A short rant-Cash buyers

RedOnion said:
Any planning issues for example can be accepted by a cash buyer, whereas solicitor would note title issues to Bank.
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Come on. You're implying that not only is Mr Cash stupid but also he's a fool. If there are title issues he can't subsequently sell until these are resolved. So he is betting that there is a bigger fool out there who would buy a property with unresolved title issues. I'd suggest the supply of bigger fools is limited.

elcato said:
No. Mr Cash will make a call and see that there is a problem with something and will decide they are willing to still buy the property with the idea of paying to get the problem fixed themselves.
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You imply that Mr Cash will overpay for the property, i.e. the asking price plus more later to fix the problem. That's one way to burn up his / her cash. If Mr Cash or any other purchaser, cash or otherwise, can see or suspect there is a problem, they overpay if they pay anything more than the market price less the estimated cost of fixing the problem. (Unless the market price already reflects the cost of repair.)

Assuming Mr Cash is wealthy (which he / she probably is if they can make a cash offer), their marginal utility of wealth is different (i.e. lower) than of a person who has to borrow to make an offer. Well-off people, assuming they behave rationally, take risks only if the expected return is big. If there are problems with the property Mr Cash will make an offer only if he / she can get it at a deep discount. Otherwise why would he / she take on risk?
 
PMU said:
Come on. You're implying that not only is Mr Cash stupid but also he's a fool. If there are title issues he can't subsequently sell until these are resolved. So he is betting that there is a bigger fool out there who would buy a property with unresolved title issues. I'd suggest the supply of bigger fools is limited.
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Just for context, I bought my current house for cash.

There were planning issues.

I overlooked them, and I made a deal.

Am I a fool?
 
RedOnion said:
Just for context, I bought my current house for cash. There were planning issues. I overlooked them, and I made a deal. Am I a fool?
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if you made a deal, it implies you priced in the planning issues.
 
PMU said:
if you made a deal, it implies you priced in the planning issues.
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Exactly, I'm not stupid...

Nobody could have got mortgage for it, so it needed a cash buyer (or a year delay in sale sorting out the issues).
 
RETIRED2017 said:
Not without substance 50% of houses sold are to cash buyers ,there are lots of cash buyers, buying and leaving them empty,

Looks like when you have a red hot rash Revenue keep away from you,:oops:
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Perhaps people are buying for capital appreciation, perhaps they are buying because they see the money safer in property than on deposit in a bank, perhaps they don't have spare cash to renovate the properties yet.

Cash buyers are not walking in to Estate agents with wads of cash to buy, the funds are coming from financial institutions who would have already undertaken anti money laundering requirements.

I am not sure what point you were trying to make with your initial post.
 
PMU said:
Assuming Mr Cash is wealthy (which he / she probably is if they can make a cash offer)
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Or perhaps just being unable to get a bridging loan, they sold their existing property first and are now buying for cash.
 
Cash is King, I bought a house last year that went sale agreed for +€16k more than I bought it for six months later after the first buyer failed to close and it went back on the market, the seller in my case was delighted to have a cash buyer.
 
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