Buying a Repossessed House Would you?

[Norf Tyrone]

A mate of mine got a house a few years back which had been previously repossessed. He had a job during the day, and did the odd weekend night as bar man. One night after being in the house a month or so he was in the bar at kicking out time, and was trying to get the stragglers out. He was lifting glasses and calling time, and as you do eventually shouted 'Come on, have you no homes to go to.'

It never dawned on him but the fella whos house he was now in, was at the table he was shouting at. World war III was almost on the cards!

[Rois]

Yes but when the market bottoms out and all these renters are able to afford properties what is gonna happen to all the rental properties??? Either rents will reduce (we're already beginning to see this happen as people can't sell their empty apartments/houses so they're renting them out and with the increase in supply comes the decrease in rent) or these rental properties will have to be sold on. Either way I would have thought buying to rent after Christmas is too soon as house prices still have some way to go, all IMO of course...

But if you buy now, you still have rich pickings from the potential purchasers who can't afford to buy yet.  Going by your theory of waiting till house prices reduce further, you also say that at that time, the renters will be able to afford to buy.  So you'll have less people to rent the house to.

Buy now surely and help the market recover!  Anyone who has cash - go and spend it and help lift this depression!!!  No point saving it, your interest will be pretty poor.   

[Croí na hÉireann]

But if you buy now, you still have rich pickings from the potential purchasers who can't afford to buy yet.  Going by your theory of waiting till house prices reduce further, you also say that at that time, the renters will be able to afford to buy.  So you'll have less people to rent the house to.

Hence my initial comment about the rental market going belly up and can't see any forseeable future in it. Waiting until prices bottom would decrease your margin for error though.

Buy now surely and help the market recover!  Anyone who has cash - go and spend it and help lift this depression!!!

The market is presently recovering and still has a bit to go. And if business could get loans from the bank I have no doubt they're have no problems spending it.

[lynchbhoy]

But if you buy now, you still have rich pickings from the potential purchasers who can't afford to buy yet.  Going by your theory of waiting till house prices reduce further, you also say that at that time, the renters will be able to afford to buy.  So you'll have less people to rent the house to.

Hence my initial comment about the rental market going belly up and can't see any forseeable future in it. Waiting until prices bottom would decrease your margin for error though.

would buying a house in a better area and be guaranteed a decent house not be better than waiting until 'rock bottom' and maybe getting a cheaper but not as good house (physically and location wise) as you woul dhave otherwise chosen?
Would the rental repayments not cover any 'loss' over the period of a year or so ?

I'd say so !

youd be paying 1500 per month
400 of your own money - effectively buying a house for 400 a month?
Where else would ya get that kind of investment return!

[Rois]

[Hence my initial comment about the rental market going belly up and can't see any forseeable future in it. Waiting until prices bottom would decrease your margin for error though.

And also potentially decrease your returns if your logic is to be believed.  Anyone considering putting money in rental property at the minute is obviously a risk-taker so reducing margin of error is likely to be outweighed by desire to maximise potential income.  All entirely subjective.

The market is presently recovering and still has a bit to go.

Understatement of the last six months for sure.  Haven't seen any signs of recovery in the world of corporate transactions.

And if business could get loans from the bank I have no doubt they're have no problems spending it.

Agree 100% - plenty of distressed sales likely for the cash-rich but not those reliant on bank funding such as private equity firms.  

[maddog]

Wondering what the view out there is. I believe there is no stiigma as such in England in buying such repos.

No such stigma at all this side of the water. At the end of the day its like anything. If someone buys a swish BMW and falls on hard times and someone else picks it up as a bargain then fair play. If people would hold it against someone then they are a bit small minded.

would you have the names of any auction houses that sell repossed cars  in England maddog ?

Not off the top of my head, theres a few guys that i know that dabble in auctioned cars, one of them has a mate in the cops and he gets the nod on stolen recoveries. Heard last week there was a Audi q7 is it ?, one year old under 10k on the clock didnt make 16 000 at auction. The ass has fallen out of the car market big time. Anyone selling new motors is fooked.

