house prices

IvanOpinion

We are at a point where historically it is possible that there will be an 'adjustment' downwards however nobody knows. The main thing is to not panic because within a few years the prices will have risen again.

Ivan

wifeforlife

IMHO I dont think that theres a shortage of starter homes, where I live the problem is that other people who have a home and want more property are bidding new home owners out of the market for rentally purposes. I personally rent a house and the amount I pay in rent would pay a mortgage got 3 years ago, now my landlord owns 27 houses where I live and alot more besides. Where does it stop? It's a vicous circle, people are being forced into renting because they're priced out of the market by people who bought their homes years ago and are now the ones forcing the rest of us into renting. Now this is just my opinion so any landlords dont shout at me lol

My own brother and new wife had to buy a home that really would have constitued a second home, miles from family and friends just because where I live the big business men have a monopoly over the housing market

I know it's not totally their fault and who could blame them making a few quid but I think sometimes it verges on the p!ss taking.

I think to be honest it will starting slowing down and peak, but not for 2-3 years yet

All I know is that I'll never own a property and to be honest if my rent stays ok and my landlord and I keep getting on I'll have no problems

Cath

PandaPants_2

Im trying to buy on my own and ive totally given up. Its totally unfair that houses are being snapped up just to rent out! There are places in my area i could afford if i was given a chance! But these landlords come in with a cash offer or bid way way out of my range, then a few days later a "to let" sign appears. Most of these people already owning at least one other property.

I think the government needs to limit to amount of properties a person can rent out at a time because i think thats what driving up the price of smaller properties....

Colin_Kee

I see where you're comming from PandaPants, but they cannot limit the amount of properties a person can own or indeed rent out. Having lived in England for a number of years I've seen this whole house price boom thing before but I never thought it would take of as seriously as this over here in Norn Iron. Especially when there is such a big differance in average salaries and rental incomes. What they have done in England/GB however to some extent is to make large developers allocate a number of houses in any new developments as "Low Income" housing and they can only be sold to people in key jobs on low incomes (Basically low paid goverment employed staff such as firemen, nurses, etc. etc..) Mind you in Northern Ireland these may not be classed as low paid jobs in the grand scale of things so doesn't really help Joe Public working for ACME Corporation driving a forklift for £200/week (OK it's just an example, I'm not putting down forklift drivers, did it myself for a while)

Anyway, as I said before in this thread, considering I could rent a 3 bed semi house beside mine for £450/week inc rates and a similar house sold for £155,000 2 months ago (Probably worth £165,000 now), how can the person who bought this house pay the mortgage on it unless they had a !!!!!! load of money to put down as a deposit. Even an interest only mortgage for £150,000 would cost the guts of £600/month.

This begs the question are a lot of people in it for the quick buck, buy a house at £150,000, pay mortgage for 3~6 months, re-sell at £160,000++, probably cut a deal with a local solicitor/estate agent to cover paperwork/fees if you put enough business their way, Quids in, even worst case you may only make £2000~£3000, not bad for 6 months of doing nothing.. and as long !!! you keep doing it over & over you avoid Capital Gains Tax.

then again there are benifits to renting. Rent is relativly low over here (at the minute) As Cath says it could pay a mortgae got 3 Years ago, I very much doubt however it would pay a mortgage on the house you're living in now if you were to buy it?? so there is the benifit of you being able to live in a house you otherwise could not afford, You don't have to worry about House insurance (Contents yes but not house) No need to worry about maintainance etc, etc, etc,


I do think the government do have to look at this now before it gets like England and there are real problems.

PS.
These daft new planning laws are really not helping mattters, as it means small builders cannot compete with large developers for land, now that they can't develop in the rural areas. What daft git came up with this proposal? This has actually made things worse as now young people in the country who may have previously been able to build on parents/relatives land now can't so they now have to look to the towns & villages, meaning more competition for houses. And they say it's not a conspiracy to get everyone into towns so it's cheaper for the gorernment to provide services to them,, Hmmmmmmmmmm!!
Ok things have to be regulated but just make the planning more specific & detailed so that the housing blends into the lanscape, don't just ban it completely..

Greentea

what do you mean "and as long !!! you keep doing it over & over you avoid Capital Gains Tax. "

if its not you Principle Private Residence you have to pay Capital Gains. Still theres plenty being made by investors/speculators.

rrobbo

Even though I've got a property that I rent out myself, I've got to admit that I'm not keen on the way that people who want to buy their own 'homes' (I distinguish between homes and properties in this) are being pushed out of the market at the moment. I think that in the past things have managed to balance themselves out relatively well and we can't forget that private landlords are offering a service and that there are a lot of people out there who benefit from this.

One option would be to change the way that buy-to-let properties are taxed and assessed. If the profit on such a property was treated as income rather than capital gain it could help suppress demand a little. Alternatively, the government could stop allowing mortgage interest being deductible against rental income (if I borrowed money to buy shares would I be allowed to offset the loan interest against any dividends?). There are a couple of anomalies in the way that buy-to-lets are taxed that are not necessary in such a healthy property market and now may be the time for a correction.

NAR

PandaPants wrote:

I think the government needs to limit to amount of properties a person can rent out at a time because i think thats what driving up the price of smaller properties....

I totally agree PP, though how they would do it I don't know. It is certainly driving up the price of properties, of that there is no doubt. one of my friends is an estate agent and he is quite staggered by the amount the lower end of the market (< £125,00) has exploded!
When I am Prime Minister I will restrict people to owning a maximum of 3 properties. Anyone want to vote for me? :A

wifeforlife

Nar heres my vote!!! lol Although can you fix it so I can own 1 property, I dont want to be greedy hehe

Cath

arkonite_babe

talksalot81 wrote:

I have basically given up trying to purchase right now, my £20k deposit and £40k salary simply goes nowhere

If that's the situation you are in, spare a thought for the rest of us who slog our guts out for £12k a year. :mad:

I only just have a toe in the housing ladder and that wouldn't even have been possible if it weren't for the co-ownership scheme.

If I had your deposit and wages, I'd be sitting pretty right now! Rant over

ginger_nuts

I was talking to an estate agent yesterday .I was looking for a one bedroom flat .An ex housing executive flat was on the market at £80,000 but has an offer off £97,000 .Another one was on the market for £75,000 but has an offer of £85,000 . 18 months ago the same flats where £40,000.
I no I am lucky not to be a first time buyer .