If you are thinking of buying this summer ....

Emy1501

First of all it was the snow, then it was ash cloud, easter and the election, Now its the budget and from next month it will be summer holiday's and then the spending review followed by winter! EA's always have an excuse regarding why the market is slow rather than just thinking maybe there are more sellers out there now with less buyers which is having and effect.

I have had just had a reasonable offer on my property which has been on the market for less than a week. The reality is my property is well priced, in good condition and offers a reasonable sized extention over the competition. To sell in the current market peoples properties need to stand out compared to the average.

As for the budget I suspect a small percentage will wait but I suspect many do not even know when it is let alone the possible implications.

Peronally I may delay the buying side till during the summer holidays because the market is normally slower then but the budget will not make much of a difference to me. If CGT increase is put off till April 2011 then we may see more properties coming to the market over the next few months.

timmyt

nothing is going to come out of the budget, how daft people are. the only thing you should wait for is if capital gains (for sales of second properties) was going to go even lower, which we know it is not.

stamp duty is not relevant for a seller, and seems the government are scrapping the plan to abolish it under £250k for buyers.

So while some people have been holding off, there have been some cracking deals going on. Ooops, whose missed out

pavlovs_dog

we're going for a second viewing on a house today. We've done our research into how much similar houses in the street have sold for recently, and how much the work that needs doing to it will cost us.

It is currently overpriced, and we have no intention of paying silly money for it - there will be other houses. if we like it enough to offer, and they accept that offer then we will proceed regardless of the emergency budget. It seems that the proposed changes would not massively impact our disposable income, and this house is comfortably wthin budget (at the sensible price and the stupidly overinflated price) so we wouldn't be stretching ourselves too much. What could affect our ability to buy in the longer term is mortgages getting more expensive when interest rates climb. Our plan at the moment is to fix for at least 5 years and overpay as much as we can.

the house that we are considering is a house that we could grow into. if we do go ahead, we have no intentions of moving for at least 10 years.

QTPie

Depends on he area and how long it has been on the Market, but to be honest I think that you would be VERY lucky to get any "ridiculously overpriced" houses for a sensible amount at the moment. In many areas, houseprices are seeing a resurgence (maybe only perceived, many only temorary...), but many sellers (unless desperate) are fairly confident/cocky.... I don't think that now is the time for either bargains or "sensible".... May even take until next Jan/Feb for any "sense" to return.

I think that it is great to have a go, but fairly unlikely (see recent thread re "cheeky offer about £75k under asking price"... There are a lit if "have a go, but not too bothered about selling" sellers around...

Very good luck though.

QT

pavlovs_dog wrote: »

we're going for a second viewing on a house today. We've done our research into how much similar houses in the street have sold for recently, and how much the work that needs doing to it will cost us.

It is currently overpriced, and we have no intention of paying silly money for it - there will be other houses. if we like it enough to offer, and they accept that offer then we will proceed regardless of the emergency budget. It seems that the proposed changes would not massively impact our disposable income, and this house is comfortably wthin budget (at the sensible price and the stupidly overinflated price) so we wouldn't be stretching ourselves too much. What could affect our ability to buy in the longer term is mortgages getting more expensive when interest rates climb. Our plan at the moment is to fix for at least 5 years and overpay as much as we can.

the house that we are considering is a house that we could grow into. if we do go ahead, we have no intentions of moving for at least 10 years.

pavlovs_dog

fortunately we are not talking a difference of 75k. Unlike Skintchick's scenario, there is a steady flow of stock to the market here. furthermore, you would be hard pressed to make equal comparisons between the housing market in henley and south wales - they are two very different beasts

KS1977

Do you know....personally, I am just going to carry on as if there wasn't any budget coming up. If people never did anything because some issue was in the way, then we may as well just sit in our dwellings and never venture out again.

It's like anything....Remember them saying don't eat beef as you may get mad cow, don't eat chickens as you may get bird flu....don't do this or that! If we spent our lives living in the shadows of what might've been....we'll never get anywhere.
:@)

Henry_P_Chester

Most people are not even aware of the budget and would have no interest in it's outcome (until it effects them)

as previously mentioned it's just another EA excuse for the low sales levels at the moment.

QTPie

pavlovs_dog wrote: »

furthermore, you would be hard pressed to make equal comparisons between the housing market in henley and south wales - they are two very different beasts

that is very fortunate

good luck, I hope that they see sense. Personally I hate the instability of the housing Market (ie any tiny bit of quiet confidence returns and asking prices shoot up...)

QT

Wobblydeb

timmyt wrote: »

nothing is going to come out of the budget, how daft people are. the only thing you should wait for is if capital gains (for sales of second properties) was going to go even lower, which we know it is not.

Hmmmmm not sure I agree with that. I am in the North East and believe the budget will confirm massive job cuts in the public sector which is the predominant employer up here. I sold recently and am renting - currently wary of buying because I think further falls may come.

BUT.....

The other side of me considers that the risk of being out of the market if prices climb is much greater than being in if prices fall.
i.e. If I buy a house and prices fall, okay I'm paying interest on debt that I didn't need to, but I am still at the same point in the market (next step up from FTB type home).

But if I stay out of the market and prices rise, I've just been shuffled down a few notches in terms of the type of house I can afford. I cannot save fast enough to maintain my proportional equity if annual house price growth goes anything over about 5%.

In terms of what I'm seeing in the North East, it appears (as in previous recessions) prices in good areas are holding steady, whilst houses in poorer areas are being forced downwards. I'm guessing it's caused by people buying in good areas being more likely to raise a mortgage, coupled to sellers being able to choose to wait for the price they want.

Henry_P_Chester

Prices collapsed in the last recession 1988-1994. There's no reason to suggest this time will be any different.