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Debate House Prices
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What is wrong with wanting cheaper homes
Comments
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What's a bear?
How can I ever be in negative equity when I've paid off all my mortgage and totally own my home?
I want house prices to go down so others get the chance to be homeowners.
I can see me having the same way of thinking as you when i buy my first home.
It also has the added benefit of costing you thousands of pounds less if you want to move up the ladder, just save up a bit while you live in the first house and then sell it and add your savings to buy the next house.
Be warned some people on this forum will tell you its a stupid idea but ive done my sums and im pretty sure it works:)0 -
Graham_Devon wrote: »A lot of investors would sell. Therefore increasing supply.
I did say I thought house prices would go down.
The overall housing stock wouldn't change however - you can't expect both purchase prices and rental prices to fall in such a circumstance.
This is all pretty hypothetical - I would be somewhat surprised were this government to look at increasing security of tenure. Even Labour didn't bother in their time in charge.0 -
I can see me having the same way of thinking as you when i buy my first home.
It also has the added benefit of costing you thousands of pounds less if you want to move up the ladder, just save up a bit while you live in the first house and then sell it and add your savings to buy the next house.
Be warned some people on this forum will tell you its a stupid idea but ive done my sums and im pretty sure it works:)
You might want stagnation, but I guarantee that you won't want a house price crash once you have bought. No matter how much you save you won't be able to keep up with your ever increasing negative equity.0 -
What's a bear?
How can I ever be in negative equity when I've paid off all my mortgage and totally own my home?
I want house prices to go down so others get the chance to be homeowners.
Exactly my point. You don't care about a house price crash because you won't be affected by it personally.0 -
Graham_Devon wrote: »A lot of investors would sell. Therefore increasing supply.
To be fair, a lot of investors would buy because security of tenure cuts both ways. I'm not really that into BTL as an investment currently due to the worry about void periods, etc., but given 10 year leases and I could get very interested, very quickly.0 -
I can see me having the same way of thinking as you when i buy my first home.
It also has the added benefit of costing you thousands of pounds less if you want to move up the ladder, just save up a bit while you live in the first house and then sell it and add your savings to buy the next house.
Be warned some people on this forum will tell you its a stupid idea but ive done my sums and im pretty sure it works:)
You buy house 1 for £100,000. Your next target is £150,000 i.e. £50,000 difference. House prices fall (as you wanted) by 50%. Your house is now worth £50,000 and your target £75,000 i.e. £25,000 difference. So far your theory hold up but if you are financing with a mortgage you need to beware.
If house prices stay the same you'll need a deposit of £150,000 x 20% = £30,000 and you've already got £20,000 equity in the first house. Therefore £10,000 needed to trade up.
However if prices fall by 50% then you now need a deposit of £75,000 x 20% = £15,000. However as your deposit on the first purchase (£20,000) has been wiped out by a 50% fall in value (£50,000) you'll need to find an extra £30,000. Therefore £45,000 needed to trade up.
It's more sensible to wish for stable prices after making an initial purchase.0 -
RenovationMan wrote: »You might want stagnation, but I guarantee that you won't want a house price crash once you have bought. No matter how much you save you won't be able to keep up with your ever increasing negative equity.
Its looking like im buying outright so will have no mortgage.
If i ever want to move up the ladder, i hope my house price plummets.0 -
RenovationMan wrote: »To be fair, a lot of investors would buy because security of tenure cuts both ways. I'm not really that into BTL as an investment currently due to the worry about void periods, etc., but given 10 year leases and I could get very interested, very quickly.
There is nothing to stop a landlord offering a 10 year lease now.0 -
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What's a bear?
How can I ever be in negative equity when I've paid off all my mortgage and totally own my home?
I want house prices to go down so others get the chance to be homeowners.
Just give up Linda, there are many on here that just do not understand the concept of being a decent human being0
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