House Price Crash Discussion Thread

daveb975

adrian_bond wrote: »

hi,

me and the missus bought our 1 bedroom flat in norwich in april 2007 for 103k. now worth approx 95k (online estimate). bah.

however, we have a fixed rate mortgage that will see us through for another 3 years which has a fairly lowish rate (5.5%) which we can easily afford (borrowed 97500k). our combined earnings at the time were 35k approx, with a 5k deposit, plus extra for solicitors fees and the like. we now earn more, but save and enjoy the money as we see fit.

we are very comfortable. we can go on holidays. shop. eat well. both own and drive practical but nice cars, and are doing well.

This is a refreshing post. There are so many people who seem to be spending every last penny on a massive mortgage for a house bigger than they need, or frantically saving to buy a house bigger than they need. It is nice to see someone has bought a small place that they comfotably afford and can enjoy for now.

Falling property prices will only benefit you as they will reduce the gap between the price of your flat and a bigger place. in the meantime, you can build your savings AND enjoy your life.

The desire of 2/3 member families 'needing' to live in massive 4 bed detached houses has been a big driver of this price boom in my opinion. Each to their own, of course!

skiman1

ebonylight wrote: »

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

he is a nugget :rotfl:

skiman1

adrian_bond wrote: »

hi,

me and the missus bought our 1 bedroom flat in norwich in april 2007 for 103k. now worth approx 95k (online estimate). bah.

however, we have a fixed rate mortgage that will see us through for another 3 years which has a fairly lowish rate (5.5%) which we can easily afford (borrowed 97500k). our combined earnings at the time were 35k approx, with a 5k deposit, plus extra for solicitors fees and the like. we now earn more, but save and enjoy the money as we see fit.

we are very comfortable. we can go on holidays. shop. eat well. both own and drive practical but nice cars, and are doing well.

we had the opportunity to borrow 6 x our comibined salary (210k!!!) at the time, but politely turned it down as after talking to various people about houses before looking to buy, that 3.5 x is really the highest you should ever go unless your a major risk taker. i heeded this warning and didnt want the existance whereby it was cold beans and arguments every night becuase of overspending and ridiculous mortgages.

we knew the crash was coming, although like all people, didnt know when. we were absolutely against renting as we wanted to live together where our money was being put (even if only slightly) to our long term benefit, not to a landlord. rental experience at uni put me off for life!

i know people that have had to secure a mortgage by working six days per week, on a 100% mortgage, for the next 35 years. that sucks. they are stuck where they are, but for now are hapy not to move for ten years!

some people will ultimately disagree with my lifestyle, but we are happy and will move up the ladder when were good and ready (or when the missus gets so broody that its time to expand!).

please reply as this thread makes very interesting reading. cheers everyone. have a good weekend.

Try getting 95K for it now you may get a nasty surprise, Norwich is in for another fall like it did in the 90s when the prices halved - hold on tight!

tommy75

I'll give you 55k for it... No wait...

maxman

Hi,
Further to your worries about the potential of further house price drops and how this would affect the value of your bungalow. I have very simular concerns and have been looking into what I can do. I stumbled across www.equityprotector.co.uk and was wondering if ayone has any experiences of this as it looks very good and I am tempted to give it a go.

Can anyone advise?
Many Thanks

Markie72 wrote: »

I have just recently moved into my girlfriends house and we are looking to start a family soon, with the intention to eventually move to a bigger house, she bought her 2 bed council house last year but is unable to sell at the moment. I own a bungalow and not sure what to do?, haven't had it valued yet but have just recently cleared my mortgage off, which was pretty lucky as I was made redundant at Xmas, not sure if I should sell it now or hang on to it and rent it to gain some income, with the view to sell when the markets stabalise in the future?

I have had conflicting advice from family saying sell now as houses are going to drop by 50% not sure where they got that figure from, and one saying you should always hold onto your propery regardless what's happing...

Can anyone offer me any advice
Thanks Mark

shesh-kabab

maxman wrote: »

Hi,
Further to your worries about the potential of further house price drops and how this would affect the value of your bungalow. I have very simular concerns and have been looking into what I can do. I stumbled across www.equityprotector.co.uk and was wondering if ayone has any experiences of this as it looks very good and I am tempted to give it a go.

Can anyone advise?
Many Thanks

Hi
I'm a newbie to MSE although I have often popped on to read these boards - especially on the house price crash!

Personally I would proceed with the greatest of caution - I followed the link and reading 'between the lines' this is one of those equity release outfits 'cloaked in another guise - ie wolf in sheeps' clothing' - in other words... 'give us a percentage of your property and we'll give you today’s value for that percentage' (sadly that's what the b/f parents did last year without our knowledge - it infuriated me as I was sitting on a 100k inheritance – but that’s another story)!

Do NOT go giving away portions of your estate unless someone wants your head in a noose - ride it out, be sensible - perhaps rent the property for a realistic rent - after all an empty property will not only cost you in lost rent-revenue but will cost you in maintaining a house that will be susceptible to the cold and damp.

All the very best.....

andy65_2

What is the trend of housing price,up or down. i dont really have no idea about that.

jamie_brummet

mobile homes have never looked so tempting.

perhaps comunities will start living in fields again with everyone bashing on about us using 2 many plasic bags, and our excessive water usuage in mcdonalds toilets. two fold solution cheap homes and eco friendly. zero council tax band - can't see it will be allowed

cazb90904

:A Does anyone one know it you can sell you house and down size if your in negative equity? and how do you go about it?

cazb90904

I think Ive killed the conversation unless someones typing me an esay in reply