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Debate House Prices
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Halifax August - 1.8% yoy -10.9%
Comments
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dopester, seriously... I have repeated this several times, but here it goes again:
I am buying a 3 bedroom semi. The monthly payments on the amount I am borrowing for the house is around £800 per month.
Please try and find me even a decent 2 bedroom house for less than that on the rental price within the area I am buying (Wooburn Green, near High Wycombe)?
Not to mention the fact that 40% of the money I am borrowing is repayable based on the valuation of the house at the time I choose to repay it.
If house prices do drop 50% in the next year, surely that gives me even more of a cushion? Some of you may say 'well if you waited a year you could buy the whole thing for 50% less'. I don't think house prices will fall that much, and even if they do, I do think that by the time I come to want to sell again, the house will be worth at least what I paid for it plus inflation! Not to mention the fact we NEED to move into somewhere, be it rented or bought, and we NEED 2 bedrooms as we have a baby on the way.
I am not an idiot, and I know exactly what I am getting into! Does anyone really think I would be better off renting a smaller house for the same price as I can get a bigger one paying off my mortgage & making small equity loan repayments?0 -
dopester, seriously... I have repeated this several times, but here it goes again:
I am buying a 3 bedroom semi. The monthly payments on the amount I am borrowing for the house is around £800 per month.
Please try and find me even a decent 2 bedroom house for less than that on the rental price within the area I am buying (Wooburn Green, near High Wycombe)?
Not to mention the fact that 40% of the money I am borrowing is repayable based on the valuation of the house at the time I choose to repay it.
If house prices do drop 50% in the next year, surely that gives me even more of a cushion? Some of you may say 'well if you waited a year you could buy the whole thing for 50% less'. I don't think house prices will fall that much, and even if they do, I do think that by the time I come to want to sell again, the house will be worth at least what I paid for it plus inflation! Not to mention the fact we NEED to move into somewhere, be it rented or bought, and we NEED 2 bedrooms as we have a baby on the way.
I am not an idiot, and I know exactly what I am getting into! Does anyone really think I would be better off renting a smaller house for the same price as I can get a bigger one paying off my mortgage & making small equity loan repayments?
Don't let anyone one here put you off Chris. Good luck with it all!0 -
dannyboycey wrote: »Whilst it may seem pie in the sky now.... that quote could come back to haunt you. Things are much worse than you think.
I hope it does happen, if house prices fall by 65% I'll be buying a sodding mansion lol. I could by a gaffe thats currently valued at a Million... WooHoo0 -
Care to give any reasoning behind that?
You might not want to consider how so many 30+ year olds now have more than 1 property, buying on margin in the boom - and now at risk of not only losing their BTLs but also their main home.
You might not want to consider the record debt levels compared to the last crash of the 90s.
You might not want to consider the huge multiples banks and building societies have lent at, nor the damaging self-cert lie-to-buy mortgages where people have bought in for more than they can afford - on the expectation prices will continue to rise.
You might not want to consider how much the financial system (banks) have been rocked by the reversal, and its only just begun.
You might not want to consider just how much our economy has been built and running on HPI over the last number of years.
You might not want to consider 300% gains in just 11 years is the biggest property price rises / bubble we've known.
You might not want to consider the job losses, pay cuts, and general economic carnage which is getting worse near weekly.
FGS - don't you think all the variables are slightly worse than the early 90s crash?
Read what Merryn at MoneyWeek wrote only the other day.
Conditions this time around are so much worse.
5 years to bottom out and 5 years to come back up.
Prices are falling at record levels, but for how long ? No longer than 5 years or property will be worthless and that will never happen. things are not as bad as you seem to think it my opinion. here on planet normal there are millions of people who have not overstretched or mewed and have affordable sustainable mortgages, of course there are people who have but they are a minority. As for the Credit Crunch etc, amongst my friends and collegues its hardly caused a ripple so far.
House prices go down, house prices go back up, house prices go down again, thats the way things have always been.0 -
Not to mention the fact we NEED to move into somewhere, be it rented or bought, and we NEED 2 bedrooms as we have a baby on the way.
You don't need that for ages yet. Babies are recommended to sleep next to their parents for at least 6 months, and often up to a year....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
5 years to bottom out and 5 years to come back up.
Prices are falling at record levels, but for how long ? No longer than 5 years or property will be worthless and that will never happen. things are not as bad as you seem to think it my opinion. here on planet normal there are millions of people who have not overstretched or mewed and have affordable sustainable mortgages, of course there are people who have but they are a minority. As for the Credit Crunch etc, amongst my friends and collegues its hardly caused a ripple so far.
House prices go down, house prices go back up, house prices go down again, thats the way things have always been.
You're off your tree. Your friends and colleagues will get to feel the consequences soon enough.
And it seems to me !!!!!!'s motive is more to buy in low with the expectation of a circa 100% gain in 5 years too. Pretty damned shallow.
It won't happen. I want to buy in yes, but as a home to live in, not as an investment. I have zero need to see prices gain 50% again in 5 years.
Only speculators at heart desire such a rebound (that won't happen in the blink of an eye of 5 years... absolutely not this time), or those who think such gains will pay of their mortgage quicker.0 -
You're off your tree. Your friends and colleagues will get to feel the consequences soon enough.
Maybe, but as I work on the Railway which is quite recession proof, as do my collegues, We'll probably just laugh and say "what Recession ?" just like we did in the 90's, there are lots of people who will hardly notice a recession. Probably less than last time though as theres less real job.
As far as property goes, why not get in at the bottom and make a buck ? Thats using your loaf.0 -
As far as property goes, why not get in at the bottom and make a buck ? Thats using your loaf.
Paying a lot less at the bottom for a realistic price - yes.
Wanting to see rampant unjustifiable HPI taking prices way past multiples of incomes - no.
I feel sorry for the people here who can't see just how painful this crash is going to be, with unemployment, pay cuts, less hours... and expect it to bounce back when I think we're in it for the long term.0 -
But they all have such a short attention span that they usually forget the advice during the first night, never mind 6 months.neverdespairgirl wrote: »... Babies are recommended to sleep next to their parents for at least 6 months, and often up to a year.After the uprising of the 17th June The Secretary of the Writers Union
Had leaflets distributed in the Stalinallee Stating that the people
Had forfeited the confidence of the government And could win it back only
By redoubled efforts. Would it not be easier In that case for the government
To dissolve the people
And elect another?0 -
You're off your tree. Your friends and colleagues will get to feel the consequences soon enough.
And it seems to me !!!!!!'s motive is more to buy in low with the expectation of a circa 100% gain in 5 years too. Pretty damned shallow.
It won't happen. I want to buy in yes, but as a home to live in, not as an investment. I have zero need to see prices gain 50% again in 5 years.
Only speculators at heart desire such a rebound (that won't happen in the blink of an eye of 5 years... absolutely not this time), or those who think such gains will pay of their mortgage quicker.
Huh? My motive is to buy a decent house for as little as possible - preferably without a mortgage as that would simplify my life enormously.
What happens to prices after that, I don't care. So long as they don't plummet even lower of course. Which is why I'll likely wait until the market has clearly bottomed before I buy even if it means missing the absolute bottom.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0
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