Are house prices falling?

GingeG

Thanks BridieJ

bridiej

No probs

Good luck with it, hope all works out for you.

meanmachine_2

GingeG wrote:

Mean Machine,

Thanks for your sensible reply. Wife and I both work and have no kids or debts. So we can afford the £1083 a month repayment on a fixed 5 year term.

I have reservations about this though as it is expensive. The vendors paid 120K 5 years ago, dont think they are trying to rip us off with asking for 220 cos thats what all the houses have done country wide is jump up.

I just wanna pay them a fair price. When do we think prices will start to come down then?

That's a big chunk out of your income, and it's galling to think that the people you're buying the house from probably have a tiny mortgage of around £300.

It's up to you. You say you have no debts, and no kids. Will you be able to service the debt should your partner fall pregnant and have to stop working? If so, then you should be fine. If not, then you'll see the mortgage as a millstone rather than a liberator.

Tough call. As I say, waiting two - three months might only shave 5-10 grand off the price, which isn't really going to help you much. The property market is a big lumbering beast. It's taken ten years to get us where we are today, and might take another ten years to "correct".

You seem sensible, and if you think the mortgage is a sensible risk, then go with your instinct. Personally I can afford to wait, but that's just me.

However, if you're looking to make money from the property and MEW any equity then you're going to be disappointed. Even the most bullish are now conceding that house prices are going to be flat for a long time.

GingeG

Thanks

Mean Machine.

mr.broderick

meanmachine wrote: »

Good for you. I wonder how much money you'll make during the impending price "correction".

Or whether you'll lose everything you've made. Doesn't it worry you? It's a serious question. In a falling property market how exactly do you make money? Or do you give it all up and go into some other investment area?

Back in 2005 even respected members like meanmachine got it wrong but hey we can all bring up old threads can't we?

ManAtHome

meanmachine wrote: »

That's a big chunk out of your income... Will you be able to service the debt...

Hmmm - who'd have thought prices of everything in the world (apart from "core inflation" and house prices) would be going up around now?

Sadly the old whoop-de-doop givvuz-the-cheap-dosh may have just trashed the economy instead of levelling house prices a few years back. Bad choice IMHO...