Property crash soon???

Tassotti

There you go.. Depends on individual circumstances. At the end of the day, what would you rather leave to your descendents, a house or a rent book!!!

booboomania

I have read through this thread and fine the comments interesting from investment and affordability perspectives.

However, my husband and I are coming from a different perspective and about to complete on our first time purchase. We look forward to moving into our 3 bed semi as it will provide a wonderful HOME to us and our unborn child due in August, and any other children which may subsequently join us. We have the security of knowing that we can stay in this house , providing we keep up with the repayments which are affordable - a security which is not available when renting. And if there is a crash, then so be it, we will stay in our home for many years to come, just as the previous owners of the house have since they moved there in 1955.

Despite all this doom and gloom, which has been around for what feels like ever, we are looking forward to our move with confidence and positivity about what the future holds for us.

MORPH3US

NSR2 wrote:

Err they don't need to rise 15%, Just a couple of 0.25% increases will do it.

You take my words too literally!

My point was that it doesn't matter what anyone thinks, no one knows whats going to happen in the future! Therefore everyone has to make an educated guess with some level of realisation that they could be wrong.

That doesn't mean that everyone should stop buying houses just in case everything does go down the plug hole. People can quote figures, post graphs and whatever else they want, but at the end of the day, I know that I now live in a dingy little flat and I want to buy somewhere that I can own and do with as I like. There is a risk involved in that, there is a risk involved with everything in life, I just have to deal with that risk if / when it turns round and bites me!

I know that at the end of the day, if rates went up to even 10% (although I have fixed for 5 to start with anyway) then I could still afford my mortgage. I'm not saying it wouldn't be tight, but at the end of the day, I could still sit out on my patio in the sun with a beer in hand :beer: and relax!

M

Edit:

Good luck Booboomania! Enjoy your new house!

lisyloo

Hi - Glad you are feeling positive - and good luck - sounds like an exciting time for you.

We have the security of knowing that we can stay in this house

Do you have a fixed rate mortgage (if so then good).
Have you covered the risks of death, redundancy and sickess?
Not being negative just wondering if you have it all covered.

And if there is a crash, then so be it, we will stay in our home for many years to come

Lets hope you don't get neighbours from hell then or have to relocate for job purposes.

Not being negative but these things do happen in real life.

Tassotti

Morpheus,

Excellent attitude. Do it and do it now, prices are on the increase and if you don't buy now you never will.

Cngratulations my friend and welcome to the world of the owner.

Enjoy that drink and in many years to come, you will reflect back and look smug.

CD_Man

Im gonna be blunt - its all bullsh*t! Houses will never get cheaper, property never ever loses money - the longer you leave it to buy your own place the more expensive it will be for you - crash or no crash! Im waiting to move into my 1st place and reading this thread hasnt out me off 1 bit - you have to take a chnace in life or you wont achieve anything!

exil

But if you have to relocate, the house prices where you're moving to will go up (or down) too!

It can be a problem if you happen to buy just before there is a LOCAL slump in prices (say due to a new sewage works/phone mast, or if a local factory closes down). But a nationwide
slump only affects you if you happen to have bought with a 90/100% mortgage and THEN have to move suddenly (negative equity).

If you see house buying as PURELY an investment decision, then you have to balance the risks against putting the money into shares, pensions, whatever. Most people see their 1st house, at least, as a way of getting out of the rental market. And taking the long term view, it is a good investment too (or has been for the last 100 years or so!)

Tassotti

Hi CD Man

"houses never lose money"

Thats not quite true. They do,. The housing market is like any other...prices go up...prices go down..the same as the stock market...

However, the difference is, you cannot live in stocks or shares...if it is your house and prices godown, and you can afford it, keep it. Evwentually it will go uo

booboomania

lisyloo wrote:

Hi - Glad you are feeling positive - and good luck - sounds like an exciting time for you.



Do you have a fixed rate mortgage (if so then good). YES for 3 years
Have you covered the risks of death, redundancy and sickess? YES, YES and YES Have the additional back of of critical illness cover through work and death in service benefits through pensions.
Not being negative just wondering if you have it all covered.



Lets hope you don't get neighbours from hell then or have to relocate for job purposes. Hadn't thought about neighbours from hell - but the current ones seem nice... Hadn't thought about if we had to relocate either, but I think that is very unlikely as we are not in specialist jobs where this may be necessary (at the moment).

Not being negative but these things do happen in real life.

I know, but I refuse to walk around wondering if all these things are going to happen with a frown on my face - this is real life and we want a home to enjoy!!

lisyloo

But if you have to relocate, the house prices where you're moving to will go up (or down) too!

I agree, but the specific point we were debating were if prices GO DOWN.

If they go down then people are saying well "we will just stay where we are".

What if you have to relocate?

It's hard to move if you are in negative equity.