time frame for flipping/making a profit on property

judging by most posts on the pin, the idea is don’t buy now, on the basis that if you were to sell at some time in the future, you would lose money. if you buy a typical second hand car, its a well-accepted “fact” that its resale price falls substantially almost immediately. Does this apply to houses too? To continue, a lot of advice on the pin is not to buy for 12 months. If I buy then, how long will I have to wait for the resale price to increase? ten years? five years? one year? any ideas gratefully accepted.

Forgetting about all the other reasons why it is a poor comparison, the main one is that there was no speculative bubble in secondhand car prices. There was a massive speculative bubble in house prices.

The advice here is not “wait to buy because you want house prices to go up from the point when you buy”. The advice is “wait because you are buying into an oversupplied, overhyped, collapsing bubble market where the prices are still miles out of whack with historic valuation fundamentals”. The bubble was an irrational and temporary phenomenon and you shouldn’t be looking at what something cost in 2006 (lunacy) compared to what it’s going for today to try to work out whether it represents value for money or not.

So it’s not about waiting so you can sell at a higher price, it’s about waiting to avoid being ripped off by paying over the odds for a still wildly overvalued asset (using traditional sustainable valuation methodologies, as opposed to the fatally flawed maximum possible debt methodology adopted with such enthusiasm during the bubble).

Outstanding response!

There was a bubble in classic car prices

If you can buy anywhere you want to live for 2.5 times to 3.5 times your salary, then go for it!

Otherwise hold off.

I have to say xman I disagree about car prices, there has always been a bubble supported by government, dealors and suppliers. The former have been stealing money illegally from us in the form of VRT while the latter have only paid lip service to getting rid of it and are now bleeting as they hav to pay vat even when they make a loss.
Well you screwed Joe Public when the bubble was flying and credit was cheap and laughed at our offers but now as we reset from lalaland economics their market is resetting as well and its about time with so many idiots buying beemers and mercs over 20 years using equity release.
The motor industry is dead for new car sales and if the government want help it then remove vrt and let the market do the rest.

What a good reply. Thumbs up!

Nicely said. I agree 100%.

Edit: I didn’t see all the other admirers until after I posted.

Is this for a single person or a couple?

I think we are looking at 15+ years of property prices growing by less than inflation.
So I don’t think anyone who buys property in the next few years is going to make anything out of them.

the only possible danger would be to someone who has a cash mountain and there is massive inflation due to quantative easing

unlikely in the Eurozone…

2.5 if you are single, 2.5 + 1 times the other if a couple. Like in the good old days. that way you are not 100% fecked if one of you looses your job. Remember, if there are 2 people buying then your chances of losing and income during the lifetime of the mortgage are double!