Whither house prices? The BBC's take on 2009

olly300

chucky wrote: »

so extremely nice areas would have to have the same price as less nice areas due to these restrictive income multipliers.

Even with those restrictive income multipliers houses in different areas next to each other had different prices.

chucky wrote: »

those are exactly the same income multipliers that were around in the 80s - a few things have changed since then.

Couldn't agree more for example tenant laws, council housing stock...........

mewbie_2

mitchaa wrote: »

someone like Karen Matthews comes along. She wants to own her own home, she keeps popping out more and more sprogs so every couple of years, she keeps getting bigger and better homes until she eventually lives in a home the size of Buckingham Palace.

I have to say that I checked out the life style she appeared to be living, and I can't say her house or standard of living appealed to me much. Fair enough if all you want in life is crisps and a flat screen TV, but I think there's better on offer.

zarazara

hopefully huse prices will drop dramatically,by at least 50%. then my kids and my friends kids will be able to buy their own place or pay less rent. GREAT.

themanbearpig

"Mr Davis predicts prices will continue falling until 2011 or even 2012, eventually dropping 40% to 50% from their peak of the summer of 2007."

I'm glad they put that in! The masses (especially those that are selling) need to hear things like this. They will start to panic, and try to shift their house now at a 20% loss instead of 50%, thus accelarating the crash.

mitchaa

themanbearpig wrote: »

"Mr Davis predicts prices will continue falling until 2011 or even 2012, eventually dropping 40% to 50% from their peak of the summer of 2007."

I'm glad they put that in! The masses (especially those that are selling) need to hear things like this. They will start to panic, and try to shift their house now at a 20% loss instead of 50%, thus accelarating the crash.

Ahh, that Mr Davis:doh:

I wonder where he got that crystal ball from :silenced:

Lets put things into perspective here, prices have not even dropped 15% yet.

ess0two

mitchaa wrote: »

Ahh, that Mr Davis:doh:

I wonder where he got that crystal ball from :silenced:

Lets put things into perspective here, prices have not even dropped 15% yet.

Yep my area showing 10.7% LR to date.

whathavewedone

Not necessarily. We bought in 2007 but intend to live in this house until the kids leave home (they are currently 1 and 2).

We don't really care how much our house is worth as we don't intend to move for at least 20 years.

We changed our mortgage at the end of October (had brought our existing one with us in 2007 to avoid redemption penalties) and the surveyor valued it at £411k - we had paid £436k in 2007. Bit of a bummer I agree, we put the difference back in.

We also have 30k saved up for a rainy day. No debts apart from our mortgage, not even a car loan.

Our mortgage is now fixed for 3 years and we can afford to pay it. I am going back to work part time in the new year and plan to go full time when the kids start school. I'm a lawyer (not a conveyancer!) and there is a lot of work around for the sort of work that I do in a recession.

The way a lot of people are talking everyone who bought from 2000 onwards will be destitute and forced to sell their houses for 3.5x the average salary, regardless of where the house is situated, how big it is, whether it is close to good schools etc.

I agree that there will be people who are forced to sell and this will inevitably push prices down. Maybe they will go down by 50% and stay that way for several years. But so long as people can afford to pay their mortgages, so what?

I certainly won't be rushing to put our house on the market. What I will be doing is looking at increasing our joint earnings and saving as much as possible to reduce our mortgage.

Even if unemployment hits 4 million that's still a lot of people who are employed and able to pay their mortgages.

Panicking is pointless. Selling your house in a falling market when you don't need to sell is also pointless.

_bankrupted

mitchaa wrote: »

IImagine the thought...You work hard and pay your taxes for 40+ years, and then someone like Karen Matthews comes along.....

Is she the woman who had 7 children by 9 men ;-)

ess0two

_bankrupted wrote: »

Is she the woman who had 7 children by 9 men ;-)

Must have a gash like an axe wound also.

Lifeisbutadream

pickles110564 wrote: »

Problem is that some people on low incomes would love to own but will never get the chance, this is so wrong as everybody should have the right to own their own homes.

Why? nobody but you can make it possible to buy something

I would have thought the sensible thing to do, if you want to own a home and cant afford it, would be to get a better job, or work more hours