House market

Jonbvn

HAMISH_MCTAVISH wrote: »

Properties in Brit's area have risen 50%+ since he predicted 50% falls by Xmas 09.....

I do miss his signature that really substantiated his viewpoint.;)

franklee

ukcarper wrote: »

But the longer you leave it to buy the longer you will pay rent.

Obviously but during that time you are saving mortgage interest and maintenance costs. The question being are those about equivalent to rent or not? I'd suggest the OP check those figures for his own case. In mine they were.

ukcarper wrote: »

I think there is a chance that prices will fall more that a years rent over the next year but it's a gamble and they could just as easily rise.

Why focus on prices changing more than a years rent? The gamble is will they change more than mortgage interest plus routine maintenance costs LESS rent during the hear? I object to picking on rent alone when the mortgage interest is money spent also.

ukcarper wrote: »

I would ignore people who tell you prices will fall or will rise as nobody really knows.

The OP has asked for "views on what's happening with the house market" so unsurprising that's what people have been posting. I think we do all realise no one has a crystal ball. My view is that interest rates will rise eventually. Meanwhile what's happening to wage inflation? Ultimately for house prices to be sustainable they need to be backed up with wages - except the the top end of the market.

seven-day-weekend

My house was £3k in 1976. It's just been valued at c.£130k. In 2006, a similar one sold for £175k. Who knows what it will be in ten year's time (although prices are not rising here by much, if at all).

So, what's my house actually worth? Keep it long enough and it won't matter that much.

ukcarper

franklee wrote: »

Obviously but during that time you are saving mortgage interest and maintenance costs. The question being are those about equivalent to rent or not? I'd suggest the OP check those figures for his own case. In mine they were.



Why focus on prices changing more than a years rent? The gamble is will they change more than mortgage interest plus routine maintenance costs LESS rent during the hear? I object to picking on rent alone when the mortgage interest is money spent also.



The OP has asked for "views on what's happening with the house market" so unsurprising that's what people have been posting. I think we do all realise no one has a crystal ball. My view is that interest rates will rise eventually. Meanwhile what's happening to wage inflation? Ultimately for house prices to be sustainable they need to be backed up with wages - except the the top end of the market.

No you are still not getting it If you buy a house now with a 25 year mortgage in 25 years time you will be rent free so what you spend on that mortgage will be all you spend. if wait a year you will pay the rent plus that 25 year mortgage.

stu007

blackshirtuk wrote: »

a house is a long term commitment, of 25+ years, even if you move during this time. The value of the money you borrow will erode with time due to inflation, while at the same time house prices will increase over the long term for the same reason.

I don't think this works anymore.

Wages aren't keeping track with inflation, so while your mortgage is eroding in value due to inflation, your wages are eroding at a quicker rate.

ukcarper

stu007 wrote: »

I don't think this works anymore.

Wages aren't keeping track with inflation, so while your mortgage is eroding in value due to inflation, your wages are eroding at a quicker rate.

I suppose the big question is will rents rise with inflation if they do your mortgage repayments will look better value.

glennbrown361

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dekoder

buglawton wrote: »

Your feeling may be backed up by hard facts:

Record August slump in house prices
Average asking price of new sellers in England and Wales was 2.9% lower than in July, with London prices down 5.9%

It's a slump in house ASKING prices not house prices, let's wait and see what they are before stating the "facts".

egoode

In 2007 I tried to buy my first place in London and for various reasons it didn't happen and I didn't end up buying anything until this year.

However in that time the place I did try to buy back then has risen by approx £200k and I had to pay around £120k in rent in that time as well. However at the time not only did I have issues getting a mortgage as I didn't have Leave to Remain at that point and also some major family issues happened that meant I wasn't even sure I wanted to stay in London anymore but head home to Australia. So for me at the time it made sense to wait and buy later once I knew what I really wanted to do even though in hindsight I would have made a lot of money on paper if I bought back then.

Now I know I do want to stay in London and I've finally managed to buy a place and I don't really care if prices go up and down in that time as I'm planning to stay here hopefully 10+ years and probably longer. Also I paid a 20% deposit and also plan to overpay my mortgage something would have to go majorly wrong in the economy or my personal finances for me to end up in negative equity.

Ultimately people who try to time are market never get it right you just need to do what makes sense for you and your circumstances at the time and sometimes that means buying at the top of the market and other times it means you get lucky and buy at the bottom. Unfortunately no one can tell you at the time which point you are at.

stu007

egoode wrote: »

Ultimately people who try to time are market never get it right you just need to do what makes sense for you and your circumstances at the time and sometimes that means buying at the top of the market and other times it means you get lucky and buy at the bottom. Unfortunately no one can tell you at the time which point you are at.

Perhaps.

But no one would make a case for us being at the bottom now, while many would make a case for us being at or close to the top.