors etc were available). I know of a property where a recent sale has fallen through because of the current situation, so wondering whether to put in a low but fair offer.

Thanks
C

I assume you mean fair to you :roll:

And I assume you're going to stick to that offer when the counter offer is made.

In which case what have you got to lose?

AiYn'U

'Fair' point :) . I suppose I don't want to make an offer and then find values drop by 30% .... or find that Coronavirus continues to impact next year's holiday let business. Also, will there be a glut of holiday homes on the market as people struggle to maintain a second home financially - without guest income - in which we'd be better waiting a month or two.

Factor that into your offer. Bear in mind of course that the vendors will be having similar thoughts but they can't walk away from the investment until its sold. You hold all the cards in my opinion. I see what you are worried about but there's risk in everything. As long as you can survive the worst then your fine to buy. If you do a risk assessment of the purchase and it says that with no let you go under then you shouldn't buy.

AiYn'U

Re: Time to buy?

Posted: March 28th, 2020, 10:47 pm
by Wizard
Clariman wrote:Last year we were mulling over another holiday let property, decided against it a few months ago, but started giving it serious thought again last month. Given today's announcement to delay completions on properties amidst concerns over property prices etc., might this be a good time to buy one? I say that because mortgage lenders and banks are taking cold feet (worried about house prices) and the government also wants to reduce human contact. IF (big IF) we were to buy one, we would not need a new mortgage and would also leave it unoccupied until this was all over. So we are probably one of a small number of people who COULD buy a property now (if solicitors etc were available). I know of a property where a recent sale has fallen through because of the current situation, so wondering whether to put in a low but fair offer.

Thanks
C

I think it is fair to say there are people who just want to sell. We are in the process of buying a development property, as many development properties it is a probate sale by a beneficiary. An issue with the property has been identified since our original offer was agreed that has nothing to do with Covi-19. Over the last week or so we have been renegotiating and on Friday our new offer, down 33% on the original was accepted. The fact that the seller has no idea when they can even begin effectively marketting the house if we walk away must have been a factor in their decision to accept the revised offer.

Re: Time to buy?

Posted: March 29th, 2020, 6:44 am
by JohnB
So no finance issues, no furniture moving or chain. You could make an offer and get it accepted. Surveys couldn't be done, the searches and other paperwork could be much slower, and who knows if at exchange either party got cold feet, or the Government intervene. I think you could put in all the effort and solicitors expense for it to unravel, and it would make a stressful situation worse. But if you do this a lot you could get a bargain

Re: Time to buy?

Posted: April 14th, 2020, 1:56 pm
by sss555sss
I think now is the worst time to buy a property. Buying a holiday property to let is the worst of the worst. If you feel so bullish that travel is going to resume, why not put £100,000 in EasyJet shares which are trading at a pretty steep discount? You could double your money. I think travel will be double hit. Those who can afford to take a vacation (higher earners) will be cautious because these are usually individuals who are more informed and (over)think about a situation. Those who don't read much news and book holidays on a whim are likely to not have much spare cash after this is over. As to when this will be over? Roll the dice. I don't expect tourism to resume current levels until 2023 from what I read. People will be more likely to spend their cash and time visiting relatives or friends in any case. 2020 is a write-off. We are likely to be seeing COVID-19 cases through 2021. Vaccine really late 2021 at the earliest if one can be found. People are rightly or wrongly scared and tourism is going to bear the brunt of this psychological damage.