Property Price Drop

chucky

kier333 wrote: »

I am taking the mortgage with HSBC 90% LTV fixed for 2 or 5 yrs both have same booking fee and rate BF £999 both at 6.79% so you think the 5yr is best?

5 year is safest - rates may go up in the next 2 years and you may be paying more by then. but your rate isn't the best - i've just got a 4.69% 5 year fixed but the deposit is larger.

i would go for the 2 year and re-fix in two years as it will be unlikely that rates will have gone over 6% by then - only my opinion though

Bettyboop

Cat695 wrote: »

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

Hi,

Have a look at https://www.propertysnake.co.uk. It may be of interest to you and for the record I'm not affiliated to it I came across it by myself.

brit1234

kier333 wrote: »

Thanks for all the advice, have to say i'm now very confused.

Not sure what to do but would really like the flat and can certainly afford the repayments.

It seem most people think buying now is a bad investment, does that mean the flat i have mentioned will only be what i paid for it in 5yrs time?

The real danger for you is that your flat/house will be less in 5 years making remortgages far harder.

pandamonia

kier333 wrote: »

I am taking the mortgage with HSBC 90% LTV fixed for 2 or 5 yrs both have same booking fee and rate BF £999 both at 6.79% so you think the 5yr is best?

What a crap mortgage. one from the post office is better.

are you seriously thinking of fixing at 6.79%? lol

personally i think you should spend next few months reading about buying homes and mortgages since you dont seem very clued up.

your level of knowledge is far to low to make a good decision on buying a home

poppy10_2

kier333 wrote: »

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

Any thoughts?

Yes, go for it. In fact, buy a few and rent them out.

Do come back and keep us updated.

dervish

kier333 wrote: »

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?

you are obviously NOT listening to the advice here - so go on! Taked a jump in!

kier333

Well yes it would be fair to say i'm not overly clued up about buying property hence me being on here, Pandamonia!.

Thank you for the link to propertysnake, as i thought flats around London NW2 have only taken a small drop in price and i think thats my point here London is a different market to say "Buckinghamshire" I am surrounded by public transport which is cheap to use 24hr buses 20 minutes to Oxford Street, there will always be a steady supply of work in and around London for what i do and i'm involved in a project that has to be completed by 2012.

What i really wanted to know was peoples thoughts on where property would be in London in 5 yrs time.

By the way i think HSBC 6.79% is not so terrible i can make a 20% over payment each month which again i can afford, i would rather it be high and get used to it that way, than say it be at 4% now and in 2 yrs jump to say 5-6% and then giving me a unexpected rise in payments. I think in 2 yrs rates will be around 5-6% which for me will be fine.

kier333

dervish wrote: »

you are obviously NOT listening to the advice here - so go on! Taked a jump in!

I like to add i can't see us ever getting out of this mesh with so many greedy people ie think only of profit to be made, is a Flat/House meant to be your home foremost and if you make a small profit then great.

To much is put on profit. I go to work to enjoy my life not worry about profit from a flat, all the people with BTL's only jumped on it to further there finaces....greed and now paying the price!

julieq

I'm confused.

The consensus here seems to be that no-one should consider buying a house or flat at the moment, but should rent instead.

Meanwhile the consensus is also that owning properties to let is also a seriously bad idea.

Who gets to own the houses we're supposed to be renting then?

julieq

And seriously, Kier.

The risk you take buying now is that you get into reduced or negative equity during your mortgage term. This means remortgaging at a better rate may be difficult when the fixed rate ends. There are things you can do to mitigate the risk, for example squirreling a lot of cash away while rates are low to ensure you don't get caught, but it needs planning.

There is a lot of testosterone in this forum, and a lot of the sort of attitude you get when people get to say I told you so after years of being confidentally told that the worst case for house prices was a period of stagnation. Ignore extreme advice,

You can wait for prices to reduce further, and they probably will, though it's not a one way bet. There are good reasons for renting if you are young and likely to move jobs, because you get vastly increased flexibility, weigh that up as a factor, particularly at the moment when jobs may disappear. You can be pretty sure you'll need somewhere to live most of your life and that paying for it for 25 years will end up cheaper than paying for it for 50-60 years, so bear that in mind too. Ultimately someone has to own the house you live in. Either it's you or someone else, if someone else they are likely to charge you more ultimately than it would cost you to do it.

Basic common sense really.