First time buyers are coming back to the market.

pandamonia

FTB are seeing prices drop so they think its a good time to buy. but their deposit will have vanished this time next year as prices are dropping too.

there are still huge downward pressures forcing prices lower, even tho rates are lower i have now noticed that alot of lenders have cut the salary mulitples for these good rates. such as i can get 4.25x for 6% but i can only lend 3.5x for 3.5% and ive come accross lenders who will now lend only 2x salary. mugs who are putting down 25% today will find all their money has evaporated within 18 months.

Prices will not rocket again like they have done since the 2nd hand mortgage market litterally does not exsist. You need to understand what fueled the bubble to understand why we wont see another one like it for a while.

in my personal opinion the 20% you lose over the next 12 months will take possibly 10 years or more to recover.

even though lending may start to ease over the next few years there will not be an abundance of liquidity like in 2007. People have had their fingers burnt and the 2nd hand money market will never be the same. Not to mention the 20 year debt burden we have to clear before we are back to pre bubble levels.

i think interest rates will be kept quite low for many years so we can recover from this mess, lending will be tight for years through new regulation and control. Lending multiples will be tighter than pre bubble and 100% mortgages will possibly be banned to avoid a repeat of this.

i think we need to be prepared for low interest rates but higher taxes and increased control of lending.

in this current climate i cannot see prices recovering for quite some time. and even when market stabilises you wont see increased asset values for years. only way of possibly making money will be through extentions and extra bedrooms.

Seems some FTB's think that rushing into buying now is a good idea. Personally i cant see any reason to buy now. market is distorted and disorientated. its all just guesswork.

ess0two

pandamonia wrote: »

FTB are seeing prices drop so they think its a good time to buy. but their deposit will have vanished this time next year as prices are dropping too.

there are still huge downward pressures forcing prices lower, even tho rates are lower i have now noticed that alot of lenders have cut the salary mulitples for these good rates. such as i can get 4.25x for 6% but i can only lend 3.5x for 3.5% and ive come accross lenders who will now lend only 2x salary. mugs who are putting down 25% today will find all their money has evaporated within 18 months.

Prices will not rocket again like they have done since the 2nd hand mortgage market litterally does not exsist. You need to understand what fueled the bubble to understand why we wont see another one like it for a while.

in my personal opinion the 20% you lose over the next 12 months will take possibly 10 years or more to recover.

even though lending may start to ease over the next few years there will not be an abundance of liquidity like in 2007. People have had their fingers burnt and the 2nd hand money market will never be the same. Not to mention the 20 year debt burden we have to clear before we are back to pre bubble levels.

i think interest rates will be kept quite low for many years so we can recover from this mess, lending will be tight for years through new regulation and control. Lending multiples will be tighter than pre bubble and 100% mortgages will possibly be banned to avoid a repeat of this.

i think we need to be prepared for low interest rates but higher taxes and increased control of lending.

in this current climate i cannot see prices recovering for quite some time. and even when market stabilises you wont see increased asset values for years. only way of possibly making money will be through extentions and extra bedrooms.

Seems some FTB's think that rushing into buying now is a good idea. Personally i cant see any reason to buy now. market is distorted and disorientated. its all just guesswork.

Yawn, still peddling same old story...........

pandamonia

ess0two wrote: »

Yawn, still peddling same old story...........

i think you are seriously in denial lol.

one of the home owners who just cant let 2007 prices go?

http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=471933&in_page_id=57
http://www.thisismoney.co.uk/mortgages/house-prices/article.html?in_article_id=471609&in_page_id=57
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5626225.ece
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5462413.ece
http://www.thisismoney.co.uk/house-price-tables

I think you are on your own in your views.

im sitting here laughing at you.

ess0two

You fail to factor in people buy houses for all sorts of reasons,the list is endless.
Whilst your crusade meets with plenty of expectations on here,the whole population does not subscribe to MSE.
Houses are gonna be continually sold,this may or may not slow monthly drops who knows,1 think for sure we aint in for a recovery just yet,which i suspect what you fear will happen.

pandamonia

ess0two wrote: »

You fail to factor in people buy houses for all sorts of reasons,the list is endless.
Whilst your crusade meets with plenty of expectations on here,the whole population does not subscribe to MSE.
Houses are gonna be continually sold,this may or may not slow monthly drops who knows,1 think for sure we aint in for a recovery just yet,which i suspect what you fear will happen.

of course houses will be sold since people are forced to sell for various reasons.

but FTB's shouldnt really have enough pressure to buy since they have done without owning a home till now so waiting one more year in the face of the next 40-50 years of owning wont hurt?

i think you miss my point, im not saying houses arent sellin because they are..

im saying now isnt a good time to get onto the ladder.

whathavewedone

Especially not 24 year old flash gits with a 10% deposit saved v 35k loan for a BMW that costs them £750 per month.

No one disagrees with you on that one I'm pretty sure

chucky

ess0two wrote: »

Whilst your crusade meets with plenty of expectations on here,the whole population does not subscribe to MSE.

very good point Pandamonium is only allowed on the internet when his mum isn't around

Cozworth806

The thing about houses is that everyone needs to live in one, and if you get to a point where it is cheaper to buy than rent, you can get a good mortgage deal and the deposit saved isn't getting decent returns in the bank then as long as you walk in with your eyes open then I can see a return of buyers.
Nice houses in this market are rare and are still fought over if they are realistically priced, so just because people choose to buy is not a total indication of the state of the market but looking at a two year steep drop and then a flattening out over a number of years could mean an astute buy.
(No certainties in life ever)

pandamonia

whathavewedone wrote: »

Especially not 24 year old flash gits with a 10% deposit saved v 35k loan for a BMW that costs them £750 per month.

No one disagrees with you on that one I'm pretty sure

lol are you a bit bitter or something?

geoffky

high house prices are a good thing as it makes people pay a hell of a lot out of their monthly wage to keep a roof over their heads and stops them spending it all on crap like food and fuel costs....