**Don't Buy A House** House Prices Set To Crash!!!

Slinky

We could do without all this bad news of house prices dropping, for about another 3 months having agreed the sale of our house yesterday (was on for a week, 2 viewings, 1 offer). Managed to get 98% of the asking price, lady buying is a 'cash' buyer, or will be when the sale of hers completes on Thursday.

I have to say I think the preparation of the house had a lot to do with the quick sale. It was like a show house for the 2 hours it needed to be for the viewings. Ten minutes after they'd gone, it was like a bomb had dropped again. Running the vacuum around just isn't enough these days. It's not your home you are selling, it's your potential buyers new home they need to see.

Jezza101

You buy a house to live in over the long term.  

No we dont - we cant bloody well afford to! No longer a matter of choice, just way out of my realms of possibility! All the arguments are horribly moot due to the simple fact that it isnt a choice! I cant afford to buy a property and Im a city worker graduate on a thank you very much nice salary, as is my partner.

The thread starter doesnt need to convince me - its outside of my control! A 10% deposit is no problem, and actually im now looking at a 15% deposit - but thanks to crazy inflation I just cant get a mortgage to cover the rest. And no, as Ive said before, Im not going to compromise on an ex-crack den in Camberwell - would you?

Compare what your money will buy in France to begin seeing just how stupid the prices are. In the meantime Im enjoying a stupidly low rent and my deposit and ever growing savings are wisely invested.

The situation is a mess, if I cant afford a place and Im a graduate with a respected degree and a great job, Im a saver (hence a fan of this site!) as is my partner, and have no debts and even have the offer of parental help and I still cant afford to buy a place that id actually want to live in! My standards arent unrealistic, just needs to be a safe area with transport links, not too bothered about the state of the place - happy to do it up! 5 years ago Id be laughing my way to a lovely 1st home - Ive seen what my colleagues bought at that time. Some have 2 bed places with gardens in attractive areas - that's the sort of buying power people in my job had just a few years ago!

But now? No chance! Im not going to settle for a cockroach infested hole with no central heating - yes some people are asking well over £100k for bedsits in extremely poor condition. Crazy!!

And even these hovels are out of reach for the key workers - remember im writing this from the point of view of a relatively (ie for my age) wealthy 26yr old earning way over the national average. If I cant buy a 1st time property - who can?

The level of denial of the problem is amazing - although its no coincidence that the loudest champions of ever increasing prices are from the property investors and agents who know too well that they need to encourage a positive attitude to keep people buying. Unfortunately for them a positive attitude is irrelavent now - there's just no choice for us:

Arghhhhhhhhh! I just want to bang my head against a wall when people start talking about stable economic factors and the 'doomsters' causing dips and what have you.
FACT: young successful grads cannot afford houses.
FACT: young people on 'average' wages cannot afford houses.
FACT: key workers cannot afford houses.
FACT: house prices are overvalued and unrealistic.


Remember, a house only has that value once it's sold. Think your investment portfolio has tripled in value? Try selling it...

Robert_Sterling_3

Remember, a house only has that value once it's sold.  Think your investment portfolio has tripled in value?  Try selling it...

This is so in the antigue trade.
One value "for insrance purposes"
A rather different value when you try to sell it to a dealer.
Even to the dealer you bought it from.

Pal

Woby - David Smith is incredibly biased whenever he discussed house prices. Personally I think he owns a large house with a large mortgage and wants to protect his own "investment".

mkdoodle

Woby - David Smith is incredibly biased whenever he discussed house prices.  Personally I think he owns a large house with a large mortgage and wants to protect his own "investment".

A fall in house prices would make Gordon Brown look bad. That's why the Item Club forecast may be biased. Boom and bust has been abolished. :P

mkdoodle

Take a look at the Nationwide's "Long Term Real House Price Trend" graph at the bottom right corner of this page

http://www.nationwide.co.uk/hpi/monthly.htm

Prices peaked in 1974 and 1989. Fifteen years later, and it's 2004.

House prices might rise further, but they became expensive when they crossed the red trend line upwards in 2001. They might be worth buying again when prices cross the trend line in the opposite direction, perhaps in a few years time.

deemy2004

Seven years of plenty followed by seven years of famine

The falls going to be of biblical proportions

pinkchick_2

Well you have all utterly terrified me. I am in the position of having to buy a house with settlement money from my divorce. People keep telling me to hang on as prices will get lower and I'll get more for my money. I am new to this property 'game' and am utterly confused, should I rent and see what happens to the market or just go for it? Whadda you reckon? ???

John_M_Business

Without being rude - you generally find that most people hoping for / talking up a crash are those WITHOUT properties, whilst those that hope it doesn't happen are those WITH properties.

In the end, if you're looking to gain money or sell in the short term, buying now may not be too good as there is a slight (slow!) trend downwards in the marketplace. However, at the same time, a crash is unlikely given the stable low interest rates (which seem to have peaked for the moment).

If you are looking for somewhere to stay for a long time, then find what you are looking for, and go and buy it. I remember when I was looking for a flat here in West London, I was told that there was going to be a crash - and that was five years ago - in which time the average value of a property in this area has risen by about 50-70%. I could have been still holding out, but didn't, and am glad for that choice.

Dan29

Lots of properties in the SE were reduced by at least £5000 last week and most of them are on the market more than 8 months. Lots of ex BTL with no chain. They can't even let it.

Doesn't make sense - if people don't want to buy a home, they'll have to rent one.