House Price Crash Discussion Thread

zierisaver

I was speaking with my father at the weekend, the MD of a large estate agents. He told me about the crash way before it happened and I attempted to sell my house, but the deal fell through and then the media got the figures and the crash began.

Anyway, the point of this post is that I saw him at the weekend and he firmly believes the market has bottomed out. He says it has ended up at about 25% lower than at it's peak 2 years ago - so bear that in mind if you want to sell. People's main problem seems to be that they are clinging desperately to old valuations, so if you're trying to sell then BE REALISTIC. But the worst may be over.

The real problem though is first time buyers. The big mortgage lenders have had their fingers burnt and so unless you have a good (25%) deposit, you're in trouble.

_soapy_

geoffky is absolutely right. It is one thing to be buying property which may fall in value over the next few years versus renting or versus the return on cash in the bank, but it is another thing entirely if you have the cash to hand to buy it out right.

If I were rich enough to have a few million stuck in the bank earning a few hundred quid in interest each month, I'd be using it to snap up properties at auction. You'd be daft not to.

baby_fuzz

zierisaver wrote: »

The real problem though is first time buyers. The big mortgage lenders have had their fingers burnt and so unless you have a good (25%) deposit, you're in trouble.

At least it is encouraging common-sense though! Many of my friends are now stuck in negative equity, unable to move. But my parents taught me to save and spend carefully, so we have just bought our keep-it-house with an 80% deposit after 6 years of very hard work saving and scrimping. Yes; I'm pleased with myself, because now I can enjoy my house and the security that I feel with my financial position.

I feel that people should take more responsibility for their finances. Young people CAN get on the property ladder, with hard work and restraint.

harryhound

I'm always surprised that "Self Build" does not come up more often, in this part of the forum.

After all that is how the Building Societies got established. (They used to have "permanent" in their names to make it absolutely clear that when the last house was built, they would not fold their tent and slip away.)

lostinrates

harryhound wrote: »

I'm always surprised that "Self Build" does not come up more often, in this part of the forum.

After all that is how the Building Societies got established. (They used to have "permanent" in their names to make it absolutely clear that when the last house was built, they would not fold their tent and slip away.)

I'm a would be self builder. Well, not quite I plan to watch a lot of the work but we've had some interesting plot threads.

Te buying and building is not the scary part for me, finanacil or otherwise: its the planning department fears. I do actually have nightmares about them. I had a very weird one which involved me, a planner and a hovercraft.

tomterm8

Planning department is easy. Just bung the local councilor an "election contribution" and U R all sorted. And if it doesn't work, at least you will get free accomodation.

lostinrates

tomterm8 wrote: »

Planning department is easy.-.

Harumph, we're -well -I am so put of the whole process we might consider a planning profesional to do it for us. There is a nice guy on the buying/selling board who is really helpful and who I warmed to. not very MSE but really, its very daunting and its very emotive for self builders in the way it would/shouldn't be for professionals: taking a lot of ''heat'' out of the process.

bambibabes

Just thought now we are in July and things have supposedly changed a bit for the better, what does everyone think? I hear some people saying figures show slightly more sales and enquires and that bottom has been reached. But then others in know are saying its just a small peeked spike up that is just backlog of cash buyers who have waited on sidelines for a while and the release of a few morgages now. They recon the property slide will then continue maybe even another 10/20% but slower over 2 yrs or so.

I think i agree with the sceptics, as economy is still bad and jobless situation is still getting worse so i cant see people rushing to take on debts for homes at the momment with possibility of redundancies always looming and money in our pockets still being tight. Also FTB are going to be in shorter supply due to having to find large deposits now.

geoffky

Remember the biggest boom in history is not going to be followed by the shortest bust in history....this has to be sorted out and many people will be less richer than they thought they were at the end of it all. first time buyers who are the key to the market are still unable to afford the stupid prices so until that is sorted the market is in turmoil...

Pimperne1

Geoff, you speak as though you know what is going to happen, you ought to at least qualify your comments with "but this is only my opinion".