House prices could fall... Blog Discussion

System

ex-council houses purchased at £20k are going for £200k on the market at the moment.

Not by me they're not.

homer_j_3

maka wrote:

i have just bought my 1st house after years of trying to get on the ladder not to sure if i have put my family at risk in doing this now with all the talk of the big price crash

If you can afford tha payment and can afford the payment to go up then you have nothing to worry about

There will always be people wishing for the worse just as there will be people expecting the best. Clearly, all that matters is to you is that you can afford to keep a roof over your head.

jonnydoe

IF and it's a big IF house prices do fall I don't mind as long as they don't fall as much as in other countries (ie australia/us). I'm emigrating as soon as I've got enough equity/savings built up in uk.. Of course I'd also like house prices to rise more than the rest of the world too It's all relative, regional too - look at recent gains in east anglia and drops up north.. north south divide widens again..

Also, rent goes nowhere, can't see the point really..

FaTB

Bump !

Have only just found this thread, and i'm quite suprised how bearish the attitude to the property market is on here.

It would not be significant had i read this on HPC or GHPC but to find this attitude here must mean sentiment IS changing in the outside world at last.

God knows what will happen when IR's start to go up !!

john8888

I thought I would add as few thoughts on the question on the relative cheapness of buying and renting. I pay rent of £1200 pm on a house worth around £450,000. If I paid that for the house the interest/repayments would be at least double the rent, even if we assumed I paid half and had the rest of the money on deposuit I am still quids in.

But this does vary. I am renting a "family home" (detached, 3 beds backing onto woodland in one of the best parts of Surrey). 2 bed flats are far more lettable and thus relatively expensive.

I am told there is a rule of thumb that good btl should look at capital value:monthly rent as 100:1 or better. It makes sense. 100:1 words out at £12k pa on a place worth £100,000. There are expenses and there is a time involvement and risk. Assume zero capital growth and 12% gross makes commercial sense.

btl'ers are simply prepared to take less becuase of the capital apprecation they think is guaranteed. When the bubble bursts they will not be happy bunnies. Experienced btl'ers buy cheap and will see a crash as a good buying opportunity.

btw when renring I have had my share of greedy landlords who hate giving up the deposit - I just wonder what it is like to live inside a body consumed by so much greed.

JOHN - https://www.the-planet-earth.org/fc

kenshaz

What will happen to the demand ,FTBs will still need homes ,and these days every-one wants their own home,not like Germany where they are happy to rent,our culture and the fact that we have a land shortage wil prevent prices going down,we had all this doom 12 months ago and houses have continued to rise.

manhattan

this babys going to go down like the titanic!

some people just dont want to accept that this is one big nasty bubble,and .... is gonna hit the fan!

people seem to think of there house as a money making machine these days,not a place to live!

FaTB

kenshaz wrote:

What will happen to the demand ,FTBs will still need homes ,and these days every-one wants their own home,not like Germany where they are happy to rent,our culture and the fact that we have a land shortage wil prevent prices going down

So why did property go down across the country for the first half of the 1990's ?

Some are to young to remember, others just have short memories !!

I think people have been lulled into a false sense of security, because the "Good times" have lasted so long this time around.

I am willing to admit that I have been suprised by the continual rise of property, but common sense says to me that this will probably just make it worse when the next recession comes, and it WILL come !!!

kenshaz

FaTB wrote:

So why did property go down across the country for the first half of the 1990's ?

Some are to young to remember, others just have short memories !!

I think people have been lulled into a false sense of security, because the "Good times" have lasted so long this time around.

I am willing to admit that I have been suprised by the continual rise of property, but common sense says to me that this will probably just make it worse when the next recession comes, and it WILL come !!!

But it is back up again,strange that is it not,all investment including property is long term,short term perceptions alters nothing ,fundamentaly people need homes

kenshaz

manhattan wrote:

this babys going to go down like the titanic!

some people just dont want to accept that this is one big nasty bubble,and .... is gonna hit the fan!

people seem to think of there house as a money making machine these days,not a place to live!

happiness the greatest gift that I possess