House Prices continue trend of stability.

Bestthingsinlifearefree

With the latest figures just released by the ODPM. House prices are remaining stable, keeping up with inflation, but in real terms house prices are not really going up nor really going down.


http://uk.biz.yahoo.com/051010/214/fu3cp.html

It seems like a win, win situation for everyone. No more boom ie prices getting more unaffordable for FTB and no bust so home owners get to keep existing gains and new purchasers don't need to worry about house price falls.

It looks like in 2005 / 2006 the dream "soft landing" in house prices actually happened / is happening.

meanmachine_2

But the South East has gone negative. Which ain't great news for anyone on a 100% mortgage, is it?

I thought these experts were predicting a 5% increase for 2005 Well they were last year...

John_M_Business

Rubbish ... it's all going to crash... haven't you read these impartial sites:
housesareridiculouslyoverpriced.co.uk
ineedahomeandcantaffordone.com
thecrashisacomingsowatchoutlosers.net

That's where you get the REAL truth.

meanmachine_2

Bestthingsinlifearefree wrote:

With the latest figures just released by the ODPM. House prices are remaining stable, keeping up with inflation, but in real terms house prices are not really going up nor really going down.


http://uk.biz.yahoo.com/051010/214/fu3cp.html

It seems like a win, win situation for everyone. No more boom ie prices getting more unaffordable for FTB and no bust so home owners get to keep existing gains and new purchasers don't need to worry about house price falls.

It looks like in 2005 / 2006 the dream "soft landing" in house prices actually happened / is happening.

That's a lose lose for everyone surely? How do people who bought since 2004 manage to build up any equity in their property? Surely that's going to kill the market stone dead.

If you can't promise homeowners any equity, why should they take the risk and buy, when neg eq could be the result (god forbid)?

meanmachine_2

John_M_Business wrote:

Rubbish ... it's all going to crash... haven't you read these impartial sites:
housesareridiculouslyoverpriced.co.uk
ineedahomeandcantaffordone.com
thecrashisacomingsowatchoutlosers.net

That's where you get the REAL truth.

Why should you care? Haven't you sold your property already?

Bestthingsinlifearefree

meanmachine wrote:

That's a lose lose for everyone surely? How do people who bought since 2004 manage to build up any equity in their property? Surely that's going to kill the market stone dead.

If you can't promise homeowners any equity, why should they take the risk and buy, when neg eq could be the result (god forbid)?

Home owners build up equity by paying of their mortgage ie in 25 years on a repayment mortgage they are guaranteed 100% equity.

So any one who bought in 2004 or buys in 2006 etc builds up more equity every month.

As opposed to renting where you pay to help build up your landlords equity / share in the property !

In the last 6 months land registry figures have been stable, most house prices indexes show year on year house prices between 1% - 3% growth.

Yep stable house prices win,win situation all round no more rises for FTB,new purchasers have no fear of price falls and existing home owners get to keep all gains. I love a happy ending.

I doubt we will see a headline on the front of the Express tomorrow.

HOUSE PRICES STABLE 2005 - 2006 !!!!!

Doesn't really sell newspapers !

John_M_Business

meanmachine wrote:

Why should you care? Haven't you sold your property already?

Not yet. We're currently waiting to hear on our buyer, but she tried to renegotiate at the last minute and we're not impressed so have pulled the rug on her for the time being.

Frankly we should have seen it coming because she has been a nightmare to deal with (even briefing her surveyor to 'do his worst' - though he was unable to find anything more than the superficial).

But we're still not in a hurry, we've had three offers at about the same level, all after about a month of being on the market, so we're going to be remarketing forwith and hope that this time round we'll find a buyer who keeps his/her word.

We expect that the eventual price will be again around the same price as before. I have been predicting a flat market for our area for this year, and so it has proved.

meanmachine_2

Bestthingsinlifearefree wrote:

Home owners build up equity by paying of their mortgage ie in 25 years on a repayment mortgage they are guaranteed 100% equity.

That's all well and good for the 50% on a repayment, but what about those on interest only, banking on above inflation price rises?

Also, if there's no more "free" equity in housing, what's that going to do to the economy, which has been bouyant because of MEW for the last 8 years?

Why should I have to pay 2005 prices, without any promise of equity, when those who bought before 2004 enjoyed big rises?

You're not really selling it to me. I'm a genuine FTBer (potentially), but I have very low rent, so what's in it for me?

meanmachine_2

John_M_Business wrote:

Not yet. We're currently waiting to hear on our buyer, but she tried to renegotiate at the last minute and we're not impressed so have pulled the rug on her for the time being.

Frankly we should have seen it coming because she has been a nightmare to deal with (even briefing her surveyor to 'do his worst' - though he was unable to find anything more than the superficial).

Buyers are certainly more cocky. a few years ago she'd have been much more anxious to get the deal signed.

Still, if you've got others lined up, then you can afford to cut her loose, I guess.

Maybe that'll give her a wake up call.

John_M_Business

meanmachine wrote:

Buyers are certainly more cocky. a few years ago she'd have been much more anxious to get the deal signed.

Still, if you've got others lined up, then you can afford to cut her loose, I guess.

Maybe that'll give her a wake up call.

Yes, viewings have started again. It's a shame, but I always think that you have to be willing to say 'no' in any deal.

I think she's tried to pull a fast one. If she had what I would consider legitimate grounds to renegotiate then we may have looked more kindly on her - we even offered to discuss directly with her... but she's preferred to go through the agent and has been intransigent about offering 5% below the accepted offer, so we're back on.

I think she will come back, but her tendency to play games may work against her. She's lost a lot of credibility with us over this, and we'd almost prefer not to sell to her.

Ah well, back to the 'keep the flat tidy' grind.

Bestthingsinlifearefree

meanmachine wrote:

That's all well and good for the 50% on a repayment, but what about those on interest only, banking on above inflation price rises?

Also, if there's no more "free" equity in housing, what's that going to do to the economy, which has been bouyant because of MEW for the last 8 years?

Why should I have to pay 2005 prices, without any promise of equity, when those who bought before 2004 enjoyed big rises?

You're not really selling it to me. I'm a genuine FTBer (potentially), but I have very low rent, so what's in it for me?

If you check out the link it seems 71% of new mortgages are repayment mortages. So the vast majotity of new home buyers in 2004, 2005, 2006 will all be guranteed 100% equity. I suspect many of the remaining 29% will switch to repayment as wage inflation makes it more affordable or simply sell after 25 years and walk away with 25 years capital gains.

http://news.bbc.co.uk/1/hi/business/4325972.stm

I know it seems harsh that you have to pay 2005 prices without the prospect of 10% plus year on year gains enjoyed by people who bought earlier......unfortunately that is the price you pay for missing the boat / being a nervous FTB.

But the good news Mean machine is:

You ask What's in it for you ?

Either spend 25 years helping your landlord buy his house (and you own nothing) or buy your own house over 25 years and never pay rent / mortgage again.

Bit of a no brainer really.......