'What'll happen to house prices?' poll results/discussion

Frugaldom

House prices need to come down. If a house cost £15,000 back in 1983 then it only follows that it has to be worth at least £55k now, but those houses aren't selling at anywhere near that amount, many are selling at closer to double or treble that in places. The so-called 'national averages' are a complete waste of time as they do not reflect specific areas. I could go out right now and buy a one-bed flat for about £20,000 in one area but, elsewhere, the same could cost closer to £200,000. If that makes the average price of a 1-bed flat £110,000 and that's the kind of prices we get bombarded with via the media, then perhaps people need to look closer at their own lifestyles and determine if they really are in the right house to call home. Just thinking aloud here, I live in a fairly 'cheap' area of the UK where you can still buy a large detached house and acres of land for under half a million if your income allows it.

PS: I don't live in a large house with acres of land, I still rent and will continue to do so until I can save enough cash to buy a 'home', not a house.

miamoo

I also agree that house prices have to come down, its ridiculous how expensive they are. We are renting at the moment and will continue to do so for the next year or two, and see what happens. I also agree that people who bought a house a few years ago for £100,000 and now its worth £200,000 can't complain they have lost money if it sells for £150,000 they haven't lost anything. They only paid £100,000.

wheresmydoshat

i know a couple who went to the absolute maximum they could afford interest only last year, using money they'd made from their first house to acquire a house far too big for their needs.

they are now bricking it (excuse the fantastic pun !!!), and up until recently were, like many, in complete denial about the economic slump. so whilst they show off their lovely house to people, their fridge is bare, and they are having to seriously consider getting a lodger.

besonders1

I would rather have security of if I was to lose my job, I wouldn't have the fear of losing my home. I know last year a lot of friends advised me that if I did not buy a house in the boom I would miss the boat, glad I did not listen to them. I would only pay what I think a house is worth based on what it was priced in the late 1990's and early 2000s is reasonable to me. Anything now is a complete ripoff, afterall if I bought a brand new car or TV, its value decreases over time not the other way round.

I can't see the house prices ever again being more than last year, as it is too risky and the last thing anyone wants to see is a situation like it is now or what were heading for.

meester

pinkshoes wrote: »

It's all very well stating what house prices have dropped by, but then given that EAs are only selling 1 house per week on average, many of which are reposessions, it doesn't really make the statistics particularly comparable, as the price drop is based on such a small number of sales!

Rubbish grotty areas are dropping where I live, but in nice areas, people just aren't bothering to sell unless they HAVE to.

In other words, everywhere is dropping.

BTW, most people don't sell/move house just for fun.

Personally, I'm not that bothered. If they drop as much as people are saying, then I'd definitely consider buying a second property to rent out, which I never would have considered in the past.

In other words you expect prices to fall further, otherwise you'd be buying now.

Good news! :T

before_hollywood

people buy houses expecting to make money- why?
i borrowed £4.5k 4 and a bit years ago to buy my car, did i expect it to be worth 8k now? no course not, i needed a car and renting one was expensive.

a mortgage is basically renting and keeping the house at the end of it, its not a license to print money and shouldnt be treated as such

ormus

my brother has just sold his (BTL) 2 bed terraced for 46k!
they were bringing 80k last year in his area.
so the price fall is nearly 50% in some less desirable areas.

wheresmydoshat

even if you did "make" money on a house, you'd be paying back a HUGE amount more than the price you paid in mortgage repayments anyway.

purplelisa

Well, I'm one of those who has lost out with the house price crash. I bought this house as a 'stepping-stone' to a larger property and now I'm bordering negative equity.

I guess I should be happy that I'm on the housing ladder and can afford to stay here, for the time being, but I had planned to sell this property in the new year and now I feel trapped. I love my house, I just don't like the location. I've only just remortgaged the place this week (at a push and a not-so-good interest rate) and think I'll have to stay another 3 years at least before I can even think of that new house.

Am I being selfish? Should I just be grateful that my situation isn't as bad as many other people's are? Of course I'm in debt, and if I wasn't then I wouldn't be in this situation but do I blame the banks? Definitely not! I took out too much debt because I wanted to. I wanted a nice car and a nice house and that's what I got, but at a price. Luckily, I can afford my debts, as long as I can keep my job.

Here it is, in black & white, the first time I've ever done this.
Mortgage - joint £104,500
Loan - joint £15,000
Loan - £11,600
Credit Card - joint £2,500
Credit Card - £150

So that's a whopping £52,250 for the mortgage, £19,100 in loans and £1,400 on a credit card. A grand total of £72,750 of personal debt. Just how bad is this? Can anyone offer any condolences?!!!

Am I on the right forum here?!

wheresmydoshat

i have no debts at all. but our first house will have a mortage of at least 180k, if that helps at all...!