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Debate House Prices
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House prices to fall back to 2002 levels, says Savills
Comments
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A larger deposit pays significant dividents Rob.
And if prices are falling in real terms theres no need to rush.
I'm unsure why this observation should anger you.
It doesn't anger me at all... I bought post-2007 with a chunky deposit so I kind of know how it works. I think it's to your credit that you aspire to own a home too.
It's a bit tough on FTBers post-crunch in that you require that larger deposit to obtain the best rates, but once you pass that barrier it's all grand.
Indeed, it's rather pleasing to have a mortgage which is declining quite rapidly in real terms and mortgage repayments are a savings vehicle which is hard to beat.0 -
It doesn't anger me at all... I bought post-2007 with a chunky deposit so I kind of know how it works. I think it's to your credit that you aspire to own a home too.
It's a bit tough on FTBers post-crunch in that you require that larger deposit to obtain the best rates, but once you pass that barrier it's all grand.
Indeed, it's rather pleasing to have a mortgage which is declining quite rapidly in real terms and mortgage repayments are a savings vehicle which is hard to beat .
The only way to beat it would be to buy after the crash, rather than just before.
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The only way to beat it would be to buy after the crash, rather than just before.
And while you await this magical, mystery crash ... everyone is getting on with buying their own place - while you, sadly, are buying someone else's for them.
It must be very painful for you?
Bringing Happiness where there is Gloom!0 -
Interest Rates are key ... and, it has been quite clearly stated by all concerned, that they will not be changing for many, many years.
Cheap money means that buyers will buy, why rent at a higher cost than buying? So prices remain firm.
Expensive money would drive buyers away from the market, but, as I said - cheap money is here for a long, long time.
Anyone basing the affordability of a mortgage on the current low interest rates would be a fool. If they could not afford interest rates of at least 7% then they can't afford a mortgage.
I don't remember anyone on the MPC (the only people whose view matters) clearly stating that interest rates WILL NOT be changing for many, many years. It does look likely that interest rates will remain low for some time, in the same way that 3 years ago it seemed likely that interest rates would remain at 5% or above for some time.
What changed things then. and could change things at any time?
Events dear boy, events (to borrow a quotation)."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
And while you await this magical, mystery crash ... everyone is getting on with buying their own place - while you, sadly, are buying someone else's for them.
It must be very painful for you?
It irks him somewhat, It's a shame to see someone in obvious discomfort with their finances. 0 -
paulmapp8306 wrote: »He wasnt slagging off renters - he was saying if your trapped in the rent circuit (particularly with high rent, and high deposit needed for mortgages) then he feels sorry for you.
Im renting - though very cheaply, but looking to buy. I can only afford to due to a decent sized inheritance making it possible to offer a 40-%+ deposit.
Fair comment, but check his other posts - you may change your mind. For the record I also rent, it's cheap, convenient and offers me flexibility that living in my mortgaged house doesn't.
I don't want to sell/buy everytime I get a new role, renting therefore works for me and many others.0 -
Geneer, I dont understand why you think its great for FTBers.
Compared to house owners who are paying £400 pm on a mortgage, who will save up the deposit for the next cheap house first?
I think you will find its the BTL brigade who are rubbing there hands together at the moment!Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0 -
And while you await this magical, mystery crash ... everyone is getting on with buying their own place - while you, sadly, are buying someone else's for them.
It must be very painful for you?
Could you please excuse me from the everyone bit please.
Im hanging on for a bit longer because houses are still tanking around here.0
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