Property Price Drop

mitchaa

Cat695 wrote: »

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

I dont get why people say this especially when you take into account the longterm 1.6m average.

The vast majority of this lot will be the workshy will not work mob.

Unemployment has risen by around 400k, so 400k people need to get their jobs back, not 2m;)

kier333

I totally agree with the 2 above statements.

SingleSue

The only problem with that Mitchaa, is that you are going on official claim figures....there are a whole host of people made redundant who are ineligable to claim because of savings, not enough stamp being paid etc.

How many times have we seen people posting on here saying they are or have been made redundant and that they are unable to claim? How many times have we seen people speaking about the unfairness of it?

I have always taken the official figures with a very large pinch of salt (not just this governments), as at times, I have not been on the official lists either.

I think what people are trying to warn Kier of, is the possibility of losing a fair amount of money if she/he buys now. The loss of equity can have severe ramifications when a mortgage fix comes up for renewal, even if the property has been purchased as a home...ok at the moment, the ramifications are not too bad but who knows where interest rates are going to be in 2 or 5 years, although the same can be said regarding property prices.

My input for you Kier.....proceed with caution and try to read up on any reports you can get your hands on. Only you know what you want and what risks you can take but if you do take the plunge, make sure you have contigency plans/funds in case of worst case scenario.

Personally, if I was in a position to buy now and knowing what happened in the last recession, I would hold off and see what happens...at least you would still have the 18k in the bank and not owe the bank. At the very least, you could then watch the market a little more closely to get a real feel for it whilst also increasing your deposit, further protecting yourself against further falls in prices when you do dip your toe into property buying.

chucky

kier333 wrote: »

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!

kier - just to add when you say flat i'm assuming it's a converted flat in a terrace right?

Radiantsoul

bristol_pilot wrote: »

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.

I don't believe there is anywhere in the USA where you can acquire an unencumbered property for $1.

ModernSlave

Radiantsoul wrote: »

I don't believe there is anywhere in the USA where you can acquire an unencumbered property for $1.

http://www.foxbusiness.com/story/markets/economy/house-sells-dollar/

In what might be considered a new low for the housing market, a home in Detroit sold for $1.
The home, located at 8111 Traverse Street, close to the Detroit City Airport, was foreclosed upon last summer, after it was purchased for $65,000 in 2006, according to an article in The Detroit News.

iB1

This is an interesting one.

Although I think now isn't the best time to buy - especially a flat as these will lose their value quicker than a house - I can see why the OP wants to buy. If they earn 48K PA and are looking at putting down an 18K deposit, then they're buying a flat that's around 2.9 x their salary. That means, as mentioned, that a hefty amount of overpayments can be done.

Sure, we're quite a way off the bottom of the market, but at the same time, if you're buying somewhere to live rather than an investment and you're not over-stretching yourself, then it might be worth going for.

botchjob

kier333 wrote: »

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.

You should do whatever is right for your situation but that fixed rate is truly rubbish. If you could afford to overpay a mortgage by 20%, I’d say you’d be better off putting that towards your deposit savings and waiting until you can get a better rate. You’ll be throwing money away otherwise. And chances are that house prices will continue to fall in the meantime, so you'll be quids in both ways.

lostinrates

iB1 wrote: »

This is an interesting one.

Although I think now isn't the best time to buy - especially a flat as these will lose their value quicker than a house - I can see why the OP wants to buy. If they earn 48K PA and are looking at putting down an 18K deposit, then they're buying a flat that's around 2.9 x their salary. That means, as mentioned, that a hefty amount of overpayments can be done.

Sure, we're quite a way off the bottom of the market, but at the same time, if you're buying somewhere to live rather than an investment and you're not over-stretching yourself, then it might be worth going for.

I always thinks it relates to circumstances of the individual, and not just financial.

I, personally, would be wary of buying a smal flat as a home now if I were single but youngish....who knows what the personal future holds if you are in your 20s or 30s...and the ideal bargain single pad might not be ideal if a partner moves in or a baby comes along, and you can't scale up. I agree things are about personal circumstances but that can dictate the need for just getting on with it or being more cautious.

chucky

iB1 wrote: »

This is an interesting one.

Although I think now isn't the best time to buy - especially a flat as these will lose their value quicker than a house - I can see why the OP wants to buy. If they earn 48K PA and are looking at putting down an 18K deposit, then they're buying a flat that's around 2.9 x their salary. That means, as mentioned, that a hefty amount of overpayments can be done.

Sure, we're quite a way off the bottom of the market, but at the same time, if you're buying somewhere to live rather than an investment and you're not over-stretching yourself, then it might be worth going for.

just to add - if it's a new build flat yes the above is correct.

if it's a flat in a terraced property i disagree as they are not in the same category as new builds.