Are house prices falling?

dippy

Investors as well as companies can make money during busts and recessions. But if everybody was making money, would it be a bust, or a recession?

rizla01

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?

Thanks Meanmachine.

Good question

It doesn't make a lot of difference if we are in a falling market - people still need a roof over their heads and with people not being able to afford the repayment on their mortgage, a lot of reposessions are to be found at bargain prices. There is also a lot of custom for the rental market.

Most of the money that I have made is on refurbishment of 'Sad' properties that previous owners could not afford to, or were willing enough to do themselves.

Sadly, it is argued that I make money from other peoples misfortunes but the fact is that if I don't then someone else will. Most repos are not, as you would be left to conclude, a result of bad luck but more as a result of bad financial management. The 'Buy now & pay tomorrow' brigade.

Now finally - does it worry me that I may lose everything.

Nope because I never risk everything. If I were to lose everything that I have made in the last 5 Years (150k or so) then it would be immensely sad but I would have to accept it, pick myself up, dust myself down and - get drunk for a few weeks.

Then Smile!!

Riz

vansboy

Riz - when was this recession you mention?

I don't believe there was is or will EVER be one - it's just the way things move ..up...& down, without needing to put a name to it!

VB

rizla01

vansboy wrote:

Riz - when was this recession you mention?

I don't believe there was is or will EVER be one - it's just the way things move ..up...& down, without needing to put a name to it!

VB

Like there hasn't been a property Boom for the last 5 Years.

Riz

deemy2004

rizla01 wrote:

If you had believed all of the stories spread around during the recession then how do you explain that I started a business at the beginning of the recession, built it up DURING the recession and sold at a profit after the recession?

Yeh but now your fully loaded BEFORE the next recession

I'm not saying its going to happen to you, but to many it may go.

Fully loaded before the recession, Hang on during the recession, dump at a big loss just before the recession ends.

deemy2004

slater14 wrote:

On housing being overvalued I agree with eurows and Deemy (was meanmachine up there? and you too meany if you were!).

I read a post from someone who did the number on stagnation and it looks like houses will need to remain flat (at current value) for 14 years for this to be achieved. That is very doubtful (too many variables, interest rates, economy etc).

Rightmove have just released their monthly report and theres some grim reading in that.

Stagnation would be worse than a crash... A lot worse...

At least with a crash you get it over and done with and in a few years the memories refreshed. With stagnation it becomes a generational thing and we would end up with where Japan has been for the last 15 or so years... drifting nowhere, whilst losing ground to everyone else.

bridiej

I'm merging these two threads as they are on the same topic.

Bridiej

EdInvestor

There is quite a strong possibility IMHO that there will not be a crash, but simply a standstill or plateau.This is what has happened in London over the past couple of years, though the north has been playing "catchup" to London's earlier boom .

Such a plateau could go on for quite a few years as salaries catch up with today's prices.

IMHO local rises or falls of 10% are pretty meaningless - it's often the case that estate agents will advise sellers to put 10% on the asking price so that it can later be taken off, so the buyer thinks he's got a bargain.;)

I would steer clear of new-build flats though.They may be the most likely to suffer price falls as there seems to be an over supply in many places.

ITtim

eurows wrote:

Its not a case of sour grapes. I am sick of home owners throwing their big profits down my throat and then having the gaul to tell me that they are still going up even though the market says otherwise.

If its sour grapes from me then its greed from them

Isnt it the growth thats slowing down? thats the independant reports i've seen

jezza1O1

kingshir wrote:

I am buying a small property in Coventry

Offer to pay what you think the property is worth, no more, no less. Much of the current problems are down to people being coerced into paying over inflated prices. I find it hard to understand that people dont stop for a second and think 'hold on, £200k for a small hole in Camberwell seems a little over priced' but no, people have been brainwashed into getting onto the property ladder at all costs - the fools!

It should be as simple as - if you like the place, you have the money, and you think it is good value - then go for it. Long term - house prices will have to drop because people simply cant afford to purchase properties, dont know about Coventry but London has seen the lowest number of transactions since records begun - big suprise (not)!

It becomes a no brainer when a dinky (dual income no kids ) professional couple earning way over the national average are currently getting laughed out of estate agents. Prices have to come down...


Remember - home owners have only made that profit when they have sold the house - but who are they going to sell it to... I am now hearing stories all the time regarding house that have been on the market for months. Seems like common sense to me, anyway I guess we'll see... Im happy renting atm - hehe managed to push my rent down even further, so on the bright side my 'deposit' is growing massively but tbh Im kinda tempted to blow it on a sports car !