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

Woby_Tide

vishpatel wrote:

It's to protect people like me from people like you who encourage HUGE amounts of debt.

Who are you to say FTB'ers should accept the days of 3x or 4x salary mortgages are gone???

eh? All I said was to work on what you can afford as that is the more important figure not the multiple, is that now the wrong advice? Should people only work on the principle to borrow 3x their salary and nothing else regardless? Seems a bit naive.

On another point are you not in a position to purchase with a friend or family(as in both of you buying and living in the same place), if you found a property you thought was good value but over your range as an individual purchaser?

dougk_2

Woby_Tide,

The point is VishPatel feels all properties are overpriced so basically he doesn't want to buy (rather than can't buy).

VishPatel earns more than I do, but I would feel comfortable at a a higher multiple than him maybe because I am more settled and have always had a good grip on my expenditure.

I also think that if I took a long term fixed rate (10 years) that I have little to fear in terms of increases in interest rates or property prices falling. If I take home £1700 a month I could afford (after all other bills etc) to quite easily afford mortgage payments of £1200. However I wouldn't feel totally comfortable borrowing this much but £1k a month would be ok to me, (So a mortgage of around £150k+ @6%) provided i knew that I was secure from any rate increases.

As VishPatel currently saves more than £1000 per month I can't see how its a problem financially, its down to personal choice of not wanting to rather than can't.

vishpatel

dougk wrote:

As i have stated London is a capital city - It is meant for the rich... and prices will always be higher than elsewhere. The poorer folk have always lived in the suburbs or further afield

I'm not poor! I'm 26 & earning 33K. I wouldn't mind living in the suburbs if you could find me a decent one, with a 2 bedroom place for £130K? Somewhere I could raise a family, in case I get into negative equity & am unable to move ?? Is THAT too fussy?

dougk wrote:

Why do you think you have some "given right" to own a house in one of the most expensive places in the UK? Sorry Like Charlton TAz says , FTB's are becoming too fussy about what they want, the idea is to get onto the property ladder and ten work up to a better home. Its rather like a career... very few people go straight into work as a director or CE.

I'm sorry but what 'we want' is exactly the same as what people have had in the past - affordable housing. I'm prepared to wait for it - I refuse to sign my life away on a hugely inflated mortgage

vishpatel

Woby_Tide wrote:

Are you not in a position to purchase with a friend or family(as in both of you buying and living in the same place), if you found a property you thought was good value but over your range as an individual purchaser?

What is the advantage of that above renting, in the current market ??

lisyloo

"Somewhere I could raise a family, in case I get into negative equity & am unable to move ?? Is THAT too fussy?"

If you are saying you want to buy a family home as your FIRST purchase then yes, I would say you have high expectations.

Most people historically, buy a small flat or small house to start off with and then move UP to a family home. It has ALWAYS been difficult for people and usually they don't start with family homes.

Sorry if I've misunderstood.

If you belive that prices are overinflated then it makes sense to wait in my view.

Woby_Tide

vishpatel wrote:

What is the advantage of that above renting, in the current market ??

That the house/flat that fits your criteria/needs isn't available in your future market

wibble68_2

Have any of you guy's seen the 50 year average house price graph?

Due to the boom we've been in for the past 5-10 years, prices are still
20% -30% overvalued to the long term average.

Now I'm not going to join the debate on which way prices will go, but
these figures do suggest it would be very optimistic to think prices will
rise in the new few years.

If prices do rise this would mean the graph never crosses the
long term average trend.

Maybe someone could explain to me why prices should stay well above
the long term average.

dougk_2

When people normally buy a bigger house as their first purchase it is usually run down and requiring work, hence purchasing it for a cheaper price. They then do this work over a period of time and hence get the house they want (or sell on and use the profit on the increased value due to the work they have carried out).

You have to expect to struggle to buy!

VishPatel
Having checked on the web the average salary for the City of London is £55k PA. Therefore in "London" terms you are poor (or below average) hence the inability to afford a bigger property within the city. How about Gravesend or Dartford there seem to be 2 bed properties there for £130k and I would now class this as suburbs of London - certainly commuter zones.

Pooky

I think the FTB's fall into 2 different catagories ....those who are single/no kids/good earners who could, in effect move anywhere to get the best deal etc. Then there are those that for whatever reason need to get a grip on the property ladder with a lower income/kids/debt etc who can't just upsticks and move 50 miles down the road because of the impact on schools/family life and support/travel expense etc.

I feel the market has completely outstripped most people in the later catagory, if you need a 2 bed house or flat with a garden then there is no point buying a top floor flat just to get on the ladder. I do agree that it used to be a case of starting at the bottom and working your way up and for some this is still the best option. However in todays socail and economic climate there are more 2nd time round families, divorced singletons, single parent families etc that have a specific housing need.

I'm a stay at home mum and as such have realised that this has hampered our chance of buying a house until such time as I'm wage earning. Didn't always used to be the case tho - there were more affordable properties around that needed work etc but these are all being snapped up by contractors for buy-to-rent oppertunities now, which is fair enough. It does mean though that those with a good equity in their property and a good income can carry on moving up and up and you see it happening all around the problem of the FTB won't affect the higher end of the market for a few years until the realisation sets in that there is no-one wanting to trade up from a 1 bed flat to a 2 bed house because no-one could afford the one bed flat in the first place. (if that makes sense)

I bought a house 7 years ago with my ex husband - 3 bed mid terrace, big garden and in a nice area and paid £36k for it - 2 years later when resold, without being finished on the restoration front - it sold for over £85k. I refuse point blank now to look at a flat on the 3rd floor over some dodgy kebab shop with no garden, in a rough area of town that's on the market for £97k. It's all gone a bit silly if you ask me!

I'll stick with my renting - have all the maintenance done for free and wait for prices to reach a level i'm happy with.

:rolleyes:

Jay1b

A huge part of the problem is the sheer amount of immigrants in the country. Obviously they all needs houses - usually paid for by ours taxes as well :@ This increases competition for the houses therefore putting house prices up and up.