Solution for FTB's MAYBE.

jammie*dodger

How about a FTB death match. They all save 10% deposit and we pitch them all into a ring together to fight to the death. Winner keeps all the deposits and a chunk of the Tv rights? :rotfl:

thegibdog

Best way for FTBs to be able to afford a property? If the price is lowered.

rizla01

lonestar1 wrote: »

Hmm If i was a seller of a high value house would I go with the EA whose a member of NAEA OR would I go with an EA who wasnt and as such could lower his fee because he didnt need to contribute to this subsidy for FTB's ? I expect most would go with the later meaning the EA whose in the NAEA would get all the FTBs but none of the High Value buyers/sellers ergo wouldnt work as they wouldnt have the cash coming in to lay out

Very good point lonestar.

However, not wishing to be argumentative here but in my experience many of the names (Haart, Bairstows, Abbotts) etc rarely drop commissions anyway and those that are able to do so probably don't spend so much money on marketing as the big boys, so would you sell your house quckly enough using a small, low cost indi?

WTF?_2

vickyb242 wrote: »

Please don't shout at me, as i don't fully understand the economy situation but please can someone explain why it's good that house prices fall, when this seems to be causing a lot of redundancies, which surley will only make things worse and lenders are tighten their belts and lending critera.

I'm was trying to buy a house up until a couple of months ago. Had everything agreed with one of the big lenders at a good rate, sale fell through, now don't qualify for a good rate or a mortgage with some lenders.

I have a good size deposit and an excellent credit score.

Yes, i might have saved 15k on the house i liked, but now i can't get a mortgage.

Then save more.

You do have a decent sized deposit (10% is the minimum sensible deposit, you'll need more to qualify for better rates), right? And you are borrowing a reasonable multiple of your income (3.5x single, 2.5x joint), right?

If you don't have at least a 10% deposit and fall within a reasonable salary multiple then the mortgage market is frankly doing you a favour by not loaning you the money to buy.

Look at the affordability of the house and NOT the short-term affordability of the loan. As many have found out, those wonderful 'affordable' mortgages don't (and can't) last beyond the first couple of years

Wouldn't it be best if the market started to stabalise?

It would certainly be best if the market stabilised at approx 3.5x of average wages for the average house.

We are facing an economic crisis and associated jobs losses etc. because the housing market/'lending against property' market was allowed to balloon beyond all sensible levels.

It's not the fall in house prices that is the problem - it's the fact that so much money was loaned against property in the first place.

kristianwilliams

Is the economy better off now because houses are falling? probably not in the short term. Long term, yes. We can go for the knee jerk reaction and try to keep houses at these levels. But with houses at these levels, is the economy better off?

I dont think the economy is very healthy at all if house prices are the main focal point of its demise. House prices are not an commodity. Houses are the commodity and their prices are falling. The fact we seem to be so tied into house prices shows a major flaw in our economic stability anyway. House prices should be set by the economy, not the other way around. This has been our downfall.

A House =/= House price =/= Money =/= spending power
Money = Spending power
House = home or long term investment
long term investment =/= money now.
(=/= means not the same as)

There is a deeper problem, and that is personal debt based on perceived wealth. That Perceived wealth is no longer there, hence the sudden realization that we dont have the money to put into these business/buy stock/buy food.

We either deal with the cause problem, not the visual symptoms .

I wanted to throw in the words "Negative Growth" but I couldn't figure it in. :rotfl:

rizla01

thegibdog wrote: »

Best way for FTBs to be able to afford a property? If the price is lowered.

Already happening.

NAEA members reported a rise in the average difference between the asking and sale price. Consumers are most likely realising it is a buyers' market and therefore could be offering lower then the asking price. This continues to show a dislocation between what sellers believe their house is worth and what the market is prepared to pay. This may also be distorting and lengthening the time taken to sell. The average number of sales remains at 7, for the third month running, according to NAEA members. Showing that although down on last year there are still sales being made.

neverdespairgirl

vickyb242 wrote: »

Please don't shout at me, as i don't fully understand the economy situation but please can someone explain why it's good that house prices fall, when this seems to be causing a lot of redundancies,

It was extremely bad that house prices went up so much in the first place. So, in the longer-term, it's a good thing if house prices are lower.

rizla01

neverdespairgirl wrote: »

It was extremely bad that house prices went up so much in the first place. So, in the longer-term, it's a good thing if house prices are lower.

Bad for who exactly?

There was a time when it was the 'norm' that most of the working population had to rent and the thought of owning a property never entered their heads.

After a while properties became affordable and institutions figured out how to make a business from loaning money for property purchase which has become the 'norm' today.

Which 'norm' was right? Then or now?

In many European countries, owning property is just as alien as it used to be here.

neverdespairgirl

rizla01 wrote: »

Bad for who exactly?

There was a time when it was the 'norm' that most of the working population had to rent and the thought of owning a property never entered their heads.

That doesn't make high house prices a good thing, though, it's a different debate.

rizla01 wrote: »

In many European countries, owning property is just as alien as it used to be here.

We don't have secure models of tenancy here (which we should). And in places that do have them, house prices are much lower than here - cf Germany.

And in some EU countries, the % of owned houses is higher, such as Greece.

Gorgeous_George

I think that stable house prices are far more important than high or low prices.

Of course, stable, low prices would be ideal.

GG