Your house may never be worth as much again

Gorgeous_George

I wouldn't buy a house today and wouldn't/couldn't have bought one for quite a few years. I agree that prices are due for a cra....orrection - in real terms. The ticket price may not fall too much (20% would be my best guess) but with inflation, the real value must fall by nearer 40% IMHO.

It is rather sad that house prices cannot be discussed without havig a dig at 'property investors'. By that I assume the OP means people with BTL property/ies. These properties are still homes but, rather than being the owner-occupied, they are the homes of people who prefer to rent. So long as the BTLer has a financial plan there is no reason to assume that they will become insolvent. If the BTLers collectively start to lose money the only answer is to increase rent - providing the market can stand it. I know people who are desparate to rent but who cannot find a property that they consider affordable but there isn't a massive surplus of rentals available so the market must be about right. It is their salary/expectations that are wrong.

GG

macaque_2

Gorgeous_George wrote: »

I wouldn't buy a house today and wouldn't/couldn't have bought one for quite a few years. I agree that prices are due for a cra....orrection - in real terms. The ticket price may not fall too much (20% would be my best guess) but with inflation, the real value must fall by nearer 40% IMHO.

It is rather sad that house prices cannot be discussed without havig a dig at 'property investors'. By that I assume the OP means people with BTL property/ies. These properties are still homes but, rather than being the owner-occupied, they are the homes of people who prefer to rent. So long as the BTLer has a financial plan there is no reason to assume that they will become insolvent. If the BTLers collectively start to lose money the only answer is to increase rent - providing the market can stand it. I know people who are desparate to rent but who cannot find a property that they consider affordable but there isn't a massive surplus of rentals available so the market must be about right. It is their salary/expectations that are wrong.

GG

Inflation will not rescue home overborrowed home owners this time. Incomes are going down.

And why on earth shouldn't we have a dig at 'property investors'? Six months I was assured that we could rent our house for another 3 years. Three weeks ago our 'hobby landlord' changed his plans and wants the house back immediately. I am dismayed, my family are dismayed and our neighbours are dismayed. The move will cost us huge disruption and £thousands. Our lives have been turned upside down on the whim of an idiot. Letting houses is not for amateurs.

nickj_2

i don't think we will ever be sorted until something hapens to hp's
if someone earning 50k and borrows 3.5x salary that's not going to get them a lot of house and most people earn nowhere near that amount - the average working person has been shafted .

treliac

Very, very sad for those facing negative equity who were lulled into spending way over the top.

However, I'm hoping that my kids and others of the up and coming generation will be able to afford a decent lifestyle.

As for me.... I don't view my house as a little goldmine for my future. I can deal with what the future brings, not having over-leveraged myself and not expecting it to provide me with a pension.

Llubrevlis

Why is there such a change of opinion on here lately. It seems even the house price bulls seem to be agreeing that prices are going to fall. Not all of them there are still a few die hard house bulls who think prices wont go down, someone starting with H.

treliac

Llubrevlis wrote: »

Why is there such a change of opinion on here lately. It seems even the house price bulls seem to be agreeing that prices are going to fall. Not all of them there are still a few die hard house bulls who think prices wont go down, someone starting with H.

I don't think of myself by names like bull or bear. I think I'm a realist and, being realistic, even during the recent upwards blip (due to the dying days of Labour's meddling), it was inevitable that house prices would fall.... just a question of exactly when.

wymondham

Llubrevlis wrote: »

Why is there such a change of opinion on here lately. It seems even the house price bulls seem to be agreeing that prices are going to fall. Not all of them there are still a few die hard house bulls who think prices wont go down, someone starting with H.

I don't class myself as either - just what I see about me!

Gorgeous_George

macaque wrote: »

Inflation will not rescue home overborrowed home owners this time. Incomes are going down.

And why on earth shouldn't we have a dig at 'property investors'? Six months I was assured that we could rent our house for another 3 years. Three weeks ago our 'hobby landlord' changed his plans and wants the house back immediately. I am dismayed, my family are dismayed and our neighbours are dismayed. The move will cost us huge disruption and £thousands. Our lives have been turned upside down on the whim of an idiot. Letting houses is not for amateurs.

Your anger should be directed towards bad landlords and poor tenant's rights legislation.

Perhaps next time you will choose your landlord more carefully.

GG

diable

JonnyBravo wrote: »

Absolutely.
That's why I put tenants in my spare house. That way I have someone elses money paying for my speculation, champagne and strawberries.
:beer:

Good job too, seeing as prices are now falling again. I reckon 20-30% down again.
Perhaps they'll fall enough to allow me to get another spare house which a tenant can speculate on for me.

You owe me a new laptop as I just spate a mouthful of Cristal Champagne over my supa doopa Mac Book Pro SE ;o)))

The_White_Horse

sorry can't see massive falls, especially not in and around london. they will stagnate for quite a few years.

i can see drops in stupid flats for 200k outside leeds or something.