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

Kez100

owner wrote: »

But how will you know they have bottomed out ?

You don't know and there is some risk but it does effect attitudes of FTBs. The FTB becomes king! We waited and thought it was the bottom of the market in 1991 when the house we liked had dropped from 65k to 52k. We were wrong - it dipped to the bottom when we moved in 1994. We had negative equity of 4k selling for 48k.

Of course all of this was relatively affordable for us. Yes, we had to save but 4k isn't that much in the scheme of things now (although it took us 6 hard months of saving to do it). We did it happy in the knowledge we would move upmarket for very little extra.

However, selling was a nightmare. There were plenty of FTBs out there but they weren't buying - they were sitting happy still waiting. We had a lovely house and had only two offers in a year (one fell through). Most houses we viewed were repossessions and the house we bought, although not a repossession, had been on the market for three years. It hadn't had a viewing for six months and the owner was desparate to sell. It was on for 120k (having been dropped from 150k). We bought it for 75k.

That is what happens to the market. Sellers desparate to sell for fear of repossession, needing to move for work, or executors wanting to realise the estates inheritance etc have to drop to get a buyer. Buyers end up only seriously looking at repossessions and desparate sellers because they know they can bag a bargain. They drop by manic amounts to get a sale, others cannot sell at all, and the market plummets.

fatpigeon_2

fatpigeon wrote: »

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.

Sorry to bump but this thread is so strange to read now. How things have changed.

Darth_Marty

I think there will always be people jumping into the housing market, added to the ever growing population and an island environment and long term it only points to ever increasing prices.

I realise that at some stage something will have to happen to change everything, just dont think we are that particular event yet.

stolt

makes the op almost seem mystic, they were spot on though. luckly i managed to sell in september 2007 and rented for a while, only just jumping back on.

It is strange when you see some replies saying no it wont happen etc etc and then thinking well we are actually in what the op was saying was going to happen.

Robert_Sterling_3

LiveOnLess wrote: »

I'm just about to put my 4-bed Norfolk house on the market, .

Is the gist of your post that you are going to sell your house?