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

brit1234

M3TTB wrote: »

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

They lost about 15-18% in the first part of the crash and in many parts of the country a lot more. Now the second leg has started and even London is having problems.

30% is realistic especially as house prices are so overvalued and went up so quickly unsustainably with all the irresponsible lending and fraud in the last decade. There is plenty of scope for falls especially with all the rising repossessions including all those highly geared landlord properties.

Remember the Ferguson's with their 1000 properties and Times rich list position. Now the banks own most of the properties and they aren't on the rich list any more.

Jessikita1983

I can see the points from both sides.

I think it just depends on your personal circumstances. I put the offer in on my house in November 2007 and it was mine by January 2008.

At the time £92k was a very fair price. Now I think I would get £85k to £90k (on a very good day, I've seen all the over-inflated prices - they are deluded in my opinion).

I also got a 95% LTV mortgage that were abundant at the time.

Had I have waited until the prices crashed, I may have been better off true. Luckily, living at home I would have had a fat deposit by now and benefitted from the cheaper prices/bargains to be had.

However, would I have really wanted to be reliant on my parents for my home at 28 years old? (as I am now) No. Could I expect to have got married and my parents allow me and hubby to live there long term? No (not being judgmental about people living with family for the short term etc, while house hunting etc. I just mean long term etc.)

I would have moved out and rented. Which would have made trying to save go long past now, forcing me to rent until at least my early thirties. Paying as much rent as a mortgage and still trying to save, can be done, but at many sacrifices.

As I am happy in my home and in no rush to move, as it is a 3 bed (two generous rooms, 1 box room) I plan on only having 1 child. So can easily fit my two stepchildren and my (potential) child in it. I really did do what was right for me at the time.

I will be here for around 10 years I think so I am not bothered by the drop. Who knows what price it will reach by then etc. I still feel that generally, overall, looking at the bigger picture, I was personally better off buying.

Course everyone's circumstances are different, so you really do just have to do what is right for you, at the time.

No one has an accurate crystal ball.

M3TTB

brit1234 wrote: »

They lost about 15-18% in the first part of the crash and in many parts of the country a lot more. Now the second leg has started and even London is having problems.

30% is realistic especially as house prices are so overvalued and went up so quickly unsustainably with all the irresponsible lending and fraud in the last decade. There is plenty of scope for falls especially with all the rising repossessions including all those highly geared landlord properties.

Remember the Ferguson's with their 1000 properties and Times rich list position. Now the banks own most of the properties and they aren't on the rich list any more.

I actually agree about prices falling and continuing to fall, I just can't see house prices falling fast enough to make you much better off renting in the meantime.

I suppose it just depends if how you see the risk, rents are rising and it's still got a long way to go before the people who purchased more sensibly, without low deposits and without high LTV start to see real financial issues. Or of course repossessions.

They way I see it, if I rent a property for £1000 a month for the next 5 years. That's obviously a return of £60k so I can afford a price drop of the same amount over the next 5 years and be no worse off.

With any luck and going by past experience, you will have then seen off the worst of the drops and still be a home owner in a rising property market once things turn the other way.

Then of course you have the fact that savings are performing so badly right now too, even if you bought now and rented the place. Most would see a higher return on their investment.

Just my opinion, for what it's worth.:beer:

Dan:_4

brit1234 wrote: »

They lost about 15-18% in the first part of the crash and in many parts of the country a lot more. Now the second leg has started and even London is having problems.

30% is realistic especially as house prices are so overvalued and went up so quickly unsustainably with all the irresponsible lending and fraud in the last decade. There is plenty of scope for falls especially with all the rising repossessions including all those highly geared landlord properties.

Remember the Ferguson's with their 1000 properties and Times rich list position. Now the banks own most of the properties and they aren't on the rich list any more.

but you told me that house prices would crash 50% by xmas 2009?

brit1234

ukcarper wrote: »

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

Who said anything about living in Hounslow? Hounslow borough prices are distorted up by Chiswick. Chiswick prices rose after rich people were displaced from central London by foriegn investors. Hounslow town itself is a dump, prices are falling but I wouldn't want to live there period. A town of boarded up shops, high crime and terrible air craft noise.

As I said where I am looking is a nice area, prices continue to fall and crime is low. :cool:

ukcarper

brit1234 wrote: »

Who said anything about living in Hounslow? Hounslow borough prices are distorted up by Chiswick. Chiswick prices rose after rich people were displaced from central London by foriegn investors. Hounslow town itself is a dump, prices are falling but I wouldn't want to live there period. A town of boarded up shops, high crime and terrible air craft noise.

As I said where I am looking is a nice area, prices continue to fall and crime is low. :cool:

Not in London then

Ealing £325k now £321k 4 years ago, Hillingdon £261k now £267k 4 years ago.

brit1234

ukcarper wrote: »

Not in London then

Ealing £325k now £321k 4 years ago, Hillingdon £261k now £267k 4 years ago.

I see you don't want to talk about Hounslow then. :rotfl:

London is starting to fall anyway now, foriegn investors can't keep house prices for ever. Maybe their money is now blown. Mean while normal house sellers are facing big problems in London including nice areas.

HAMISH_MCTAVISH

brit1234 wrote: »

big problems in London including nice areas.

You've been repeating the same desperate mantra for 4 years now.

You've been wrong for 4 years now.

This thread was started 8 years ago Brit.....

Nobody can take a word you doomers say seriously.:)

brit1234

Hamish what can I say prices are still falling and my deposit is getting to 30%. I live in Chelsea with cheap rent with every thing on my door step. I've had a brilliant 4 years.

You are showing even more desperation dredging up 8 year old posts in desperate attempt to out do an international collapse.

By the way how much equity have you lost on your Scottish buy to let portfolio today?

Must be painful :rotfl:

Jessikita1983

brit1234 wrote: »

Hamish what can I say prices are still falling and my deposit is getting to 30%. I live in Chelsea with cheap rent with every thing on my door step. I've had a brilliant 4 years.

You are showing even more desperation dredging up 8 year old posts in desperate attempt to out do an international collapse.

By the way how much equity have you lost on your Scottish buy to let portfolio today?

Must be painful :rotfl:

Until I started reading the older posts and looking at the dates, I didn't realise how old this thread was! Lol