House prices could fall... Blog Discussion

manhattan

kenshaz wrote:

happiness the greatest gift that I possess

we are happy where we are at the minute,paying £260 a month rent,well take off £120 a month from interest money from our house deposit savings, and that works out at £130 a month rent for a 2 bed semi in the nicest area in our city.

so we have no need to buy atm.

we can wait years, if thats what it takes for complete happiness of owning our own home!

FaTB

manhattan wrote:

we are happy where we are at the minute,paying £260 a month rent,well take off £120 a month from interest money from our house deposit savings, and that works out at £130 a month rent for a 2 bed semi in the nicest area in our city.

so we have no need to buy atm.

we can wait years, if thats what it takes for complete happiness of owning our own home!

Blimey.......... £260 a month !!!

Where the hell do you live ??

I couldn't rent a lock up for that in Herts !!

Gorgeous_George

tonyg wrote:

I am totally convinced that there will be a MAJOR CRASH in house prices. I feel it will happen within the next 2 to 3 years.

Ok TonyG, let's look at a house valued at £250K today. After the MAJOR CRASH you are totally convinced will happen by June 2009, I guess this same house will be £150K.

If I suggeted we don't buy iyt today but I'll offer to buy it from you for £200K in June 2009, would you accept the deal? After all, that would be £50K profit.



GG

FaTB

Well IR's now seem to be on the up, could this be the tipping point for sentiment in the housing market ??

If your'e not already in, then now is not the time to invest in property.

Personally i'll be saving, watching, and waiting.

manhattan

FaTB wrote:

Blimey.......... £260 a month !!!

Where the hell do you live ??

I couldn't rent a lock up for that in Herts !!

cambridgeshire

renting from a non profitable charitable housing association,until houses are at a sensible price!

manhattan

sorry forgot to mention,the rent can only be increased at the rate of inflation thats why it is so cheap!

System

Give me renting any day. The costs involved in keeping a house ship shape can be enormous, and if we had a mortgage i would be worried sick every time MrJudi was out of work in case we couldnt pay the mortgage whereas if the house was rented we would be entitled to a rent rebate.

FaTB

Going back to Interest rates for a moment.

I think its been proven many times in the past that house prices are strongly linked to IR's, and judging by Mervyn Kings comments today on inflation, I think we could be heading for more rises in the near future.

My guess would be a rise to 5% before the end of this year, and 5.25 % by early/mid 2007. After that who knows.

IMO this can only have one effect on house prices, as many are already well overstretched even at these "historically low" rates.

God only knows what would happen if IR's returned to their long term average, which I believe is around 7.5% !!