How long will this last?

whathavewedone

2016

In the 80s you couldn't borrow more than 4 x your salary maximum but we still had a boom.

If prices get as low as a lot of people on here and HPC believe then a lot of people will be in a postion to buy several properties without needing to borrow more than 3.5 x their salary. This will cause another boom.

Booms happen because a number of people see an opportunity to make money. Typically the best time for this is when prices are low, eg after a crash.

Personally I think that things will get tightened up now (locking the door after the horse has bolted) and then gradually relaxed over a period of years as people will forget about it once we start to come out of recession which will happen eventually. I'm not saying that we will see a boom and bust of these proportions in our lifetimes but I'm sure we'll see several booms and busts yet.

ukcarper

I bought my first house in 1972 it was a new build 3 bed terrace in a road of mainly 3 bed terrace.

At the beginning of the year they were £5,500 I bought mine April £8,000 and they were £11,000 at the end of year. All with max salary multipliers of 4x.

mumps

I bought my first house in 1973 just before the boom went bust. We had to save with BS for about three years before they would consider us for a mortgage, 3 x husbands wage 1 x mine. We were phoning up about houses from adverts (advertised at about £4 k and they already had cash offers of over £5k within hours of paper being published.) We eventually bought a wreck for £5,200 and renovated it. Few months later is was worth less than we paid.

mewbie_2

How long will this last?

I have been studying the 'sage of Omaha' and am working on my soundbites accordingly.

It will last as long as it lasts.

ukcarper

mumps wrote: »

I bought my first house in 1973 just before the boom went bust. We had to save with BS for about three years before they would consider us for a mortgage, 3 x husbands wage 1 x mine. We were phoning up about houses from adverts (advertised at about £4 k and they already had cash offers of over £5k within hours of paper being published.) We eventually bought a wreck for £5,200 and renovated it. Few months later is was worth less than we paid.

Yea just goes to show you can have a boom bust even when mortgages are hard to come by and you need a reasonable deposite. It was a lovely time to buy lol gazumping etc builders not even letting you now when their houses would be released as they had so many people wanting to buy them. Not to mention estate agents showing you the door when you told them what you could afford.

ManAtHome

mewbie wrote: »

I have been studying the 'sage of Omaha' and am working on my soundbites accordingly.

It will last as long as it lasts.

It will last until there is thirst works better...

From memory, there was quite a rush of "buy with your partner/mates" in the late 80s when fatso announced the end of multiple MIRAS (think he dropped it from max £60k to £30k, but "unwittingly" gave a few months notice of the change).

mumps

ukcarper wrote: »

Yea just goes to show you can have a boom bust even when mortgages are hard to come by and you need a reasonable deposite. It was a lovely time to buy lol gazumping etc builders not even letting you now when their houses would be released as they had so many people wanting to buy them. Not to mention estate agents showing you the door when you told them what you could afford.

And having to bow and scrape to BS manager. I remember him coming to insepct what we had done, we only had £700 deposit (it was hard for us to save that on wages at the time and we had our first baby while saving) we were supposed to have 20% deposit but were allowed smaller deposit as we needed to have the house rewired, new windows, new kitchen, new bathroom and decorate the house. Family chipped in and fil was a decorator, brother in law carpenter, other brotherin law electrician so it got done cheap. Good thing in the end as we sold less than 2 years later for a profit and bought beautiful four bed Edwardian house, not popular then so we got it cheap but came into fashion a few years later and we did well with it.