House Price Crash Discussion Thread

mystic_trev wrote: »

I think what you mean is ' I bought a house 18 months ago so I don't want a crash' :rolleyes:

Not overly-fussed, actually. No intention of moving and a mortgage of around £78k. Can't see prices halving anytime soon......

I've been looking at property snake for some time now, approx 9 months. In that time I've not noticed any real increases in the % reductions. There have always been some silly 15% cuts, but most are around 5-8% and have been since I've been watching.

Does anyone else have any experience of this?

TBH, from a selfish point of view I'm not fussed. No intentions of selling, but if any of the houses I like were to drop 25% I'd be in there like a shot, and keep my own & rent it out (a lot of demand round here for my price range) I can't see how this 'crash' will be different from previous ones and in the long term prices will increase. NOTE - LONG TERM!!!!!!!! NOT OVERNIGHT!!!!!!

Romani_Ite_Domum wrote: »

A few people on this forum have stated this and I am interested on how you would plan to do this. For the example you have given, give us some figures on how this would work for you.

How much equity in your house, how much you could rent for etc. What area.

Ok, rough figures:

New house: - Cash as deposit, say 30k. 250k IO mortgage (we have savings plans which would cover) - £1230 a month (2 yr fix @ 5.89%, am sure we could do better, over 18 yrs).

Current house: Value (ha!) 170k, that will obviously fall if my scenario happens. Mortgage around 50k. Mortgage currently £420 a month, rent out at £650 a month.
New outgoings £1620 a month, less £650 rent, net outgoings £970 a month.
Existing outgoings £420 + £200 overpayment, £620 a month.
Difference £350 a month.

Ok, based on no tax, maintenance etc, back of fag packet calcs, but enough to get me thinking.

Current mortgage is repayment. Would look at switching to IO, increase mortgage as much as possible to offset against tax & use remortgage to increase down payment on new house. So, above would be worse case scenario. I know the pitfalls of letting as we have other properties, there is a strong rental market although obv that would be affected by a downturn in economy, but we would def. be able to let out, albeit at slightly lower rent, or accept a house full of East European lads (I know they'd not do any harm, but men on their own :eek:).

Don't want to give exact location, but north of MK, Mids/E Mids border & one of the govt's growth areas.

Hmmm, time to dump some abandoned cars outside my chosen houses methinks.

ali007 wrote: »

Ok, rough figures:

Thanks, your figures look doable if you take these comments into consideration.

You currently have 70% equity in you property.

You have a deposit of at least £30K to cover deposit and interest fees. If you raise this deposit from equity in the existing property then allow another £150 a months to cover this. So the difference is really £500 a month.

You have enough income to qualify for a 250K mortgage. Given the credit crunch, this could be difficult.

You can afford an extra £500 a month. Plus any maintenance on the flat.

Your other properties are at least holding their own and will continue to do so.

Over the long term (15 plus years) you would probably be better off. Let us know how you get on.

Anyone else match these figures?

hgllgh wrote: »

yes, but not that much and on its way down :money:

For another few months, then you will start to see negative year-on-year falls. The Rightmove figures yesterday published their first negative Y-o-Y in the NW. The rest of "the north" will follow next month, with the rest of the UK (including London) following suite shortly thereafter.