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

brit1234

I can't believe the speed of this crash it is far faster than I thought. This credit crunch and lending tightening is getting causing this market to collapse.

If anyone has any doubt prices are crashing then ask yourself how people can afford these high prices when what they can only borrow is 3.5 times there salary with a 25% deposit?

IvanOpinion

brit1234 wrote: »

I can't believe the speed of this crash it is far faster than I thought. This credit crunch and lending tightening is getting causing this market to collapse.

If anyone has any doubt prices are crashing then ask yourself how people can afford these high prices when what they can only borrow is 3.5 times there salary with a 25% deposit?

I am relying on it and am hoping to snap up a couple of bargains in another 6-12 months (maybe a couple of repossessions .. they are always cheaper). On one hand I am hoping that the banks will stop irresponsible lending and more importantly stop irresponsible people from borrowing ... on the other hand I would fear that would see the resurgance of the loan sharks. Our generation has a 'me-me-me' mindset that wants everything 'now' .. it might take another generation before that stupidity is knocked out of it.

Ivan

mr.broderick

brit1234 wrote: »

I can't believe the speed of this crash it is far faster than I thought. This credit crunch and lending tightening is getting causing this market to collapse.

If anyone has any doubt prices are crashing then ask yourself how people can afford these high prices when what they can only borrow is 3.5 times there salary with a 25% deposit?

Christ have i missed something has it finally happened?

Woby_Tide

brit1234 wrote: »

I can't believe the speed of this crash it is far faster than I thought.

3 years, 7 months and 10 days since the thread started...feel the speed

IvanOpinion

Woby_Tide wrote: »

3 years, 7 months and 10 days since the thread started...feel the speed

I have been wondering what that very unsudden gush of hot air was

ivan

pioneer31

IvanOpinion wrote: »

I am more amazed that so many people have been so right for so so so long ... in 2003 I first heard the predictions of doom about a house price crash and wow, after only 4-5 years of significant growth their predictions came true. I think it is spookily uncanny how accurate the doom-mongers were .. especially since after another year of growth they predicted the fall for the following year, and then the following, and then despite another year of growth they still predicted it for the following year and then incredibly it finally came true .. and they are now all sitting back with a stupid smug look on their faces saying 'told you so' (such predicitve powers are only equalled by someone saying 'tomorrow will be another day').

So I am going to be a bit of a rebel and predict rises in prices ..... in the next 4-5 years or so (you do however have to totally ignore what happens between now and my prediction coming true).

Ivan

interesting post.

So the 'doom mongers' - those who want affordable housing - how dare they!!! are finally being proved right.

Of course the bulls will and have mocked them for getting the timing wrong. We didn't count on a a govt who would start printing money and a BoE who would literally lend money, interest free!, whilst penalising prudent savers.

Anyhow, the bears may have called this too early...but the bulls never saw it coming.....and some still can't see it

Dear oh dear.

HAMISH_MCTAVISH

brit1234 wrote: »

I can't believe the speed of this crash it is far faster than I thought.

4 years on from when you posted this, prices in your area are within a few percent of what they were then.

8 years on from when this thread was started, prices are STILL tens of thousands of pounds more expensive than they were then.

Great thread.:)

brit1234

HAMISH_MCTAVISH wrote: »

4 years on from when you posted this, prices in your area are within a few percent of what they were then.

8 years on from when this thread was started, prices are STILL tens of thousands of pounds more expensive than they were then.

Great thread.:)

Yes but I do live in Chelsea, a few Russian, Indian and Chinese Billionaires floating about here. However I was never going to buy in Chelsea as a First Time Buyer anyway. The area I am looking at is falling nicly.

Who would of thought in 2008 they would cut interest rates to 0.5% to bail out the property speculators. All they did was push the problem down the line a couple of years and surprise, surprise properties are falling yet again.

We all know they are unsustainably high but falling again. My father said I was right to hold off and in the last couple of years my deposit has grown a lot bigger thanks to the cheap rent I get.

Getting a bit desperate now aren't you Hamish. :rotfl:

M3TTB

I have to say reading through this is quite interesting:D

Prices may well be falling slightly but they are taking so long to do so that if you add up all the rent you have paid over all these years you are still much worse off.

Using the RRPI for average rental prices across England, it states:
Property Type: All Property Types in England
Average Rental Prices for August 2011: £1460

So if you take the last 4 years into consideration, that's £70,080 in rent paid.

Looking at the official land registry sale prices figures up to August it shows for England:

Average house price
£228,095
Detached £323,932 Semi-detached £194,733 Terrace £187,006 Flat £225,332
Annual change in house price
-2.90%
Quarterly change
-2.80%

Total number of sales: 146,970



So if the average price is around £228000 then you will need around a 31% drop in house prices over the last 4 years to make this worthwhile. Or to make you better off renting.

Houses haven't lost that much over the last 4 years and I cant see houses losing a third of their value over the next 4 years either. And this is just to break even!

Still better off buying in my opinion, if you live in England. I've no idea about anywhere else.

By the way I'm a LL and home owner!:T

Cheers all

ukcarper

brit1234 wrote: »

Yes but I do live in Chelsea, a few Russian, Indian and Chinese Billionaires floating about here. However I was never going to buy in Chelsea as a First Time Buyer anyway. The area I am looking at is falling nicly.

Who would of thought in 2008 they would cut interest rates to 0.5% to bail out the property speculators. All they did was push the problem down the line a couple of years and surprise, surprise properties are falling yet again.

We all know they are unsustainably high but falling again. My father said I was right to hold off and in the last couple of years my deposit has grown a lot bigger thanks to the cheap rent I get.

Getting a bit desperate now aren't you Hamish. :rotfl:

But then the average price in Hounslow is now £285k compared to £287k 4 years ago.