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Debate House Prices


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Why house prices are certain to fall

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Comments

  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    chucky wrote: »
    no because - if you buy in 2003 the property it is bought at 2003 prices.
    you will be or should be paying your mortgage at 2003 house prices.

    your salary will be a 2009 salary which should be higher than it was in 2003 so all in all it should be much more affordable than it was then.

    over-payments (if possible) would make your mortgage cheaper too.

    your selling-to-each other is the key here - hence the concept of getting on the property ladder.
    Depends. What if you were on an interest only mortgage and bills keep going up and up? Suppose the house needed major repair work?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    mewbie wrote: »
    Depends. What if you were on an interest only mortgage and bills keep going up and up? Suppose the house needed major repair work?

    you shouldn't be buying if you can only afford an interest only mortgage
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    chucky wrote: »
    you shouldn't be buying if you can only afford a interest only mortgage
    Do you think interest only mortgages should be withdrawn? What do you think that would do to house prices?
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mewbie wrote: »
    Depends. What if you were on an interest only mortgage and bills keep going up and up?

    I/O mortgages should be a specialist product, they are not suitable for most people.

    Suppose the house needed major repair work?

    Get a survey, a proper survey, before you buy.:rolleyes:

    It is absolutely possible to buy a house that will not need any major work doing for a decade or more. And equally possible to know that in advance.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    mewbie wrote: »
    Do you think interest only mortgages should be withdrawn? What do you think that would do to house prices?

    no lenders are offering interest only mortgages for the past year as far as i know unless it's a commercial deal - house prices have been going up this year.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mewbie wrote: »
    Do you think interest only mortgages should be withdrawn? What do you think that would do to house prices?

    They effectively have been. Banks now want to see a plan for repayment of the capital amount, or a repayment vehicle, in place before they will agree these days.

    And prices are rising anyway.:beer:
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    mewbie wrote: »
    Do you think interest only mortgages should be withdrawn? What do you think that would do to house prices?

    Interest only mortgages does not mean that there is no intention to pay off the loan. Do you not remember how popular endownment mortgages were in the 80's and 90's? All of those endowment mortgages are/were interest only but it does not mean that there is/was no intention to pay off the loan.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    It is absolutely possible to buy a house that will not need any major work doing for a decade or more. And equally possible to know that in advance.
    Ah, that's why buying an NHBC covered new build on an estate with an interest only 125% mortgage is such a good idea.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mewbie wrote: »
    Ah, that's why buying an NHBC covered new build on an estate with an interest only 125% mortgage is such a good idea.

    Nope, pretty sure that was never a good idea. Buy old houses, they hold value better.

    Oh, and you've gone from being mildly amusing, to completely barking.

    In case you care.;)
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • mewbie_2
    mewbie_2 Posts: 6,058 Forumite
    1,000 Posts Combo Breaker
    HAMISH_MCTAVISH wrote: »
    Oh, and you've gone from being mildly amusing, to completely barking.

    In case you care.;)
    That's a shame. Because I had hoped to double in amusement in only a couple of years.
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