Property prices should not really matter

MrSafeGaz

rumbaba wrote: »

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.

I have always maintained that I believe that this is a financially dangerous point of view. What you are basically saying is, for the most financially challenging purchase in most peoples livee, that people should generally let their heart rule their head and buy anyway. People have gotten lucky with this approach over the past 10 years but only because the house price increase has cushioned any potential problems.

Yes, a home is a home but 6 months down the line a home could be a home in addition to £20,000 less borrowed. We are talking significant amounts of money here.

So to conclude, if someone is really, desperately unhappy with their current arrangements and buying a house is the silver bullet to all their problems, then by all means buy, I can completely understand the decision. But for those that are relatively comfortable, why on earth would you buy now rather than wait 6 months when it is quite obvious that the least likely scenario possible is that house prices rise again.

chrisandanne

neverdespairgirl wrote: »

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

People who like living in suburbia think a well tended house in a leafy street is 'desirable'.

People who like living in the countryside think that's rubbish and old houses with long distance views and green fields are 'desirable'.

People who like wine bars and restaurants all around think that's rubbish and want a trendy flat in the centre of town.

One mans meat and all that.

I think what rumbaba means is anything outside Purley or somewhere similar and under 500k.
A x

neverdespairgirl

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:

I can show you a £4.5 million price drop, here:

http://www.rightmove.co.uk/viewdetails-10340322.rsp?pa_n=1&tr_t=buy

Or this one, down £2.25 million:

http://www.rightmove.co.uk/viewdetails-20744912.rsp?pa_n=2&tr_t=buy

alared

This latest housing price bubble has been caused mainly by the BTL brigade,who didn`t buy property to LIVE in,but as an "investment".
They had no faith in any sort of a pension scheme because GB had taxed and ruined final salary company pensions,so they looked for an alternative to invest in,long term.

Also older people,who had paid off their own mortgages, decided to jump on the BTL wagon too.
Low interest rates had resulted in poor saving rates,but cheap loans,which caused high property prices,so the older generation looked for an alternative.
Again, not to LIVE in,but for their son,daughter,an "investment" and all sorts of other reasons.
With this mad stampede to buy property the prices were greatly inflated and a bubble created.

Now it`s burst!

moanymoany

If property values rose with inflation, there would still be people who lived in mansions and people who lived in two up two down terraces. Working and saving would help you move up if that is what you wanted.

If there was a plentiful supply of property to rent with security beyond six months at a time there wouldn't be the frantic scrabble to buy.

In the countries where this happens people do seem to rent and save and buy when they know where they plan to live and work.

My last job was teaching people to speak English. I have taught all ages and all sorts of professions from all over the world. In discussion lessons they want to talk about what life is like here in the UK and tell others what life is like in their home country. Most other Europeans seem to have the above scenario for housing and it seems to work.

SingleSue

In my area....and these are the 'nice' ones

http://www.rightmove.co.uk/viewdetails-17712770.rsp?pa_n=1&tr_t=buy Down from 750k to 595k

http://www.rightmove.co.uk/viewdetails-20939840.rsp?pa_n=1&tr_t=buy (this is my dream lottery win house!) Down from 1.75m to offers over 1.5m

http://www.rightmove.co.uk/viewdetails-20895230.rsp?pa_n=1&tr_t=buy Down from 690k to 575k (although it did go down to 565k and then go up 10k!)

These are all properties in a sought after area of the town.

GDB2222

SingleSue wrote: »

In my area....and these are the 'nice' ones

http://www.rightmove.co.uk/viewdetails-17712770.rsp?pa_n=1&tr_t=buy Down from 750k to 595k

http://www.rightmove.co.uk/viewdetails-20939840.rsp?pa_n=1&tr_t=buy (this is my dream lottery win house!) Down from 1.75m to offers over 1.5m

http://www.rightmove.co.uk/viewdetails-20895230.rsp?pa_n=1&tr_t=buy Down from 690k to 575k (although it did go down to 565k and then go up 10k!)

These are all properties in a sought after area of the town.

I love the middle one of those, Sue. described as
7 bedrooms, 5 reception rooms
3 bathrooms, Garage, Tower
Really, all houses should have a tower.

GDB2222

neverdespairgirl wrote: »

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

The house next to the fire station is the classic example. During boom times, it sells, and it sells for not that much less than houses in a quieter position. During a slump, nobody will buy it, and the gap in prices widens. The same applies to other less desirable property, due say to unusual construction techniques or being on an undesirable estate. I think this is quite a well-known phenomenon, but I couldn't find a reference when I had a quick look on Google.

jamescredmond

GDB2222 wrote: »

I love the middle one of those, Sue. described as
7 bedrooms, 5 reception rooms
3 bathrooms, Garage, Tower
Really, all houses should have a tower.

I was thinking about bolting a tower onto my pad.

a great vantage point, from where I could watch the collapse of lux apt. prices (my town centre is littered with these new-build shoeboxes).

SingleSue

GDB2222 wrote: »

I love the middle one of those, Sue. described as
7 bedrooms, 5 reception rooms
3 bathrooms, Garage, Tower
Really, all houses should have a tower.

Yep it is my favourite too and the one I have earmarked as one I would buy if I was ever lucky enough to win the lottery..recession or no recession!