House Price Crash Discussion Thread

TheOrange

Everyone makes predictions and guesses but ultimately no one really knows. Find a house you want to live in for many years and stick to it. Pay off the mortgage as quickly as you can and avoid debt.

daviecol

I haven't read all the thread (who would have the time?) but I'd like to post my thoughts on house prices and would love to read your opinions on my thoughts.

My parents (who are now in their 70s) bought their house 40 years ago for £1,000. It is now worth £200,000.

I bought my house 15 years ago for £40,000 it is now worth £150,000. So following my parents valuation I can expect my house to be worth 8 million pounds when I'm 70 years old? lol.

My dad earned all the money my mum never worked. I work full time my wife has always worked part time. The people who I work with in their 20s both partners work full time and they are only just making ends meet.

My dad retired 20 years ago at 55 with a good pension my parents have enough money to have several nice holidays a year and enjoy a good quality of life. I have paid into a pension since I was 20 and my pot is still small, I can't afford to pay any more into it so when I turn 60 I'll probably end up using my house to finance my retirement in which ever way seems best. Working till 67 before I retire is not an option I've worked long enough by the time I'm 60 for heavens sake!

I guess to summarise what I'm trying to say is our quality of life from a money perspective has been dropping for years now, and I suspect in the long term house prices will follow suit. I wouldn't mind betting that eventually house prices will simply stop rising and remain more or less static.
How long this will take is anybody's guess but ultimately once we've reached a point where we aren't leaving our kids our houses in our wills (because we needed the cash to live on in retirement) and once both partners are working full time with overtime to pay a 30 year mortgage on their shoulders then there really house prices I would imagine will simply stop rising?

Or have I missed something?

IveSeenTheLight

bagseby112 wrote: »

I have a conspiracy theory...

Which is...................?

I have a theory. This thread has not been used to discuss a crash scenario for a long time.

Why not unstick and let it takes it's natural place in the board?

softwaretailor

Even if coupled with lower prices for the ordinary wage-earners, the current housing prices in Shanghai or on the high side.

IveSeenTheLight

softwaretailor wrote: »

Even if coupled with lower prices for the ordinary wage-earners, the current housing prices in Shanghai or on the high side.

????????????????????????????

sarahj.perkins

Hi, looking at the threads and I've been trying to work something out with my own situation although can't seem to come up with any ideas. Can anyone shed a lil light?

I live in a 1 bedroom flat which me and my husband brought in 2006. Valued at 105000. We now desperatly need to move as we've had a lil girl and she is now 3! So really we have waited as long as we can. I had the estate agents around and they value our flat at 85000. So not a good start. We took a 95% mortgage and don't currently have any savings.

We are not struggling to meet bills or repayments but our mortgage advisor insists that until our negative equity is payed off, we are shafted!! We can't even rent our flat out as our mortgage repayments are 615 and would only get 400 rental.

Times are tough. Any ideas?

Thanks Sarah

Chris2685

Where did you bring it?

sarahj.perkins

Bring what? Sorry don't understand

Chris2685

Sorry, I was being obtuse. You said you brought the flat, so I was asking where you brought it to... nevermind

As for your question, I really don't know what you can do. I couldn't imagine having to live in a 1 bed flat with my wife and baby, I think I'd go insane. Other than taking a loss on the rental, I guess there is not much you can do really unfortunately. Sounds like you bought at just the wrong time, both financially and family-wise

IveSeenTheLight

sarahj.perkins wrote: »

Hi, looking at the threads and I've been trying to work something out with my own situation although can't seem to come up with any ideas. Can anyone shed a lil light?

I live in a 1 bedroom flat which me and my husband brought in 2006. Valued at 105000. We now desperatly need to move as we've had a lil girl and she is now 3! So really we have waited as long as we can. I had the estate agents around and they value our flat at 85000. So not a good start. We took a 95% mortgage and don't currently have any savings.

We are not struggling to meet bills or repayments but our mortgage advisor insists that until our negative equity is payed off, we are shafted!! We can't even rent our flat out as our mortgage repayments are 615 and would only get 400 rental.

Times are tough. Any ideas?

Thanks Sarah

Please excuse if I make a little assumptions.

95% of £105,000 means you took a mortgage of £99,750.
Does that mean your mortgage interest is approx 5.75%?
Buying in 2006 (Lets assume Sept 06) would mean on a capital & Interest mortgage that your mortgage is approx £91,511 outstanding

This meand your approx £6,500 in NE.

Many mortgages you can port, however I presume if you are stuck until the NE is paid off, that you don't have much savings (not £6,500 anyway).
The problem is that only clears your NE, but you wouldn't then also have a deposit for a larger place, so not very good for trying to get a larger place

Going back to your mortgage interest.
Since you've had a mortgage for 4 years, are you still on a fix?
There may be options to change your morgage (fix, discounted, tracker) which may lower your mortgage payments.

I know your not struggling, but it may help you to save more.

On that note, you say you could rent out your property (1 bed) for £400 yet your mortgage is £614.
Would it be an option to sell up and then move into rented accomodation.
Presumably you could afford to rent a larger place.

It's maybe not ideal as I think ownership far outweighs rent, but it may be a better option in your situation.

Hope it helps and sorry for any incorrect presumtions I may have made.