Is property buying a bad idea at the moment

in2town · #1 (**permalink**) 31-07-2008, 14:28

I was thinking of buying a house as an investment for my daughter's college fund but I am now having second thoughts with the way the market is going and the not knowing if we come out of the credit crunch within the next few years.

Is anyone on here still buying property as an investment

Littledot · #2 (**permalink**) 31-07-2008, 14:32

The great thing is that it looks like it is a buyer's market at the moment and the house prices are low enough to get a bargain. I think if you are buying to keep hold if it and sell in the future it could well be worth the investment!

Gemma

Indizine · #3 (**permalink**) 31-07-2008, 14:37

reading today's news I would doubt it!

aaronspromotions · #4 (**permalink**) 31-07-2008, 15:20

If you can afford to buy why not, as loads of houses have come down invalue recently but in the long term future they are only going up! And there are plenty of people out there looking to rent!

I wish I could afford to get a second/third/fourth etc....

Quote:

Originally Posted by in2town

I was thinking of buying a house as an investment for my daughter's college fund but I am now having second thoughts with the way the market is going and the not knowing if we come out of the credit crunch within the next few years.

Is anyone on here still buying property as an investment

nass · #5 (**permalink**) 31-07-2008, 16:01

It depends on your plans. For example I'm looking at moving up the ladder in the next year - 2 years. For every 50k that my current house drops in sale value, the houses I'm looking at drop 100k. And I quite like the concept of taking out a loan that's 100k less, so I'm not terribly upset about falling house prices.

As a speculative investment I think the situation is very different though because you're really in it for the profit when you resell later. Whereas someone in my situation isn't - if we got the house we're after I doubt I'd move again in my lifetime.

boxby · #6 (**permalink**) 31-07-2008, 16:08

I think that all the BTL scene has made people loose a bit of focus over what houses are about, primarily they're about homes, so if the reasons for buying are about buying a home then there is more to it simply than cost you buy at and cost you sell at.

However, if it's for speculation/investment, then that's a different kettle of fish.
Ask yourself what can you afford to loose on it? If it's nothing, then I wouldn't invest right now.

Sheffy · #7 (**permalink**) 31-07-2008, 16:54

Traditionally property has always been a good investment. If you are buying it for your daughter to live in while she is a student then you will save on rent. If she could find someone to share then she could charge rent.
The best time to buy is when the market has bottomed out but that hasn't happened yet, I don't think.
However, if you take into account the amount of rental income you could get and the amount of rental saved over, I assume, three years, then I personally would go for it.

self-sale · #8 (**permalink**) 31-07-2008, 17:32

If you're investment is for the long term then it's a good time to buy.

Paul Norman · #9 (**permalink**) 31-07-2008, 17:39

You will save a fortune on rent. However, be cautious about what you buy and where you buy. Look for future saleability.

And bid low. Agents asking prices are still too high. Contract prices are much more sane.

A falling market is different, but not impossible. You can still make money if you are careful, strong on negotiation, and prepared to take a long term view.

Alvin · #10 (**permalink**) 31-07-2008, 18:28

I suspect that 6 months down the line will possibly be the bests time to buy.

I can remember a crash when prices went down 35% late 80's I think.

Daughter bought a flat for 60k a while later value 37k.

Alvin