Why are people having a go at folk wanting to sell and buy

neverdespairgirl

longforthesun wrote: »

I just cant see how telling folk not to buy as house prices are still falling is going to help the housing market.

Why do you think we want to "help" the housing market at all?

neverdespairgirl

longforthesun wrote: »

surley these are the people we need to be kick starting the houseing market again.

It's not exactly a good idea, IMO, to reinflate such a massive bubble (even if it were possible!)

Davesnave

You can sign me up as someone who is selling at the moment, who knows the lack of FTBs is preventing me from doing this, and who still doesn't think they should be buying yet!

Yes, my property value is falling, along with everyone else's, though the expensive type of property I'm hoping to buy will lose more in purely £ terms. This suits me fine. However, the main reason why I'm happy to see a radical readjustment of prices is that I have two adult daughters, who've already incurred debts in gaining the sort of education I had for free, and who may, eventually, want to buy property.

Looking at this site has given me what I believe is a sensible perspective on the subject of house prices. I'm sure if I'd never come here I'd see things somewhat differently and, perhaps, by being a lot less informed, I'd also be far more stressed too.

poppysarah

longforthesun wrote: »

Incisor I am not suggesting for one minute someone talks a first time buyer into making a mistake and ending up in negative equity but I have read posts with people saying they have their deposit and mortgage offer and have no intention of moving for 10 years and are being told they should still not be buying, surley these are the people we need to be kick starting the houseing market again.

If they are buying a house with a 3X salary mortgage then yes they could buy now.

House prices are over inflated.

olly300

poppysarah wrote: »

If they are buying a house with a 3X salary mortgage then yes they could buy now.

House prices are over inflated.

Presuming they are in jobs that aren't likely to be affected by the economic decline.

People in some jobs are being refused forms of mortgage protection insurance or having to pay inflated prices.

Imp

Chris2685 wrote: »

So you're saying it is more sensible to go onto the variable rate? Right then...

Right now I'm getting quotes for mortgages where the standard variable rate is less than the initial fixed rate. It seems to makes sense to stick with the variable rate, unless you can forecast future interest rates.

pickledpink

Davesnave wrote: »

You can sign me up as someone who is selling at the moment, who knows the lack of FTBs is preventing me from doing this, and who still doesn't think they should be buying yet!

Yes, my property value is falling, along with everyone else's, though the expensive type of property I'm hoping to buy will lose more in purely £ terms. This suits me fine. However, the main reason why I'm happy to see a radical readjustment of prices is that I have two adult daughters, who've already incurred debts in gaining the sort of education I had for free, and who may, eventually, want to buy property.

Looking at this site has given me what I believe is a sensible perspective on the subject of house prices. I'm sure if I'd never come here I'd see things somewhat differently and, perhaps, by being a lot less informed, I'd also be far more stressed too.

Dave,

Even if the expensive properties you are so dearly wishing to buy fall in price - you'll still not be able to buy one!

You obviously have a very averaged price home - and that has fallen in value - so your small amount of equity (IF you manage to sell it) will be a tiny percentage of the expensive homes you're dreaming of owning.

And banks are only lending to people with HUGE deposits..................:rolleyes:

The gap is actually widening.....................and you're expensive dream home will be even FURTHER

pickledpink

pickledpink wrote: »

Dave,

Even if the expensive properties you are so dearly wishing to buy fall in price - you'll still not be able to buy one!

You obviously have a very averaged price home - and that has fallen in value - so your small amount of equity (IF you manage to sell it) will be a tiny percentage of the expensive homes you're dreaming of owning.

And banks are only lending to people with HUGE deposits..................:rolleyes:

The gap is actually widening.....................and you're expensive dream home will be even FURTHER

Say, for example, a £1M house loses 30% (and these are only are guesses - they may NOT fall by that much) and that will now fetch £700k..................... your £200k property with a 30% drop will fall to £140K - so you're still £560K away from your dream home!

Price falls will not enable people to buy beautiful homes. Price falls will only allow people to get on the ladder - that's all.

To make matters worse - banks are now only lending to people with BIG deposits; squeaky clean credit history - and people in established, highly-paid jobs where their long-term employment is almost guaranteed.

