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

geneer

HAMISH_MCTAVISH wrote: »

Lagging figures, reflecting what was going on in February, not today.

Well thanks Hamish. I'm sure not many people are aware of that.
Sterling work. :rotfl:

HAMISH_MCTAVISH wrote: »

Besides with a 2.2% annual drop but rents soaring, it still makes no sense to rent versus buying the same property for most people in most areas.

I think you mean some people in some areas Spamish.

For that matter, are all rents in all areas rising by the same too?

Batchy

geneer wrote: »

Well thanks Hamish. I'm sure not many people are aware of that.
Sterling work. :rotfl:




I think you mean some people in some areas Spamish.

For that matter, are all rents in all areas rising by the same too?

With mortgage rates dropping, for only 90% and 85% deals, its probably at the turning point of being cheaper to buy than rent. So long as you have a deposit.

Unfortunately if you havent a deposit, then, its not a choice you have.
You will have to join the que's of people trying to get into rented at the moment.

Check out postoffice rates... 4% for a 2yr 85%,... not bad IMO.

It would have only been a few years ago... 2007 that people were paying 30% more for a property and 50% more on mortgage interest at 6%... expensive game this house buying.

You have to look behind falls, and just see... the end goal, which is clearing the mortgage, and owning, and not having to pay anything!

PS, remember to discount your cash flows! ;-)

ultrawomble

Batchy wrote: »

With mortgage rates dropping, for only 90% and 85% deals, its probably at the turning point of being cheaper to buy than rent. So long as you have a deposit.

The deposit is the key thing. But as you say in an earlier post, it my take a person 6 months to save the stamp duty levy, so how long do you think it will take them to save the 10-15% deposit? They're not going to be buying anytime soon.

Batchy

ultrawomble wrote: »

The deposit is the key thing. But as you say in an earlier post, it my take a person 6 months to save the stamp duty levy, so how long do you think it will take them to save the 10-15% deposit? They're not going to be buying anytime soon.

if they started saving now, but then most people wont be saving for a deposit in a year, they probably have been doing it for many years where possible.

ultrawomble

Batchy wrote: »

if they started saving now, but then most people wont be saving for a deposit in a year, they probably have been doing it for many years where possible.

Quite so. And in a falling market their current deposit is effectively worth more - as such, they are likely to be better off waiting and paying some stamp duty which is likely to be offset by both a greater fall in property prices and by their reduced mortgage requirements.

IveSeenTheLight

Graham_Devon wrote: »

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.

Interesting viewpoint.
Guess it could equally be applied to the "when interest rates rise" discussions as there are no firm timelines fo the implementation of that

Graham_Devon wrote: »

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).

With interest rates low, it hasn't taken much to wipe off 2 grand of the mortgage loan either

Percy1983

I must say I feel uneasy buying with such low interest rates as they can only go up (taking my mortgage payments with them).

Either way I will just keep ploding along and review whats happening when I come to buy.

IveSeenTheLight

Percy1983 wrote: »

I must say I feel uneasy buying with such low interest rates as they can only go up (taking my mortgage payments with them).

Either way I will just keep ploding along and review whats happening when I come to buy.

Of course BoE interest rates can and will change at some point.
The overall concensus is that this is likely to be not in the very near future and when it does, not too quickly.

There is always the comfort in fixing your mortgage interest if you are concerned about rates changing your monthly outgoings.

Certainly with BoE rates being so low for approx 2 1/2 years, many have already benefitted / moved onto SVR.

I would have thought that over the lifetime of the mortgage, you want to pay as little interest as possible.
This is more likely if you capitalise of a period when rates are low rather than wait till rates are higher.

Percy1983

Very true, but for us FTB's looking at mortgages the rate I currently would end up paying show no benefit from the low rates, but I can bet I would see the suffering if rates rise instantly.

Yes I will go for a fixed rate but currently the maximium on offer seems to be 3 years but the rates aren't attractive.

Essentially right now I will end up on base + 4-5% which could lead to massive problems when rates go back up.

neas

Bought back in July 2010, nearly 11 months ago now. Price down road with worse double glazing (wood vs pvc) and pretty similar specs (semi detached etc and size)... Oh and other house doesnt have ensuite.... well that house old for 2k more than mine now.

I must've got a nice discount back in 2010, ensuring a nice interest rate and nullifying the drops of 2011 .