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Debate House Prices
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Nationwide Nov08: -0.4% Mom, -13.9% Yoy
Comments
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Everyone is just concerned with what is going on - seems that buying ANYTHING that requires long term commitment is at the back of people's minds at the moment.
I would say the sensible plan is to keep your head down, ride out the storm and hope you come out on the other side still sailing your little dinghy. Easier said than done, but we really are in unprecedented times (Financially speaking).
That is my plan anyway. Continue to save and invest and hope I don't lose my job (seems rather secure... for now. Providing people still need oil, gas and drugs)0 -
The country is broke. Expensive schemes like this are not impressive to the market, for gilt pricing and borrowing. We'll be heading to the IMF in the hope of bailout money soon.
You're having a laugh if you think we're near the bottom of the market. The house price crash has only just started.
I don't think anyone really thinks the bottom of the market has been reached - one swallow.... and all that.
But one thing is sure, no one knows what or when the bottom of the market will be, it could be 15% of peak or 50% - if I knew when and how much - I would be laying plans to buy a 2nd property when it happens, to hang to for a few years and then sell at a profit - only kidding!
I think everyone will have their own ideas of what price falls will be, some will be right and some will be wrong.
The regulation from the government, IMHO is a good idea, if thousands upon thousands of people are repossessed, they still have to be housed. If you are single or a couple fine - get on with it. But they can't put children on the streets. So somewhere to live will have to be found for them and what would that cost? Not just economically but socially.
This help is available at the moment for 2 years - not 12, or 20. So really what people will have is a 2 year period in which to try and sort themselves out. At the end of the 2 years a lot will have sorted things out and have new jobs etc, and some won't, they will probably be repossessed and evicted.
If I lost my job - the first thing I would do would be to try and get my lender to put me on interest only, so the whole of due amount would be paid and I would only be 2 months in arrears if I had no redunancy money or savings, then try and sell the house and rent.
I lost my calling - reading this I should have been a social worker!0 -
Haha, not what the MSE door mongers were hoping for this morning;)
The average home lost £430 in the last month:rotfl: What about the £1000 rent you lot have just wasted:p
What about those economics lessons you forgot to take?
Rent is no more wasted than the £1500 interest you'd have paid on a mortgage.
Bottom line = £430 off the price, £500 saved compared with renting from the bank = renters QUIDS IN!
As long as house prices are falling, renters are saving a lot of money. Sunk capital is not free.50% drops my ar*e. We are still not at 15% with this latest rise:D
Really? Have you checked the auction sales lately? Falls of 40% on average. BTW, it's a fall, not a rise.0 -
steadysaver wrote: »I would say the sensible plan is to keep your head down, ride out the storm and hope you come out on the other side still sailing your little dinghy. Easier said than done, but we really are in unprecedented times (Financially speaking).
That is my plan anyway. Continue to save and invest and hope I don't lose my job (seems rather secure... for now. Providing people still need oil, gas and drugs)
I agree but I don't think others actually realise that the party is well and truly over. You can see just how desperate things are getting when you hear that this Labour Govt are threatening banks to start lending again - and just where is that going to get us? We have a govt that wants to artificially create another housing boom? It is complete madness! Nowhere in history is there a trace of successful govt intervention with regards to the financial markets!
All this talk, threats and public borrowing is to serve one purpose only: to ensure that Brown wins the next general election!0 -
baileysbattlebus wrote: »If I lost my job - the first thing I would do would be to try and get my lender to put me on interest only, so the whole of due amount would be paid and I would only be 2 months in arrears if I had no redunancy money or savings, then try and sell the house and rent.
Can you let us know what the outcome would be if your lender refuses your application for interest only?0 -
What about those economics lessons you forgot to take?
Rent is no more wasted than the £1500 interest you'd have paid on a mortgage.
Bottom line = £430 off the price, £500 saved compared with renting from the bank = renters QUIDS IN!
As long as house prices are falling, renters are saving a lot of money. Sunk capital is not free.
Really? Have you checked the auction sales lately? Falls of 40% on average. BTW, it's a fall, not a rise.
It would cost me £1750 per month MORE to rent my house than buy it. I should imagine that most people are in this position. The rent versus interest calculation only really work for FTBs.0 -
I agree but I don't think others actually realise that the party is well and truly over. You can see just how desperate things are getting when you hear that this Labour Govt are threatening banks to start lending again
A couple of months of not very big price falls would surely give the banks confidence to start lending again. If December, January, Feb bring figures as small as today's a spring bounce in 2009 can't be ruled out, surely? Couple that with some good retail figures for christmas and the winter sales, a stock market rally and a further cut in interest rates - who knows what might happen?0 -
What about those economics lessons you forgot to take?
Rent is no more wasted than the £1500 interest you'd have paid on a mortgage.
Bottom line = £430 off the price, £500 saved compared with renting from the bank = renters QUIDS IN!
As long as house prices are falling, renters are saving a lot of money. Sunk capital is not free.
Really? Have you checked the auction sales lately? Falls of 40% on average. BTW, it's a fall, not a rise.
Auction sites:rotfl: And what point are you trying to make here? Are you disillusioned that this is the norm or are you trying to make a weak (Very weak) point?
Have you checked the LR figures, what about Nationwide, Halifax? Lonnnnnnnnnnnnnnnnnnnnnnng way off 50% drops yet my friend.
14.5% to 14.8% in normal circumstances is a rise even if it depicts a drop. Its not that hard Depends on what way you look at things, -14.5 to -14.8 is obviously a fall. The way you play with the numbers you see
£1500 paid in interest on mortgage
What about the many millions of people with low mortgages and high priced homes in comparison? The sort where the mortgage is £150 and the rental value of the property would be ITRO of 10x this amount. Your point is only relative to the stretched FTB.
Another point to note here is, you will eventually recoup your mortgage interest at some point in the future (True or false?) Can the same be said about your rental payments? Lets not get into an argument about rental vs mortgage though, as we will be here for days.
The £150 mortgage and £1500 rental scenario is the point to note here though;)
(No im not suggesting buying is better than renting at the moment before you start)0 -
baileysbattlebus wrote: »If I lost my job - the first thing I would do would be to try and get my lender to put me on interest only, so the whole of due amount would be paid and I would only be 2 months in arrears if I had no redunancy money or savings, then try and sell the house and rent.
This seems to be the new temporary measurements:_
"April 2009
Help with mortgage costs – due to housing market problems
There will be a temporary:- Cut in waiting time from 39 to 13 weeks, and
- Increased in the loan limit from £100,000 to £175,000
http://www.newcastle.gov.uk/core.nsf/a/wr_bench2009
Wasn't there a thread recently about LLoyds not allowing people to move from repayment to interest only mortgages?RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
Read the sticky on the House Buying, Renting & Selling board.0
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