House Price Crash Discussion Thread

boinging_2

Smudge -

Couple of points / questions:

1) Who said your flat is worth 220K?
2) Is your mortgage fixed rate or variable / capital repayment or interest only?
3) Don't forget Stamp Duty when looking at a 350K is an extra £10.5K plus fees for selling your house could be 3K plus.

If I was you'd sell both, put money in the bank. Rent and wait.

Have to say I'm not an expert on property, especially in Scotland, but I live in a very desirable area and trust me prices of all types of property are reducing by the week.

smudge33

Boinging

1) EA and the last flat sold in our block (exact same size, both well and newly decoated - and that was two floors up from us!)
2) currently big mortgage is variable repayment offset (115K with Egg), small mortgage (gulp) is 25K repayment with Northern Rock. And the fixed rate on that ends in June :-( We get roughly double the mortgage cost in rent each month.
3) thanks, I HAD forgotten the Stamp Duty - what a bummer!

I think my DH is too skittish to go for the sell and rent move - he feels secure 'owning' a property and is quite happy here for at least the next three to four years...

Yes, even in Edinburgh prices are down a little, so moving right now may be the worst move we could make...

boinging_2

Just be careful of looking before you have "sold" you could be either disappointed or actually be lucky and get more than you thought, but either way until you have a interested buyer the EA value is no more than opinion...

Mortgages should be okay in the short term.

ManAtHome

HammersFan wrote: »

Also, one thing commentators (almost) universally agree on is that the average wage in 10 years will be pretty much double what it is now.

Do you have any links for that Hammers? Last 10 years the average percentage rise has dropped from around 4.5% to just under 3% - would have to be over 7% pa for the next 10 years to double - very scary stuff if we're expecting around 10% inflation.

nelly_2

they dropped another 1 percent last month

Its been a long long wait but FINALLY the real fun begins.

Im just off to find out how much it cost to rent the goodyear blimp with an advert saying

I told you, you morons, nothing good EVER lasts!

nelly_2

right I found the site but cant find the rental page????


http://www.goodyearblimp.com/fleet/

ivegotabig1

One thing i have noticed of late is the almost complete absence of the "Price to level off" brigade ...... Kinda speaks volumes i think !!.. Even a Senior Economist from HSBC used the "crash" word this morning on 5 live...Suggesting it would be very wise to sell & rent !!!!!!!

Pobby

Well there we go.A quarter of a percent cut.Well that will really get the economy flowing again to say nothing of boosting the housing market.Expect to see houses go up by,hmmmm,dunno,100% next year?

merlinthehappypig

chriseast wrote: »

Personally I expect a cut tomorrow. There is no justification for it, inflation is still high and getting worse, but the Government will want to try to head off this growing crisis.

To be honest I don't think a rate cut will make much difference. I can't see many banks cutting the mortgage rate even if the base rate falls, judging by the rates that they are lending to each other at and, as cash is so precious at the moment, I can't see many banks cutting savings rates and risking customers going elsewhere.

Makes a change for me to get something right, typical it would be about something I disagree with!

geoffky

i am absoluty fuming with this intrest rate cut as a very frugal saver and never had credit cards and never been in debt or overdrawn and i have just had too lose a lot of money because people are reckless with debt and spending,so us savers now have to bail out people in debt..well i hope all those in debt enjoy it because i have saved i am paying the price for it....