Will there really be a crash?

Carl31

jane101q wrote: »

I think I would get a mortgage, I'm currently putting down more than 10% and have a good credit rating. I have no other debt than my student loan which gets deducted monthly automatically. If I go on with this house my payments monthly are £620.

you might under the current lending criteria, but the point im making is that even if you currently fit the bill now, if there was a crash its less likely that lenders would be willing to lend, they would at least expect higher deposits and look to lend lower amounts

Lenders want to lend, as they make a lot of money from it, but they also want to limit their risk, and a declining property market is not economically a good place to be. Part of the reason property drops in value is because people dont have access to the funds to buy it

Herzlos

Realistically, the worst drop you're likely to see is about 10%, and it'll always rise over time.
Even with a modest drop, it's likely to work out cheaper than renting in the long run as about half of your monthly "rent" payment is going into the equity rather than your landlords equity.


Don't let fears of a house price crash put you off getting on the property ladder - people have lost hundreds of thousands of pounds doing that, and been stuck in dingy bedsits instead of owning nice houses.

lisyloo

Carl31 wrote: »

you might under the current lending criteria, but the point im making is that even if you currently fit the bill now, if there was a crash its less likely that lenders would be willing to lend, they would at least expect higher deposits and look to lend lower amounts

Lenders want to lend, as they make a lot of money from it, but they also want to limit their risk, and a declining property market is not economically a good place to be. Part of the reason property drops in value is because people dont have access to the funds to buy it

You might be but in a massive crash others won’t and chains will fall apart.

50% by April is massive and very unlikely.

triathlon

jane101q wrote: »

I'm in the process of buying a house and I'm seriously considering pulling out before the search due to the regular reports of prices going down and an impending crash.

I'm a FTB and I wouldn't want to pay for something then it loose half it's value in April next year when I could potentially just wait buy something maybe even bigger and in a better area then but then again I don't want to loose this opportunity and the drop never happen and be priced out.

It is a one bedroom house so I won't have the advantage of renting out a room if money ever becomes a issue post crash. Do you think this drop will be more likely a stagnation of prices or a full blown crash like in 2008.

NO

And a big fat NO, more jobs in the UK then ever before, interest rates are still historically low, even with Brexit immigration will continue with very little house building, it has never been a better time to buy property in the UK.

You will get the doom mongers on here trying to put you off the idea and I will promise you will be taking advice from bitter twisted old men in bedsits with empty beer cans lined up along side their beds unwilling to except that they are non homeowning 40 year old plus failures in life who now blame the successful happy home owning majority, be careful what advice you take from them it could ruin you whole life as you end up being a 3rd class citizen

PS These people are wanting lives ruined, your life ruined in order to feel better about themselves. please be careful

chucknorris

There was a crash in 2008, but most on here and presumably HPC that has been waiting around for years, waiting for a crash, still didn't buy! We did though, we bought our 8th investment property in 2008 for £243k, current value is about double that.

But we were kicking ourselves because the plan was to buy 3 houses, but we were far too fussy about what we wanted, our bad, poor performance. I can only give myself 5/10, but 0/10 for those that were waiting and still didn't buy.

C_Mababejive

Just make sure you buy the right house.

IMHO The wrong "houses" would be;
a)Over priced new builds
b)over priced new builds via help to buy schemes
c)share ownership
d) Any form of new build apartment aka flat

Out,_Vile_Jelly

C_Mababejive wrote: »

Just make sure you buy the right house.

IMHO The wrong "houses" would be;
a)Over priced new builds
b)over priced new builds via help to buy schemes
c)share ownership
d) Any form of new build apartment aka flat

Nice, spacious houses with parking and gardens, in nice areas for transport and schools will always be desirable.

I suspect there is a glut of tiny, briefly shiny but generally shoddy overpriced blocks of flats and townhouses in "vibrant, up and coming" areas that will not be so desirable in the near future.

bobbymotors

A nice house in a nice road at the right money will always sell.

Crash? ie -35% No.

Correction? -10% Possibly

Dip?- 5% probably

Stay about the same? Most likely

PasturesNew

The last "crash" didn't really happen, noticeably....

You need somewhere to live, you've found it.... waiting will most likely just be a needless waste of your time.

Get moving in .... and live.

davidwood681

Just out of interest, if they did crash by 35% (they won't) would all you young remain voters take advantage of that brexit bonus and try to buy a property?