Housing market stalls as economy splutters

IveSeenTheLight

Dirk_Rambo wrote: »

theyre tanking round where i live too. so big house price falls must be happening all over the country

Looks like Dirk's getting a telling off for telling porkie pies again

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GracieP

Dan: wrote: »

Brit - how low do have prices have to go before you will buy? You have already wasted three years waiting, this time could have been spent paying down the mortgage rather then rent?

By waiting he may end up with a 15 year mortgage rather than a 25 year one. That's worth paying 3, 5 or even 8 year worth of rent as far as most people would be concerned.

In my case I was on track to have had my mortgage paid off at the age of 52. By STRing I'm now on track to own a much nicer house mortgage free by 35. I'm not sure how the time I'm spending renting (the most beautiful cottage in the best, doggie-est area you can imagine) can be described as "wasted?" From a financial point of view, I'm having the time of my life. Yet so many of my friends are stuck in houses/apartments they never intended to be in for more than a few years.

IveSeenTheLight

GracieP wrote: »

By waiting he may end up with a 15 year mortgage rather than a 25 year one. That's worth paying 3, 5 or even 8 year worth of rent as far as most people would be concerned.

In my case I was on track to have had my mortgage paid off at the age of 52. By STRing I'm now on track to own a much nicer house mortgage free by 35. I'm not sure how the time I'm spending renting (the most beautiful cottage in the best, doggie-est area you can imagine) can be described as "wasted?" From a financial point of view, I'm having the time of my life. Yet so many of my friends are stuck in houses/apartments they never intended to be in for more than a few years.

I'd be interested to hear more detail in how someone STR'ing has managed to secure a better property and reduce the amortization period by 17 years because of the STR decision.

I'm 36, could be mortgage free now if I sold one of my BTL's
STRing would not have achieved the same outcome for me.

GracieP

IveSeenTheLight wrote: »

I'd be interested to hear more detail in how someone STR'ing has managed to secure a better property and reduce the amortization period by 17 years because of the STR decision.

I'm 36, could be mortgage free now if I sold one of my BTL's
STRing would not have achieved the same outcome for me.

By using the money I released in some well thought out/lucky investments and speculation. More importantly by using the freedom of the lump sum and lack of mortgage to radically change my career. I spent two years working for nothing and have now reached a point where my earnings have more than made up for that.

In addition house prices where I want to buy have fallen significantly and are still heading steadily down. (Ireland.)

Nothing is guaranteed obviously but I'm more than a little optimistic. As it stands now I could buy a similar house to the one I had for cash but my needs and wants have changed. (I now hanker after a well insulated suburban bungalow rather than a character filled, urban-edgy, period terrace. The me of my 20s would be appalled.)

IveSeenTheLight

GracieP wrote: »

By using the money I released in some well thought out/lucky investments and speculation. More importantly by using the freedom of the lump sum and lack of mortgage to radically change my career. I spent two years working for nothing and have now reached a point where my earnings have more than made up for that.

In addition house prices where I want to buy have fallen significantly and are still heading steadily down. (Ireland.)

Nothing is guaranteed obviously but I'm more than a little optimistic. As it stands now I could buy a similar house to the one I had for cash but my needs and wants have changed. (I now hanker after a well insulated suburban bungalow rather than a character filled, urban-edgy, period terrace. The me of my 20s would be appalled.)

I'm extremely glad it has all worked out for you.
You may be one of the very few minority that it worked for.

The majority on the otherhand may not have benefitted as you did.

Well done.

DervProf

FWIW, a place quite close to me has recently gone on the market. The asking price is 10% lower than when it was last on the market about 4 years ago.

As it didn`t sell then, I suppose it could be that it was overpriced then. However, it would appear that prices have been fairly flat since 2006.

If only I lived near Hamish......



I`d move.

IveSeenTheLight

DervProf wrote: »

If only I lived near Hamish......



I`d move.

I have properties near Hamish (don't know the exact address, but the same region)

It's a fantastic place, Why would you want to move.

Indeed, I read they are looking at creating 36,000 more properties there to satisfy the demand

Graham_Devon

IveSeenTheLight wrote: »

Indeed, I read they are looking at creating 36,000 more properties there to satisfy the demand

Good grief. Hamish will become the epitome of the word "NIMBY'

GracieP

IveSeenTheLight wrote: »

You may be one of the very few minority that it worked for.

The majority on the otherhand may not have benefitted as you did.

I'm afraid my experiences of my generation differ. I'm 31, a huge amount of my friends and colleagues bought property at roughly the same time as we did. Apart from two couples all of the others are in a jam financially. Locked into properties they never intended to stay in, in areas they never intended to stay in. They have no chance of selling up as they are in too much negative equity and they've come to despise their homes because of this.

Of the other two couples one STRd at the same time as us and made quite a phenomenal profit. They consider it the best thing they've ever done, she now works part-time (she's a doctor so still has a significant income) and he's gone back to university for a total career change. They are in no hurry to buy again, maybe ever, and are currently planning a year long trip with their young kids. The other couple thankfully bought a "forever" house (a well insulated, suburban bungalow in fact). But they do regret buying it now as it's worth half what they paid for it and there is a very big difference between a 35 year mortgage (32 left on it) and a 15/20 year one. They say they wish they'd rented for a few more years.

IveSeenTheLight

GracieP wrote: »

I'm afraid my experiences of my generation differ.

Maybe moreso location than generation.