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Debate House Prices
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50% drops by 2011
Comments
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Well you aint buying my house for 50% less even if thats what its worth.
They can drop as much as you like but the people that dont need to sell wont sell at that price, simple. Your best hope is for a repo or somebody to die. Why do people think that just because homes MAY be worth 50% less in the future compared to now, that they will sell for that price?
I am british and stubborn, and have by no means overstretched my finances.
Bring the crash on i couldnt give a monkeys.:p
What do you mean by "by no means overstretched my finances" do you mean you have over 50% equity in you house? Anything less and you will be in negative equity.
The banks are hoping for people like you "british and stubborn" or I could think of other words but Im to polite.
Either way I hope you can keep paying twice as much for your home than its going to be worth.
I just feel sorry for all those in Japan when it happened there, imagine losing 80% of the value of something you have spent your life paying into? What a mind bender.......0 -
Well you aint buying my house for 50% less even if thats what its worth.
They can drop as much as you like but the people that dont need to sell wont sell at that price, simple. Your best hope is for a repo or somebody to die. Why do people think that just because homes MAY be worth 50% less in the future compared to now, that they will sell for that price?
I am british and stubborn, and have by no means overstretched my finances.
Bring the crash on i couldnt give a monkeys.:p
No problem for you then - just stay put for a decade. Were you even planning on selling in the first place?
However, the rest of the world goes on and people will want/need to buy and sell houses for much the same reasons they have always done, just with lower market prices. People don't go through all the hassle of selling up, finding and buying another property and moving for the fun of it or the thrill of seeing the size of the sum that they get for their old gaff.
The only people who might have otherwise moved but now won't be selling up are those trapped in negative equity who can't sell up. For at least some of them, whether or not they can sell the house won't be stopping it ending up on the market later on, anyway.--
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 -
Well you aint buying my house for 50% less even if thats what its worth.
They can drop as much as you like but the people that dont need to sell wont sell at that price, simple. Your best hope is for a repo or somebody to die. Why do people think that just because homes MAY be worth 50% less in the future compared to now, that they will sell for that price?
I am british and stubborn, and have by no means overstretched my finances.
Bring the crash on i couldnt give a monkeys.:p
So, let's suppose that prices drop by 90% over the next 10 years (just for arguments sake - bear with me please). Also, suppose that you've paid off your mortgage by then. You decide that it would be nice to buy one of the nearby mansions that are in ten years time trading for absolute peanuts .... so will you sell your place for 90% off or not? Or will you be too stubborn?No reliance should be placed on the above! Absolutely none, do you hear?0 -
Doesn't matter what people think they will or won't sell their houses for - doesn't change the real value of those houses one bit.
None of it matters as long as mortgage payments can be made, unless or until they want/need to sell. Then, like us all, they will governed by relative values, affordability, supply and demand.
In fact, if you want to move 'up' you benefit from lower prices. Move 'down' and you do best if prices are higher. The gap between selling and buying, which matters most, decreases or increases accordingly.0 -
Well you aint buying my house for 50% less even if thats what its worth.
They can drop as much as you like but the people that dont need to sell wont sell at that price, simple. Your best hope is for a repo or somebody to die. Why do people think that just because homes MAY be worth 50% less in the future compared to now, that they will sell for that price?
I am british and stubborn, and have by no means overstretched my finances.
Bring the crash on i couldnt give a monkeys.:p
It`s like someone putting all their savings into an investment fund and then finding out the company is not looking good. There is a good chance the amount is going to go down by up to 20% a year for the next few years.
They could just get out as soon as they can taking a loss, but not that bad.
Or they could just think Im "I am british and stubborn" I will carry on paying into it, maybe in the future it will go back up again.0 -
- Kenny Rogers.You got to know when to hold em, know when to fold em,
Know when to walk away and know when to run.
You never count your money when youre sittin at the table.
Therell be time enough for countin when the dealins done.--
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 -
Even if someone came up with a 50% offer right now to buy a BTL property would the yield be worth it long term? even if the rents cover the rising interest payments and costs and maintenance, as the rents go lower due to recession the average mortgage payments are going to go up.
I maintain BTL still isn't worth it at 50% in these times.
The only time you could get a good yield was years ago when you could buy a house for 40K and rent it out 100wk. Those times have gone but will come back, but where will the money come from to even pay 40K- banks? Only cash buyers will get a look in. And I mean cash not collateral of any kind.0 -
Even if someone came up with a 50% offer right now to buy a BTL property would the yield be worth it long term? even if the rents cover the rising interest payments and costs and maintenance, as the rents go lower due to recession the average mortgage payments are going to go up.
I maintain BTL still isn't worth it at 50% in these times.
The only time you could get a good yield was years ago when you could buy a house for 40K and rent it out 100wk. Those times have gone but will come back, but where will the money come from to even pay 40K- banks? Only cash buyers will get a look in. And I mean cash not collateral of any kind.
That is nonsene, if we take the London market for example yields are easily available at 5.5% at today's prices, so at your 50% mark down that's 11%, wow if only I could find (decent) properties producing that yield0 -
That is nonsene, if we take the London market for example yields are easily available at 5.5% at today's prices, so at your 50% mark down that's 11%, wow if only I could find (decent) properties producing that yield
I reckon that 11% is about the right yield for long-term BTL. It's worth having a look at the ARLA review. Average voids are 3-4 weeks a year. Then, there's insurance, maintenance, agency fees, management fees, etc. You work it out. I expect we may differ by 1 or 2%, but there's no way that a yield of 5% is viable.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Well you aint buying my house for 50% less even if thats what its worth.
They can drop as much as you like but the people that dont need to sell wont sell at that price, simple. Your best hope is for a repo or somebody to die. Why do people think that just because homes MAY be worth 50% less in the future compared to now, that they will sell for that price?
I am british and stubborn, and have by no means overstretched my finances.
Bring the crash on i couldnt give a monkeys.:p
I see you've had a few harsh replies there.
Seems they are trying to gloat that you may be overpaying on a mortgage when prices drop yet they don't know what your mortgage is
Your point is that not everyone wants to sell their property and therefore even if it drops in your area, any potential buyer wont get your house cause you are not selling.
You've decided not to STR in the hope of gaining from house price drops and are happy in your home.
I'm glad you are happy , theres too much happy back dlapping gloating going on I think
I agree with you that while it is a buyers market at the moment, I fear the only sellers will be either those that get the price they want, those that have to for financial reasons sell or those that for logistic reasons have to move. Otherwise, if people can afford the mortgages, they'll ride the storm:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0
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