Blow me, that WAS quick

HAMISH_MCTAVISH

hethmar wrote: »

There does seem to be some activity probably because people believe they may miss the bottom of the drop. I dont think thats so personally.

"Missing the bottom" on prices isn't that relevant. A few grand here or there on either side will make no difference.

Missing the bottom on interest rates is far more relevant, and costly, to most people at this point.;)

donna-j_2

Thrugelmir wrote: »

The building footprint. Build upwards possibly. Often sited on larger land plots than average.

Precisely. We have a late-1940s bungalow and have converted the loft. When looked at on Google maps etc it's obvious that we are on a larger-that-average plot.

carolt

HAMISH_MCTAVISH wrote: »

"Missing the bottom" on prices isn't that relevant. A few grand here or there on either side will make no difference.

Missing the bottom on interest rates is far more relevant, and costly, to most people at this point.;)

Why?

Unless they are planning to take out a 25 year fixed rate, of course.

Which applies to so many people in the UK...or does it?

carolt

Quasar wrote: »

I live in a terraced house, well only two houses attached, and I can hear the neighbours even sneeze when they are in the rooms adjacent to mine.

Oh well, maybe I've just been lucky, then.

HAMISH_MCTAVISH

carolt wrote: »

Why?

Unless they are planning to take out a 25 year fixed rate, of course.

Which applies to so many people in the UK...or does it?

BAnk margins are increasing steadily. It's irrelevant whether you take out a 2 year, 5 year, 10 year or longer fix, or indeed a variable.

Theres a huge difference between getting it at base plus .5% or 1%, as you easily could before the crash, and getting it at base plus 3% or 5%, as is common today.

The BEST tracker available today is around base plus 2%..... WHich is the same as the capped and guaranteed SVR (normally the WORST rate available) that millions of people coming off existing deals from lloyds, n'wide, etc will be reverting to.

5 years of a 2% differential in bank margin roughly cancels out 10% of price falls. Or under 3 years of a 4% differential. And 4% differentials are common nowadays.

Given the average loss from peak according to land registry is currently only 17%, then it is easy to see how the increase in bank margins, combined with the increase in lifetime housing costs from renting for a few years while the market falls, will completely wipe out the gains from lower prices.

carolt

All depends where you see prices/interest rates going, doesn't it.