So when will House Prices Hit the Bottom?

tommy75

Maisie11 wrote: »

Chewmylegoff, you must have looked at past posts. We had an offer for £975K and to be honest my husband really didnt want to move and consequently we have taken our house off the market. Workwise we are in stable jobs and the equity release would have been very nice but we are able to pay our bills using income so didnt see the point of paying £60k plus to release equity at least not at present!

Your a sales manager. Did you save up you income to buy a 1 million pounds home or did you make some money through the housing market just out of interest?

When I started looking for a first house (terrace 2bdroom North) in late 2004 they were around 8k to 40k depending on condition and area. These houses are now around 50k to 125k 2009. It does hurt to see how much people have made on their homes in such a short space of time when wages have hardly gone up. Healthy growth in houses alongside wages works but theres been a huge housing bubble and it no longer works.

RainMaker_2

tommy75 wrote: »

It does hurt to see how much people have made on their homes in such a short space of time when wages have hardly gone up.

Hurt ? Why?

Maisie11

Tommy75.

I entered the housing market about 25 years ago! What makes you think it has just happened over the last couple of years? We are both working and have well paid jobs. We dont have any previous marriages, children etc just our own so there are no maintance charges etc to pay. I have been in my job for nearly 25 years. Certainly didnt start at this level.

tommy75

RainMaker wrote: »

Hurt ? Why?

Because if I had bought before the bubble six years ago, I would have a cheap mortgage and be able to go on holiday, buy a car, have a life. If I try to buy now for the same % of money, I know I cannot afford the same house or have any life at all because most of the money I earn will go on paying a massive mortgage.

Maisie11

What did you borrow in terms of earnings? What deposit did you put down? Are you sharing the costs with someone else. Why would you have a cheap mortgage - surely interest rates are very low at present?

treliac

tommy75 wrote: »

Because if I had bought before the bubble six years ago, I would have a cheap mortgage and be able to go on holiday, buy a car, have a life. If I try to buy now for the same % of money, I know I cannot afford the same house or have any life at all because most of the money I earn will go on paying a massive mortgage.

We bought over 20 years ago. It was a struggle, especially once the kids came along. We both worked, ran a couple of old bangers, had camping holidays, but nothing spare for 'paid' entertainment.

That's just the way it was for most - we didn't expect to have it all.

It's getting easier now but we still pay towards the children's higher education and just hope we don't get hit by redundancy - we went through that twice when they were little.

Think it's going to be down to earth with a thump for a whole generation now. The ups and downs go round in cycles, and always will. Only, due to gross economic foolishness, this down cycle is looking scarier than ever.

As for making money on house price increases. That's only so if you want to sell and don't need to buy. Otherwise it's all relative, except that your mortgage is going to be correspondingly high when prices are higher.

For anyone just starting out, their best bet is to hang on. Things can only get better - to coin a phrase.

bigheadxx

You can bet that whenever it is the government will react about six months later as usual!!!

The British Government is abolishing 100% mortgages!!!! havent they heard?

My prediction is that prices will stabilise when they are more in line with average earnings so maybe the average house will be about £120,000. By that time (June 2011 there will so little interest in house buying that the market could remain flat for years. The main problem is that when we come out of this recession we will be hit by an unprecedented rise in taxes that will take money out of the economy just as those "green shoots" are showing through

tommy75

I just hope to be able buy soon. Really hate renting now.

Maisie11

Tommy,

when you have lost something you really really appreciate it when it comes back and why wouldnt things turn around for you. When I met my husband he had £30k negative equity which meant he was stuck in a 1 bed flat saving madly until he could move. When we moved in together we had to get a 95% mortgage but as we are in stable well paid jobs it was OK but I could have lost my job, we could have split up etc etc. I have never let money take over my life, easy to say now but it wasnt always like that.

So, now you know what you want in life just go for it......

pyewackitt

tommy75 wrote: »

I just hope to be able buy soon. Really hate renting now.

Look on the bright side - you and I are in one of the best possible positions for any potential buyers since the earlier 1990's. We're watching the market sink before our eyes with the possibility of value for money property which our friends and family who bought in the last few years could not hope to match.

Similarly the stock market is finding new 12 year lows and potentially has a lot further to fall also - big rises will happen in some sectors once the floor is reached.

Recessions aren't always bad things - they squeeze out poor credit and malinvestments and force everything to become more reasonably priced and more efficient. at the end of a recession the potential for upside growth will always be better than at any other time, the key is timing.

I've wanted to buy for years now but always managed to hold myself back and keep saving - in the meantime i have friends in substantial negative equity after buying in the last few years and frankly its better to even have 0 in the bank than watch your hard earnt deposit get evaporated as equity through market falls.

All the best and don't get frustrated!