What it matter about house prices?

FATBALLZ

RenovationMan wrote: »

I think we can agree that the value of our house is not important except...

1. If were first time buyers who bought recently and so have not had any real gains via HPI yet.

I don't agree with that one But maybe people who bought on 100% mortgages in the middle of the boom might have had a different mindset.

Poosmate

Hi both, mind if I join the conversation? Or maybe continue where Derf left off?

I am buying my house and probably have about 60% equity in it. That's a real guess because I really don't have a clue what the value of my property is, all I do know is that my neighbour tried to sell his last year but as far as I know didn't and now there's another tennant in it. He had it on the market for £139k then £129k then £119k then the For Sale board disappeared and someone moved in about a week later. I bought mine for £40k 16 years ago.

I class this as my forever home so I'm not too bothered about it's value. I think that is especially true because I know I could sell it for £40k and pay off what's left of the mortgage and still have a few bob in my pocket.

Poo

Poosmate

I think with FTBers it depends upon why they are buying.

It seems to me that many FTBers want to buy a perfect home first off with a view to staying for a couple of years then selling for a huge profit to go on the next dream home (do this a few times over). So they bought with the idea that the market would give them their profit rather than improvements to their porperty over 3-5 years and increasing their equity by paying their mortgage.

Unfortunately, this didn't quite happen the last few years did it?

I think FTBers could climb up the property ladder if they bought wisely. i.e. not their perfect house, probably not in the area they want to live, but somewhere with the potential to redecorate, refurbish over a few years and sell on. Like we "normal" people used to do in the old days! lol

Poo

Poosmate

Sorry, I got interrupted by the cat!

I was also going to say that I don't think there78 (oops cat is back) is anything wrong with people stretching themselves to get the homes of their dreams if they realise that they should make sacrifices in order to keep it when times are hard (i.e. high interest rates, falling house values/prices, job losses).

I have in the past taken a second job to pay the mortgage, I've also taken in lodgers (although they were circumstantial rather than an aid to paying the mortgage). Paying a mortgage every month for 25 years is going to be hard at times. In the long term, you have the benefit of living in decent housing (however decent you choose to make it), without fear (relatively) of having to move every 6 months or year and also eventually the mortgage cost is smaller than renting the same property.

Poo

Jimmy_31

Conrad wrote: »

Derv, you can honestly look in the mirror and say your home value is of little importance? If this is true you will be selling it one day for a nice low sum afterall it's all meaningless?

You don't feel self satisfied even deep down about property value.

I can tell you are the type to extract every last cent when you come to sell, and to pin the EA and Sols fees as low as possible.

In other words the value will one day be extracted and is therefore always imortant, albiet currently confined to your subconscious.

When i buy my home i dont think i will sit thinking what its worth, i am probably not going to live in the first house i buy for the rest of my life so when i sell it would be nice to get back what i paid for it, but even if i didnt then that must means house prices in my area have fell so therefore its going to be a lot cheaper to move to my next house which is obviously a good thing.

nembot

To add a little context,

I bought my first place 10 years ago and with overpaying have a nice little bit of diposable income each month.

My friend bought a similar house 3 years ago, paid nearly 4½x more and is pretty much on the breadline should anything out of the ordinary go wrong (washing machine breaks etc).

Disposable income, well he would reply with a wry smile -"what's that?"

So there's your "difference" around £435 per month for 25 years which works out to around £130,000 ish.

Which incidently would pay the OP'ers mortgage more or less.

What's the big deal eh? when it's other people who're in the !!!!!!....

michaels

+60p / hour according Halifax March month on month...house prices? Don't know and don't care.

Engeroosi wrote: »

You can get a loan to buy a car, a couch, a boiler, a bike, your weekly shop even and they all either depreciate rapidly or become worthless the minute you buy.

So surely if your buying your house to be your home why are people so worried about the price of it!!!

Everyone agrees that it will be worth a fair bit more in 20-35 years when you have paid the mortgage!!!

DervProf

RenovationMan wrote: »

I think we can agree that the value of our house is not important except...

1. If were first time buyers who bought recently and so have not had any real gains via HPI yet.

2. If we are not looking to sell our houses and buy somewhere larger or smaller.

3. If we were on an internet forum and pretending to be altruistic. Will someone, for God's sake *he cries in anguish*, think of the children?

1. I bought a graphics card recently, and it hasn't gone up in price recently (if ever).

2. If I sell my graphics card, I know it won't fetch what I paid for it.

3. Speak for yourself, sunshine, I do care for others.