Buy now while you still can

nrsql

http://www.express.co.uk/news_detail.html?sku=238
>> Record property prices are set to soar for at least
10 years
>> property experts are confident the UK housing market can ride out any storm
>> I see prices rising throughout this decade and perhaps even further

oh oh
>> Why not? Demand is outstripping supply, interest rates are low and people are always going to want somewhere to live
>> With earnings expected to increase no more than five per cent a year over the next decade, first-time buyers will be priced further and further out of the market.


bubble, bubble, bubble, bubble.......splat.
But then I've been waiting a long time for a downturn.

RUSTY1966

this sort of headline will suit express as most express readers own atleast one home and probably more..... this will sell papers so not necesseraly true.

Property market needs ftb's. If ftb's can't join market for number of years untill wages catch up, then market will stagnate and start to fall. FTB's have now been priced out for last 2yrs approx (depending on area)

N

nrsql

I own more than one property but am not keen on prices rising.
Would like to see a fall followed by a steady rise.
I'm concerned that the longer this goes on the more people will end up in negative equity and defaulting.
But then I'm not an Express reader.

hethmar

I am thinking about buying a house to rent for about 4 years until my retirement and then selling my bigger main one and moving in.

I was googling for info on property prices and came across an article which said the house prices cannot be sustained, there are no first time buyers able to get on the first rung, the unemployment rate is rising, bank interest is due to go up and a house price crash is expected.

Oh dear I thought, just about to abandon dream of retirement home and I looked at the date - it was a newspaper report from 2.5 years ago. Boy, that would have been the time to buy, wouldnt it.

The chap who bought the house down the road from us told us he had been renting for 5 years because he took heed of the predictions of a price crash back then, sold up thinking hed hold on to the profit hed made and then saw the houses rise so much over the next five years he had to go back in at a lower level.

No one knows what will happen - its a gamble. I wouldnt encourage buying for investment but in a case like mine where I want to secure a house in the right place and they rarely come up, and then live in it, I think I will have to go for it. Meantime, there are a lot of options for ftb to get on the ladder at the moment. My own son has taken out a mortgage for a longer period to cut down on the outgoings at the moment. As his career develops and he becomes a higher earner he can change the mortgage back to a normal period length.

realwildone

Martin was on the radio telling people that house prices WILL go down definately. Funny how you people choose to ignore his advise when it suits you.

meanmachine_2

Great news - cue massive wage inflation to pay for it. A doubling of house prices, equals an average price of £440,000.

Massive wage inflation equals high interest rates, equals...

Durrr.

Too difficult. Me stupid. Me read Daily Express.

Except, like the vast majority of the population, I don't read that dirty little rag.

Used to have a readership of 2million+. Now it's about to fall below 800K.

They should contact Princess Di from "the other side" and ask her for her opinion about property prices.

If she predicts a correction, it'll be the first time they WON'T put DI on the front page.

BobProperty

What a dilemma for the Express "Spirit of Diana predicts house price crash"

:rotfl:

nrsql

>> I was googling for info on property prices and came across an article which said the house prices cannot be sustained, there are no first time buyers able to get on the first rung, the unemployment rate is rising, bank interest is due to go up and a house price crash is expected.

>> Oh dear I thought, just about to abandon dream of retirement home and I looked at the date - it was a newspaper report from 2.5 years ago. Boy, that would have been the time to buy, wouldnt it.


I thought that was entirely reasonable at the time and I think it is still valid.
There was a time when there was less upward pressure on interest rates but I think it's back again.
I suspect the main thing that's supporting prices is Mr. Brown wanting to finish his stint and be able to say he had run the economy well (note - I think he will say that not that it's true). His successor wil have problems though.

MSE_Martin

Martin was on the radio telling people that house prices WILL go down definately. Funny how you people choose to ignore his advise when it suits you.

I won't get into the generality of this, but this quote is slightly out of context. I don't believe anyone knows what is about to happen to house prices. My point was they are cyclical and they will go down... maybe next week, maybe 6 months, maybe a year, two years, twenty years fifty years, but sometime.

The aim was to caution the "they won't go down brigade", the truth is no one knows, and in a cyclical market, its always possible and should be expected at some stage!

Martin

PoorDave

MSE_Martin wrote:

I won't get into the generality of this, but this quote is slightly out of context. I don't believe anyone knows what is about to happen to house prices. My point was they are cyclical and they will go down... maybe next week, maybe 6 months, maybe a year, two years, twenty years fifty years, but sometime.

The aim was to caution the "they won't go down brigade", the truth is no one knows, and in a cyclical market, its always possible and should be expected at some stage!

Martin

Who says the market is cyclical? Past performance? We all (should) know what that is not an indicator of!

I am not in the "up forever" or "crash tomorrow" camps, I just like asking dumb questions...

It is, however, a possibility

sanfrancisco

PoorDave wrote:

Who says the market is cyclical? Past performance? We all (should) know what that is not an indicator of!

Every Economist that ever lived...http://en.wikipedia.org/wiki/Economic_cycle

Economies and markets have been going up and down for centuries and centuries.