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Interest rate rise leads to house price drop?
Comments
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Dulwich, Sydenham, Herne Hill, Greenwich, Blackheath, Crystal Palace
Couldn't put it better myself. Bit harsh on Blackheath possibly but the rest of SE London is basically a crime ridden cockroach fiesta.
I think Blackheath was originally built just outside Wimbledon, got drunk one night, woke up in South East London and has no idea how to get home!0 -
mattcook1978 wrote: »Hi everyone,
I wondered what people's thoughts were on the interest rate rise. I have read in some places that it is expected to rise further - with rates of 6 or even 7.5% predicted by some. If people can't afford their mortgages, and homes are repossessed in large numbers, is this likely to lead to a drop in house prices?
In addition to the general query above I wondered if anyone would be kind enough to comment on my position specifically. I've just made an offer on a house in an up and coming area of London (Forest Hill - it gets a tube station in 2010). My greatest fear is finding myself in negative equity due to house prices dropping. The alternative for me is to continue living rent and bill-free as a live-in security guard and put the £800+ I would be spending on a mortgage into a savings account every month. Would it be better in today's economic climate to not buy a house and put money into high interest savings accounts or investments instead?
Thanks in advance,
Matt
You have the chance of sitting out the recent (and future) rate rises rent and bill free to see what the effect will be on the property market...:rolleyes:... easy decision! Even if this leads to a swing towards a buyers market that would probably save a good few £K's off the asking price compared to buying now. Surely you should wait to see how far up rates will go before buying?0 -
I'd stay saving in my bill free, rent free world until I had enough saved up to buy outright. Are there any jobs going in your place?:A
:A"Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid" - Albert Einstein0
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