'We've reached a tipping point' Signs of house price weakness

blahblahblah85

Bubble_and_Squeak wrote: »

if you really are sick of living with parents you would pony up and move out

I'm not sure what you mean by pony up but I'm assuming you mean I should just rent if I'm sick of living with parents?

We've been actively trying to buy for 6+ months now, moved home after living abroad for ages, thinking we'd be quick to move into whatever we buy, now on 3rd house with confirmed offer, and just as we reach exchange stage something extends it....
Had no idea it could take this long in the UK (it was super efficient and quick to buy & sell in Asia) we thought no point signing into rental when you're hoping to move quickly, especially when you have pets and have just started a new job, obviously if we had known it would take this long we would of begrudgingly signed a rental.

blahblahblah85

Crashy_Time wrote: »

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Most buy when their banker tells them they can have some credit, slight difference. Loans will be harder to come by as prices start crashing, cash rich will do well

Doesn't really negate what I've said?!? Most buyers will go to buy when they are ready......if they can't get a mortgage that's another story but I guess you just wanted to remind us all how cash rich you are?

I would love a crash right now believe me! I'd tidy up!!! But am I confident in it happening enough to wait? Nope.... and after buying if it happens it happens, as long as we can afford mortgage it's not a 'problem', meanwhile I want to get on with life.

Bubble_and_Squeak

Windofchange wrote: »

Ideal for a first time buyer they think. What planet are they living on? 400k. Sure, I'll have two.


it really does amaze me that people entertain these comedy prices
it actually sold stc at £350k and £370k
i'm guessing if fell through because they lucky winner of the on each occasion was using meme money, not real money

Bubble_and_Squeak

blahblahblah85 wrote: »

I'm not sure what you mean by pony up but I'm assuming you mean I should just rent if I'm sick of living with parents?

We've been actively trying to buy for 6+ months now, moved home after living abroad for ages, thinking we'd be quick to move into whatever we buy, now on 3rd house with confirmed offer, and just as we reach exchange stage something extends it....
Had no idea it could take this long in the UK (it was super efficient and quick to buy & sell in Asia) we thought no point signing into rental when you're hoping to move quickly, especially when you have pets and have just started a new job, obviously if we had known it would take this long we would of begrudgingly signed a rental.

yeh, just move out and rent for a bit
get to know a different area
whats the problem?
i didn't even have a job when i flew the nest

lisyloo

Ideal for a first time buyer they think. What planet are they living on? 400k

That's an awful lot for your first home, even by London standards.
Where are you expecting to live and what type of home?
There are decent places in say Bristol (for exmaple) for a fraction of that price.

Some might say your expectations are rather high. I can't really tell, but it's much higher than average.

lisyloo

whats the problem?

Isn't there an issue in signing up to 6 months rent if you don't expect to be somewhere for 6 months?
Depending on where it is there may be shorter term options.
I've been pretty nomadic recently which is do-able if you have no pets or kids in tow.

Bubble_and_Squeak

lisyloo wrote: »

Isn't there an issue in signing up to 6 months rent if you don't expect to be somewhere for 6 months?
Depending on where it is there may be shorter term options.
I've been pretty nomadic recently which is do-able if you have no pets or kids in tow.

na, there is a one month get out clause after 6 six months
two months notice before that
tenancy agreements are supposed to protect tenants, not landlords

Windofchange

lisyloo wrote: »

That's an awful lot for your first home, even by London standards.
Where are you expecting to live and what type of home?
There are decent places in say Bristol (for exmaple) for a fraction of that price.

Some might say your expectations are rather high. I can't really tell, but it's much higher than average.

I totally agree, hence the shock. I have no intention of trying to buy something like that, but that is where my question regarding all these people with 400k to spend comes from. I just don't get it. I know London is a law unto itself, but I see what people are paying for places and think to myself, WHY!?

A friend of mine just sold her 1 bed flat in Putney for 400k. 5 offers made apparently, had her pick of the bunch. This flat is tiny. I mean, really really tiny. Small double bedroom, kitchen diner no much bigger and a tiny bathroom. Used to be the attic of a house before split up into flats. I just cannot get my head around people seeing places like that and buying them at these prices. Bring on the crash and the predictable whining from the negative equity brigade about how their hands were tied and they had to buy or miss out forever.

What angers me most is that property has been allowed to get in this mess. Society as a whole would be so much better off it we just lived in it and lost this obsession with making 200k profit every year! Hope this bubble pops violently and hard and takes the last decade down the toilet so we can start again.

lisyloo

but I see what people are paying for places and think to myself, WHY!?

I would buy one if it meant access to a great or highly paid job that wasn't available outside of London and in all likelihood was cheaper than renting.over the expected term.
Isn't that logical and sensible?

Space is not important for everyone. We have a small flat in London and don't spend a massive amount of time in it and it's prfectly appropriate for our lifestyle.
If you live in a buzzing city with loads to do then why would you spend a lot of time in your flat?

Of course if you want to have a large family and keep chickens or horses then central London isn't the right place to live but plenty of singles/couples aren't hampered by small living accomodation if they are in a city that's offers everything 24/7.

Windofchange

lisyloo wrote: »

I would buy one if it meant access to a great or highly paid job that wasn't available outside of London and in all likelihood was cheaper than renting.over the expected term.
Isn't that logical and sensible?

Space is not important for everyone. We have a small flat in London and don't spend a massive amount of time in it and it's prfectly appropriate for our lifestyle.
If you live in a buzzing city with loads to do then why would you spend a lot of time in your flat?

Of course if you want to have a large family and keep chickens or horses then central London isn't the right place to live but plenty of singles/couples aren't hampered by small living accomodation if they are in a city that's offers everything 24/7.

But it comes down to why people are paying these prices. To my mind, if you had a crystal ball and could see into the future, and you saw a big crash coming, you wouldn't spend this money. This leads me to believe that the general population expects house prices to go up and up and up forever, like this is a good thing.

I work with lots of highly educated people within the medical profession, and it amazes me when the lunchtime chat turns to someone's attempt at buying a flat. I am the only one on the it's going to crash side. Everyone is chomping at the bit to spend that half million on a tiny flat in Fulham.

I just sit there in silent disbelief now. If I had the cash to put down a deposit now, I wouldn't. It's not about lifestyle choices, it's about not having a choice - i.e. a vast amount of people are priced out of property. This leads me to the only logical conclusion that there has to be crash coming as without people coming in at the bottom, how are you going to inflate things forever? Forget government help, they've fired their last bullets. When tiny flats in London are back to 150k again, then it becomes about choice. Now, it's really about the haves and have nots.