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Debate House Prices
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Risk
HAMISH_MCTAVISH
Posts: 28,592 Forumite
If you needed to buy a house, which is the greatest risk, and how do you perceive that risk applying to you?
Buy now, and risk prices falling before recovering in the future..... You could perhaps have bought cheaper if you waited.
OR
Delay purchase, and risk prices going up and out of your reach forever.... You risk not being able to buy a house ever again.
Surely those are really the only choices facing potential buyers today?
Isn't the second option the greater risk with the worst consequences? Or am I missing something.
Buy now, and risk prices falling before recovering in the future..... You could perhaps have bought cheaper if you waited.
OR
Delay purchase, and risk prices going up and out of your reach forever.... You risk not being able to buy a house ever again.
Surely those are really the only choices facing potential buyers today?
Isn't the second option the greater risk with the worst consequences? Or am I missing something.
“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”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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The biggest risk is losing my job and losing the house, which would, I suppose, be made worse by having NE.All I seem to hear is blah blah blah!0
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The biggest risk is losing my job and losing the house, which would, I suppose, be made worse by having NE.
Pretty sure that losing a job is no worse for a renter than an owner.
Renter loses job, can't pay rent, goes to government for help.
Owner loses job, can't pay mortgage, goes to government for help.
In both cases, if they can't get help, they will eventually get thrown out of the property and end up homeless, destroying their credit rating in the process. In both cases, after a period of time the credit rating will reset.“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”0 -
This is a very silly thread started by a very silly boy.
That's all I have to say.
I won't be replying again."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
HAMISH_MCTAVISH wrote: »
Isn't the second option the greater risk with the worst consequences? Or am I missing something.
Yes, you are. Risk isn't just about consequences, it's also about probability.What goes around - comes around0 -
HAMISH_MCTAVISH wrote: »If you needed to buy a house, which is the greatest risk, and how do you perceive that risk applying to you?
Buy now, and risk prices falling before recovering in the future..... You could perhaps have bought cheaper if you waited.
OR
Delay purchase, and risk prices going up and out of your reach forever.... You risk not being able to buy a house ever again.
Surely those are really the only choices facing potential buyers today?
Isn't the second option the greater risk with the worst consequences? Or am I missing something.
Thank you for this Private Fraser but my question to you is; Who 'needs' to buy a house? Everyone needs a place to live but who needs to own it? I also think your classification of risk is incomplete. Home ownership carries many risks. For example:
When you buy a property, you are effectively renting it from the bank. The bank does not reimburse your interest payments if the house price goes down.
The price and red tape associate with buying, owning and then disposing of a property is creeping up remoselessly.
It is a racing certainty that house prices have a long way to plunge before they will find long term support levels. Your hopes of price recoveries assumes that the housing bubble either never happened or can be sustained indefinitely. On this score I have to disagree with you strongly. Your only hope of price recovery is inflation but with inflation comes gut wrenching interest rate risks.
A diversified portfolio of investments is generally considered to be the most reasonable way of hedging risk. For people to put all their worldly wealth into property qualifies as an unacceptable risk. There will be much wailing and gnashing of teeth as this reality becomes evident over the next few years.0 -
The largest risk in any property purchase is buying, then finding out you live next door to HAMISH_MCTAVISH.
Your home becomes worthless.0 -
HAMISH_MCTAVISH wrote: »
Delay purchase, and risk prices going up and out of your reach forever.... You risk not being able to buy a house ever again.
The way I see it, if this country becomes immoral enough that somebody on a good income like myself can't afford to buy and prices go 'out of my reach forever' then this country can kiss my !!!! because I'll be on the first plane elsewhere. I suspect many others feel the same way hence why I don't believe this is a possibility.0 -
The way I see it, if this country becomes immoral enough that somebody on a good income like myself can't afford to buy and prices go 'out of my reach forever' then this country can kiss my !!!! because I'll be on the first plane elsewhere. I suspect many others feel the same way hence why I don't believe this is a possibility.
Ahhh, I see.
Prices won't rise because you think it is immoral.
Alrighty then...:rotfl:
It doesn't remotely change the fact that there are still only two choices for what will happen next.
Either prices will fall, and someone can buy a cheaper house before prices rise again anyway.
Or prices will rise and people will be priced out forever.
The greater risk is obviously being priced out forever, rather than being in negative equity for a few years.....“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”0 -
The biggest risk for me is that I wouldn't be able to afford all the bills on my own if my boyfriend lost his job. That means our mortgage would have to be less than our rent is now (factoring in that if we owned, the bills would be more - we have no insurance or commuting costs while we rent) and there is very very little out there for that price.0
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HAMISH_MCTAVISH wrote: »Pretty sure that losing a job is no worse for a renter than an owner.
Oh yeah, £30k NE is around about the same as losing your deposit. Silly [STRIKE]me[/STRIKE] you.All I seem to hear is blah blah blah!0
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