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

loopyloo_4

I only sold my property because I hated living there and wanted a garden. The only reason I am renting is because I couldnt afford to buy a house at the time.

Luckily for me, since the move I've had a 30% pay increase ;D so if i change my mind to buy I can, but for the moment I am happy renting with no major responsibilites :P

Enviomon2

It seems to me that the only people who foresee (are hoping for) a property crash are those who want to cash in on the poor souls who went for it and bought over the last couple of years, and who will have there homes taken away for whatever reason allowing the vultures to come in and snap them up dirt cheap.

Personally I hope the prices level off and hold for a year or two then start to increase again, which is also what I believe will happen.  This will teach the vultures a lesson.  If you want to buy a house then buy it don't try and predict the future.  So there has been a crash before? So what?

You have totally got the wrong end of the stick and ended up ashamedly making a hurtful comment. So you wish misfortune on me jsut because I'd like to buy the cheapest house possible.

I do not have the power to control the market but I realise it's an open market and appreciate that there are always going to be different types of buyers and sellers with different often opposing ideals on why to buy or sell a house.

For first time buyers or sellers at an early stage in owning a house, their house is often viewed as an investment and they are entitled to

only people who foresee (are hoping for) a property crash are those who want to cash in on the poor souls who went for it and bought over the last couple of years,

House prices are always going to go up and down! I think anyone investing a load of money into a house when house prices are at a huge high is bloody stupid with their money anyway and besides it's a risk they signed up to. If you have that much money you can afford to do so, if you have to get a stupidly big mortgage to be able to get a house, then I think you shouldn't be getting a house in the firstplace as imo it's very irresponsible to borrow obscene amounts of money anyway.

but of course, this all changes if you see your house as a home rather than an investment then effectively it doesn't really matter if they rise or fall. :-)

This will teach the vultures a lesson.  If you want to buy a house then buy it don't try and predict the future.

You wouldn't exactly make a very good investment banker.

Enviomon2

Also you sholdn;'t foget the housing market is global and you cannot contorl it, hence you will not be able to give me a slapped wrist for buying a cheap housew which requires you to be an informed buyer.

You see it's all about information, informity, that is alot of what this very site is about.

If we live in an informed society there is no real huge need for things like advertising. If we're all informed we can all make the best choices and concentrate on the ethics rather than the cheap prices.

Pakard

Large estate agencies say next year house price increase is going to be 0%... and higer discounts. 0%? Why? Why not "say" -5%. Because nobody would buy a house for another 12 months or more.
Buy or not buy? ... If I can buy a better house for less money in 12 moths time ...I will wait, rent a room and save a money. Instead of terace house I am going to buy a semi detached house, saving a lot of money in a long run.
BTL will not cause crash now. Wait till next year when increase in council tax, gas, electricity, water and telephone bills hit householder. When people from fix move to variable rate. What about petrol prices and their influence on factory gate prices. Everybody will ask for increase in their salaries above current inflation rate. People will stop their spending and start saving. Interest rate will not stay at 4.75% it will go up to reduce inflation. To reduce cost of goods ... more peple will loose job ... hmmm I belive that house prices are goin DOWN
8).

mystic_trev

Interesting "thread" this one. I posted a similar thread back in early April - when prices were still going up.

http://forum.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Mortgages;action=display;num=1080951359;start=0#0

Hence my name - the crystal balls got it right!

My thinking now is not that of an iminent crash but a long slow decline. Of course if Interest rates went through the roof this could all change. I also forsee a larger mark down in the South East i.e. where there have been the biggest increases. I'm still staying with my BTL's - but then I bought in 1998 so values have more than doubled. If I was thinking of buying my first home now, I 'd wait and re-assess the situation in five years time! All IMVHO

kitten

Another point to factor-in is the effect of owner-occupation becoming available to "ordinary" people in the 1960s and 1970s. Up until then more people had rented their homes all their lives.

