Debate House Prices


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House Price Crash Discussion Thread

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  • Hi everyone, I am new today to the forum and am unsure about how to start a new thread. But my question is this....... I have a £5,000 deposit for a house but want a mortgage of 150,000. is it possible to get one with such a low deposit?

    Thanks
    Claire


    You'll need at least £25k, say 15% deposit, plus fees etc.

    But why buy now, that £150k house will be £100k in 18 months time.
  • focus888
    focus888 Posts: 1,483 Forumite
    Part of the Furniture 1,000 Posts
    But why buy now, that £150k house will be £100k in 18 months time.

    But what about all the reports that the house prices are going up? Month of March was apparently a good month according to nationwide or halifax :o
  • bing0
    bing0 Posts: 451 Forumite
    Part of the Furniture Combo Breaker
    focus888 wrote: »
    But what about all the reports that the house prices are going up? Month of March was apparently a good month according to nationwide or halifax :o


    I'd be interested in an answer too !
    "Do not let what you can't do interfere with what you can do."
  • westv
    westv Posts: 6,459 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    focus888 wrote: »
    But what about all the reports that the house prices are going up? Month of March was apparently a good month according to nationwide or halifax :o

    A good month? Didn't Halifax figures show prices falling?
  • How much lower will house prices go then? I sold my place last year, just before it crashed and am waiting to buy in or near London: but how much further will they fall? I read that mortgage approvals went up in February so are we at the bottom of the market?
  • GeorgieFTB
    GeorgieFTB Posts: 437 Forumite
    My first post...:j

    I have read the whole thread, just like a novel, brilliant, especially when you know the ending....;)

    Just to give you some background, I'm a wouldbe FTB but have held off for the last three years as I was not willing to get a mahoosive mortgage. I'm looking to buy in the south east, if that information helps.

    I want you to get your crystal balls out and tell me when the 'correction'/'crash' - don't really want to ignite that debate again - will reach bottom? When should I look to buy?

    Georgie
    Mortgage at 08/10/10: 110k:eek:
    Current Mortgage:... £109,200 :eek:
    OPs 2011: 100.50/4000
    Current MFD: 02/10/45 :shocked: (will be 63!!!)

    Make a payment a week challenge TW 100/123.79
  • For the record I am a property investor and also Managing Editor of the UK's biggest magazine for property investors.

    The truth of property investing right now is that anybody who is looking to invest for a short term via capital appreciation is likely to be very disappointed. Very few industry experts expect to see significant further falls in property values but like so many things in life it depends - it depends what property you have, where it is and what the local demand is like.

    Does this make property investing a bad idea - absolutely not. Lets say you have 50K in the bank what interest will you be realising right now on your savings? maybe 3% if you are very lucky.
    I personally purchased a flat last month for £52,000 that is now being rented at £420 per month. This represents a yield of over 9.5%.

    Do I think I could get the same return from a bank or even through stocks and shares - very unlikely.

    Do I think my £50k flat will be worth £100k next year? No

    Am I happy to have a tenant in place that pays off my mortgage debt over time giving me a reasonable cashflow in the interim- Yes

    Do I believe that in 20 years time the flat may be worth more than I paid for it right now? Yes probably but if not it has given me a good return and through amortization I have paid off what I owe.

    The truth behind property investment is that when the general public thinks inveting is a good idea you are probably going to get poor returns and pay far more for property.

    Right now is an unbelievable time to invest if you can get the funds, buy the right property (high yield) and are buying for the long term. Recently James Caan and Richard Branson have both openely stated that they are buying property and I doubt many of us would doubt their financial acumen.

    Novice investors look at short term capital growth whereas experienced investors buy and hold for the long term - our challenge is always to get somebody else to pay the mortgage.

    p.s the magazine I edit is called Your Property Network Magazine
  • Cannon_Fodder
    Cannon_Fodder Posts: 3,980 Forumite
    How much lower will house prices go then? I sold my place last year, just before it crashed and am waiting to buy in or near London: but how much further will they fall? I read that mortgage approvals went up in February so are we at the bottom of the market?


    Approvals are rising from a very low base.

    Just rising 'a bit' is not enough to support increases in house prices.
  • mrs_deadline
    mrs_deadline Posts: 394 Forumite
    Nils Pratley in yesterday's Guardian had this to say:
    Unsafe houses
    Want to know where house prices will be in six months? Look at the number of mortgage approvals now. Analysts at UBS recently demonstrated an extremely close correlation between these figures going back to 1997. Historical analysis, they argued, suggests that about 45,000 monthly approvals are required to support a stable house price environment. Others would put the critical level much higher.
    So where is the level of approvals now? The latest figures, for March, showed 39,000. A gap of 6,000 a month may not sound very wide, but consider how easily, or quickly, it will be filled.

    [...]
    Inside the housebuilding industry, executives have started to look to next spring as the earliest point at which they could hope to see a floor in house prices.
    :T:j :TMFiT-T2 No.120|Challenge started 12.12.09|MFD 12.12.12 :j:T:j
  • geoffky
    geoffky Posts: 6,835 Forumite
    Ant_Lyons wrote: »
    For the record I am a property investor and also Managing Editor of the UK's biggest magazine for property investors.

    The truth of property investing right now is that anybody who is looking to invest for a short term via capital appreciation is likely to be very disappointed. Very few industry experts expect to see significant further falls in property values but like so many things in life it depends - it depends what property you have, where it is and what the local demand is like.

    Does this make property investing a bad idea - absolutely not. Lets say you have 50K in the bank what interest will you be realising right now on your savings? maybe 3% if you are very lucky.
    I personally purchased a flat last month for £52,000 that is now being rented at £420 per month. This represents a yield of over 9.5%.

    Do I think I could get the same return from a bank or even through stocks and shares - very unlikely.

    Do I think my £50k flat will be worth £100k next year? No

    Am I happy to have a tenant in place that pays off my mortgage debt over time giving me a reasonable cashflow in the interim- Yes

    Do I believe that in 20 years time the flat may be worth more than I paid for it right now? Yes probably but if not it has given me a good return and through amortization I have paid off what I owe.

    The truth behind property investment is that when the general public thinks inveting is a good idea you are probably going to get poor returns and pay far more for property.

    Right now is an unbelievable time to invest if you can get the funds, buy the right property (high yield) and are buying for the long term. Recently James Caan and Richard Branson have both openely stated that they are buying property and I doubt many of us would doubt their financial acumen.

    Novice investors look at short term capital growth whereas experienced investors buy and hold for the long term - our challenge is always to get somebody else to pay the mortgage.

    p.s the magazine I edit is called Your Property Network Magazine

    why did you have to name your rag? and branson has been bankrupt,,
    investing in property at the moment is a first class ticket to the poor house if you do not know what you are doing and the rates go up as they will... any novices will be wiped out..
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
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