So who's planning to buy a place in 2011?

Mr_Matey

I might... but I'm not in a position to make such a decision yet.

Yakubu22

I think I'll sit back and wait for the inevitable 5-10% further price drops to come this year. Then pick one up at the end of 2011.

lowlandsmatt

LydiaJ wrote: »

Well, I agree I don't think there are going to be many people missing housing boats this year, but I do think the analogy has something to it when applied to the last twenty years.

In the early to mid 90s I was in a peer group of young married graduate couples. Almost all our friends bought at that time. We didn't, because late-nearly-ex was doing low paid part-voluntary work, and then because I was supporting him through getting another degree, and also because we both knew he was going into a career where housing would be provided with the job.

We thought we'd buy a place eventually - a holiday property or BTL or something - so that when we retired and weren't provided with tied housing, we'd have something to sell to fund a house to retire into. But it all seemed not at all urgent. Once he started earning full time, we had two kids and I gave up work to stay at home with them.

A few years later, he got sacked, and then a little after that he left me. I looked at the size of my deposit, and realised that while it would have covered the whole purchase price of a 3 bed semi in 1993-5 when our friends were buying, it wouldn't achieve much in 2007. Working part time with two kids, I couldn't earn enough to get a mortgage on anything big enough to house the three of us in the town where my jobs are. But if late-nearly-ex and I had bought in the early 90s and upsized a bit since, then the equity we'd have built up could have been split to enable each of us to find somewhere - not a palatial somewhere, but a reasonable somewhere.

Why, I asked myself, had I been so completely oblivous of HPI and its implications in the 90s and especially the early 00s? I felt there had been a chance years ago and we missed it, and it was very frustrating.

OK, so now I am buying. I missed the normal kind of boat, but an extremely high powered hovercraft came along unexpectedly in the shape of late-nearly-ex's life insurance, and suddenly enabled me to catch up with my friends. But that doesn't happen to most people.

Just read this and had to say I hope you and your kids enjoy the new house, good things come to those who wait.Also, try and garage that hovercraft! Those things cost a fortune and easily degrade in this weather:eek:

stringsmk2

Yakubu22 wrote: »

I think I'll sit back and wait for the inevitable 5-10% further price drops to come this year. Then pick one up at the end of 2011.

Just like this year then?

padington

Londons going up year on year slowly. With rising population and immigration, people moving to the cities, Urban the new cool, london the most highly respected cities in the world, UK and US central banks printing money like there is no tomorrow ... London prices are not going to go down for a long while.

Also in an uncertain world investing in real physical things is a very wise move and personally i think london property will be the choice of the rich, the world over.

Wouldn't touch anywhere else with a bargepole though, not with the cuts coming in.

On the other hand those living in the north that cant get on the property ladder will have a great chance to buy over the next three years if you ask me. Prices will go down lots in certain parts as people lose there jobs like not seen for a generation

It wont be a north south divide, it will become a London - Not London divide and it will be fairly striking i would imagine.

Saying that, I think even London might have a nasty surprise if there are more runs on the banks. The whole econmony is built on sand (money) and it will fall badly when the sea comes in.

Just make sure you dont borrow what you cant afford when the interest rates go double digit.

Pete111

N1AK wrote: »

With property you also need to consider stamp duty, and CGT if you want to sell the asset. It is reasonably easy to keep below the CGT limit on shares by managing when you cash in on your investment. Property makes this much harder to avoid.

Additionally you are assuming that if house prices dropped by 50% in central London you would still receive the current rental income. Obviously you're right that big drops are unlikely, though if they happened property wouldn't automatically become the easy bet investment.

I take your point re rental (ie we don't know what rents would be) but my estimate was conservative and based on tax being levied at 40%. Stamp duty would be minimal also .

Agree it's not an 'easy' bet but I would look strongly at making it - as would others.

Percy1983

I may end up buying late 2011 but will probably slip into early 2012, unless there is a clear indication of falls I will buy at the first chance I get. Currently aiming at 15% deposit on a 3 bed semi which will probably have a garage.

As mentioned before I will be pricing mortgage payments based on 'what if' interest rates went up etc, I will be buying under the limit the bank offers (I last aksed they said i would be offered approx £145k and right now houses at £100k-£115k look perfect, so I don't believe I would be over strtching. With that wo knows what will happen to prices and mortgage requirements in that time.

As for missing the boat, I will make my own boat.

twirlypinky

would love to buy bigger, but we don't have enough deposit yet.

Wheezy_2

I've only just finished doing up the place we bought in 2009... I'm completely fed up with DIY-ing, so there's no way we're buying again this year!

LilacPixie

only just bought one in december 2010 so no way for 7-8 years