market predictions.....

Luke_123

Hi everyone,
just looking for some insider knowledge really, we are currently saving a deposit to buy, prices are imo ridiculous and can't keep increasing surely? people in our area can't afford to buy and some are even finding renting too expensive as landlords and agencies are increasing rents yearly....something has to give, the bubble has to burst so to speak...surely? should we buy now or wait to see what happens with the market?

i look forward to reading your thoughts, thanks

Luke

Surrey_EA

There are those that don't know, and those that don't know they don't know.

Housing markets rarely respond to logic and reason.

Brock_and_Roll

Well its not quite the same as buying shares in Tescos.


Whilst having negative equity can be a real pain and prevent the owner from moving etc, as long as you can pay the mortgage, you will still have a house to live in.


That said, I am glad I am not a first time buyer in these current times - they seem to be stuck between a particular sharp rock and a rather unpleasant place!

SuzieSue

No-one knows. I remember in the late 1990s when prices were also going crazy my friend decided to sell her house and go into rented because her house had increased in value so much. He plan was to buy once house prices fell. Unfortunately, they didn't and she ended up moving to one of the only places she could afford to buy in as she had priced herself out of the market.

G_M

Surrey_EA wrote: »

There are those that don't know, and those that don't know they don't know.

and then there's me: I know that they don't know that they don't know.

always_sunny

SuzieSue wrote: »

No-one knows. I remember in the late 1990s when prices were also going crazy my friend decided to sell her house and go into rented because her house had increased in value so much. He plan was to buy once house prices fell. Unfortunately, they didn't and she ended up moving to one of the only places she could afford to buy in as she had priced herself out of the market.

That's a sad story though everyone is waiting for these house prices to magically drop like stones and I really don't believe it's ever going to happen that they drop so much and folks will be suddenly able to afford places much easier.

bobbymotors

It's a good question.

But IMO, whilst money is so cheap to borrow and whilst everyone and his wife want to come and live here I can see no short term 'correction'

we are an island, there is only a limited amount of non expandable space. Increasing population and finite(ish) supply and cheap money = high house prices.

Crashy_Time

Luke_123 wrote: »

Hi everyone,
just looking for some insider knowledge really, we are currently saving a deposit to buy, prices are imo ridiculous and can't keep increasing surely? people in our area can't afford to buy and some are even finding renting too expensive as landlords and agencies are increasing rents yearly....something has to give, the bubble has to burst so to speak...surely? should we buy now or wait to see what happens with the market?

i look forward to reading your thoughts, thanks

Luke

http://www.bloomberg.com/news/articles/2016-10-13/deutsche-bank-said-to-implement-hiring-freeze-as-ceo-cuts-costs


Things are deteriorating pretty fast IMO, any banking job cuts in London will have an effect on prices.

anselld

A good question ..... for the Debate forum.

Crashy_Time

anselld wrote: »

A good question ..... for the Debate forum.

It wasn`t a question, it was a statement, and will definitely affect house buying renting and selling.

Philuk

bobbymotors wrote: »

It's a good question.

But IMO, whilst money is so cheap to borrow and whilst everyone and his wife want to come and live here I can see no short term 'correction'

we are an island, there is only a limited amount of non expandable space. Increasing population and finite(ish) supply and cheap money = high house prices.

I don't understand why people keep mentioning this "we re an island" argument. Do you think that France invading his neighbours a valid option? All country have finite space.


And even if we consider the space issue, Canada and Australia have 4 cities in the top 10 most expensive market in the world despite a shed load of perfectly fine space, while Tokyo and Japan experienced a -60% crash in the 90s they never recovered from despite having possibly half the space the UK has. You will find home and infrastructure only occupy a very small percentage (<10%) of the available land in the UK...