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House price data and sales volumes sourced from Land Registry Mortgage/Cash data reveals that across Great Britain, cash-based buyers pay less than those acquiring property with a mortgage, with the exception of London.This is not surprising as cash buyers can offered greater certainty of a sale, and can also move and complete more quickly that a buyer using mortgage finance.
London is the only region where cash property prices are higher than mortgage property prices.
By region, the gap is highest in the North East where mortgage funded house prices are 14% higher than those purchased with cash.However, the average discount achieved for cash across the UK is 9%.Here is a reprise of our "Deal Sourcing" Week content:Deal Sourcing Week 2016 - powered by RepoListMonday - An overview of deal sourcing & the different channelsTuesday - Deal sourcing for newbiesWednesday - Looking for the anglesThursday - Dispelling the myth about Below Market Value (BMV)Friday - Crunching the numbers & stacking deals.Cash is definitely king in these uncertain market conditions, and many savvy landlords are leveraging their cash position to buy at a deep discount. If you have a lot of equity in your portfolio, you may be able to bridge against that, essentially making you a cash buyer.Please share here if you have made a purchase recently and what discount you achieved ...SEE ALSO - The big bad ass Brexit brief for landlordsUP NEXT - Top 10 Property Tribes resources to find discounted property dealsDON'T MISS - How much discount achievable for cash buyer?NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
It always amazes me when you watch shows like Million Dollar Listing New York and LA how many of their clients are Cash buyers, I know these are generally higher 'Net Worth' individuals but even so, with the sort of numbers these properties go for you have really got to amassed some wealth to be in that position.
As always Cash is King whichever side of the pond your from!
If i was skeptical i would have thought a decent number of foreign cash buyers in London would be happy not to go through bank due diligence checks on lending nor a source of funds check hence happy to pay a premium...
the average discount achieved for cash across the UK is 9%.
How are you calculating the buyer is achieving a "discount?"
I am surprised that there is any or much of a discount at all, I would have thought the difference in mortgage/cash house prices simply meant that cash buyers are buying cheaper properties.
I bought my last few properties for cash and while I didn't pay asking price the discount had little if anything to do with how I was paying. The vast majority of sellers won't care less whether they receive your "cash" or your bank's "cash". I'm not convinced cash buyers are generally any quicker than mortgage buyers and even if they were how many people would accept £182,000 of my cash today rather than wait another two weeks and get £200,000 of my bank's cash instead?
I'm in agreement here, conveyancers hold the process up more than anything. I sold a house for cash (£475k) and it still look nearly 6 months; their conveyancer was a nightmare bringing up queries about the local area development plans when the couple already lived in the same road! I certainly didn't give an additional discount for cash and that was in 2009 when finance wasn't as easy to come by.