House Price Crash Discussion Thread

divadee

After seeing the hundreds of threads started on a house price crash scenario, it is clogging up the boards.

If you could keep all discussion to this thread only and DO NOT start another threads that would be greatly appreciated.

Any threads that are started will be automatically merged in with this one.

Please do not start arguements. And please be nice to all moneysavers.

Thanks very much.


THIS HAS HAD TO BE STARTED AGAIN, AS WHEN I LOGGED ON THIS MORNING, THE THREAD HAD BEEN CORRUPTED AND THEN DISAPPEARED!! I AM VERY SORRY, THERE IS OBVIOUSLY A GLITCH IN THE SYSTEM. HOPEFULLY IT WILL BE FOUND AGAIN SOON!!

BTman

I have a conspiracy theory...

tr3mor

BTman wrote: »

I have a conspiracy theory...

Something smells fishy indeed... :rolleyes:

WTF?_2

Maybe not a great idea to try to restrict a popular topic to a single thread?

BettiePage

Do you reckon this counts as discrimination? Maybe we could sue?

dreado

Ok, I’ll get this (re)started. I’ve been thinking about buying my council flat for a while and am wondering how this predicted ‘price crash’ could effect a council flat: Should I wait? How long for?

m00m00

surely it will depend on what level of discount you get how badly you are affected with a council flat.

ex local authority flats will fall more than the average in any price crash/correction, but nowhere near as much as New builds will.

if you are a secure tenant with rent below the mortgage level, you have nothing to lose by waiting. It's clear the massive property rises have 'paused' at the very least, and you have nothing to lose at all by waiting another 12 months or so,

WTF?_2

m00m00 wrote: »

surely it will depend on what level of discount you get how badly you are affected with a council flat.

ex local authority flats will fall more than the average in any price crash/correction, but nowhere near as much as New builds will.

if you are a secure tenant with rent below the mortgage level, you have nothing to lose by waiting. It's clear the massive property rises have 'paused' at the very least, and you have nothing to lose at all by waiting another 12 months or so,

Seconded: There's no danger of having to move out and council rents are generally extremely reasonable so hang on and see how the market pans out over the next 6-18 months.

ebonylight

Oh thank god there is a thread about this.

please help me.

My partner and i bought a very nice but rather small three bed house last july for £148,000.00.

If the crash that is predicted happens, i know (because i work in property) that we are about to lose about 20k on this house.

i am trying to explain to my partner that this is BAD as we would then have a mortgage for this house (which, although not a 100% mortgage, is still quite high) and wont be able to pay it off. and therefore we wouldnt be able to buy a new house.

he just reckons we could remortgage for what's left of this house and the new house (which, he says, will be cheaper due to the crash)

Please can someone explain? who is wrong here? am i being mislead by my colleagues or is my boyfriend a div?

thanks

m00m00

it will depend on how portable your existing mortgage is

it will all depend on whether you are in negative equity at the time you attempt this or not.

Virtually everything is still possible with mortgages, the issue is how much it will cost, as anything even vaguely unusual is likely to be hammered with punitive rates.

dreado

Thanks for your replies m00m00 and !!!!!!?, very useful.

The discount I would get (as of next January) is 50%, with a cap of 37,500. I don’t know how much the flat is currently worth, but if it helps it a first floor, one bedroom.

Would being in an area with lots of new builds make a difference? My town has LOADS of new apartments, anywhere remotely near some water is being tagged "riverside living" or something.

Could anyone recommend a good way for a layman to start to keep an eye on what’s happening with the market? Perhaps some websites?