will the house prices crash in your opinion?is it a bad time to buy

Fellow_2

DO NOT BUY NOW!

1. Interest rates are going up. Inflation is not slowing down so I predict rates of around 7-8% next year.

2. House prices are about 65% over-valued and will eventually fall back to the long-term average of 3X average salary.

3. Current house prices have been fueled by thousands of 'buy-to-let' investors who will all rush to sell when rates go too high or prices stop rising.

4. There is no housing shortage. Thousands of properties are lying empty and have only been bought for capital gains. These will be sold at the first sign of a crash.

5. Houses cannot continue rising at 10% per year if wages are only
rising by 3%. Where is the money going to come from?

6. Many people are already defaulting on their mortgage and likely to get repossessed. Many more will as rates go up.

7. As a result of #6 banks will start tightening their lending, meaning less money available for houses.

8. As a result of #7 less people will be able to re-mortgage to pay for cars, holidays etc, meaning less consumer spending, so many will lose their jobs.

9. The economy has been kept afloat by credit (the country has the highest level of debt in its history). Once the money dries up the economy will go into recession.

10. House prices are stagnant or falling in many parts of the country (this is the busiest time of the year for the housing market so expect to see large falls by the end of the year).

11. "House prices only ever go up" is complete bulls**t (look what happened in the early 90's).

garethhr

blue_haddock wrote: »

Personally chap i'd say do it - yes you are living virtually rent free at home but having your own place is seriously worth it.

Would it be possible for you to get a £55k mortgage and your mum and dad put down a £45k deposit with the other £5k being used for fees, furniture and a small rainy day fund?

This is a good point you should factor in the cost of moving. The average in the UK is 16k, according to the Abbey (ive heard 10k quoted in another source), but hopefully yours should be considerably less.

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=5036

It sounds like you've almost made up your mind to do this, so good luck to you. I just wanted to offer a conservative point of view.

jago25_98

Is it possible to secure a mortgage now to actually commence in say, 2 years time perhaps though?

edit:: sorry, forgot to check the date of the thread

Gwhiz

jago25_98 wrote: »

Is it possible to secure a mortgage now to actually commence in say, 2 years time perhaps though?

edit:: sorry, forgot to check the date of the thread

You do know that you can delete a post you make?

Henry_P_Chester

Fellow wrote: »

DO NOT BUY NOW!

1. Interest rates are going up. Inflation is not slowing down so I predict rates of around 7-8% next year.

2. House prices are about 65% over-valued and will eventually fall back to the long-term average of 3X average salary.

3. Current house prices have been fueled by thousands of 'buy-to-let' investors who will all rush to sell when rates go too high or prices stop rising.

4. There is no housing shortage. Thousands of properties are lying empty and have only been bought for capital gains. These will be sold at the first sign of a crash.

5. Houses cannot continue rising at 10% per year if wages are only
rising by 3%. Where is the money going to come from?

6. Many people are already defaulting on their mortgage and likely to get repossessed. Many more will as rates go up.

7. As a result of #6 banks will start tightening their lending, meaning less money available for houses.

8. As a result of #7 less people will be able to re-mortgage to pay for cars, holidays etc, meaning less consumer spending, so many will lose their jobs.

9. The economy has been kept afloat by credit (the country has the highest level of debt in its history). Once the money dries up the economy will go into recession.

10. House prices are stagnant or falling in many parts of the country (this is the busiest time of the year for the housing market so expect to see large falls by the end of the year).

11. "House prices only ever go up" is complete bulls**t (look what happened in the early 90's).

Wow. With the exception of #1 Scarliy accurate. Well done Fellow

wonderman

Henry_P_Chester wrote: »

Wow. With the exception of #1 Scarliy accurate. Well done Fellow

Well yes - but you omit one point. That the whole western world is focussed on very low interest rates and printing money = inflation - the only thing that will pull house prices down is higher interest rates and that is not on the political agenda until inflation has seriously taken hold to wipe out the debts.

Terrysdelight

I don't know the area you live, but would it be possible to stretch to a two bedroom property? If you can and you find it a bit difficult financially you could always get a friend to share with you.

Good luck

Running_Horse

It's fun to walk down memory lane.

Looks like he delayed for a few years, wants to buy now, but is worried a future girlfriend might steal his property:

https://forums.moneysavingexpert.com/discussion/2875582=

Lynsey

That was well done Fellow and a lot of what you stated my hubby was ranting on about mid-2007/early 2008 and was laughed at when he stated house prices would drop by a third. He aslo believed it was unsustainable and had to drop, there were scary things happening - 110% mortages, lending periods extended to 35 years etc., just to fuel house price rises.
House prices related to salaries is what he was saying, though 3x salary would be very optimistic.
There must have been lots of burned fingers for buyers who bought at the peak.

Lynsey