I'm getting out now......

Romani_Ite_Domum

kingkano wrote: »

Exactly right fatpigeon. Although the same truth means that sciencegeek certainly wont be affording their home after just a 30% drop. The market drops 30% lenders HALF their lending offers. They are still 20% short of that house yes???

It's started to rain, now where's that umbrella?

CB1979_2

yeah but there is no other market like the property market.

it's all well and good saying compare it to this or that, but first & foremost more people own a house as a HOME rather than just an investment.

RHemmings

CB1979 wrote: »

yeah but there is no other market like the property market.

it's all well and good saying compare it to this or that, but first & foremost more people own a house as a HOME rather than just an investment.

Yes, but there are plenty of houses owned as an investment. And house prices are set at the margin.

Gorgeous_George

I don't see how selling up and renting will ease the pressure on the housing market.

It'll just encourage more BTL LLs IMHO.



GG

CB1979_2

RHemmings wrote: »

Yes, but there are plenty of houses owned as an investment. And house prices are set at the margin.

yes but it's completely different to a share investment, where the majority are as investments rather than for them to enjoy and benefit the company.

fatpigeon_2

Gorgeous_George wrote: »

I don't see how selling up and renting will ease the pressure on the housing market.

It'll just encourage more BTL LLs IMHO.



GG

The more landlords, the more competition for tenants, the lower the rent, the more the landlord subsidises the rent, the more the landlord relies on house prices rising. Also, just as banks will tighten lending to FTB they will tighten lending to even riskier propositions such as BTL.

As Even Davies says, if you want to buy and live in a house for 10 -15 years it's never a bad time to buy. You may end up paying more at the top of the cycle but you'll have security. As an investment it's a whole other game and I personally don't trust the government to know what they're doing. The OP seems to simply be thinking of the future and protecting himself which can only be a good thing.

real1314

I think you've got supply and demand the wrong way round.

If more people sell to rent, there are more renters first. This is the driver.

So, with more renters, there will be more competition for rental properties, so rents will be kept relatively stable.

Landlords buying up properties does not drive the rental market, although it can drive up property prices, however, the headline prices that are often quoted:- average house price, and typical 3 bed semi, have little to do with BTL.

sciencegeek

kingkano wrote: »

Exactly right fatpigeon. Although the same truth means that sciencegeek certainly wont be affording their home after just a 30% drop. The market drops 30% lenders HALF their lending offers. They are still 20% short of that house yes???

I understand that lenders will tighten up if prices drop but apologies if im being a bit dense here but are you suggesting that if house prices drop 30%
banks will only offer 1.75x salary multiples (HALF of a normal and sensible 3.5x multiple)???? I dont believe it could go that way.

If you mean a lender will only offer 3x salary multiples as opposed to 6x then im not bothered in the slightest because i have never had any intention of taking such a crazy (6x) loan out and a 3x or 3.5x mortgage will do me just fine ( i hope :rolleyes: ).

wannasavemoney

In our area, whole new estates are popping up on a regular basis. I live in the South East and we are being swallowed up by huge new developments. Although not particularly good for the environment, it is one way of keeping property prices on an even keel because then supply is keeping up with demand to a certain extent. Unfortunately, if they keep building at the rate they are, the whole of the south coast with be built to a standstill as the current infrastructure is not able to cope as it is. As for ftb's, we were ftb's in 1990, six months into the recession, we had no idea when we purchased our first house where the rollercoaster ride of home ownership would take us and were very lucky when interest rates went up to 15% and we were in negative equity to be able to keep hold of our home by living on £10 per week (a sack of potatoes goes a long way when there are only two of you). My point is, there are always winners and losers and the best way to be a winner is to become completely debt free and then who cares what the interest rates do. It won't affect you.

amcluesent

If you are so convinced the market will turn you are willing to sell up and go into rented accom., why not look at spread-bets using the Halifax national house price index? If you call it right, you profit is tax free and you haven't the costs and emotion of leaving your home.

Of course, if you are selling with a view to moving to a new area, renting and buying in again, all well and good.