House Price Crash Discussion Thread

dunnomate

Whenever a slowdown is suggested it is also suggested that it will be a 'soft landing' which it never is !

cheers

dunnomate

SteveSilva

Does anyone know of a property price index particularly for the London and South East area?

Zammo

logit wrote: »

Hi everyone, i'm a FTB and i've been looking for a 2 bed flat in London for about 3 months now. The areas i'm looking in are Putney, Wimbledon and Clapham South. I think i've found a really nice flat in Clapham South that is up for £470k (built 5 yrs ago). I was prepared to buy, but now i'm getting very nervous about all this talk of a fall in prices. From what i've seen over the last three months in these areas, there is still a healthy demand (judging by the number that go under offer) and supply of decent flats is limited, hence shouldn't that mean prices should remain stable in these areas?

470k is an insane ammount of money for a flat. Prices will fall back to at least 2004 prices. You can work out how much you will lose using this handy tool.

http://img.thisismoney.co.uk/calculators/house-price-crash-calculator.html#

SteveSilva

Not that I am doubting the slowdown, but newspapers which support the opposition are more likely to play up the threat of a crash. Some papers have been printing front page articles talking of a crash for years, whereas new labour supporters may well be playing it down. and the normally sensibile BBC are trying not to cause panic.

logit_2

Zammo wrote: »

470k is an insane ammount of money for a flat. Prices will fall back to at least 2004 prices. You can work out how much you will lose using this handy tool.

http://img.thisismoney.co.uk/calculators/house-price-crash-calculator.html#

Indeed it is an insane amount, but it's the price that needs to be paid in these desirable areas unfortunately. No chance of 2004 prices, i'm sure of that.

nelly_2

logit wrote: »

Indeed it is an insane amount, but it's the price that needs to be paid in these desirable areas unfortunately. No chance of 2004 prices, i'm sure of that.

Needs to be paid.......... if you are an olympic class moron yes

PasturesNew

logit wrote: »

Hi everyone, i'm a FTB and i've been looking for a 2 bed flat in London for about 3 months now. The areas i'm looking in are Putney, Wimbledon and Clapham South. I think i've found a really nice flat in Clapham South that is up for £470k (built 5 yrs ago). I was prepared to buy, but now i'm getting very nervous about all this talk of a fall in prices. From what i've seen over the last three months in these areas, there is still a healthy demand (judging by the number that go under offer) and supply of decent flats is limited, hence shouldn't that mean prices should remain stable in these areas?

As a FTB earning (assuming you're after up to 6x salary for a mortgage) about £80,000/year ... how come you've only just thought of buying and didn't buy a few years back when the ratios were more favourable?

If I were you I'd sit back and see what happens in the next few months. Save more of a deposit up.

LisbonLaura

logit wrote: »

Indeed it is an insane amount, but it's the price that needs to be paid in these desirable areas unfortunately. No chance of 2004 prices, i'm sure of that.

More like 1998 prices when the full size of the credit crunch iceberg is seen.

That 'desirable areas' comment makes me think you have a vested interest?

logit_2

Man there are some touchy people on here.

Lisbonlaura - no vested interest - I wish I already did own a property!

Nelly - it is A LOT of money, but people are buying them for this price. Decent houses in these areas will be £1m+ so that sort've puts things into perspective.

Pasturesnew - it has taken me some time to save a deposit, and I have only been earning a higher amount for a year or so.

Anyway, I think the prudent thing to do is definitely wait a bit, and then see how things pan out. Thanks for the advice everyone.

John_Pierpoint

Generali wrote: »

I thought you guys could do with a bit of light relief here in the ghetto:

http://www.youtube.com/watch?v=10WoQZKZkNs&feature=related

I bet this sort of thing could put a real downer on a community. The buyers at the original price being bitter towards the later purchasers that have 'destroyed the value of their homes'.

I noticed this comment posted under the video.
Some people in USA have a global perspective, though I'm note sure that digging sun, moon & cat. converter material out of the earth is the answer:rolleyes: .

"Hate to be the bearer of bad news but the first owners paid $300K in 2006 dollars probably. The $145K is in 2007 dollars, which is like buying them for $72K in 2006 dollars. The housing market is in worse shape than they are telling you. In another year those federal reserve notes won't be worth the ink they are printed on. The only cure is Doctor Ron Paul whon will eliminate the Federal Reserve and back our currency with gold, silver or platinum.Google Ron Paul".