Crashers get ready with those big deposits!

mbga9pgf

Depends on your perspective. We managed to buy at a significant discount thanks to the trougher who lived at the property previously feasting on MEW and getting themselves into lots of trouble.

Steve is a bit of a different case. Although in future, I think his previous prediction of only 15% falls will be proved short of the mark.

nicko33

mbga9pgf wrote: »

it will take another 2 years to hit the trough,
...
For those like Hamish who are expecting aneasy retirement paid for by increasing house prices, tough luck YOU LOST!:rotfl:

And what do you think will happen after this trough?
Prices to increase again?

michaels

I agree with 5% down from June peak by xmas - and I'm not sure Hamish would disagree.

Then I can see supply being withdrawn if at all possible and more low volumes and declining prices for those who do have to sell.

I am not sure if it will be 2 years of gentle falls or 12-18 months fairly steep like last time and I suspect it will go below the feb 09 trough but it will also recover again and house prices over each cycle will rise faster than incomes.

Therefore Hamish is right - in the long term it is better to be leveraged in to the market than not in it.

However the bears are also right, buying at the right point in the cycle can have a huge impact on an individuals finances even when measured over their whole life.

nearlynew

I've been tracking a couple of houses over tha last 12 months using property bee.

They are all around the 320k mark and I anticipate buying one or similar for about 250k

Sibley

They are all around the 320k mark and I anticipate buying one or similar for about 250k

Oh do you really?

Maybe the sellers don't fancy taking a 70k knock for you. :rotfl:

I can help you here my old mate.

For £320k I guess you are looking at 4 bed detached places. Well your money will only allow you to purchase a 3 bed place. Don't beat yourself up over it. You can't afford a 4 bed.

There. You will sleep better now.

I anticipate selling one of my houses for £200k. I wouldn't even take £195k.

Just so you know what you are dealing with.

Pimperne1

nearlynew wrote: »

I've been tracking a couple of houses over tha last 12 months using property bee.

They are all around the 320k mark and I anticipate buying one or similar for about 250k

How much have they gone down in the 12 months you have been tracking them?

Pimperne1

mbga9pgf wrote: »

Your day is nearly here.... :beer:

I bought a few months ago, but made it clear I fully expected a further 25% drop in prices. Whether we get to see another 25% is yet to be seen, but I truly believe the next few months HPI data is going to be shocking, and will knock confidence when public sector bodies will be reducing staff numbers significantly. I reckon we will be 5% down from the "recovery" peak by christmas time, it will take another 2 years to hit the trough, but if you have been clever, saved a massive deposit and are chain free, your day is about to arrive...


For those like Hamish who are expecting aneasy retirement paid for by increasing house prices, tough luck YOU LOST!:rotfl:

Sorry but who would be so stupid as to buy an asset they fully expected to drop 25% in value? I have quite often seen people posting "Although I am a HO I full expect prices to fall by another XX% and will be pleased when they do". Yeah, tell us another.

mbga9pgf

Pimperne1 wrote: »

Sorry but who would be so stupid as to buy an asset they fully expected to drop 25% in value? I have quite often seen people posting "Although I am a HO I full expect prices to fall by another XX% and will be pleased when they do". Yeah, tell us another.

Someone who was smart enough to secure purchase at 25% below local market value by being extraordinarily canny.

Besides, its a long term home, its not a piggy bank. If it loses 25% of its overpriced market value, so what?

bearing in mind I bought with a 30% deposit, I am a LOONG way away from negative equity. I would be happy to lose equity in my home if for no other reason to wipe the eye of pathetic smug B*stards on here that enjoy trolling individuals that despite working hard, cannot enjoy the benefits of cheap decent housing those a few years older got to enjoy.

If they lose their homes due to poor financial choices and believing "value only ever goes up" then sorry, you shouldnt believe everything you are told.

Graham_Devon

Pimperne1 wrote: »

Sorry but who would be so stupid as to buy an asset they fully expected to drop 25% in value?

Anyone who buys a car

dopester

Sibley wrote: »

The only houses that will sell cheaply at the moment are the ones for sale.

Durr. That is the market. If houses for sale are actually transacting at lower prices or being sold cheap, it is going to impact on the values of houses not for sale. It's how markets work, brainiac.

The house I'm in at the moment is not for sale. It hasn't been sold since the mid-80s, at £36,000. Its market value today has been determined through people paying ever more for similar houses in the area over the months and years.

When more sellers accept less money than similar houses sold at in the past, it impacts on the value of houses for sale, and also houses not for sale.