First Time Buyers Fear Property Market Lock Out

nembot

I'm over the moon I didn't buy four years ago but feel sorry for those that did, many of whom are now in negative equity.

new_home_owner_3

nembot wrote: »

I'm over the moon I didn't buy four years ago but feel sorry for those that did, many of whom are now in negative equity.

i think it depends where you live house prices by me havent really changed in the last 4 years, and if id been renting the house im currently in for 4 years, i would have paid about 40,000 pound in rent and have nothing to show for it.

geneer

You really have to love the desperation of the bulls.

Yes Hamish, plummeting numbers of FTBs = Bulls win. Sigh.

PasturesNew

It could be the question style.

1] Do you think you'll ever be able to buy a house? No, we're priced out.
2] When do you think you'll be able to buy a house? Oh - not for ages, but we'd like to one day.

PasturesNew

new_home_owner wrote: »

i think it depends where you live house prices by me havent really changed in the last 4 years, and if id been renting the house im currently in for 4 years, i would have paid about 40,000 pound in rent and have nothing to show for it.

And somebody with a mortgage and repairs would probably have paid out £40k with nothing to show for it too over that time.

HAMISH_MCTAVISH

geneer wrote: »

plummeting numbers of FTBs = Bulls win. Sigh.

And yet strangely, plummeting numbers of FTB-s whilst prices hover just 10% or so below peak isn't exactly what the bears had in mind either with those Utopian dreams of 50% off by Xmas.....

Conversations from hpc around those times went a lot like this:

Bear: HA HA, stupid idiot, you bought a House!!!

Bull: Ummm, yes.

Bear: HA HA, loser, you'll be in negative equity soon and getting repossessed, you overextended mortgage debtor, and us renters will buy your house dirt cheap. Bears rule the world!!!!

Bull: Ummm, unlikely.

Bear: HA HA, soon all us priced out generation will be able to buy for half the price you idiot bulls did, the mahoosive price drops will more than cover the years of rent we'll spend waiting.

Bull: Whatever you say geneer.


Strangely, today the conversation is a bit different.....:)

The bears are trying to portray real terms dips in prices as a win (and completely ignoring the matching real terms dips in mortgage values), whilst rents soar, and mortgages have been at 300+ year record lows, meaning most buyers are now ahead of those who waited and rented since.

Genius.

geneer

HAMISH_MCTAVISH wrote: »

And yet strangely, plummeting numbers of FTB-s whilst prices hover just 10% or so below peak isn't exactly what the bears had in mind either with those Utopian dreams of 50% off by Xmas.....

Conversations from hpc around those times went a lot like this:

Bear: HA HA, stupid idiot, you bought a House!!!

Bull: Ummm, yes.

Bear: HA HA, loser, you'll be in negative equity soon and getting repossessed, you overextended mortgage debtor, and us renters will buy your house dirt cheap. Bears rule the world!!!!

Bull: Ummm, unlikely.

Bear: HA HA, soon all us priced out generation will be able to buy for half the price you idiot bulls did, the mahoosive price drops will more than cover the years of rent we'll spend waiting.

Bull: Whatever you say geneer.


Strangely, today the conversation is a bit different.....:)

The bears are trying to portray real terms dips in prices as a win (and completely ignoring the matching real terms dips in mortgage values), whilst rents soar, and mortgages have been at 300+ year record lows, meaning most buyers are now ahead of those who waited and rented since.

Genius.

Strangely, avergage prices don't appear to have much to do with prices on the ground in numerous locations. No doubt because they are averages.

Strangely the nominal fall of the 2008 crash is comparable to the 90s crash.

Strangely, Hamish is choosing (yet again) to characterise the so called "bulls" as the victims when everyone remembers exactly how the bulls were prior to 2007. I really can't recall the point where you were forced at gun point to join a site called HousePriceCrash and be picked on by those mean old property bears. :rotfl:

Less strangely Hamish has played the increasingly old hat "50% fall" card.

Based on the premise that one poster somewhere once said it.
A popular fall back position for the "soft landers" in the wake of the crash. Cos, you know, anything up to 49% falls in price = bulls win.
Clearly. :A

Wookster

But Hamish, I thought mortgage costs were at an all time low? If that is the case then people should be jumping at this once in a lifetime errr opportunity.

What's going on?

Batchy

Percy1983 wrote: »

Personally I don't feel locked out, but I can say the elephant in the room which the article ignores is high house prices.

I can see the problem as a few years ago I could see many friends buying with 100% and 100%+ mortgages to which I can not get such deals. With that I know one now has 5% equity and 27 years left to pay and the other as got 20 years left to go anbd more or less no equity.

So when I look at them and see a year from now I will have 25 years left and 10% equity I realise as much as it seemed they where ahead, the reality is far from it.

Hi Percy I can see what your saying but your betting on prices not going down 1 year after you buy, which will wipe out your years of savings... sometimes your just better off biting the bullet.

Percy1983

Batchy wrote: »

Hi Percy I can see what your saying but your betting on prices not going down 1 year after you buy, which will wipe out your years of savings... sometimes your just better off biting the bullet.

I am open to the fact prices may reduce further once I have bought, I am going to buy for a home not an investment so as long as I can afford the mortgage payments I don't care too much what happens.

As you say it may wipe out my savings, but my savings are for a home, if I have a home I have lost nothing.