Property Price Drop

kier333

"Property to keep dropping in value" this is all over this and other forums.

There has to be a point when it levels off and in time will rise again.

I think its a good time to buy in London as flats are 20-25% less that last year.

Any thoughts?

Cat695

yes they will rise.....once the 2 million or so people (which is getting higher pretty much daily) get their jobs back

the banks have some money to lend

and properties fall to levels that can be afforded without taking out a loan of x6 of your salary

and buying a flat now is the worst thing you can do

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kier333 wrote: »

I think its a good time to buy in London as flats are 20-25% less that last year.

Any thoughts?

I think it's a bad time to buy, especially flats, some are going to lose 80-90% when all this is over. I believe in fact that some of these developments are worthless and will eventually be demolished.

bristol_pilot

Prices have 'levelled off' at $1 in parts of the USA.

I'll consider buying when unemployment has peaked - probably above 3 million - and is falling again.

Many of our 'city centre apartments' are the slums of the future.

stevetodd

kier333 wrote: »

"Property to keep dropping in value" this is all over this and other forums.

There has to be a point when it levels off and in time will rise again.

I think its a good time to buy in London as flats are 20-25% less that last year.

Any thoughts?

There's probably at least a year to go to get near the bottom of the market (all things being equal), wait a year and you will probably buy at about 15% cheaper (keep an eye on what's happening though)

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bristol_pilot wrote: »

I'll consider buying when unemployment has peaked - probably above 3 million - and is falling again.

I think this is the key, and judging by the last recessions, unemployment doesn't start to dip for 12-18 months after the recession ends, it's going to be a long road.

brit1234

The simple fact is that banks can only lend with their savings - loses. The access to selling off property investment vehicles is over. So it means we go back to savings multiples of about 2.5-4 x salary. That means at least 50% falls from peak and possibly higher with an over correction and people being discouraged from saving due to low interest rates.

kier333

So i guess its best to keep on renting then and pay someones Mortgage for them. Thing is i pay £700 a month in rent so £8400PA the flat i'm thinking of buying is £155k and i'll put down £18k deposit, repayments are £890 a month repayment fixed for 2 yrs.

As i intend to stay in the flat if i buy it for a minimum of 5 yrs i don't think its such a bad deal plus the flat is in NW London and around 20yrs old in a small block of 10 flats some of which sold for £175-190k last few years.

Is it so awful as my £18k makes me nothing in the bank.

I also have a well paid job 48k a year.

Any thoughts, do i tke the jump?

kier333

I also think property in London is currently not badly priced ie 1 bed's around £150-160 in terms of repayments roughly what they cost to rent.

In the block i'm thinking of buying in a flat has rented for £230pw.

LittleMissAspie

You're paying 8,400 a year in rent, but the flat you want has lost at least 20,000 in a year. I'd wait another year. At least in the bank your 18k won't disappear.

kier333

So you really think its best to keep renting at £8.4k pa. I think the flats good value