How I intend to make £'000s

HokeyCokey_3

Almost Redundant I am very impressed...but how many other people have followed suit?

Will the crash ever happen, when there are so many people waiting to buy a house outright if they do?

The country isn't in enough trouble yet, prices need to go up further and at a faster pace, for a crash to make a huge impact.

Almost_Redundant

HokeyCokey wrote:

Almost Redundant I am very impressed...but how many other people have followed suit?

Will the crash ever happen, when there are so many people waiting to buy a house outright if they do?

The country isn't in enough trouble yet, prices need to go up further and at a faster pace, for a crash to make a huge impact.

Thats a fair point HokeyCokey and one that causes me a little concern. It's hard to call witout knowing exactly how many people are waiting in the wings to benefit from a crash which could cause prices to rise again. A vicous circle, but by that time I would be buying a home and not an investment.

zkeithz

Almost_Redundant wrote:

Keith,

I'm afraid i've already beaten you to it! Had similar thoughts back in 2003, heres a summary of how it went/is still going:

Sep 2003 - sold house for £220,000

QUOTE]

Take your point, however, we are now in 2006/7.

Time passes, things change. Prices are peaking and the market in slowing massively. Tens of thousands of people just don't have the money to enable them to borrow. Take a look at the UK government office of national statistics re house sales/completions/prices etc....this is recorded fact, not conjecture.

Regards
Keith

Almost_Redundant

Keith,

I wasn't dissagreeing with you in my original reply, hense why I continue to hold and rent. Moving abroad though is a whole new kettle of fish!

Merlin_of_Altofts

Living in God's own county, we are normally later than the south of the country with house prices rising but do not experience falls, only a levelling off from time to time when others experience any actual reductions.
We have owned our home for over 20 years and as far as I can see, the problem will be localised rather than a National one if, as some of you predict, there is a slump in house prices.
As far as selling up to then rent and then hopefully buying again after a sharp drop, I do not personally think would work to any great shakes in the future, but then who would have thought what could have happened to Leeds United in the past ten years !!

wifeforlife

82616 wrote:

hi, been really interested to read all your opinions on this.

I currently live with my parents and im desperate to get my own place.

Basically ill be able to afford a deposit of approx 50% of the value of a house in my area (a 2 bed terrace is approw £100,000)

I just cant decide if i should rent, or buy.......any opinions???

Hi I'm in the same position, although I rent a property and have done for 3 years. I've opened a high interest savings account for my daughter which I put between £150 and £200 per month into, I intend to do this for the next 5 years and I IMHO think the house prices will be a bit lower than they currently are so my daughter can use it to buy her lovely mummy a house. I am so 'stingy' haha I will not buy a house that 2 years ago was worth 70k which is now selling for 138k, my landlord and I have a good relationship and I really feel this property is a home and not just me paying off his mortgage.

Cath

Alan_M_2

zkeithz wrote:

Almost_Redundant wrote:

Keith,

I'm afraid i've already beaten you to it! Had similar thoughts back in 2003, heres a summary of how it went/is still going:

Sep 2003 - sold house for £220,000

QUOTE]

Take your point, however, we are now in 2006/7.

Time passes, things change. Prices are peaking and the market in slowing massively. Tens of thousands of people just don't have the money to enable them to borrow. Take a look at the UK government office of national statistics re house sales/completions/prices etc....this is recorded fact, not conjecture.

Regards
Keith

Be aware that these statistics do not include repossessed or auctioned properties, properties that have reduced in value and cannot be sold.

These are the same government statistics that clearly show there was in fact no crash at all in the early 90's simply because of the exclusion of data.

meanmachine_2

arkie wrote:

As for the other post, No I dont cheer when a tin of beans goes up...
will you cheer if house prices go down, causing a rise in interest rates , rise in rent, rise in petrol, rise in the cost of living,.... a money spending expert.

Huh?

Your grasp of economics is so tenuous it's like debating with a martian.

Why would a fall in house prices *cause* a rise in interest rates?

Honestly, those of you hitching your wagon to this guy need to stop and think about this post.

By the way "supply and demand" isn't an argument any more than "Marks and Spencer" or "French and Saunders" is.

a010454

btloptingout wrote:

:T

Well I feel it time to roll out my analysis of all resales from 2 of my local "city living new build apartment" developments:

Crown Heights
84 Alencon Link,
RG21 7TY
26-Sep-2003 £190,995
28-Jun-2005 £165,000

Crown Heights
139 Alencon Link,
RG21 7TW
28-Nov-2003 £213,995
29-Jun-2005 £183,000

Crown Heights
27 Alencon Link,
RG21 7TN
20-Apr-2004 £199,995
22-Dec-2005 £160,000

Crown Heights
123 Alencon Link,
RG21 7TW
31-Oct-2003 £211,995
22-Feb-2006 £168,000

Crown Heights
47 Alencon Link,
RG21 7TN
20-Apr-2004 £190,000
09-May-2006 £160,000

324 Winterthur Way,
RG21 7UQ
08-Dec-2004 £230,000
16-Jun-2006 £157,000

411 Winterthur Way,
RG21 7UN
30-Apr-2004 £170,953
13-Jan-2006 £137,500

Those are LR offical figures and are all publicly available via a number of websites.

This is a good example of NEW BUILDS. Similar things are happening in my area, Edinburgh. BUT New Builds are a bad example for comparison. I would never now touch a new build FLAT in my area. To many being built and lying empty.
However the market for Houses and flats in older developments continues to thrive.
The trouble with basing your opinion on New Builds, is that the price of these houses is set by the developers opinion of their worth and not by the people who matter, THE BUYERS. Developers try to squeeze as much as they can from the development and end up with Ghost areas. These developments will eventually find their level and grow from there.
Established properties are still rising in price in all areas and will continue to do so. Eventually slowing and stagnating for a few years possibly but not falling.

arkie

meanmachine wrote:

Huh?

By the way "supply and demand" isn't an argument any more than "Marks and Spencer" or "French and Saunders" is.

unfortunatley MM we all live in a society dictated to us by supply and demand , this is what this whole site is about, we demand, this could gas , electric, housing,mortgages or houses and people supply them to us.. thats life

As for 'high interest rates' look at the interest rates the last time houses crashed, think about this below , in martian if you wish,

low interest rates = easier to borrow money = high house prices = higher debt

house prices crash= banks make it even harder to borrow money = high interest rates= higher rent

most people I know who want a housing crash live in rented property, as people who own their home would be crazy to wish for a crash..... so to me being a martian looking down on all you earthlings.. get on the housing ladder ASAP, its the best investment you will make and stop being jealous of those earthlings with houses..




my motto

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remember a little knowledege is very dangerous