[Rois]

Not off the top of my head, theres a few guys that i know that dabble in auctioned cars, one of them has a mate in the cops and he gets the nod on stolen recoveries. Heard last week there was a Audi q7 is it ?, one year old under 10k on the clock didnt make 16 000 at auction. The ass has fallen out of the car market big time. Anyone selling new motors is fooked.

I had the majority shareholder of a £200 million turnover motor business phone me on my mobile last week (he had to actively go and find my number from someone else) to try to sell me a £17k car.  When would that have happened before if he wasn't desperate for a sale?  And I wonder how much further he'd go down?

[Croí na hÉireann]

would buying a house in a better area and be guaranteed a decent house not be better than waiting until 'rock bottom' and maybe getting a cheaper but not as good house (physically and location wise) as you woul dhave otherwise chosen?
Would the rental repayments not cover any 'loss' over the period of a year or so ?

Houses are down a quarter from their peak, another quarter to go me thinks so will be plenty of decent houses in good locations at cheaper prices this time next year. With rents going down I don't see how the repayments will cover the loss in the short term.

The market is presently recovering and still has a bit to go.

Understatement of the last six months for sure.  Haven't seen any signs of recovery in the world of corporate transactions.

Was referring to the housing market finding it's true value, not sure if my point came across as intended...

[Rois]

Was referring to the housing market finding it's true value, not sure if my point came across as intended...

Ah, sorry, thought you were referring to the "market" in the general sense.

[ildanach]

as an aside. does anybody know where they have the repo car actions in dublin?

[The Real Laoislad]

as an aside. does anybody know where they have the repo car actions in dublin?

I think there is a place on the Naas Rd..Wilson auctions I think its called,or naas rd car auctions

[maddog]

Not off the top of my head, theres a few guys that i know that dabble in auctioned cars, one of them has a mate in the cops and he gets the nod on stolen recoveries. Heard last week there was a Audi q7 is it ?, one year old under 10k on the clock didnt make 16 000 at auction. The ass has fallen out of the car market big time. Anyone selling new motors is fooked.

I had the majority shareholder of a £200 million turnover motor business phone me on my mobile last week (he had to actively go and find my number from someone else) to try to sell me a £17k car.  When would that have happened before if he wasn't desperate for a sale?  And I wonder how much further he'd go down?

A friend of mine bro in law runs BMW dealiership in Stoke, they are losing 100k per month on that garage. Thats pretty bad for a car dealership.

[Capt Pat]

I assume what the original poster is talking about is in a rural area, and by karma he doesn't actually mean karma, what he means is if I had a site off the parents and got a loan from the bank to build a fine big house but then couldn't keep up the repayments and had to move back in with the parents across the road, while some slick city type came along and bought the house for half of what it was worth leaving me still in debt to the bank. This might not be wise for the person who bought it as the old owner is unlikely to leave the area. In a big city people move away when they have to sell up, it is different in rural areas.

[the Deel Rover]

Wondering what the view out there is. I believe there is no stiigma as such in England in buying such repos.

No such stigma at all this side of the water. At the end of the day its like anything. If someone buys a swish BMW and falls on hard times and someone else picks it up as a bargain then fair play. If people would hold it against someone then they are a bit small minded.

would you have the names of any auction houses that sell repossed cars  in England maddog ?

Not off the top of my head, theres a few guys that i know that dabble in auctioned cars, one of them has a mate in the cops and he gets the nod on stolen recoveries. Heard last week there was a Audi q7 is it ?, one year old under 10k on the clock didnt make 16 000 at auction. The ass has fallen out of the car market big time. Anyone selling new motors is fooked.

Thanks anyway maddog

[ildanach]

as an aside. does anybody know where they have the repo car actions in dublin?

I think there is a place on the Naas Rd..Wilson auctions I think its called,or naas rd car auctions

thanks for that laois lad.