Listening to experts/newspapers can seriously damage you wealth.

StevieJ

Check the date on this article, how would you feel now if you had sold or put off buying a house based on this?

http://www.thisismoney.co.uk/news/article.html?in_article_id=365010&in_page_id=2

Link originally posted by mickey_d on 'This is money' daily mail BBS.

Zammo

6 years on and they're still going up in price.

When will the madness end?

Melissa177

When banks stop lending more and more money.

Prices have gone up because interest rates are (relatively) low, and banks are prepared to lend more and more to people (like myself!) eager to get on the housing ladder.

Jonesya

Well it just shows how difficult it is to predict the directions of markets, I expect there were plenty of articles hyping the US housing market just before it started heading south.

Zammo

I started looking for a house again yesterday. In the particular area I'm interested in, the price of a 2bed terrace has risen by 20k in 6 months. Despite earning a good wage and having saved about 35k in the last 2 years I am now priced out of my city unless I'm willing to live in a 1 bed flat in a !!!!!! area.

Something has got to give.

Jonesya

This is exactly what I'm thinking - you see 1 bed ex-council flats in rough areas going for prices that would make 'young professionals' wince.

I don't think it's sustainable but I guess time will tell.

Melissa177

I'm still trying to work out what is causing the current massive demand for houses - there are a lot more buyers looking for homes at the moment than there were this time last year, and also a lot fewer properties on the market.

Is this because fewer people want to rent and instead buy a place of their own? This would explain the simultaneous rental yield decrease as well...

Any thoughts?

Zammo

Melissa177 wrote: »

I'm still trying to work out what is causing the current massive demand for houses - there are a lot more buyers looking for homes at the moment than there were this time last year, and also a lot fewer properties on the market.

Is this because fewer people want to rent and instead buy a place of their own? This would explain the simultaneous rental yield decrease as well...

Any thoughts?

A friend owns a BTL and has had to drop the rent by £100 to find a tenant as it was standing empty for 2 months. There is an over supply of rental property as it's all being bought up by investors. There is no way that they can be making any rental profits if they bought in my area in the last 4 years, in fact these amateur landlords must be subsidising their tenants.

It will all end in tears.

meanmachine_2

StevieJ wrote: »

Check the date on this article, how would you feel now if you had sold or put off buying a house based on this?

http://www.thisismoney.co.uk/news/article.html?in_article_id=365010&in_page_id=2

Link originally posted by mickey_d on 'This is money' daily mail BBS.

Pathetic post.

I could list a thousand and one articles from 1989 telling me to buy buy BUYYYYYYY!

Get a life.

PosterBoy77

Melissa177 wrote: »

I'm still trying to work out what is causing the current massive demand for houses - there are a lot more buyers looking for homes at the moment than there were this time last year, and also a lot fewer properties on the market.

Is this because fewer people want to rent and instead buy a place of their own? This would explain the simultaneous rental yield decrease as well...

Any thoughts?

Yep, from what the figures suggest, there was a huge surge in people buying BTL properties last year, by some figures nearly one third of properties sold, were bought by "investors" (speculators)

There has been lots of demand property, but that does not mean there is a shortage of property to live in. There is just a shortage of lower level properties to buy at the moment

However as many of these speculators are finding out, in many parts of the country there are not actually enough people renting property, to rent all the proprties that are now on the market to let. Someday this will cause many speculators to sell-up providing a huge number of unwanted properties!

The rental market is now over-supplied, hence the drop in yields, and are dropping even further as many people renting want to get a slice of the perceived action by buying.

The smart people are renting at the moment, as there is plenty of choice and it is good value. Leave buying till it becomes financially worthwhile!