First-time Buyer fear - Will house prices crash??

RHemmings

albertross wrote:

No, I am saying a house is somewhere to live, and currently prices are still rising.

Prices are not rising in all parts of the country. And the question is whether prices will continue rising in the parts of the country where people wish to buy. A house isn't something you buy and only use for a year or two. So whether now will be, in hindsight, a good time to buy a house depends on a much longer time span. The BOE has only just started raising rents, and this is likely to be a process that takes several months. What happens then?

desperadoV2

RHemmings wrote:

people who wait may well get "priced back in" to the market, rather than priced out.

I think that's we don't know and that what we need to research for. Whether FTB's will they be "priced in" or "priced out".

BOE has published the inflation report, there are 100s of pages of report. Can't understand whether inflation was brought under control or do they still need to work more to bring it under control.

RHemmings

desperadoV2 wrote:

I think that's we don't know and that what we need to research for. Whether FTB's will they be "priced in" or "priced out".

BOE has published the inflation report, there are 100s of pages of report. Can't understand whether inflation was brought under control or do they still need to work more to bring it under control.

Was that the report where Mervyn King was saying that there was a 50% chance that inflation would go over 3%?

jamminjamaica

this is all spectulation. this topic has probably been debated over and over again. people are still buying property and as fat as i see there is no slowing in the property market.

mongo_bongocat

I've just signed up for a mortgage with my fiance after a few years renting. We have often wondered ourselves whether the bubble will burst or not and have come to the conclusion that what will happen will happen. I think it's a bit silly to sit around waiting for house prices to crash to a level that will make it easy for you to get onto the property ladder. We have gotten together our 5% (begged, borrowed and stealed) and have compromised on the property we have bought (not the greatest area in the world but a house big enough for us over the next ten years). We have taken a fixed interest rate and we know exactly what we will pay each month over the next 5 years (which neatly ties in with our loans etc expiring).

I'm a firm believer that the 'headless chickens' add to the panic of whether the housing bubble is about to burst or not (If enough people believe something will happen then it usually does). Just look what happens in this country when there is a small disruption to petrol supplies!

I think people should stop viewing a house as an easy profit and instead see it as somewhere to live and exist.

jamminjamaica

mongo_bongocat wrote:

I think people should stop viewing a house as an easy profit and instead see it as somewhere to live and exist.

after all isnt this why most of us buy houses.

manhattan

desperadoV2 wrote:

May I ask why you hope the interest rates will go up? Is it because it will help increase the savings interest rate?

to hopefully bring house prices down to a REALISTIC level,so that i can afford to buy my family a starter home.


also,it helps my house deposit savings grow!

ravenfield

manhattan wrote:

to hopefully bring house prices down to a REALISTIC level!

i agree, unsure when will it ever happens

mystic_trev

Nationwide August figures positive (as predicted) +0.20%

Buy buy buy bye bye......

realwildone

What about if you mortgage yourself to the hilt, the interest rate goes up and your personal circumstances change and house prices crash.

But there again...
Your jobs for life
IR never go up
and house prices never go down

I remember people saying that in the 90's and thousands went to the wall.

But there again 'Two many people will end up in trouble...the government won't allow this to happen'.

Im going to write chapter two to this story in 2 years time. What do you think the ending will be.....

Chapter two is being written in the USA right now...