First Time Buyers Fear Property Market Lock Out

chucky

Wookster wrote: »

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?

what's going on is that you're confused again.

affordability and mortgage costs are two completely different things.

dtsazza

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.

The price of a house that you own is only relevant if you're wishing to sell it. Most people don't consider it an invesment opportunity and get upset if their personal net worth is down a few percent this week. (Besides, the only way to accurately know the value of your house, i.e. what someone will pay for it, is to go ahead and sell it).

Once you've bought a house and are living in it, who cares what a hypothetical buyer would be prepared to offer for a house that isn't for sale?

Loughton_Monkey

The current position is quite clear - albeit difficult for FTB's.

1. House prices are going nowhere for the next year or two. Small random fluctuations up and down will be [over] analysed on this forum.

2. Interest rates are at record lows. They can only go up. However, the rules have changed and for the first time for ages, FTB's have to stump up some serious cash to get on the ladder.

3. The 'smart' people are just hunkering down and stashing it away, hoping to emerge with enough deposit while rates remain low, and prices are not zooming up.

4. So the debate is how long this 'pipeline' will take to work through the system. At least a couple of years I expect. After this, we will have a slowly increasing set of FTB's and prices will start to move up to reflect higher demand.

Of course the sad irony for some, is that they are already renting [rather than sponging off parents, and living at home]. Demonstrably they can afford their mortgage repayments, but because this amount (and more) is going to the landlord, they cannot save the deposit and switch to owner occupancy. A sad state in which to be. By the time they have saved up enough, prices will be starting to rise again, and rates will be much higher. Life's a bltch!

Batchy

Loughton_Monkey wrote: »

The current position is quite clear - albeit difficult for FTB's.

1. House prices are going nowhere for the next year or two. Small random fluctuations up and down will be [over] analysed on this forum.

2. Interest rates are at record lows. They can only go up. However, the rules have changed and for the first time for ages, FTB's have to stump up some serious cash to get on the ladder.

3. The 'smart' people are just hunkering down and stashing it away, hoping to emerge with enough deposit while rates remain low, and prices are not zooming up.

4. So the debate is how long this 'pipeline' will take to work through the system. At least a couple of years I expect. After this, we will have a slowly increasing set of FTB's and prices will start to move up to reflect higher demand.

Of course the sad irony for some, is that they are already renting [rather than sponging off parents, and living at home]. Demonstrably they can afford their mortgage repayments, but because this amount (and more) is going to the landlord, they cannot save the deposit and switch to owner occupancy. A sad state in which to be. By the time they have saved up enough, prices will be starting to rise again, and rates will be much higher. Life's a bltch!

I couldnt have said it better myself. In fact I have said it, but not as well... lol ;-)

I see examples of all of the above with all my friends. not that they are representative, but we are all working class, semi professionals.