Are House Prices Going to Crash?

Market_Oracle

Yes, within the next year

Its easier to buy a house on the way up, as credit is lax, it harder to buy a house on the way down as credit is tight.

Offcourse if yuo have cash then its different

ascollen

Really enjoyed reading all your comments.... I'm one of the ones to admit I have no idea!

ascollen

roswell wrote:

If your not sure about buying look at the price of a mortgage, look at what you can buy, Then look at what the rent is on the same (ish) property.

if cheaper to rent - rent.
if cheaper to buy - buy

Maybe in some cases could be an argument for rent to live, and buy to let? If that makes any sense to anyone....

talksalot81

Gorgeous_George wrote:

My best advice would be - buy a house that you want to spend many years living in.

Fantastic advice.... which unfortunately is null and void for a vast number of FTBers.

Consa

Yes, within the next year

mr.broderick wrote:

:rotfl: instigated every time by the losers who cant afford to buy now...

:rotfl: Not quite, I can afford to buy but choose not to, why buy when it is cheaper to rent? The only loser is you being in hock to your bank for 25 years.
While I am here I will give you a good bit of news:

THOUSANDS of people trying to escape some or most of their debts could be stopped in their tracks by a new centralised service offered to banks and other lenders.

Rather than enter into an Individual Voluntary Arrangement, in which borrowers propose to pay back a slice of their debts and have the rest written off, many would have arrangements rejected and be told to pay back everything they owe.

http://www.thisismoney.co.uk/credit-and-loans/debt-news/article.html?in_article_id=414579&in_page_id=62 :T :T

Simon_Wallace

I've absolutely no idea

Consa wrote:

why buy when it is cheaper to rent?

Why pay off someone else's mortgage when you can pay off your own? If I could mortgage a house for £1,000 a month or rent it for £950, I'd be buying it. Certainly in Edinburgh where population influx means no likelihood of any flattening or falling of house prices any time soon.

Cheers
Simon

talksalot81

Simon_Wallace wrote:

Why pay off someone else's mortgage when you can pay off your own? If I could mortgage a house for £1,000 a month or rent it for £950, I'd be buying it. Certainly in Edinburgh where population influx means no likelihood of any flattening or falling of house prices any time soon.

Cheers
Simon

Are those real numbers or ones you made up?

In my case I have been looking into the comparison. It will cost me about £1k to buy or about £500 to rent. Admittedly some of the £1k goes into capital on the property, but about £750 goes straight towards interest repayments. Therefore, every single month, the mortgage option costs £250 more 'dead money'. Factoring in savings etc, over a 2 year period, the property would need to go up by more than 10k just to break even with renting. If we have a flattening of prices and you sell for what you bought... you have lost upwards of 10k immediately.

skim

Yes, but not yet

Consa wrote:

:rotfl: Not quite, I can afford to buy but choose not to, why buy when it is cheaper to rent? The only loser is you being in hock to your bank for 25 years.
While I am here I will give you a good bit of news:

http://www.thisismoney.co.uk/credit-and-loans/debt-news/article.html?in_article_id=414579&in_page_id=62 :T :T

The thing is with renting there is no end to it.
With a mortgage although you have to pay it for the term - once it's paid you don't have to pay any rent.

I intend to get as good a house as I can & then when I reach retirement age, sell up & rent to release the capital & have a nice comfortable retirement.

Consa

Yes, within the next year

skim wrote:

The thing is with renting there is no end to it.
With a mortgage although you have to pay it for the term - once it's paid you don't have to pay any rent.

I intend to get as good a house as I can & then when I reach retirement age, sell up & rent to release the capital & have a nice comfortable retirement.

Quite right, I didn't say I was going to rent forever but as someone mentioned above interest on a mortgage is dead money, if I was to buy the house which I am renting - the mortgage payments would be virtually double what I am paying now, interest alone would also exceed what rent I am paying now so it is a bit of a no-brainer really, also I believe house prices will fall dramatically so I will wait and save myself thousands in the process.

skim

Yes, but not yet

no sign of a crash in my area - I have a friend who is a local EA (Derbyshire) & they are saying business is twice what it was a year ago.

I just sold my house - been on the market 10 days & many in my area are selling within the same sort of time so to me that suggests the market in my area is undervalued at the moment.

The other thing is whilst more people are coming into the country, there is still a shortage of houses & financial institutions keep playing with how many times your salary you can borrow & length of term being extended then prices will continue to rise until that stops.

I think you may be waiting a few more years yet.