Housing market continues to slow....

lex05

frugal_dougal wrote:

LOL Deemy is a KIPPER !!!!!!!

Wow, I was thinking that someone who voices such strong opinions on these subjects would actually have had some valid life experiences.

In fact he just sponges off his parents. :rotfl:

I bought my flat 8 years ago when I was 21 and still at Uni. I can't believe how many of old Uni mates are still sponging off mummy and daddy. Have they no self respect?

mooncat

in the area i live ( melton mowbray ) prices are certainly dropping. at leat 10 grand of 200 grand houses lately

tightgit_2

lex05 wrote:

I bought my flat 8 years ago when I was 21 and still at Uni. I can't believe how many of old Uni mates are still sponging off mummy and daddy. Have they no self respect?

That's unusual a student being able to buy a flat.I wonder how you got the money to do that. Did you have a job as well ?

meanmachine_2

NickMidgley wrote:

No. The level of activity is still rising, just not as quickly as it was. Going forwards less quickly isn't the same as going backwards.

But what's the base month against which he's making this claim?

If Hometrack are comparing June 04 with June 05, I should imagine there's been a huge decline in activity y-o-y, wouldn't you?

If he's comparing a particularly bad month this year with one that is traditionally strong, how is that a valid comparison?

It's like Littlewoods Index claiming that the business is in rude health because December was much stronger than June.

It's, dare I say it, claptrap. This from the guy who claimed the death of the Pope had brought the UK housing market to a standstill.

Kenny4315

I agree with Meanmachine's comments on renting. At present it is un-questionably cheaper to rent than buy. It ain't even close, as an ex-landlord, it is virtually impossible to cover mortgage payments out of rental income. In effect most landlords who have bought recently are subsidsing the rental property out of other income, they are going to find it most difficult if things take a further turn downwards.

An average two bed terrace in my area is £130k , this generates gross rent of approx £500 per month less expenses, etc, after expenses but before mortgage interest you are looking at around £5k a year at best (even if fully occupied which they normally aren't). A mortgage of £130k I reckon would be close to the £700 per month mark. If you are renting a current saving of £200 per month with no risk attached to the inevitable market crash.

A house is an asset but don't forget you also have the mortgage as a liabiility. House value £200k, Mortgage Outstanding £180k

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NET ASSET £20k. Downturn by 15% House Value £170k Mortageg Outstanding £180k

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NET LIABILITY £10k.

Barclays,HSBC, etc are not your friends when you have negative equity in a falling market. They'll just repossess if necessary.

People as you rightly say need a house to live in but when you have negative equity things become very unpleasant if you need to move, or have become vastly indebted. Ask those from the last crash who were of the opinion that things would not crash, and then a year later were crying in there beer, when it did.

xxjo30xx

Hello

Ive read this thread with interest and seek your expert opinions on my situation. We have agreed to buy my parents house who have just moved into a new biuild today. As we have not sold that have a bridging loan to cover both mortgages.We agreed a price 2 months ago of £150,000 (£10k lower than valuation) Our house has been valued at £129,000. Should I be concerned about a potential crash or the price agreed with my parents. Im now thinking that we should have agreed to pay them either £25k more than what we sell ours for or a percentage more.

Or am I worrying about nothing as we have quite a lot of equity (bought for £43k) in our property and surely its the FTB who will suffer if there's a crash?

Help or advice appreciated.

Jo

p.s We are moving as we need somewhere bigger and plan to extend my parents house

deemy2004

lex05 wrote:

Wow, I was thinking that someone who voices such strong opinions on these subjects would actually have had some valid life experiences.

In fact he just sponges off his parents. :rotfl:

I bought my flat 8 years ago when I was 21 and still at Uni. I can't believe how many of old Uni mates are still sponging off mummy and daddy. Have they no self respect?

LOL

I see your following my posts all around the forums

Perhaps your real name is ........ @@@@@@@ :rotfl:

Nevermind ... enjoy

Woby_Tide

It costs £37,000 more over 25 years to be a tenant rather than a homeowner, according to Abbey's annual renting versus buying survey.

The average cost of renting a property in the UK over 25 years is £364,499 compared with £326,849 for buying a property with a mortgage - assuming a 90 per cent repayment mortgage at a fixed rate of 5.5 per cent and an annual inflation rate of 4.6 per cent - a differential that has reduced by 5 per cent over the past year as house prices and interest rates have risen.

Someone renting a two-bedroom flat - regardless of the location - would make the biggest savings by buying rather than renting, with the total 25-year cost working out 22 per cent higher for tenants. The only property type that actually costs more to buy over 25 years than to rent is a four-bed detached house, where renting works out 1 per cent cheaper on average.

http://observer.guardian.co.uk/cash/story/0,6903,1514701,00.html

Woby_Tide

deemy2004 wrote:

Okay fair enough... the slide in house prices is on pause for the summer....

Check this space... September 05 - DOOOM GLOOOM

CRASSSSSSSSHHHHHH!!!!!!

That'll be around the anniversary of this threads predecessor where prices were all set to crash last August

http://forums.moneysavingexpert.com/showthread.html?t=5377&highlight=crash

*groundhog day*

deemy2004

But the market did peak last Aug Sept 04 and has been drifting since so what was said is correct.

The housing market moves slooooooooooowwwwwwwwlllllly

Like a I say, a crash - IF it happens ! Is likely to be over 3 years ... and not a one month event...

Off course it may NOT happen in which case ... yeh it will be crash not this month... but yes next month... :rotfl: