Shall I buy or pull out..

brit1234

mufi wrote: »

You and I have absolutely no idea if this is correct or not - if you'd asked me a year ago if property prices were going to drop, I'd have said yes and, I imagine, so would you. We'd have been wrong, despite the fact that all the indications were that property prices were unsustainable.

Yes I do its simple economics. Read up, knowlege is power.

You have to understand the reasons why prices went up so much and then you will understand why they are falling now and will continue to fall.

A good place to get this understanding is to look at the Austrian School of Economics who have correctly predicted the down turn and the solutions.

By the way George Osborne happens to be a follower of Austrian Economics hence the focus on deficit reduction rather than increased debt.

Mises Institute (American branch of Austrian economics videos)
http://www.youtube.com/user/misesmedia#g/u

Or a simple condensed version
http://www.youtube.com/watch?v=d0nERTFo-Sk (1.3 million views)

Hayek rules, Keynes sucks :beer:

paye

Thank you for your replies, i do understand where your all comming from in terms of nobody knows, if only we could look into the future lol. I'm buying a 2 bedroom house in london and it does have the potential to expand such as building a loft room which will add value. currently we live in a 2 bedroom flat which has been converted from a house, but since we also have a baby on the way we need more space. I've got a 2 year fixed deal mortgage with the post office rate of 4.29%. think i will have to weigh up all my options and decide.

thanks again.:beer:

kai666

brit1234 wrote: »

Yes today is the worse time to buy with the exception of Sep.2007

We are at the end of the bull trap, from now on its falling prices back to normal values. They can not lower interest rates anymore, there is no more money left for stimulas.

The crash is resuming, the economy can't handle these high prices and is thus correcting.

Looking at your signature, probably not the most objective answer the op will recieve

Jowo_2

Nest or Nest Egg.

My usual response to worries about rising or falling property prices is to cite the Private Eye satire on this.

"Today newspapers reported that property prices are falling/staying static/increasing...."

brit1234

kai666 wrote: »

Looking at your signature, probably not the most objective answer the op will recieve

But maybe the best informed. As I said before research economics and your eyes will open.

barrybarryr

brit1234 wrote: »

But maybe the best informed. As I said before research economics and your eyes will open.

Every time anyone asks this question you always come up with a negative response.

I have been looking for a while and you have been doing it for at least a year saying how the drop is right around the corner.

The truth is you don't know. It may be about to crash or it may not.

All of the economists and experts that you quote have been saying the crash will happen, but it hasn't happened yet.

OP - only you can decide.

Eton_Rifle

brit1234 wrote: »

But maybe the best informed. As I said before research economics and your eyes will open.

My wife is a trader but she's been blind to this shocking news about the price of stimulas.
How gutting, we could have made a killing there if only we'd put in the research.

timmyt

paye wrote: »

I'm currently in the process of buying my first home with a 15% deposit, the survey on the property was carried out today and it's all running smoothly (touch wood) anyway after reading a story on a website on the housing market crashing how true is this, because I don't want to buy now and then in a few years time my house is worth less than i bought it for. Don't know what to do. I'm taking out a mortgage of 159K

reference to a 15% deposit is a weird way of saying you are buying for x and funding it with a mortgage and spare cash.

at exchange you will put down 10% deposit.

anyway....thousands of people are buying at the moment, so step up or miss out - there are no signs of a price crash.

nembot

Thousands of people buy during a house price crash, not because they think they're going to lose money - but because they want a house to live in, it's the right property and the right time for them. As long the risks are understood, interest rates are low with a good chance they'll rise and factor things like this into the budget. Do the best practice buyer routine, visit the area at different times of the day, speak to the neighbours, are the local schools decent if applicable (you can check online in most cases).

If you really like the place and know you'll be there for a number of years, would you really care if it dropped 20% in value and recovered over a period of time?

You may of saved yourself 20/40k, but someone else may of bought your dream home in the meantime.


To be fair, logic suggests the market may drop and although personally I think it will, it wouldn't be the first time I've got it completely wrong or for that matter, most economists. I'm even after another place for myself, but I'm going to wait a while - cuz I'm tight

PasturesNew

paye wrote: »

... it does have the potential to expand such as building a loft room

Check if that's allowed. Just because there's a loft above you doesn't mean you have the rights to it. Even if you ended up with the permission, you'd have to go through the freeholder to get permission, which will mean paying more money to them.