1000's of cheap homes coming onto the market very soon

samba

No-one knows what house prices are going to do next, but my guess is that they are bottoming out and will start stabilising soon. I predict with my crystal ball that the recession will be short-lived and people will be back to their foolhardy live now pay later ways sooner than expected.

To the person who foresaw it all and has been renting for the last three years, can I just point out that you have probably paid out in the region of £20,000 or more, so if I bought a house three years ago and it's price has dropped less than that ( which were I live could well be the case according to the statistics ) then I am doing better than you ( not saying that I am tho )

besonders1

I dread to think about what the prices would be in the next 6 months. A lot of people got caught out in the peak as many people started to move away from sensibly paying for a house to just buying anything to get onto the housing ladder. In previous decades there was not a an awful lot of obsession with property development and silly money making shows. I know that its a sad fact that people who bought their house at the peak, but at the time they probably thought they were getting a bargain, plus if they waited until now or next year, the house would have been zapped up by someone else. Even if you need to move and your in NE you cant put your life on hold forever.

ukcarper

Austin_Allegro wrote: »

Could the OP be talking about second homes and BTL?

Even with first homes, some bearish people may think its time to cut their losses and sell rather than risk repossession, but given the lack of financial foresight of most people in the UK I agree it's unlikely...

I don’t think he was but if you are a BTL and your rent is covering your mortgage you only loss when you come to sell. It might take you 10 years to get out of NE but does it matter or is it better to borrow the NE and pay off your mortgage.

Wig

samba wrote: »

To the person who foresaw it all and has been renting for the last three years, can I just point out that you have probably paid out in the region of £20,000 or more, so if I bought a house three years ago and it's price has dropped less than that ( which were I live could well be the case according to the statistics ) then I am doing better than you ( not saying that I am tho )

I haven't been renting for 3 yrs, I haven't rented at all. I'm looking for a 2nd home/BTL .....long story.

I have agreed that those people who did their sums and decided it was better to buy at inflated values rather than rent whilst waiting for a crash are not idiots. BUT the people who decided this nearer and nearer to 2007 didn't have very good foresight. I could see it coming faster and faster in 2007, then Northern Rock floundered and still, people were buying right up until April 2008 at crazy prices when the crash was actually occuring right in front of their eyes.

drc

bing0 wrote: »

It's now only a matter of time before buyers with negative equity start realising they're in a no win situation.A sad situation that I wouldn't want to be in..............BUT

I do hope through all this I find a property at a bargain price !

My plan over the next several week is to put VERY low offers on lots of property,it has to be just a matter of time before one caves in (fingers crossed)

Have a nice day

Just curious - why do you think this is suddenly going to happen? It hasn't happened yet (probably because of the fall in IRs) but why should there suddenly be a wave of sellers who have to sell because they are in negative equity? What is/will be the catalyst for this sudden sell-off in your opinion?

foreversummer

The OP obviously does not understand how housing market/negative equity works.

Foreversummer

zappahey

samba wrote: »

To the person who foresaw it all and has been renting for the last three years, can I just point out that you have probably paid out in the region of £20,000 or more, so if I bought a house three years ago and it's price has dropped less than that ( which were I live could well be the case according to the statistics ) then I am doing better than you ( not saying that I am tho )

Your hypothesis only works if you're mortgage free.

In my case, we sold in July 2008 for £220k and the Nationwide house price calculator suggests that it's now worth £187k (similar houses are sitting at asking prices of £199k since October, so maybe not too far out).

Since then, we've paid €13500 in rent and saved £5715 in mortgage payments plus over £1000 in council tax.

Running_Horse

prowla wrote: »

The bottom line is that all of the people who have contributed to the housing market for the past decade have been conned.

How conned? We needed to move to start a family and for work, and quite happily traded up in 2007 knowing prices would fall. As we will be here 20 years and still have over 50% equity, it doesn't matter. If we had waited until now we would have had the hassle of selling in a dead market.

prowla wrote: »

If you are buying now you shouldn't be too smug, because prices are still inflated.

In your opinion, but not everyone buys to make a profit. People buy houses (and cars) for all sorts of reasons. Your financial "logic" is what caused the greed you complain of.

As someone else said, it sounds like the OP is just too scaredy-cat to get on and buy a house. Fair enough, that's their choice.

Martinslovechild

bing0 wrote: »

It's now only a matter of time before buyers with negative equity start realising they're in a no win situation.A sad situation that I wouldn't want to be in..............BUT

I do hope through all this I find a property at a bargain price !

My plan over the next several week is to put VERY low offers on lots of property,it has to be just a matter of time before one caves in (fingers crossed)

Have a nice day

Roll forward a few months after bing0 has purchased the aforementioned property and his next post will likely look something like this...

bing0 wrote:

So I bought this house in May 2009 from some IDIOT who got into the housing market too late. What a Muppet

My question is this - the bank has just written to me demanding an immediate payment for £12,500 to "reduce the bank's liability on the property to an acceptable level as detailed in point 7(c) of the mortgage terms & conditions, i.e. the bank maintains a maximum 70% liability - if at any time the property value reduces, causing the equity to fall to less than 30% of the property valuation at that point in time, the bank may demand that the borrower makes a payment equal to the difference".

How can they do this to me - it was such a bargain price and I got it for a seriously LOW price from an IDIOT who caved in

Now I'm SO angry:mad:

I think I might be turning into an IDIOT

bing0

Wait and see, apart from people
Being on negative equity,there are those who just want to sell to move on,30% may seem a big drop in the
Asking price,but many sellers Can afford this paper loss.I have had a very hard
Lesson in the last several years, it's now payback time.If you don't like what I have to say....then so be it,that's your choice.Thankyou for all your kind words and support.