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Debate House Prices


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Average House will loose 26k in 2008 !!!

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Comments

  • StevieJ wrote: »
    August 2007 was the peak month for house prices, my guess is annual price falls will start to reduce in intensity as annual figures will be based on falling prices rather than rising prices, giving an impression that the market is bottoming out. Does that sound logical?


    It does to me but most will not like it.
    As for dinner partys I agree, No. You buy a house so you don't have to go to any.:rotfl:
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I reckon my house which was around 250k during the peak, will end up being worth about 150k by the end of next year, should I want to sell it, but hopefully I will not be. It's a 3 bed family home and if you think about multiples of salary, you would have to be on 50k to afford it on a 95% mortgage. Most people do not earn 50k. So, I would expect someone with a flat perhaps to buy this who may have a bit of equity but as the average salary is about 26k, then even with a big deposit, they would still have to have a 78k mortgage.

    Possibly sounds a bit skewed but it's how I see it.

    For couples average salary X 2 = £52K
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • StevieJ wrote: »
    For couples average salary X 2 = £52K

    + A Debt free couple will easily get 3.5X that £182K mortgage + aditional 10% deposit..
    Also Can any one argue that some one on the average wage should be able to buy a 3 bed semi as there first house with a 5% deposit?
  • Gangstabird
    Gangstabird Posts: 1,920 Forumite
    SteveJ, I know what you are saying, but even with both parents working a couple of interest rate hikes will make houses have to come down for the property market to ever get going again. I am not going to make or lose any money out of this situation. I have enough friends who are BTL's and they are very worried at the moment. These are real people, not just my own speculation. Some are paying parts of their mortgages as their fixed rates finished and the rent just doesn't cover it. Separate point I know, but people are very fickle. To an extent they will make the market continue to crash by talking it up and just simply not buying.

    I just can't see houses going back to the peaks they were at, not again. The people who str 6 months ago were very shrewd in my opinion.
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    RichOneday wrote: »
    Me too. They don't really happen, do they?

    Yes.

    At some level they are in extremely poor taste though. When I go to dinner parties where I think people are worth listening to I'm prepared to be tasteless.:o
  • Yes.

    At some level they are in extremely poor taste though. When I go to dinner parties where I think people are worth listening to I'm prepared to be tasteless.:o

    When you get your owen house you can avoid them.
    If you get invited to a dinner party that automaticly means the host has somthing to show off, or is wrapped up in there own self importance.
  • Gangstabird
    Gangstabird Posts: 1,920 Forumite
    When you get your owen house you can avoid them.
    If you get invited to a dinner party that automaticly means the host has somthing to show off, or is wrapped up in there own self importance.

    Oooooooooooooo that is harsh. Some people just like to cook.
  • lostinrates
    lostinrates Posts: 55,283 Forumite
    I've been Money Tipped!
    When you get your owen house you can avoid them.
    If you get invited to a dinner party that automaticly means the host has somthing to show off, or is wrapped up in there own self importance.


    LOL, before moving in with my parents DH and I had a dinner party at least once a fortnight and went to more (keeping up with the return nature of it all is the hard bit)....I'm not saying we are not self important:o , but that we will probably keep going to dinner parties.;)
  • RichOneday_2
    RichOneday_2 Posts: 4,403 Forumite
    StevieJ wrote: »
    August 2007 was the peak month for house prices, my guess is annual price falls will start to reduce in intensity as annual figures will be based on falling prices rather than rising prices, giving an impression that the market is bottoming out. Does that sound logical?

    Erm, not quite. It will give the impression that the 'rate of fall' is bottoming out, not that the market is bottoming out.
    Gt NW 1/2 Marathon 21/2/2010 (Target=1:22:59) (6:20/mile) 1:22:47 (6:19):j:j
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  • Oooooooooooooo that is harsh. Some people just like to cook.

    :D ,Only jokeing(but you know its true:rotfl: ).
    Anyway I have not had food poisening for years now.:D
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