House market

Thrugelmir

DELETED USER wrote:

There was a programme about this on BBC R4 today, and even estate agents were saying we are headed for a crash. Prices are insane at the moment, and exactly what happened before with everyone buying on silly amounts of credit is happening again.

As was the case in 2007/08. People act like herds. The trigger as always is confidence. Hence why the BOE needs to act like the Headmaster and maintain discipline.

Reactor_2

Thrugelmir wrote: »

100% in agreement with your sentiments. Credit has been cheap since the GFC to stabilise the banks. Now the initial phase is complete. Returning base rate to a more normal 5% - 7% must be the long term objective. Some years away so will a long bumpy road.

I think we are not going to see higher interest rates for a very long time. Cheap money has only inflated asset prices and not created more jobs and jobs where people earn more money. Unfortunately, we are already going down the route of Japan. On the ONS site, the average salary is just below £25k now. It was above £26k a couple of years ago. When you dig into the numbers, you'll actually realise real wages have fallen on average 8.5%, but I'm not surprised given the ever increasing supply of labour every year.

Creating jobs is going to be hard given everything is being automated, which means the number of workers in the service sector will just contract. This is just the nature of competition

Each time I do my shopping manually, it reminds me of how bad the experience is compared to just doing it online.

The only sector for growth is in research and development (quaternary industries), but unfortunately,the majority of the population is not qualified or able to do such work.

In summary, if you increase the quantity of anything, the price of it comes down, whether it's workers or actual money itself. Therefore future workers are not going to earn more on average and at the same time interest rates are going to be low for a very long time because there is way too much money wafting around the system, with limited investment options.

Davesnave

Have I logged into the wrong forum? I thought all this stuff was safely out of public gaze, in Martin's top shelf broom cupboard.

Sorry for the mixed metaphors there.

Depends where you are. Here, in the $rse end of nowhere in particular, things are still much as they were. A few hopefuls have banged a bit extra on properties coming to the market this year, but the reductions are already showing, as they do every year. Maybe some got lucky. None of my acquaintances has.

Up in the North East, things are still deathly quiet in many places, according to the sellers who've reported here.

I agree with whoever said that the time to buy was 2008/9. That's when I bought, so I'm bound to say that. However, like the majority, I wasn't a FTB, so I had to sell at a 'realistic' price too!

OP my DD has just bought a house in your price range. I don't believe she'll be in negative equity any time soon, nor do I think she'll make a fortune 10 years down the line.

However, I'm sure she will feel more settled now, enjoy a home she feels is hers, raise a family and, possibly, forget all about house prices for a good while. That's what most of us do.

ognum

Davesnave wrote: »

Have I logged into the wrong forum? I thought all this stuff was safely out of public gaze, in Martin's top shelf broom cupboard.

Sorry for the mixed metaphors there.

Depends where you are. Here, in the $rse end of nowhere in particular, things are still much as they were. A few hopefuls have banged a bit extra on properties coming to the market this year, but the reductions are already showing, as they do every year. Maybe some got lucky. None of my acquaintances has.

Up in the North East, things are still deathly quiet in many places, according to the sellers who've reported here.

I agree with whoever said that the time to buy was 2008/9. That's when I bought, so I'm bound to say that. However, like the majority, I wasn't a FTB, so I had to sell at a 'realistic' price too!

OP my DD has just bought a house in your price range. I don't believe she'll be in negative equity any time soon, nor do I think she'll make a fortune 10 years down the line.

However, I'm sure she will feel more settled now, enjoy a home she feels is hers, raise a family and, possibly, forget all about house prices for a good while. That's what most of us do.

It agree, buy a house and live in it, forget about making money from it, if that happens then it's great, enjoy your life!

I have rental properties as well as a home that are fully owned, I feel the same about them, if they make money then great, they provide me with a decent income, They won't be sold for 10 years unless I die so whatever will be will be.

To much thinking is not a great thing, go with you gut.

Buzzz

Thanks for all your replies, they make interesting reading although still none the wiser...

I am in the South, Hampshire. I'm not looking to make money on a property, although not looking to making a loss either but to find a home for me.

ognum

Buzzz wrote: »

Thanks for all your replies, they make interesting reading although still none the wiser...

I am in the South, Hampshire. I'm not looking to make money on a property, although not looking to making a loss either but to find a home for me.

Well Hampshire has some interesting housing markets, quite diverse, location will be the key, but then IMO it always is.

Zither

ognum wrote: »

It agree, buy a house and live in it, forget about making money from it, if that happens then it's great, enjoy your life!

I have rental properties as well as a home that are fully owned, I feel the same about them, if they make money then great, they provide me with a decent income, They won't be sold for 10 years unless I die so whatever will be will be.

To much thinking is not a great thing, go with you gut.

Yes, absolutely. A house should, first and foremost, be somewhere to make a home and that in itself is priceless.

Peoples' lives can suddenly change though. For whatever reason, come time to sell, no-one wants to be trapped by too much negative equity.

From my perspective, I think it's also worth a buyer considering how much of a hit they could take in conjunction with the initial purchase price. A 10% drop on a 150k house is 3/5ths of the UK average annual wage (approx 25k) - I know I'd certainly struggle to take a 15k hit in the short/mid-term!

[Deleted User]

Bricks and Bubbles: http://www.bbc.co.uk/programmes/b04c9gsg

I'm in Hampshire too and with a similar budget to the OP. I'm hoping for a major crash to get some sense back into the market. Ideally we need to be seeing about 100k off the average house price but 50k might be manageable.

For houses in my own street we went from a high of £250 down to £180 and now back up to near £200 again. My neighbour bought for £275 and went berserk when someone a few doors sold a very similar terrace house for £180 about a year later, but she overpaid massively and is going to be stuck in negative equity for a long long time. Don't make that mistake.

Buzzz

Blimey [DELETED USER], I don't know what area of Hants you're in but we haven't seen those extremes! As others say I don't think there's going to be a crash. I think it is a sellers market and there's more buyers than sellers and slot of sellers are being cheeky with what they're asking for. What you need to do is be aware so you don't buy something unrealistic ally priced.

Apart from looking at the previous prices houses have sold for and watching the market now, there's no other way of deciding if something is well priced.

The place I went to see in April sold after the second viewing. It's now back on the market after the sale went through and has been for several weeks. Over prices or market slowed down? Who knows.

w00519772

I have recently completed a purchase. I was like you; waiting for a long time thinking that prices would fall at least a bit. They never did. They rose and I ended up paying more. I would of bought straight away in highsight.

There was a "crash" (credit crunch etc) in 2007 and prices did not fall that much. I see property prices rising at least for a long while yet because of short supply.

Here is an article I found about Hampshire: http://www.gethampshire.co.uk/news/local-news/house-prices-rise-50-next-6398087