Debate House Prices


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has anyone pulled out of buying due yo current economy?

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  • lee111s
    lee111s Posts: 2,988 Forumite
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    Reserved in July, exchange is imminent and completion hopefully end of November. Surveyor actually told us our house could have been priced 20k higher and he would have had no issue valuing it at that price.

    It's all a load of scarmongering.
  • Bossypants
    Bossypants Posts: 1,273 Forumite
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    Crashy_Time wrote: »
    But if it is harder to get a mortgage that will mean cheaper property? London will still be there, the people will still be there, but their means to buy will be affected?

    Cheaper property for the people who can persuade the banks to lend to them, yes, but a lot of first time buyers will not be among these. In the last crash, one of the first things to go was 0% and 5% mortgages. The fact that OP is going for shared ownership suggests that they may be stretching themselves to get on the housing ladder at all (though of course I may be wrong about that).
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    lee111s wrote: »
    Reserved in July, exchange is imminent and completion hopefully end of November. Surveyor actually told us our house could have been priced 20k higher and he would have had no issue valuing it at that price.

    It's all a load of scarmongering.


    Why didn`t you take the extra 20k, would have been handy for moving/decorating costs?
  • JazCE
    JazCE Posts: 18 Forumite
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    The fact that OP is going for shared ownership suggests that they may be stretching themselves to get on the housing ladder at all (though of course I may be wrong about that).

    I don't know if i am or not... i do worry that the part of london i'm buying in might be one of the first areas to be devalued. i earn a comfortable wage and my pricing would be 50% for 175,000 (350,000 total), £240 rent, £170 service and £200 ground rent... theoretically i should still have £1100 disposable income left at the end of the day. maybe i am stretching... i see there are downsides, but equally i don't want to live in zone 5 or zone 6 or somewhere where night buses don't go and trains stop at 1am. swings and round abouts.
  • Bossypants
    Bossypants Posts: 1,273 Forumite
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    JazCE wrote: »
    I don't know if i am or not... i do worry that the part of london i'm buying in might be one of the first areas to be devalued. i earn a comfortable wage and my pricing would be 50% for 175,000 (350,000 total), £240 rent, £170 service and £200 ground rent... theoretically i should still have £1100 disposable income left at the end of the day. maybe i am stretching... i see there are downsides, but equally i don't want to live in zone 5 or zone 6 or somewhere where night buses don't go and trains stop at 1am. swings and round abouts.

    I'm thinking less in real terms and more in bank terms. Basically, if you are maxing out the amount you can borrow today (I believe it's 5 times your income?), chances are that you will be able to borrow less than you can today if there is a crash, especially if you also have a minimum (10%) deposit.
  • JazCE
    JazCE Posts: 18 Forumite
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    Basically, if you are maxing out the amount you can borrow today (I believe it's 5 times your income?), chances are that you will be able to borrow less than you can today if there is a crash, especially if you also have a minimum (10%) deposit.

    I think i'm lucky in that i also have a sizeable deposit. it's about 4 times my salary. i'm not maxing out, i'm coming in about 25 grand less as i want to keep my main expenditure under £1k a month. it means i get less equity than i could if i maxed out, but i feel more comfortable.
  • Bossypants
    Bossypants Posts: 1,273 Forumite
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    JazCE wrote: »
    I think i'm lucky in that i also have a sizeable deposit. it's about 4 times my salary. i'm not maxing out, i'm coming in about 25 grand less as i want to keep my main expenditure under £1k a month. it means i get less equity than i could if i maxed out, but i feel more comfortable.

    Then you still have some wiggle room, putting you in a better position than most FTBs, congrats!

    However I still stand by my main points, which are that if you still want to own and think it would be a net improvement to your quality of life, then it's worth moving forward regardless, because as others have said, there will always be something on the horizon (and what truly tanks us will not be predicted anyway, because that's what really rattles markets).
  • lee111s
    lee111s Posts: 2,988 Forumite
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    Crashy_Time wrote: »
    Why didn`t you take the extra 20k, would have been handy for moving/decorating costs?



    The house we're buying ;) It's a new build and strangely the same style of house less than 100m away sold 2 years ago for 15k more than we're paying.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    Bossypants wrote: »
    I'm thinking less in real terms and more in bank terms. Basically, if you are maxing out the amount you can borrow today (I believe it's 5 times your income?), chances are that you will be able to borrow less than you can today if there is a crash, especially if you also have a minimum (10%) deposit.


    But in a crash he will have to borrow less anyway......?
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    lee111s wrote: »
    The house we're buying ;) It's a new build and strangely the same style of house less than 100m away sold 2 years ago for 15k more than we're paying.


    So houses in your area are dropping 15 - 20k to sell and the economic woe stuff is scaremongering?
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