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

ukcarper

brit1234 wrote: »

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.

Worked in Hounslow for some time wouldn’t want to live there lets face it most of the area between the M4 and the A316 is pretty bad and that’s the point it’s the not so good parts of London where house prices are falling.

new_home_owner_3

hey brit i see you signatures changed again lol.

new_home_owner_3

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:

you will still be waiting in a decade, house prices will never fall to what you believe they will and to be honest if they did you would still flap and not buy.

DVardysShadow

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.:)

Hamish, p155 off.

You are raising a debate topic for which there is a separate forum, as you know full well. You could just as well have started a thread there and linked to this thread.

Why inflict the rest of us with this unwarranted thread resurrection?

HAMISH_MCTAVISH

brit1234 wrote: »

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

Aberdeen average house price Aug 2007 £176,559

Aberdeen average house price Aug 2011 £190,942

Must be painful :rotfl:

Not half as painful as renting would have been. :rotfl:

franklee

M3TTB wrote: »

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

Crikey you make life changing decisions over 100's of thousands of pounds based on calculations like that? You do realise that there is a lot of interest to be taken onto account both on any mortgage loan and on any deposit that is to be put down if buying.

Broadly speaking if rent is roughly similar to mortgage interest charged plus interest that could be obtained on the deposit to be put in (e.g. if put in a savings account fixed for a few years) then the cost of waiting is fairly neutral while house prices remain static. Obviously savings rates have got worse over the last few years but then mortgages are tougher too. It's not the mortgage interest on the landlord's mortgage, what matters is the deal the person deciding if they wish to rent or buy can get at the time they are making the decision.

Also the average tenant doesn't rent the average house so people are better off looking at real life examples of rent vs house price in their area.

hethmar

PMSL, I started reading this thread, thinking "oh dear" and then I saw its nearly 8 years old - my son has bought and sold a flat in that time and made many thousands on it.

HAMISH_MCTAVISH

hethmar wrote: »

PMSL, I started reading this thread, thinking "oh dear" and then I saw its nearly 8 years old - my son has bought and sold a flat in that time and made many thousands on it.

Indeed.

This thread is an excellent example of why listening to the crashaholics is usually a pretty bad idea.;)

HAMISH_MCTAVISH

franklee wrote: »

if rent is roughly similar to mortgage interest charged plus interest that could be obtained on the deposit to be put in (e.g. if put in a savings account fixed for a few years) then the cost of waiting is fairly neutral while house prices remain static..

Buying is now cheaper than renting in 90% of the UK, even in the short term, and even with mortgage interest at 5% instead of the current 3.5% average.:)

geoffky

The can has been kicked down the road long enough and it does look like we have come to the end...
It will be a lot more painful than if the market had been allowed to follow course in 2005 when they stopped the crash with interest rates and then spent 200bln stopping a big one in 2007/8 ...
But we are at the end of the road and the crash will be bigger than it should of been due to all the meddling that's been going on...the market always wins..