House Price Crash Discussion Thread

WTF?_2

mystic_trev wrote: »

http://www.homemove.co.uk/news/19-11-2007/buy-to-let-landlords-urged-to-sell-now.html

If there's going to be one sector that 'brings down the market' it'll be this. I've one Property becoming vacant in mid December which I'm going to sell. I wonder how many other 'long termers' are going to take some profit due to the new CGT rules in April?

I'd see the new CGT rules benefiting short term 'flippers' more so than long termers, who get stuff like taper relief etc. In fact, for the more long term people now would probably be a better time to get out.

I think a lot of the 'amateur' BTLers and speculators will be trying to hold out until April to dump their properties and so only pay 18% flat CGT.

Unfortunately for them, even without this asset-dumping the market is coming off the boil already and prices are dropping. By the time April rolls around prices should be on a steady downward trend. Thousands, probably tens of thousands of people suddenly attempting to get shot of their 'investment' is really going to hammer prices down.

I wonder will we even ever see this CGT reform - a lot of businesspeople are grumbling about it and I wouldn't put it past the govt to have announced it as a ploy to try to get people to hold on to properties over the winter in the hope that the market will pick up again in the Spring and the house price inflation will continue ....

dannyboycey

JohnInDebt wrote: »

Some people never lived through the last crash and are expecting an official news item that a house price crash has officially started.

Great point. The fact is, that when the media actually say the words "House Price Crash" - we'll probably be about a year into it!!!

marginalone

As a FTB should I wait another year before I buy and continue to rent?

mr.broderick

marginalone wrote: »

As a FTB should I wait another year before I buy and continue to rent?

Nobody knows the answer to this question margie.

Nenen

marginalone wrote: »

As a FTB should I wait another year before I buy and continue to rent?

I wish I had a crystal ball margin... coz I'd love to know the answer to that one too! We sold our house last March and are now renting... originally we did this because we'd had chains collapse twice and didn't want it to happen again when we had firm buyers but couldn't find anything we could afford in a more expensive area of the country.

We intended to rent for a few months (maximum 6) and then move back into our own (mortgaged) house. Despite searching we've still not seen anything suitable for our family which we like and can afford! However, with it looking increasingly likely there will be at least a dip in house prices, if not a crash we're feeling we really ought to wait and see before we overstretch ourselves and end up in negative equity for years to come!

My problem is that I am finding it so difficult to be patient about all this. I am desparate to feel settled for the first time in my life! I moved constantly as a child and that continued when first married. We did live in our last house for 16+ years but never expected it to be that long... every year I'd decide not to plant daffodil bulbs as I didn't expect to be there to see them the following Spring! I just want to find a nice little house we can have as a home for the foreseeable future and plant those bulbs! ... I'm not after a mansion but even a 3 bed terrace in this area can be over £300,000 :eek: and we have three (young teen/adult) children to squeeze in too!

If I wasn't so old I'd think I must be pregnant again as I've got a severe attack of nesting instinct!!!! It's hard to be patient and prudent when all I want to do is find a home and buy it! Living here, knowing it is only temporary (LL is currently selling up) just feels like I'm a nomad with no roots yet again. I feel like my life is on hold until we know where we are going to live.... sorry if I sound self-pitying... I am holding a pity-party tonight!!!

PS before anyone chips in with... if it is long term home then it doesn't matter what the market does over the next few years ... I do realise that. Our problem is that even a very small and undesirable house in this region takes us into overstretch at the moment... whereas if we wait and prices do fall we might be able to afford a home more comfortably and might even pay off the mortgage before we retire! :j

marginalone

Well. The way I see it is that Im currently paying rent and paying someone else's mortgage, plus I would like to own a flat. So would it be naive to say I have to do it sometime?!

Cissi

marginalone wrote: »

As a FTB should I wait another year before I buy and continue to rent?

I think that depends on how long you're prepared to wait and rent! There is no question in most people's minds that prices will come down considerably, the only question is how long it will take for the real slide to start This time next year you may well be able to afford something much better - or there could be a long delay with very few properties on the market for months, even years.

We sold up 2 years ago as we wanted more space, and have been renting ever since. This was/is cheaper, plus we said we'd wait and see. We're currently happy where we are, so we've decided to wait it out for another couple of years if we have to - but of course this depends on your situation. If you can avoid it, I certainly don't think now is a good time to buy, but then nobody knows for sure.

marginalone

Ideally, Im looking for a 1 bed flat at under £100k as I have no family commitments. I live in Glasgow and Ive been told that the market here will miss any big dip.

Again its the rent situation. Should I pay £600 pm rent or £600 pm mortgage?

tr3mor

marginalone wrote: »

Ideally, Im looking for a 1 bed flat at under £100k as I have no family commitments. I live in Glasgow and Ive been told that the market here will miss any big dip.

Again its the rent situation. Should I pay £600 pm rent or £600 pm mortgage?

Surely a £100k flat would rent for a lot less than £600?

marginalone

Rough estimate I suppose there. But Id be a 100% FTB!