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

pickledpink

wymondham wrote: »

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...

Well if they lose their job next year (or the year after) they'll not be able to step onto the property ladder at all! And if by then properties start to climb they'll never get onto it!

Most FTB's have to struggle in the early years (they always have done) but they reap the benefits in the future.

If everyone took your advice they'd never take the chance to better their lives.

Most people dream about owning their own home, and in the beginning they make sacrifices for that.

If no-one ever took a chance or grabbed the opportunity to fulfill their dream they'd all be stuck paying the mortgage for their landlord.

mewbie_2

pickledpink wrote: »

in 10 years' time we all know that property will be worth double or treble what it is now.

I suppose it gets you attention. If you want to be a plausible bull though you need to be slightly more realistic. Otherwise you just come across as a nutter.

pickledpink

Newbie

There's no need for insults.

I'm speaking from experience: I own my own property - and you don't.

If that makes me a nutter in your eyes all I can say is that you're jealous.

mewbie_2

Few corrections if I may.

pickledpink wrote: »

Newbie

It's mewbie not Newbie, unless you were attempting a lame joke.

pickledpink wrote: »

There's no need for insults.

There's plenty of need in my opinion to insult you, after all you have been insulting my intelligence with your ridiculous posts for way too long.

pickledpink wrote: »

I'm speaking from experience: I own my own property - and you don't.

I don't know or care about your 'experience', and you know nothing of my personal situation.

pickledpink wrote: »

If that makes me a nutter in your eyes all I can say is that you're jealous.

I can't see a single thing in your posts that would give me cause to be jealous.

tomstickland

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:

It might be worth 3 times the value in, say, 10 years (inflation ignored).
However, a buyer would be better waiting a year or two and then they could have a house that rises to 6 times what they paid for it. Or they might be wrong and misjudge the bottom of the market, but they'd still pay less than now.

tomstickland

http://www.youtube.com/watch?v=YzWQtCBVZzY&feature=related

GDB2222

pickles110564 wrote: »

Why should anyone listen to you?
How do you know what is going to happen next?

1. I'm a financial professional
2. I have a lot of experience of the property market
3. But most of all, the professional property derivatives market is anticipating a 30% drop in value over the next 3 years. This is a professional market where banks and other large institutions trade contracts (min size £5 mill) based on the Halifax house price index.

GDB2222

Dithering_Dad wrote: »

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.

That's very true DD. The problem is that, if the futures markets are right and the fall still to come is 30%, there is no way that you can get a reduction currently that is going to compensate for that. The reductions you hear about are against previously-inflated asking prices.

I agree with you that there is no point in trying to guess the very bottom of the market, but now we are still at the stage where prices are falling sharply.

neverdespairgirl

pickledpink wrote: »

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!!

I don't remember that happening last time.

My parents bought their last London house for £495k in 1993. That was during what seemed at the time to be a long, slow plateau.

Davesnave

neverdespairgirl wrote: »

I don't remember that happening last time.

My parents bought their last London house for £495k in 1993. That was during what seemed at the time to be a long, slow plateau.

I agree.Looking at the HBoS data for my area, I can see that prices dithered about a bit between '92 and '95, before taking off again in '96. Surely a large enough window in which to make a purchase decision!