What could happen to house prices?

IveSeenTheLight

tr3mor wrote: »

I am planning to buy a house at some point in the next 5 years. I guess I will be paying for that house over the following 25 years.

Hence I should care more about what prices are going to do in next few years when I am buying rather than caring about what's going to happen after that.

Surely it makes sense to buy when prices dip rather than at a ridiculous peak?

That's fine and I can understand you cautiousness and why you would prefer to buy when prices dip, however you are therefore looking at the long term

Who cares about the long term? It's prices in the short term that matter to me.

I want a great big huge monstrous massive crash so that I don't spend the next 25 years paying for an overpriced sh*thole.

I guess I understand you better now in that you are aware of the long term gain but are waiting for the short term dip:T

ivegotabig1

I thought we had seen the end of threads on this subject !!!! outside the "Sticky" one that is ??? Anyway...Yesterdays Times seem to have a good idea ...

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article2681755.ece

IveSeenTheLight

ivegotabig1 wrote: »

I thought we had seen the end of threads on this subject !!!! outside the "Sticky" one that is ??? Anyway...Yesterdays Times seem to have a good idea ...

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article2681755.ece

This report also states: -

The IMF, however, did qualify its pessimism, saying that there were “considerable uncertainties” in its model, which did not take in key factors in Britain such as shortages of supply, boosts to prices from immigration and greater affordability due to the availability of mortgages.

For many areas in UK there will be a price stagnation / correction.
When this happens, how long before everyone who is waiting for the dip try's to buy and find that theres a lot of other people doing the same?

With so much demand, after the dip / stagnation, surely this demand will rebound the prices back upwards.

I guess the trick will be to get in and buy as quickly as you can when the house price starts to climb again.

Lotus-eater

Because of so many people waiting to get on the housing market, does anyone else think it might play out differently this time? Calling the bottom is going to be a tough choice. Maybe a couple of bounces, I really have no idea tbh.

tr3mor

Lotus-eater wrote: »

Because of so many people waiting to get on the housing market, does anyone else think it might play out differently this time? Calling the bottom is going to be a tough choice. Maybe a couple of bounces, I really have no idea tbh.

I'm not too fussed about calling the very bottom. I'll just buy when it makes more sense. I'm not in any sort of chain either, so I guess I'll be able to haggle pretty hard if nothing is selling.

It would cost me almost twice as much per month to buy the house I'm renting at the moment. That's what I call crazy prices.

SquatNow

Lotus-eater wrote: »

Because of so many people waiting to get on the housing market, does anyone else think it might play out differently this time? Calling the bottom is going to be a tough choice. Maybe a couple of bounces, I really have no idea tbh.

Everyone in the UK housing market, especially BTLers think they are smarter than everyone else and will know the right time to buy and the right time to sell.

The problem is they can't all be right. Everyone can't make money in the stock market either, or a poker game... some people win, some lose. It's like the Chris Rea song "2 men say their Jesus, one of them must be wrong"

In order for lots of people to make lots of money, lots of other people have to lose lots of money.

Anyone still in the market has waited too long... the big land speculators sold up around 8-9 months ago. They made lots of money. Billions in fact. All that's left now is the losers. Some will cut their losses and run, some will try to hold out until the peak of the next boom. Most will lose a lot of money.

Property speculation is a risky business if you don't know what your doing, and some people have been doing it for 70 years... think you can beat them?