to buy or not to buy - that's the question

mindovermatter

Hi,
We've sold our house (complete on friday) and will be renting a house in town.
What do you think that house prices are going to do next year?
We are not going to rush into buying another house but would appreciate any advice - is it as simple as thinking that if interest rates keep going up then house prices will drop?
Kind regards
Mindovermatter

Doozergirl

Of course it's not that simple.

No one knows what's going to happen. Anybody tells you any different, they're lying.

Angela_D_3

No the interest rates have to go up, the house sales have to grind to a stand still and then slowly it dawn's on those who have to move, as aposed to those who just fancy a change that the only way they will sell is if they drop the price. End of 2007 I reckon.
However we have just put in an offer and hope to complete (if we get it - have offered £50k less than asking price) the end of Feb. House prices will then crash by 50% on the 1st March 2007.

bs0u0128

people have been saying itll crash for years, it hasnt, i doubt it will it may just stabilise at a high

Gorgeous_George

Sustained high interest rates will impact house prices.

Many of the most vulnerable borrowers are those on 2, 3 or 5 year fixed rates. If high interest rates are around when their fixed rates end, they will be hit by huge increases in mortgage payments and houses they cannot sell because of negative equity.

Personally, I don't expect high interest rates for a few years yet.



GG

mystic_trev

There's no point in rushing to buy another place, particularly with the high fixed costs you now have to pay when moving i.e. stamp duty. Look for a place you want, but remember, if you want to hang on and "speculate" on house prices, this is your home that you're speculating with! I do believe we're in a "bubble" but that bubble could still inflate further. You just have to see what the last rate increase has done to House prices? Nothing, they’re still going up!

mr.broderick

Angela_D wrote:

No the interest rates have to go up, the house sales have to grind to a stand still and then slowly it dawn's on those who have to move, as aposed to those who just fancy a change that the only way they will sell is if they drop the price. End of 2007 I reckon.
However we have just put in an offer and hope to complete (if we get it - have offered £50k less than asking price) the end of Feb. House prices will then crash by 50% on the 1st March 2007.

50k less than asking price? do you mind telling me where it is so i can have a look?
good heavens that would be a result wouldn't it? :rolleyes:

Angela_D_3

mr.broderick wrote:

50k less than asking price? do you mind telling me where it is so i can have a look?
good heavens that would be a result wouldn't it? :rolleyes:

No we would be still out of pocket, sold ours last year for £65k less than the asking price. We were forced sellers due to relocation, the people who are selling the one we want are forced sellers due to going over seas. It'll be interesting to see if they accept (we might not even actually want the house).

densol_2

I remember having a conversation with my friend who sold her house at the same time I bought mine. She was talking about a crash and renting - this was in 2001.

Mine has gone up in value by £125,000 and she is just about to buy again - having rented for 5 years - the crash never came

I still think house prices will go up as a whole. Some ares more than others but go up all the same.

bijan814

What state do you live in?, in some area they say house will drop anywhere from 5% to 20%. If you wait, interest rate will go up, so you will end up paying more. Is your plan on living in the house long term or short term?If its long term, go buy a house.

phoneprize

The best time to own is now, in my eyes renting is a waste.