house prices

master_blaster_2

ok
i know there is a whole section for this in the property board but i wanted to get a 'local' view

house prices are going up at an all time rate ...
do you think it can/will go on ?
are we near the top of the price rise?
dont you wish youd bought that other house 15 years ago?

discuss

rjh090384

its nuts. we bought our house in april for 115000 and the house opposite jsut went up for 155000 and it doenst have a garage. i am glad i got in when i did. there has to be a top end somewhere people are borrwoing out of their depth and it wil lbe that morgages will need to start giving 10 times peoples salary to afford houses.

bakkah

I prob wouldnt buy at the moment but a lot of people i know are, and stretching themselves to the limit too, because 'prices always go up!'.

Take a look at any house price charts over past XX years and theres always a drop after a boom, think things will rise here for a bit yet but where it goes then nobody knows

Theres the added problem locally of rate & water bills having a future impact especially with those that have recently stretched themselves.

And of course I wish i bought that house 15 years ago! :rotfl:

SnowyOwl_2

There is a supply and demand issue, specially at the lower end of the market, ie not enough so-called starter homes. As long as there are more buyers than houses available then prices will remain v.competitive (from a vendor point of view that is). I do feel sorry for your typical newly weds or newly living togethers - it's not good for them at all.

House prices in the longer term...who knows...eventually/one day prices will cool down. Who knows when...but I don't think they will ever be as cheap as they were say five or ten years ago over here.

Rates/water....etc etc...make no difference to house's selling price, as far as I can see anyway. Those raised costs just lead to a rise in the number of repossessions (evil!) specially if interest rates move upwards.

As for buying that little house 15 years ago...yeah, well hindsight is a wonderful thing!

ginger_nuts

I bought a one bedroom flat in May 2005 .It cost me £40,000 ,now valued at £70,000 .I dont live in it so for me this will be a pension . When I sell I will have to pay CGT but for now its making me more money than I could earn .My mortgage ( covering 2 propertys ) cost me £100 a month on top off the rent
I wouldnt want to be a FTB . I dont regret not buying it 10 years ago because I couldnt have afforded it 10 years ago .If I sold either property I could live mortgage free but for now I will keep both .

bakkah

SnowyOwl wrote:

House prices in the longer term...who knows...eventually/one day prices will cool down. Who knows when...but I don't think they will ever be as cheap as they were say five or ten years ago over here.

Hi Snowy,

Agreed it will never drop that much, small bounce from the top would be healthy though (vested interest i want a bigger house but not going to stretch myself!). No idea when that would come as local estate agent here have hardly any property for sale and most things are sold before the brochures are printed with offers galore.

SnowyOwl wrote:

Rates/water....etc etc...make no difference to house's selling price, as far as I can see anyway. Those raised costs just lead to a rise in the number of repossessions (evil!) specially if interest rates move upwards.

If interest rates/bills rise and repossessions rise the banks will tighten their belts and stop offering ludicrous mortgages which would help cool things off, if the money is not available then that would have to have an impact. Though if they make money on the deposits after repossession then maybe they wont!

Know someone with an interest only mortgage afford to repay and they have no idea, or even care, about paying it off because it will double every 10 years apparently.. Wonder how many other people are doing that just to get 'on the ladder' thinking that the stellar growth in the market will go on forever.

I think i've been spending too much time on the HPC forums

blondie21

what is HPC ?

advent1122

do you think it can/will go on ?

Nobody knows.

are we near the top of the price rise?

Nobody knows.

bakkah

blondie21 wrote:

what is HPC ?

housepricecrash.co.uk, full of people desperate for anything that might herald a price crash, good for doom and gloom links and information but can get a bit bitter. Mostly relates to crazy SE England prices rather than the likes of here, so maybe not hugely relevant.

SnowyOwl_2

http://forums.moneysavingexpert.com/showthread.html?t=269795

This is good...nice graphs.

advent1122

In todays Express it said house prices were going to increase by 40% in the next 5 years...... So it must be true.