Some of you are vultures

neas

greenwheels man after my own heart

StevieJ

neas wrote: »

I dont have a personal interest in this... im just savvy with money. I have a 30% deposit for a house already... and am working towards 40%.I just dont see the point overpaying for something.... Thats my own 'bias'. I dont like BTLers who mewed and mewed to increase their 'empires of debt'. Like the wilsons... two maths teachers lived the high life for 8-10 years maybe.... and now when it all comes crumbling down.. its not them who are forced to repay millions of ponuds of debt.. they will just go bankrupt and have the memories of the good times.I really dont see how the government could have allowed 2 individuals to amass such an amount of risky debt oO.

Just out of interest, how do you know how much deposit you have as a % ?

neas

based on a current 3 bed semi :P.I wont decrease that amount as the prices decrease.... so my 40% or whatever may be worth 42-50% by time i buy etc.Still it helps get towards your goals, without bragging or looking stupid. My 30% will be peanuts to 30% in london etc.

greenwheels007

Deposit for a house, hang on a sec let me see how much change I have in my pocket, yes that should cover it!
:rotfl:

neas

there will obviously be a turning point... which i think will be around maximum the 50% drop mark... at which point people here will have 50-60% deposits maybe and will just go for it... they will have 0 risk of losing to neg equity and will be able to start working toward owning their own house.The falls wont go on forever. a 300% rise.... would take a 66% drop to get back to start. so a 50% drop would bring us back to a reasonable level imo.

chucky

neas wrote: »

there will obviously be a turning point... which i think will be around maximum the 50% drop mark... at which point people here will have 50-60% deposits maybe and will just go for it... they will have 0 risk of losing to neg equity and will be able to start working toward owning their own house.The falls wont go on forever. a 300% rise.... would take a 66% drop to get back to start. so a 50% drop would bring us back to a reasonable level imo.

good luck!! :rotfl:

besonders1

I bet you by the time FTBs have waited for the house prices to drop, they probably won't need a mortgage, or maybe just a small loan. I do feel bad for people at risk of losing their home but I would never laugh or wish it on them. After all no one is safe from getting repossessed, the rule is the same for all if you don't pay your mortgage or loan. I have never been a home owner still renting (but would want to be-:) so what you haven't had you've never missed. I think that all FTBs need to wait till at least next year before buying as we will never get this opportunity to get a good deal again. I would seriously advise against buying now as I don't believe there are any realistically priced housing or if there is there will alway seems to be a catch like shared ownership ripoffs etc.

mr.broderick

Overheard a conversation in a restaurant last night, somebody actually said if their house lost value and the were repossessed they would set fire to it so noone else could buy it, reminded me of the iraq's setting fire to the oil fields a few years ago so noone else could take it, barmy.

mr.broderick

neas wrote: »

there will obviously be a turning point... which i think will be around maximum the 50% drop mark... at which point people here will have 50-60% deposits maybe and will just go for it... they will have 0 risk of losing to neg equity and will be able to start working toward owning their own house.The falls wont go on forever. a 300% rise.... would take a 66% drop to get back to start. so a 50% drop would bring us back to a reasonable level imo.

Neas do you really believe this?
16% drops and just lucked on rightmove, good percentage of homes around here under offer, people taking advantage of low interest rates and probably sick of losing money on their savings

DirectDebacle

I don't see it as clear cut as that. It may be from your own particular circumstances. The housing market cannot be taken in isolation from the rest of the economy. If prices dropped to 1998 levels I don't think you will see a scramble to buy.

The recession hasn't finished deepening yet, let alone bottomed out. There are going to be many more joining the unemployed including school leavers and people with degrees (come the summer) chasing a shrinking job market. Reduction in income is going to lead to more repossessions and a reduction in savings for those who lose their jobs but keep their homes. This is bound to include some of the FTB you refer to as waiting in the wings.

Don't get me wrong I think house prices need to be at realistically affordable levels. At the moment I agree they have a long way to go yet but that is not the be all and end all.

Bear in mind that when house prices were affordable, lending was sensible and the economic climate was more benign there was no mad rush of FTBs. There was a steady stream to keep the market ticking over as it should. House purchase is not and never has been an option for all. If house prices return to affordable levels with correct lending criteria then that will remain the case.