Davesnave

pickledpink wrote: »

Say, for example, a £1M house loses 30% (and these are only are guesses - they may NOT fall by that much) and that will now fetch £700k..................... your £200k property with a 30% drop will fall to £140K - so you're still £560K away from your dream home!

Price falls will not enable people to buy beautiful homes. Price falls will only allow people to get on the ladder - that's all.

To make matters worse - banks are now only lending to people with BIG deposits; squeaky clean credit history - and people in established, highly-paid jobs where their long-term employment is almost guaranteed.

Thanks Pickled. Don't know why you are resorting to quoting yourself in your concern for me - it is quite touching.

There are rather a lot of assumptions in your posts, but at least you are more generous than Pickles, who once, without knowing me at all, claimed I didn't even have a house.

Actually, I had two. I sold one last year at peak and the other one I'm still happily living in. I own it outright. Thanks to the fact that I don't work in anything very lucrative, I wouldn't qualify for much of a mortgage, but I'm of an age where I'll please myself when it comes to what I do.

The property market is a multi-headed beast. The sort of place I want isn't that special, but it will certainly come with a few acres of land. You may know that property like that went through particularly strong price growth from about 2002, much of which was sustained by business types relocating to the countryside, buying second homes etc. Basically, anything that allowed Clarissa to have her pony went through the roof price-wise. Unable to buy because of family circumstances in those early years, I decided not to pay £500k for a Woolaway shoe box with a couple of acres when the chance came a few years later.

Country property is beginning to fall now. In some places, like, say, The South Hams & the better parts of Cornwall they are still in the denial stage, but they'd have to be on another planet to escape the coming recession. Of course, they will always be relatively expensive areas, but I know them well enough to see properties (not in the £1m bracket!) coming within my range. However, I may not opt for that expensive route. After all, I can get what I want right now in Pembrokeshire. The point is, I have a choice again.

So, as I said, I'm happy to see prices dropping. If they didn't I'd only end up doing what thousands have done already, give my kids a whacking great present to help them with a deposit. They and I would prefer not to do that; we really would.

lostinrates

Davesnave wrote: »

There are rather a lot of assumptions in your posts, but at least you are more generous than Pickles, who once, without knowing me at all, claimed I didn't even have a house.

Actually, I had two. I sold one last year at peak and the other one I'm still happily living in. I own it outright. Thanks to the fact that I don't work in anything very lucrative, I wouldn't qualify for much of a mortgage, but I'm of an age where I'll please myself when it comes to what I do.

The property market is a multi-headed beast. The sort of place I want isn't that special, but it will certainly come with a few acres of land. You may know that property like that went through particularly strong price growth from about 2002, much of which was sustained by business types relocating to the countryside, buying second homes etc. Basically, anything that allowed Clarissa to have her pony went through the roof price-wise. Unable to buy because of family circumstances in those early years, I decided not to pay £500k for a Woolaway shoe box with a couple of acres when the chance came a few years later.

Country property is beginning to fall now. In some places, like, say, The South Hams & the better parts of Cornwall they are still in the denial stage, but they'd have to be on another planet to escape the coming recession. Of course, they will always be relatively expensive areas, but I know them well enough to see properties (not in the £1m bracket!) coming within my range. .

I have seen a couple of big drops. A landed property (tiny house lots of land)...one of the few needing work!, on for £1.2 million originally is now £1 mil, been at that price for 9 months with no bite and on the market for a long while at the higher price. In a highly desirable location .

And the thing is FTBs who have been waiting a while are very different, huge numbers will struggle, I agree, but some are sitting with 'huge' and growing deposits in excellent jobs...and haven't bought not because they were to 'poor and unfortunate' to buy but precisley because they were not foolish enough to buy at the height of the market.

As a FTB I can imagine a few scenarios that might make it more sensible to buy now, but not average ones.

People already owning and possibly 'too late' to str, if they wanted to stay in the market, well, who can blame them, but they need to budge and take drops in the perceived worth of their properties if they expect chains to pick up.

People in some positions will be more able to move up the chain, on the very reasons pp gave as making the situation impossible: clean credit, strong employment and large cash holdings.

Just to make it easier for PP, I am aiming for a very desirable home.