House prices are close to affordable levels, reveals survey... BUY!! BUY!!! BUY!!!

Entertainer

carolt wrote: »

I think you're showing your age!

As I can clearly remember average 2 bed flats (in perfectly nice areas in zones 2-3), going for 55-67K, and flats in Camden for 72K, for example - around 12 years ago, the idea that London has always been unaffordable, or that this is the 'typical' position is just blatant nonsense.

Growing up in London in the 70's, all my friends lived in owner-occupied housing, and the vast majority didn't have especially wealthy parents; house prices were just much more affordable. The idea that it is somehow 'normal' for all except the extremely wealthy to be priced out in London, is a very recent thing.

You are right. I knew of 2 bed Victorian houses with gardens going for £45,000 in South London in 1993 (on the market for a year). I also knew of 3 bed Victorian terraced houses going for £75,000 as late as 1999. These were typical properties.

There were London postcodes in the mid 90's where property was good value like this. They were basically bad areas but nice houses and actually very quiet roads. It's just you couldn't expect a thriving cafe culture.;) If you had to live in London, they were a great option.

ess0two

ess0two wrote: »

Certainly will,off at the mo to check my furniture in storage,and to sort my deposit from house sale last July.
Aint gonna brag but i've done well on this one,glad its sorted,getting brassed off in rented place.
Might also treat myself to a new plasma.

Will keep you updated.

Exchanging in 2 weeks can't wait.

moanymoany

Let us cast our minds back to April 2008 - not very far - and think just how much has happened in that time. In seven months the whole financial world has turned upside down.

Oil prices have rocketed and plummeted - with the oil producing countries planning to cut production to force prices up.

Stock markets throughout the world have crashed in the most staggering way.

The money market has dried up. Yes, I know someone's mate was offered a 125% mortgage last week .... but overall the liquidity situation around the world is pants!

House prices have fallen - up to 25% in some places and as far as the world of flats is concerned - up to 80% - but mostly 40% - 60%.

Unemployment is rising.

As I said before I wouldn't be surprised to read that people are using up available credit on their credit cards to have a blow out Christmas - and as !!!!!! commented - to be followed by bankruptcies next year. I think the first six months of next year are going to be very interesting, another 'hang on to your hat' time.

As a result of which there will be another lurch downwards for house prices.

Pobby

Certainly agree moanymoany. I know of people who have had it really good over the last 10 years, most of them mainly in construction. The sudden impact of the housing market/ credit crunch is leaving them high and dry. Some are going to be very over extended. It`s easy to make payments on a mortgage, Beemer and nice holidays when £1,000 a week is coming in year in and year out. The fall in work is dramatic in all the areas I know. So how do they fund their huge commitment? I guess they don`t.

Also I am witnessing the denial stage where life styles are still being maintained, more or less, hoping that all of this is a blip.I really wish it was going to be that way but somehow I don`t think it is.I am not at the point yet of seeing the great forest of for sale signs as I did in the early 90`s but I think that next year will be the testing time.

WTF?_2

moanymoany wrote: »

As I said before I wouldn't be surprised to read that people are using up available credit on their credit cards to have a blow out Christmas - and as !!!!!! commented - to be followed by bankruptcies next year. I think the first six months of next year are going to be very interesting, another 'hang on to your hat' time.

As a result of which there will be another lurch downwards for house prices.

The credit card effect happened in the States in response to their housing crash - first a rise in CC spending, then a big increase in defaults. Mind you, in many states in the US borrowers knew that they could simply hand back the keys to the bank at the end of the day and not be liable for the shortfall on the mortgage.

Will we see the same here? I'd argue that the recent increase in CC spending in the UK is probably a sign of people turning to the card to make up a cashflow shortfall in their personal finances. It's bad enough when people splurge on their cards to buy consumer goods that they can't really afford but when they are reduced to having to buy essentials on credit, the situation is really grave.

If we see a 'credit card crunch' like we have seen a mortgage lending squeeze then lots of consumers and the retail trade will be in big, big trouble. With MEW no longer an option for clearing card debt that will be when things finally hit home for a lot of people I would guess.

carolt

How funny - just returned to this thread to fnd chucky had been making lots of desperately 'goading' posts aimed at me, and that I was being defended!

How exciting.

Thank you, dear defenders - I'm afraid I missed all the goading, as I must have been busy somewhere having a life, at the time.

I do regret not buying 12 years ago or whatever - but only financially - but as there are far more important things than money, not at all. I am deeply relieved I didn't buy a couple of years ago. Identical houses to the one we nearly bought in Feb 2007 (when I first posted on this self-same forum!) are now asking less than we would have paid then.

A lucky escape.

I do enjoy watching monthly house price figures - such a relaxing hobby.

Had I just bought, I daresay I would be as uptight on the subject as some of the posters on this thread! :rotfl:

GDB2222

!!!!!!? wrote: »

Mind you, in many states in the US borrowers knew that they could simply hand back the keys to the bank at the end of the day and not be liable for the shortfall on the mortgage.

Is it possible to find out which states and whether repossessions vary between the states with different rules on this?

WTF?_2

GDB2222 wrote: »

Is it possible to find out which states and whether repossessions vary between the states with different rules on this?

The ones where you don't have to settle the difference are 'non-recourse' states.

Time to google.....

baby_boomer

Evening Standard Property editor

This arch market bull is advocating we all snap up the bargains while stocks last!

"....Interest rates on your hard-earned savings have now crashed. So why not be in the vanguard with the clever investors and buy property, get the market moving, and begin to feel confident that when the market comes back you will be sitting on a nice little earner...."

But which decade will that be in?

Is this woman related to Krusty?

The first five comments underneath the article are of the "I didn't think it was Aprit 1st" variety

PasturesNew

If people do the maths though, with £100k in savings they're losing about £3k/year since this time last year. Which would have been taxed anyway at a minimum of 20%. So they're losing just £2,400 in the next year.

I bet in a year's time any house bought today will have lost more than £2,400 in value.

It still makes sense to sit on your pound coins.