Priced out people: What % drop in house prices do you need?

BWZN93

Well, Bristol isnt exactly cheap and OH's wages aint exactly big so:

Can borrow 105k

Properties suitable range 130 - 150k (this is just small 2 bed terraces etc which would be perfect for me, OH, a cat and a rather large fishtank - we wouldnt need to move either as we never want kids)

So, price drop of 20-30% would be swish!

Jo x

Lady_S

we could get a morgage for 125k, but for us to afford something which is reasonable to have his kids stop we really need three bedrooms, so we are looking at a 30% drop. Anything further than that and we would be smiling.

franklee

Well in order for me to afford my old house taking into account what my old job now pays the house price would need to drop by 38%. If starting out in that job now I would not be able to afford that house.

I could buy it cash today but that's only cos I've banked all the equity from the sale. Without the banked equity I would not have a snowballs of buying it today!

HenryWeston

50% drop, and its probably going to happen where i live.

ukbondraider

50%????

Get Real.

My Sister has just moved into her first house, a £400K 4 bed detached.

She has been amazed how chavvy her area is despite most houses there being £350-500K. Having visited her I saw what she meant. Depite the area looking nice it is so full of crime and anti social teens it is unbelievable.

In my opinion houses need to double and we need to start uilding council flats again.

Group the chavs together and let them kill themselves. But then again they will drive to the affluent areas every night and rob the big houses

Miss_See

A 20-25% would do for us (we are in the SE, two adults and one young child...hopefully with more to come!).

We currently rent a two-bed Victorian house for £750 a month. To buy the same property would set us back £200/210k, and would cost more in mortgage payments than the rent, even on interest only. Seems a false economy to me. Although we can "technically" afford this, we strongly begrudge stepping on the property ladder whilst prices are so uncertain.

*Ideally* we'd like to be able to buy a 3-bed Victorian terrace in our current area, or a 3-bed semi in a more rural setting. Both would set us back at least £250k.

nick22abdn

Very dependant on what people want and expect. I am 23 and single. Just sold my one bed flat and moving to a much larger 2 bed in a better part of town. I was on the limit of affordability when I bought 3 years ago - prices have increased 80% since then (Aberdeen).

I have since started my own business and therefore require a 2nd bedroom as an office. Many would say that until I get married/start a family I don't require a larger property - I do want one though.

As for price drops - if there are no drops and the economy stays healthy I should be able to afford a period detatched 4 bed house in half an acre in 3 years time. If prices fall the economy will weaken and I will make substantially less money, meaning longer to buy the same property.

The factor people seem to be missing here is that if prices fall 20%, the economy will weaken and the chance of redundancy will increase. Whilst you can say that a 20% fall with the rest of the economy remaining the same would enable you to buy a house, this situation is highly unlikely. A fall in house prices will make it harder for the majority to buy, not easier

mr.broderick

Miss_See wrote: »

A 20-25% would do for us (we are in the SE, two adults and one young child...hopefully with more to come!).

We currently rent a two-bed Victorian house for £750 a month. To buy the same property would set us back £200/210k, and would cost more in mortgage payments than the rent, even on interest only. Seems a false economy to me. Although we can "technically" afford this, we strongly begrudge stepping on the property ladder whilst prices are so uncertain.

*Ideally* we'd like to be able to buy a 3-bed Victorian terrace in our current area, or a 3-bed semi in a more rural setting. Both would set us back at least £250k.

Christ we thought that 3 years ago when we bought, sold it in january for double give or take. Hope for your sake the market doesnt get away from you

Dithering_Dad

keeperbear wrote: »

The terms "appropriate for your family" and "commensurate with your income" are extremely subjective, so your question is pretty pointless.

For example, what kind of property should an accountant earning £45k expect to buy? The answer is the property that he can currently get a mortgage to buy. If someone earns 45k, why should they expect to be able to buy a 4 bedroom detached house? Demand and supply will always determine what property your income can get you.

As for "appropriate for your family", I am sure that most parents with four children will believe that they deserve to buy a four/five bedroom property. However, this is completely unrealistic on a small island such as the UK.

If you need a 20%+ drop in house values to afford an "appropriate" and "commensurate with your income" property then, quite honestly, you need to develop realistic and appropriate dreams. Demand and supply is here to stay, and loads of people want to purchase decent properties.

Oh, off again are you keeperbear? I was hoping that you'd changed your ways because your last few posts were actually quite helpful and pretty polite (for you). Naturally you couldn't quite manage to get through the week without trying to make someone look stupid could you? The trouble is that the one person who looks stupid is always you.

The OP asked a simple question and clearly meant by "appropriate for your family" and "commensurate with your salary":-

"Approriate for your family" - Your one bed flat, Keeperbear, would not be appropriate for a family. A two bed house would not be appropriate for a family of 2 adults and 2 kids if the kids are over 7 and opposite sex because it is not legal for them to share a room. A 3 bed basement apartment in London, with steps down to it, is inappropriate for a family where one member is in a wheelchair.

"Commensurate to your income" - If you have a lower income yet still cannot afford a 2 bed terrace for your family then how much would a terrace have to drop in order for you to afford it? If you have a higher income and live in a 2 bed terrace and fancy a 3 bed terrace so that your kids don't have to share a room, but you just can't afford it, how much will they have to drop before you can.

It's a simple question keeperbear and really didn't require your ascerbic answer.

You know, if you tried to be a nicer person on here, maybe it's start rubbing off on you in real life and then perhaps you'd eventually be able to get friends and maybe even a girlfriend. I'm sure if that happened then maybe you wouldn't be quite so bitter and twisted and maybe you could lose the chip on your shoulder??

maybe, but perhaps not....:rolleyes:

meme_3

keeperbear wrote: »

The terms "appropriate for your family" and "commensurate with your income" are extremely subjective, so your question is pretty pointless.

I disagree. The question is a valid one.

Each and every one of us has a different outlook on life. If you can't afford to buy a home that is suited to your family, this presents a major headache (unless you're happy with renting).

Each family has different needs. If you have a family of 4 kids, but can only afford a 2 bed house, there's a clear problem.

Obviously, with no kids, and a 5 bed home, you might think differently!!!