House prices

gazzabboi

Just wondering what are people's thoughts on where the market is headed. My poxy little house which I bought shared ownership in 2014 for £195k has just been valued at £270k. Absolute joke if you ask me. Whilst I have made money on the house, it's now just gone up so much that I can't afford to buy the rest, which is ok as I like the house, but still wouldn't mind owning it all. Got me thinking what else is on the market, and the rubbish I am seeing up on Rightmove I'm starting to wonder if people are taking the p with their asking prices or people are just mugs for paying that price. I'm in Essex so obvs not cheap. But how the area has gained £75k on an average house in 3 years is a mystery. How are people affording these crazy prices. Surely it has to end at some point. Fairly standard story across the south. Some news thinks we are in for a crash and others say they are going up?

goodwithsaving

In some places they are going down, in others they are flattening out.
At least you have enough equity to buffer - even if SO. Not everyone has that and is at risk. Personally, if I were buying with a 95% mortgage at the moment, I wouldn't sleep (luckily I'm buying with 70% LTV, but even that makes me uneasy).
I suspect prices will fall, but bounce back.......it's a cycle.

HPC_Ghuol_Hunter

What would you rather? That they fall and you lose money? Be happy that you made some free cash.

Rosieandjim

HPC_Ghuol_Hunter wrote: »

What would you rather? That they fall and you lose money? Be happy that you made some free cash.

But what good is it if you are unable to move on and are stuck?

bobbymotors

They will fluctuate.

But go up generally over time.

apart from that its a crystal ball....

gazzabboi

HPC_Ghuol_Hunter wrote: »

What would you rather? That they fall and you lose money? Be happy that you made some free cash.

No id rather they fall back to the prices they should be at. I wont loose any money as long as they dont fall below what i paid, it will just be easier to side step. Doesn't help anybody the prices just going up.

HPC_Ghuol_Hunter

Did you not think about all this before taking on the SO idea?

Windofchange

gazzabboi wrote: »

...Doesn't help anybody the prices just going up.

It helps the older generations selling up, and the monied land owners who are the ones who have turned out to vote the past decade or two. Shared ownership? Just another way of keeping the gravy train rolling on whilst pretending that they care about your aspirations.

Anyway, that is what you brought in to. As for what prices are going to do, that is where you do your reading around, research, make your bed and lie in it. I've been of the opinion for a few years now that prices are insane and are due a correction, but this hasn't materialised to any meaningful amount as of yet. You're right in my view regarding the madness of it all, but whilst money remains cheap and plentiful, not much is likely to change.

It will be trying to guess what will be the thing to shock the system and cause problems - PCP car loans, credit cards, housing, interest rate rises, the pound falling, inflation.

Sell up, take your profit and buy somewhere outright with the larger deposit you now have?

economic

i dont think housing is a bubble certainly not outside of london and london itself is expensive but not a bubble.

i personally would never have gone for a shared ownership but that was of course upto you. what you do only you can answer. its difficult to see prices going up a lot more now however dont assume a crash is coming. its a home for you to live in and despite owning, since you own it as a shared ownership you have lost out as you dont own a whole one. you are still "net short" housing.

personally i would stay where you are unless you have to go elsewhere and look to buy out the other half when you have enough saved up. but probably its better to build up other invstments first given a big run up in house prices we seen.

michaels

gazzabboi wrote: »

Just wondering what are people's thoughts on where the market is headed. My poxy little house which I bought shared ownership in 2014 for £195k has just been valued at £270k. Absolute joke if you ask me. Whilst I have made money on the house, it's now just gone up so much that I can't afford to buy the rest, which is ok as I like the house, but still wouldn't mind owning it all. Got me thinking what else is on the market, and the rubbish I am seeing up on Rightmove I'm starting to wonder if people are taking the p with their asking prices or people are just mugs for paying that price. I'm in Essex so obvs not cheap. But how the area has gained £75k on an average house in 3 years is a mystery. How are people affording these crazy prices. Surely it has to end at some point. Fairly standard story across the south. Some news thinks we are in for a crash and others say they are going up?

I think you have the wrong board, what has this got to do with Brexit, Jezza or IndyRef2?

gazzabboi

HPC_Ghuol_Hunter wrote: »

Did you not think about all this before taking on the SO idea?

Of course, but I didnt expect an increase of so much. Im convinced that this help to buy scheme is what has done it. Nobody is any better off with it to be honest unless they sell.
eg £200k house bought using 20% help to buy.
£10k deposit £150k mortgage £40k loan

2 years on...
House valued £300k £140k mortgage remaining £60k help to buy. Ok so they now have £100k in the bank to buy something new, but their max mortgage is £150k. So now can afford a house of £250k. But obviously won't be half as good as the one they are moving out of, so it didn't really help them to buy.

Its about 5 years now from the first loan, and people will soon be either starting to pay interest on the loan or looking to move.