Land Registry May 2011 -0.4% MOM -2.2% YOY

wherediditallgothen

Pimperne1 wrote: »

Is this the longest falling tree in history?

Must be, becuase it's only apparently due to fall 70%

Batchy

Percy1983 wrote: »

Very true, but with each drop things get a little easier.

In my case it will save 2 months of saving for a deposit and rather a large amount in monthly mortgage payments.

As I say still not ideal, but heading in the right direction.

Dont forget to factor in the cost of Stamp Duty next year, as a FTB, you would be exempt up to 250k house value ie, 2.5k this year.

How many more months will that take to save up?

abaxas

Hmm, the 'it's sold before and is sold again recently, but not including things we dont want to put in' index is down.

Useful.

Batchy

This is without doubt, the most useful index, not much going on around me, other than people chopping off 10k from the asking but unwilling to see another 10k knocked off the offer.

but the -0.7 for the month, against the -0.9 for the year, is much ado about nothing and official stagnation.

Volumes appear down but apart from that, not much going on!

Generali

Batchy wrote: »

Dont forget to factor in the cost of Stamp Duty next year, as a FTB, you would be exempt up to 250k house value ie, 2.5k this year.

How many more months will that take to save up?

Doesn't that imply that someone would pay a premium to buy a house this year rather than next? Temporary tax breaks normally just bring demand forward rather than increasing demand in total IME.

Batchy

It does bring demand forward, but it doesn't change the fact that it will cost more (should prices not drop to reflect).

its not the costing more its the cash flow issue, to pay 2.5k more for a house over 25 years, is a few pounds per month extra, smoke a few less fags, one less bottle of wine a month and thats it.

To pay the Stamp duty, its actually 2.5k extra on the deposit fund, without giving yourself the opportunity of buying a better (more expensive) house.

As a cash flow decision as a FTB I would seriously weigh up the risk reward for waiting even longer in a buyers market.

Even a seller knocking 2.5k off the actual selling price would only mean having to save 250 quid less next year! so still potentially 2.25k to find next year, in a situation where inflation is increasing and rents are increasing and mortgage rates are hinting at increasing, without wages increasing is very difficult to put the burden of extra saving requirements onto them.

Graham_Devon

The stamp duty free period may well be extended yet.

Think it's dodgy ground to be suggesting now is a better time to buy a house as you may save a couple of grand on stamp duty. Too much turmoil out there to suggest anything is cheaper at the moment. All you can do is do what you feel best...and then look back in hindsight.

Wouldn't take much to wipe 2 grand off the value of houses. Whats more, with every drop, the stamp duty drops too (if stamp duty applies that is).

Percy1983

As I say local is my main concern but I am more than happy to discuss averages.

As for stamp duty I am only looking at around £135k for a 3 bed semi so no issues, but to answer the question, £2.5k would delay me 2 months.

But yes I can see it may cause problems in many areas.

Batchy

Percy1983 wrote: »

As I say local is my main concern but I am more than happy to discuss averages.

As for stamp duty I am only looking at around £135k for a 3 bed semi so no issues, but to answer the question, £2.5k would delay me 2 months.

But yes I can see it may cause problems in many areas.

Well, 135k value house will be 1.35k next year, exemption starts at 125k, and would only be an extra month, not so much an issue for a man of your means and earnings, but could be an extra 6 months of saving for some!

Graham, As I said before wiping 1.35k off the price is not the issue, its finding the cash to pay the stamp duty as well as fees as well as deposit otherwise you wont hit the LTV% potentially for the rate you needed.

wotsthat

Graham_Devon wrote: »

Think it's dodgy ground to be suggesting now is a better time to buy a house as you may save a couple of grand on stamp duty. Too much turmoil out there to suggest anything is cheaper at the moment. All you can do is do what you feel best...and then look back in hindsight.

Wouldn't take much to wipe 2 grand off the value of houses. Whats more, with every drop, the stamp duty drops too (if stamp duty applies that is).

People will only buy houses if they want one and can afford one. I can't see a rush to buy before any deadline. Zero stamp duty is a relatively minor consideration when buying a house but every little obviously helps.

There is a lot of turmoil but there has been for a few years now. Say someone waits another 2?, 5?, 10? years for things to settle down then what have they gained? If they wanted to buy a house and had the means but procrastinated they've simply moved a few years closer to the grave and still haven't got what they wanted years ago.