Now these people are becoming elderly, and when they die their children stand to inherit the value of their homes. And what will they spend it on? Houses, either for themselves or their children. To be bought outright, no worries over mortgage rates etc.

woj101

As others have noted, it's good to see a lot of considered opinions on here. Trying to avoid my own views on this for the mo, it does seem the people who are thinking the fall is coming have the more convincing reasoning.

House prices have slowed, not just because BoE put rates up, but because people just plain can't afford to buy with such a high risk factor. With rents at a high level as well I can't see why this situation is going to change, with these people suddenly being able to afford to buy.

With interest rates having been so low for such a length of time one could expect they can only go in one direction (slow or fast). And as everyone freely admits, domestic property is currently approx. 30% overpriced. If I can't afford to take the risk in buying my first home now, a 'flattening' of prices is not going to make that risk any more inviting in 5 years time.

Don't believe the hype. Believe the logic. Agents and sellers will try and sell the idea that interest in property is still high to convince people to meet asking prices. But the fact is, just because an Estate Agent is telling me he's had five other couples looking at the house that morning, with another 20 lined up for the week, doesn't mean I can afford to, or have the inclination, to pay 30% over value in a climate of rising interest rates.

If there's one thing sellers need, it's buyers, and only the foolish will take on the ever-increasing mortgages banks are offering at this time. The good sense of the majority will quickly bring an end to this as prices fall, but if it doesn't the only alternative is that people go borrowing more than ever, which only makes a crash in the long term even more likely.


Plain talking sense from others here: http://news.bbc.co.uk/1/hi/business/3701070.stm

sezdav

I bought my first house over a year ago and have sold it for a small profit... but enough to buy a home in a better area. we ahve a large house in a bad area and i believe the money we have made this year is not enough in compensation for the environment we have been subject to! however we did take the plunge and were aware of the risks. we could have continued renting, hoping for the crash that didnt appear to be coming.

anyway, we have just bought a much, much smaller property in a much, much better area, and without the profit from this house we couldnt have done that. I am greatful for the rise in the market, however i do have concerns that it will dip into negative equity.

Unfortunatly my crystal ball has been broken for sometime now and in todays market prediction is a very difficult thing. You have to make a decision
1) Jump on the ladder and take a gamble
2) Continue renting hoping that you can take advantage of the market when millions struggle in negative equity.

If you choose to do the latter then please please shut up moaning...... YOU HAVE NOTHING AT RISK.

Sorry but i take this subject very personally. :-/

sheenagh_2

Housing is so damn complicated. I think we need radical solutions I just can't think of any except government involvement and more control EEEK!!

I worked for the Halifax in the late 80's early 90's. I sold mortgages at the stupid rate of 15.4% and we still had customers! I also met plenty of people with negative equity my partner, now husband, being one of them. Repossesion was a big thing, debt's spiralled. How dire was all that.

That was when I was a soulless youth fast forward and I have just spent 5 years working for the CAB and have seen housing from another side.

Mortagage debt has not been the big issue but rented accommadation has. It has been by and large horrendous, pourly maintained, over inflated prices hitting those with the lowest income. Terrible 6 month contracts with £100+ renewal fees. Kick up any fuss and you are homeless.

Council stock has been bought up at silly prices then sold at massive profit by relatives of tenants out to make money. Housing associations can't build them quick enough because they can't afford the land prices. May be it's a Midlands phenomena but it has been more sensible and cheaper to buy.

To build low cost housing needs low cost land and this is non existant. Negative equity sucks, high mortgage rates cause deep debt and repossession and this debt doesn't just go away when you lose your house. At the CAB we had people coming in 10 years later still buried in the mire. If only I had known about MSE then!

Don't buy a house lets make prices crash is way too simplistic and painful ???

webmister22

I spent the last 5 years thinking this and finally bought a house back in August. It worked out I was 200 quid better off a month buying rather than renting the house. Also I am planning to stay in the house for atleast 5 years so if house prices do move around in the mean time it won'tr affect me and its anybodys geuss where the prices will be in 5 years :-)