Property prices should not really matter

rumbaba

We all know that house prices soared over the last few years and many properties are now falling. But as I pointed out in another post it does seem to be the less desirable places which are falling by double figures. And quite rightly too.

However, the better properties are only falling marginally, and even if they fall some more they will still be way above their 1990's prices.

You only need to look back at the prices on the Land Registry to see that.

But my main point is that a home is a home, and if your property is your haven - somewhere where you feel comfortable and happy, and love living there - so its fluctuating value doesn't matter in the slightest. Even if you decide to sell when property is at a low it makes no difference providing you're intending on buying in this country.

dopester

rumbaba wrote: »

We all know that house prices soared over the last few years and many properties are now falling. But as I pointed out in another post it does seem to be the less desirable places which are falling by double figures. And quite rightly too.

Well my experience with Rightmove and Property-Bee shows vast numbers of houses in the top range of my areas seeing houses reduced by hundreds of thousands of pounds since last year. Even millions of pounds.

Then the properties within my budget / expected budget, reduced in price by tens of thousands of pounds since last year. And that is pretty much the same experience I've had of monitoring a number of desirable locations in England with Property-Bee.

So, with respect - I think you are wrong. And its only just started. Would you have preferred me to buy at £100,000 more last year and be happy that I love living there and its plummeting value shouldn't matter to me... despite the fact by waiting I could keep more in liquid savings / or not work harder and more hours for the rest of my life servicing a crazy high mortgage?

Cannon_Fodder

sorry but they do.

if someone wishes to down-size as they retire, they want prices high to maximise the amount of equity released.

if someone else wishes to move 'up the ladder', lower prices are good because the gap between property types shrinks.

if someone has a 100% mortgage, on a 2-year deal, then prices really matter as their ability to re-mortgage has disappeared = SVR or lose the house.

if someone has a 75% mortgage, on a 2-year deal, then prices matter as their reducing equity would affect their LTV and lead to more expensive mortgage repayments.

etc etc etc

napoleon

rumbaba wrote: »

However, the better properties are only falling marginally, and even if they fall some more they will still be way above their 1990's prices.

.

Prices have went up over 300% since 1990. When has ANYONE ANYWHERE ever predicted that they will fall back to these levels?

Are you justpurchased with a new id? It would explain alot.

chrisandanne

Unfortunately some people define themselves by how much their house is 'worth', so when they see 'their money' slipping away on a daily basis it undermines their sense of who they are in the world.

I don't agree that it is or will be only the 'less desirable' places which will fall, falls will vary by regions of course but when houses become worth less ALL houses will be worth less IMO.

In fact the rightmove updates I receive show me that vendors of 300k plus houses are reducing their asking prices on a regular basis in this area. Don't know about Purley/SE though.

If you are interested/worried why not use property bee and get some facts on the subject. A x

neverdespairgirl

rumbaba wrote: »

However, the better properties are only falling marginally, and even if they fall some more they will still be way above their 1990's prices..

There is a lot of mention of "better properties" and "good properties" on this board. What does it actually mean, though?

pickledpink

dopester wrote: »

Well my experience with Rightmove and Property-Bee shows vast numbers of houses in the top range of my areas seeing houses reduced by hundreds of thousands of pounds since last year. Even millions of pounds.

Then the properties within my budget / expected budget, reduced in price by tens of thousands of pounds since last year. And that is pretty much the same experience I've had of monitoring a number of desirable locations in England with Property-Bee.

So, with respect - I think you are wrong. And its only just started. Would you have preferred me to buy at £100,000 more last year and be happy that I love living there and its plummeting value shouldn't matter to me... despite the fact by waiting I could keep more in liquid savings / or not work harder and more hours for the rest of my life servicing a crazy high mortgage?

I didn't know you had a Millionaire's Row in your area, Dope?:rotfl: Care to show it to us?:p ...............All these properties dropping by MILLIONS!!!:rotfl: :rotfl: :rotfl:

dopester

pickledpink wrote: »

I didn't know you had a Millionaire's Row in your area, Dope?:rotfl: Care to show it to us?:p ...............All these properties dropping by MILLIONS!!!:rotfl: :rotfl: :rotfl:

OK.. I'll have a quick look-see (but keep in mind I only viewed these properties as research, not with any intention to ever buy anything within this range even after the crash).

Property 1: -£500,000 reduction, but from perhaps a start point which was absolute peak and then some. (right around the corner.. well a few minutes from where I live), and seemingly belonging to an EA. (assuming you have property-bee installed)

Actually... it is more hundreds of thousands here for the most "desirable properties" around here - and not millions (although I think I saw that when monitoring W1... try searching Rightmove with PB to confirm on W1).

Search my general local area on Rightmove with PB, (Hale, Alderley Edge, Prestbury, Wilmslow = all Cheshire) at the top to middle end, and it will confirm these desirable areas are seeing houses reduced by hundreds of thousands, and many tens of thousands. And the same really for houses at the bottom end seeing lots of instances of being reduced by tens of thousands.

phil_b_2

neverdespairgirl wrote: »

There is a lot of mention of "better properties" and "good properties" on this board. What does it actually mean, though?

You could have 2 seemingly identical houses on a street almost next to each other. These houses could however differ vastly. One could be 'good', the other 'bad'. One instance would be when one of the houses has it's back garden ajoin with the beer garden of a less-desirable pub. Or maybe it has a rat-run road go down the side 1 foot away. the value of each should be hugely different I'd say.

I've literally seen 2 houses a minute walk from each other, where one had a pilon towering above it and the other was positioned out of view of the eyesore. The 'good' one was £190k, the 'bad' one £175k. I would have paid £170k perhaps for the good one but wouldnt even take the other for £100k. The price of the bad one could drop to £120k and people will think prices are crashing in that area. They wouldnt know the reality though.

Numbers and percentages for average price drops nationwide are almost completely meaningless when it comes to negotiating a deal if you dont have very specific details of the properties which dumped in value IMO.

phil_b_2

dopester wrote: »

Property 1: -£500,000 reduction, but from perhaps a start point which was absolute peak and then some. (right around the corner.. well a few minutes from where I live), and seemingly belonging to an EA. (assuming you have property-bee installed)

That is a niiiiiiiiceeee house!

ad9898_3

rumbaba wrote: »

We all know that house prices soared over the last few years and many properties are now falling. But as I pointed out in another post it does seem to be the less desirable places which are falling by double figures. And quite rightly too.

However, the better properties are only falling marginally, and even if they fall some more they will still be way above their 1990's prices.

You only need to look back at the prices on the Land Registry to see that.

But my main point is that a home is a home, and if your property is your haven - somewhere where you feel comfortable and happy, and love living there - so its fluctuating value doesn't matter in the slightest. Even if you decide to sell when property is at a low it makes no difference providing you're intending on buying in this country.

As quoted by Cannon Fodder higher up this thread, it certainly does matter to alot of people hence your post is utter boll**ks