The real question is why house prices aren't falling faster?

Dithering_Dad

dopester wrote: »

And that discussion ended after she resorted to saying "you drive a shed", whereas I'm supposed to be envious of someone paying for a big BMW on finance? :rotfl:

lol, I'd rather drive a 'shed' that I owned, than a BMW that I owed.

I feel sorry for many people whose house buying dream is turning into a bit of a nightmare at the moment, but you really can't have much sympathy for people who rush headlong over a financial precipice while pursuing a lifestyle they simply cannot afford and one they want simply to impress other people.

Not many people are impressed with my 'shed' but it's reliable, it gets me from A to B in comfort and it's totally paid for.

Chris2685

This forum really makes me think... But you try telling my girlfriend we're not buying that house anymore! I would envy any man who dared hehe.

Austin_Allegro

Dithering_Dad wrote: »

lol, I'd rather drive a 'shed' that I owned, than a BMW that I owed.

I feel sorry for many people whose house buying dream is turning into a bit of a nightmare at the moment, but you really can't have much sympathy for people who rush headlong over a financial precipice while pursuing a lifestyle they simply cannot afford and one they want simply to impress other people.

Not many people are impressed with my 'shed' but it's reliable, it gets me from A to B in comfort and it's totally paid for.

If I had to drive a shed, I'd drive this one:
http://www.youtube.com/watch?v=UT1riXck640

wymondham

GDB2222 wrote: »

I get soooo frustrated on this forum. I can see so clearly the mistakes people are making, and it seems obvious to me that prices have way, way further to fall. I try to persuade people not to buy at the moment, but I don't get anywhere. Perhaps my powers of persuasion are poor, but I think it's more likely that these people are too blinkered in their approach.

The problem that FTBers have is that many have been dying to buy but have been priced out of the market for the last few years. They see an opportunity *at last* to buy somewhere, and they grab the chance with both hands, even though if they would only wait another 1 or 2 years the buying opportunity will be miles better. It looks to them like the risk of not buying is too great, whereas in reality the risk of buying now is the greater.

so true!!!! I know the feeling. Nothing you can say or do will make a difference... oh well it's their money...

Dithering_Dad

GDB2222 wrote: »

I get soooo frustrated on this forum. I can see so clearly the mistakes people are making, and it seems obvious to me that prices have way, way further to fall. I try to persuade people not to buy at the moment, but I don't get anywhere. Perhaps my powers of persuasion are poor, but I think it's more likely that these people are too blinkered in their approach.

People buy housing for more reasons than just simply price. Besides, they always say the best time to buy something is when everyone else isn't. All anyone is hearing at the moment is doom and gloom about housing - surely a better time to buy than when we start hearing more optimistic mutterings?

Someone could get a real bargain, that might be much cheaper than whent he bottom of the market is reached. Others may be buying at a 30% reduction and may miss out on a further 10% reduction over 5 years but will have had 5 years of enjoying their own home.

Telling people not to buy a house was sensible advice for about the last 3 years, I'm not so sure it's so sensible now.

wymondham

Dithering_Dad wrote: »

Telling people not to buy a house was sensible advice for about the last 3 years, I'm not so sure it's so sensible now.

You're more optimistic than me then , I think it has got a way to go yet, especially once unemployment and repossesions gather pace....

Dithering_Dad

wymondham wrote: »

You're more optimistic than me then , I think it has got a way to go yet, especially once unemployment and repossesions gather pace....

But unemployment and reposessions are already taking place right now (and divorces and deaths and other reasons why people want to offload houses cheaply). This is my point really, I just think that the idea of setting an arbitrary "don't buy for 2 years" is flawed because bargains are available right now.

Apologies to people who've heard this one before, but I bought my house in the 90's crash, it was a house that belonged to an old bloke who died in hospital. He had no children, so the house went to his two nephews and a niece. They put the house up for £50k (which was what the old feller had bought it for 10 years previously) and I put in an offer for £40k. It was refused but I let the estate agent know that I was looking at other properties in the area - I had done my research and he could tell when I reeled them off - I assume that he passed this onto his clients because a couple of days later they accepted.

They had no emotional tie to the property and saw the £13.33K they were gaining by selling at 40k rather than the £3.33k they were 'losing' by not selling at £50k. I didn't buy at the bottom of the UK or local housing market, but I did get that house at cheaper than the bottom.

Holding out for the absolute bottom of the UK market is more blinkered than keeping an open mind and seeing if there are any bargains available in your area right now.

Just my own opinion, but it worked for me when I first bought. Incidently I sold that house for £140k 7 years later. Madness.

chewmylegoff

Chris2685 wrote: »

This forum really makes me think... But you try telling my girlfriend we're not buying that house anymore! I would envy any man who dared hehe.

i got the same thing - we had an offer accepted but i pulled the plug on it last week. she was none too pleased but i think she now accepts that things are too uncertain at the moment to risk a large deposit..

pickledpink

People can hold out forever waiting to snap up a bargain; but if and when properties to drop further (and NO-ONE knows for certain if they will - or by how much) then they'll be a MAD scramble for the best bargains and before you know it they'll be 10 buyers after the SAME property - and gazumping will start again!!

So many people lost out in the last crash by waiting and waiting - and then they missed the boat! And that's bound to happen again!!

It's all very well trying to get the bargain of the century, but people need to remember that if they have their eye on a great buy you can bet your life other people will be watching from afar too!

Another thing to remember...............no-one knows what's around the corner...............and this time next year those people holding out may not be in a position to buy (or get a mortgage).

If you're buying a place to make home and you intend to live in it, and enjoy it for years' to come, then even if it were to drop by a few more percent in the first year or so it really won't matter: in 10 years' time we all know that property will be worth double or treble what it is now.:money:

wymondham

pickledpink wrote: »

If you're buying a place to make home and you intend to live in it, and enjoy it for years' to come, then even if it were to drop by a few more percent in the first year or so it really won't matter: in 10 years' time we all know that property will be worth double or treble what it is now.:money:

True, however in the current climate, someone stretching to buy a property, it losing value and then they lose their job and are unable to sell is a nasty avoidable position to be in.... I know it comes back to risk etc, but it is worth keeping in mind...