BBC: Homes 'May rise in value in 2009'

Dan:_4

Graham_Devon wrote: »

You are correct too Dan. Some people can afford to buy and they are

Therefore house prices are affordable.

Graham_Devon

Dan: wrote: »

Therefore house prices are affordable.

Yes dan, you are correct.

Harry_Powell

I remember when I first joined here that Dithering Dad was encouraging people to buy because the market was bottoming out and the mortgage market was offering bargains (I believe that at the time of his writing, A&L were offering a 5 year fixed rate at 3.99, zero fee). I think he was basically saying that people would save more from low mortgage rates then they would with the continued (much slower) price drops. Looking back, it seems that he was absolutely right and I for one wish I had listened to him.

He was ridiculed by many people on here (some of the attacks were very aggressive and abusive), but he was completely right. 6 months later and prices and mortgages are rising and it'll cost people a lot more to buy and pay for their houses. I listened to the fools who were ridiculing him, and decided to wait to buy. I'm truly kicking myself.

Come back DD, you were the best poster on here, and all your advice was 100% correct!!!

Graham_Devon

Harry_Powell wrote: »

I remember when I first joined here that Dithering Dad was encouraging people to buy because the market was bottoming out and the mortgage market was offering bargains (I believe that at the time of his writing, A&L were offering a 5 year fixed rate at 3.99, zero fee). I think he was basically saying that people would save more from low mortgage rates then they would with the continued (much slower) price drops. Looking back, it seems that he was absolutely right and I for one wish I had listened to him.

He was ridiculed by many people on here (some of the attacks were very aggressive and abusive), but he was completely right. 6 months later and prices and mortgages are rising and it'll cost people a lot more to buy and pay for their houses. I listened to the fools who were ridiculing him, and decided to wait to buy. I'm truly kicking myself.

Come back DD, you were the best poster on here, and all your advice was 100% correct!!!

He's already back, he's just posted what I quoted.

Harry_Powell

Graham_Devon wrote: »

He's already back, he's just posted what I quoted.

Yawn, usual accusations of sock puppetry from the bears to try and confuse the message. Boring Devon, very boring (much like most of your posts). :cool:

ultra10

nearlynew wrote: »

Terrible news, if true.

For a sustainable economy and a more equitable society,we need lower prices not higher.

http://www.lga.gov.uk/lga/core/page.do?pageId=566381

And this in the Twilight of a Labour Government ..

Chris2685

Graham_Devon wrote: »

You need people to buy the starter homes in order to relieve those outgrowing the starter homes to move up.

In other words, you need a First Time Buyer continual influx.

We have not had this for the last 5 years, and it's not about to start now. If we havent had it for the last 5 years, it's not going to happen when 125% mortgages have been pulled and 75% are norm.

Like I said, you need to scracth the surface instead of stating the obvious of "some people can afford houses"....cus some people will always be able to afford houses. Some people will be able to afford whole streets.

He's right... I wouldn't buy in this market (even though I actually couldn't afford to with the missus not working now). Why buy something for 200k now, that you probably don't really want, which will end up costing you 300k and could quite well be cheaper or more or less the same price in 1 or 2 years time.

I would much rather pay my £850 a month rent and not have to cripple myself.

julieq

Because in 2 years time you'll be £20K into the £100K difference between £300K repayment and £200K purchase price. You still get to pay that difference if you buy a house at the same price in two years, and if you don't buy a house you get to pay that £850 a month or equivalent into your retirement so you have to save more towards a pension.

Obviously if there is price growth, you may end up paying much more. If you assume a 150% payback (which you are, I don't know what the actual number is), then each 1% of growth on a £200K house costs you £3K. Plus the amount you've paid in rent while you wait to buy.

Valerius

Harry_Powell wrote: »

I remember when I first joined here that Dithering Dad was encouraging people to buy because the market was bottoming out and the mortgage market was offering bargains (I believe that at the time of his writing, A&L were offering a 5 year fixed rate at 3.99, zero fee). I think he was basically saying that people would save more from low mortgage rates then they would with the continued (much slower) price drops. Looking back, it seems that he was absolutely right and I for one wish I had listened to him.

He was ridiculed by many people on here (some of the attacks were very aggressive and abusive), but he was completely right. 6 months later and prices and mortgages are rising and it'll cost people a lot more to buy and pay for their houses. I listened to the fools who were ridiculing him, and decided to wait to buy. I'm truly kicking myself.

Come back DD, you were the best poster on here, and all your advice was 100% correct!!!

Absolutely spot on. When I joined the HPC forum back in Feb-09, I was saying then that it was the best window of opportunity to buy ie a combined good deals from mortgage companies and good priced properties.

Now there is a double whammy of rising mortgages costs and house prices.

Chris2685

julieq wrote: »

Because in 2 years time you'll be £20K into the £100K difference between £300K repayment and £200K purchase price. You still get to pay that difference if you buy a house at the same price in two years, and if you don't buy a house you get to pay that £850 a month or equivalent into your retirement so you have to save more towards a pension.

Obviously if there is price growth, you may end up paying much more. If you assume a 150% payback (which you are, I don't know what the actual number is), then each 1% of growth on a £200K house costs you £3K. Plus the amount you've paid in rent while you wait to buy.

That is good in theory, but doesn't take into account the unstable employment out there, the unstable housing market, the (potentially) unstable interest rates...

So many little factors that make me think STOP, don't leap in with everything you have and shackle yourself for God knows how long in some house...

In a perfect world I would debt myself up to the eyeballs, hold my nose, take the plunge, and come out smelling of roses... The world isn't perfect though.