A possible crash on the way ?!!!

ivegotabig1

There are so may conflicting views on property prices it can be very confusing, but i am now leaning towards the notion that a significant readjustment is on the way, perhaps not a crash though, lets get to the bottom line..........In the long term.property is very much over valued.period..

http://news.bbc.co.uk/1/hi/business/4377938.stm

Vic_980

It makes sense that repossessions are increasing, because as prices are so high, people are having to borrow a lot more to buy. If you borrow near the limit of what you can afford, then it can only take a few interest rate rises before you are wiped out.

The problem has been made worse by low interest rates - people have splurged on loans, credit cards, and other things they don't really need, further stretching themselves. The UK is in the grip of 'keeping up with the Jones'' fever.

Whether there will be a crash remains to be seen though. If it does happen, then people will not even notice it until it's well under way.

Personally I think that FTBs should stay out of the market unless they can easily afford a mortgage. Some friends of mine are first timers, and they've bought a house which is identical to my own, in the same area, yet it cost 3 times what I paid for mine 3 years ago.

With other bills coming in, they can barely afford the mortgage payments, and they never have any money left. Stupid? I certainly think so. But make up your own mind!

Woby_Tide

:j YAY another new thread on the subject!:j

meanmachine_2

Vic_980 wrote:

Personally I think that FTBs should stay out of the market unless they can easily afford a mortgage. Some friends of mine are first timers, and they've bought a house which is identical to my own, in the same area, yet it cost 3 times what I paid for mine 3 years ago.

With other bills coming in, they can barely afford the mortgage payments, and they never have any money left. Stupid? I certainly think so. But make up your own mind!

That is truly frightening!!! And the retailers wonder where all the shoppers have gone. Duhhh! The banks have all their money, that's what's happened.

I agree though. If it's a crash, it seems to be playing out so slowly you don't even feel the impact until you're sprawled out on the pavement and your brains are seeping out your ear...

ivegotabig1

Woby_Tide wrote:

:j YAY another new thread on the subject!:j

I know, :hello: but this is the "house buying-selling, PROPERTY PRICES, forum...

nelly_2

Money managment is one of lifes most important on-going issues. Everything depends on it, yet so many people seem to have so little clue.

Theres nothing that could entice me into paying out 70/80% of my wages just to pay a mortgage.


On the other hand I'm getting married in december and thats costing 10 grand and no I'm not happy about it and it's ridiculous what women see as money well spent.

On the other-other hand it means another holiday 11 day caribean cruise followed by a week in Vegas.

Maybe I'll win my money back, theres more chance of the pope turning up to marry us and theres less chance of that than me buying a house

Im bored with house price threads but I'm still gonna join in for the sport

brummybloke

if it were that easy to predict no one would lose out.

if you want a house and can afford it , buy it. if you prefer to wait and see you have a 50/50 chance, as if you could afford it now and then house prices do continue upwards , will you be able to afford it in 2 years time?

it is a calculated gamble, unless you see a house you want, can afford it and have no intentions of moving for 10 years.

i dithered and dallied for a year or two and then thought, hell i am paying more in rent than it would cost to get my own house. i got my house and yes, like most other people, it has gone up 5 times what i paid for it in 7 years.

Woby_Tide

ivegotabig1 wrote:

I know, :hello: but this is the "house buying-selling, PROPERTY PRICES, forum...

If you know that much then you'll know there are probably already 3 or 4 topics(on the ifrst page alone) already running containing reports and info like this, why keep diluting discussions with a new thread each time?

meanmachine_2

brummybloke wrote:

i dithered and dallied for a year or two and then thought, hell i am paying more in rent than it would cost to get my own house. i got my house and yes, like most other people, it has gone up 5 times what i paid for it in 7 years.

Wow, really? That stat postively makes me sick to the pit of my wellies.

You bought for 50K in 1998 and now its selling price is 250k!!!!!!!!

You're not serious!

If you are, who has that kind of money these days? I earn well above average and I couldn't afford it. If you had to buy back your own house at today's prices, could you?

Sounds like a house of cards to me. But then I might be hideously wrong.

And nelly, congrats on your impending nuptials. At 10 grand though she better put out on the wedding night, that's all I'm saying...

brummybloke

i bought my house for £40,000 it was a reposession. mine like most of the houses in my road are between £160,000 and £200,000. depending on state of house and interiors.

YorkshireBoy

Vic_980 wrote:

Some friends of mine are first timers, and they've bought a house which is identical to my own, in the same area, yet it cost 3 times what I paid for mine 3 years ago.

brummybloke wrote:

i got my house and yes, like most other people, it has gone up 5 times what i paid for it in 7 years.

By my (possibly very dodgy) calculations, these are year on year increases of 44% & 26% respectively.

I don't know where you live, or the type of property you have, but I was pleased to find out my house had trebled in value in 11 years.

I say *was* pleased, because I then realised that my kids could never afford to buy in our area - or indeed possibly anywhere in a few years time.