Are house prices falling?

eurows

Think about this one.

Everyones telling me its better to buy than rent but when I look at the figures it doesnt stack up.

I sold my house and am now renting. My wife hates renting but I don't care. I was quotes repayment figures of 1150 on a 200,000 mortgage. Interest alone was £800.00 the rest deducted from the mortage. I currently rent a 300,000 house for £700 a month. that enables me to save the other £450.00. I can save £100.00 more in rented and live in better accomadation than I could if I bought.

Am I working something out wrong.

dougk_2

I remember similar postings from last september.... nothing much has changed.
Still the same arguments back and forth!

Ideally we would all like big houses and fast cars, but we can't all have them.

Unfortuantely there will always be some people who can't afford houses and some that can.

rizla01

Hi Eurows,

Good luck to you.

If you have found a property owner of a property worth £300,000.00 prepared to rent it for £700.00 then you have landed on your feet.

Very poor return for the owner though.

Round here a property worth 90k would rent for £550.00
A property worth 150k-170k (3bed terrace or semi) would rent for £700 -£750.00 Per Week.

Riz

Woby_Tide

you see it's people like eurows artificially hiking the asking prices of their rented property that is spurring these house price increases on....;)

Woby_Tide

different question: Fast forwarding 3? 5? who knows? years into the theoretical future, house prices have 'crashed/are crashing'

Interested to know peoples responses

a) when do you think crash would end i.e. when would you expect to buy, would it all be dependant on a certain percentage drop and once you felt the property you wanted was 'affordable' in your eyes you would buy with potential risk of further continued drops? Or do you think you would wait till market had truly flattened(or potentially re-rising) to then purchase?

b) as people seem to be saying that a return to 3.5x income multiples is best in terms of mortgage amounts, admittedly people can't necessarily predict what their income will be in the time frame but say going on your current income and multiplied by 3.5x plus any deposit you expect to have you therefore get an idea of your 'fighting fund'. Question is what sort of property do you expect to get with the fund you expect to have i.e. 2 bed flat/house, 3 bed detach, 12 bed detached home of footballer/!!!!!! star? Serious question though, also because this will obviously be affected by the sort of area you may be looking to buy in could you name the sort of area, i.e. in London I'd say people may be aiming at flats/2bed semis terrace maybe, but in Northern towns or cities more likely 3 bed semi?

meanmachine_2

Average wage, 10% deposit = around £100K. All I'd want is a one-bed flat - which isn't even an average property - in an average London area. The fact that I can't get that, but could have done three years ago, tells me I'm priced out of the market.

Of course, I could lie2buy and saddle myself with a huge 25 year debt, but I'd rather not thanks.

nelly_2

^ same here. The thing is the property ladder isnt an atractive thing to get on any more.

bad_mum

Aresellers blind, don't they read the papers and look at the proprerty pages, house prices have stagnated. I have been looking for 2 years and houses that were on the market then are still there because the seller won't drop the price.It is definatly greed. If everyone dropped their price then the market would start to move again, it would all be relative.

slater14

When the second largest bank in the world released this, I think you can safely assume that the legs are not wobbling, HSBC kicked them off, stuffed them in their pockets and ran for the hills!

http://www.sbe.co.uk/events/meetings/30_Nov_2004_John_Butler.pdf

When I read it, I honestly thought it was a wind up or a jokey thing. I am reliably informed it is genuine......I think I'm going to go and sit under the stairs until the end of the world passes by (!)

slater14

I heard a beautiful analogy for a property "correction" -

Its like someone showing a film, 1 frame each month, of a car hitting a brick wall at 100 miles an hour, its so subtle in the begining you really dont notice it.

Once it starts - theres no way of stopping it, all you can do is wait for the next month and the next frame.......