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Debate House Prices
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Comments
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FungusFighter wrote: »So hands up everyone who bought property in the last 2 years with 50% or more deposit - did you?
i did - twice and will probably go in again before the end of the year.
i have a good rate, good LTV (going by lowish prices) and have enough cash liquidity elsewhere in the event it is ever needed.0 -
not everyone that took advantage of their own HPI mewed, too much of a generalisation and they are not the sole reason for the problem in the UK economy or even in the global economy.
Then they should be fairly safe, assuming they haven't traded upwards and taken on additional big mortgage debt. Only those with big mortgage debt / or other debt, really need worry.
Anyone who owns or pretty much owns their own property doesn't have much to worry about, even if they saw their house crash from £400,000 to £50,000.
It is all relative. Want a bigger house afterwards? Well then it might be £65,000.
Not happy. Just a warning that the market determines the price. Not sellers expectations.Being happy from someone elses problems (for whatever reason they have the problem) isn't a good thing.
I want to get my house as cheaply as possible. I have no obligation to meet expectations of price from a forced seller, and neither does the rest of the market who have funds or access to borrow. The boom times of easy credit at low rates are over. Doesn't take a genius to realise it won't be a short jolt quick recovery like some here would WISH.
Wishing is not going to protect you. Things happen for reasons. We don't wish them to happen either but the outcomes are in some instances are determinable, and the outlook would be very bleak indeed for those who value the extent of their wealth in property.0 -
Just a warning that the market determines the price. Not sellers expectations.
If you are saying that the market determines the price of property - you then agree that there was nothing wrong with the last ten years. this correction will definately change the market and how banks lend in the future.I want to get my house as cheaply as possible. I have no obligation to meet expectations of price from a forced seller, and neither does the rest of the market who have funds or access to borrow.
we all want to get our houses as cheaply as possible. we also all want to get a home that our families will be happy in too - we all have circumstances that dictate when and how we purchase property.
for some people they have to buy or move due to these circumstances. i notice from another thread that you are looking to move in with your girlfriend - a time may come that you may be forced to buy. you will agree that this is the worst time to buy because you are not making a totally financial decision. many people have been in this position.Doesn't take a genius to realise it won't be a short jolt quick recovery like some here would WISH.
Wishing is not going to protect you. Things happen for reasons. We don't wish them to happen either but the outcomes are in some instances are determinable, and the outlook would be very bleak indeed for those who value the extent of their wealth in property.
I understand your feelings to people who have calculated their wealth on their expectation of the selling price of their property and put themselves in debt - this is a massive error on their behalf.0 -
Forced to buy? You can be forced to sell maybe, by financial difficulties or relocation, but how can someone be forced to buy?for some people they have to buy or move due to these circumstances. i notice from another thread that you are looking to move in with your girlfriend - a time may come that you may be forced to buy. you will agree that this is the worst time to buy because you are not making a totally financial decision. many people have been in this position.
As long as you are willing to rent, which is sensible when house prices are falling but still more expensive than renting, then you are never 'forced to buy'. Its like in old episdes of Columbo. House purchasing requires both a motive (desire to buy) and an opportunity (availability of credit/cash and housing). At present, neither of those exist for many people. Until both are available housing will not recover.No reliance should be placed on the above.0 -
Forced to buy? You can be forced to sell maybe, by financial difficulties or relocation, but how can someone be forced to buy?
As long as you are willing to rent, which is sensible when house prices are falling but still more expensive than renting, then you are never 'forced to buy'. Its like in old episdes of Columbo. House purchasing requires both a motive (desire to buy) and an opportunity (availability of credit/cash and housing). At present, neither of those exist for many people. Until both are available housing will not recover.
i know of a number of people over the last few years that have purchased because they wanted a home that they could have for the next 10, 15 or 20 years.
by renting they did not feel that they could guarantee the stability of not having to move and uproot their family for numerous realistic scenarios that renters are at risk of.
if they have paid to much compared to todays prices, i do not know - but what i do know is that they have been able to provide a guarantee and stability which are very something important for any family.0 -
i know of a number of people over the last few years that have purchased because they wanted a home that they could have for the next 10, 15 or 20 years.
by renting they did not feel that they could guarantee the stability of not having to move and uproot their family for numerous realistic scenarios that renters are at risk of.
if they have paid to much compared to todays prices, i do not know - but what i do know is that they have been able to provide a guarantee and stability which are very something important for any family.
I'm not sure owing a fast depreciating [strike]liability[/strike] asset provides much of a guarantee or any stability0 -
I'm not sure owing a fast depreciating [strike]liability[/strike] asset provides much of a guarantee or any stability
there's the difference they value it as a home. property prices may be depreciating now but what will they be in 20 years - the same or worse than now? i don't think so - even the worst doom predictors on this forum would not say this - they will have increased.
you would obviously value it as an asset or a liability or whatever you would like to 'phrase' it.
there is the difference in circumstances.
as you well know there are some things in life that are not classified as assets or liabilities and do not have a financial value.0 -
there's the difference they value it as a home.
you would obviously value it as an asset.
there is the difference in circumstances.
as you well know there are some things in life that are not classified as assets or liabilities and do not have a financial value.
Home or asset if your circumstances change (redundancy, pregnancy, illness etc) and you need to sell but find the value or your home/asset has plummetted - leaving you with a massive bill after a forced sale - I dont see that provides much stability for the family
Nor does staying the property and trying to keep up massive payments on the inflated purchase price.
Yes, houses are homes, but you cant ignore the financial implications of buying in the biggest housing bubble we've ever seen0 -
Home or asset if your circumstances change (redundancy, pregnancy, illness etc) and you need to sell but find the value or your home/asset has plummetted - leaving you with a massive bill after a forced sale - I dont see that provides much stability for the family
forced sale!? how common are these and how often do they happen.
i think a bit of generalisation is going on here - fortunately this does not happen to everyone that buys a property.Nor does staying the property and trying to keep up massive payments on the inflated purchase price.
Massive payments is relative to your earnings and your repayments - if you bought well and can afford the repayments, this is not an issue. Again fortunately this does not happen to everyone that buys a property but there are people as you say have not realised the big picture financial implications.Yes, houses are homes, but you cant ignore the financial implications of buying in the biggest housing bubble we've ever seen
the financial implications are there for everyone and circumstances are all individual.0 -
i know of a number of people over the last few years that have purchased because they wanted a home that they could have for the next 10, 15 or 20 years.
that's not the same as having to buy, though, is it?...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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