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Bad time to buy a house???

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Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
  • eidand
    eidand Posts: 1,023 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    RelievedSheff said:
    Crashy_Time said:
    holyrottweiler said:
    Crashy_Time said:
    Sapphire said:
    LukeSlocombe said:
    Years of saving means I am finally ready to buy my first home. What should be exciting times are currently filled with fear of falling in to negative equity if house prices begin to fall following the effects of Covid-19 & Brexit.

    My question is should I buy now and if not when are the house prices predicted to fall?
    I've been through crashes myself and they had no impact on me. I remember a time when there were rows of estate agents' signs along streets in London, and at one time some people just gave up on their properties and moved out. And London, for example, was a place where you would definitely not want to live within the living memories of some … 

    You just buy what you can afford, in the best area you can afford, making sure you do not overspend, then sit tight through any crashes. 
    Yes, but you didn`t know the economy would tank when you bought though, it is more or less a given that we are in the worst recession in living memory now? Buying now, even if the bank plays along because you have a big deposit, is probably quite reckless unless you are getting a really good deal?
    Why do you post so much about house prices crashing? Are you hoping for a crash?

    Yes, as is half the country by this point.
    You must live in a different half of the country to everyone else!!
    i think you'll find it's on another planet ....
  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 3 August 2020 at 2:59PM
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    lisyloo said:
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


    Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.
  • RelievedSheff
    RelievedSheff Posts: 12,960 Forumite
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Crashy_Time said:
    lisyloo said:
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


    Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.
    There is only the one person on here with an impaired ability!
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    RelievedSheff said:
    Crashy_Time said:
    lisyloo said:
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


    Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.
    There is only the one person on here with an impaired ability!
    Yes, just like there is no one in the country hoping for a large and overdue correction.
  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Crashy_Time said:
    lisyloo said:
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


    Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.
    Hundreds of thousands in mortgage debt is paid off in 25 years (or less if you can manage it). Renting is perpetual. The argument for mortgage vs rent is a racing certainty. The debt also goes down in nominal terms but of course you know all that.

    They won't need te revenue soon. Not sure if you've heard but we took debts in 1835 for slave reparations and paid it off in 2015.
    This debt is exceptional but it will be long term.
    No I don't think it can be indefinite but I do think it can be quite long term as above (google it if you don't believe it).

    You don't have to become "so" invested to pay mortgage rather than rent. It's a plain and simple equation.
    You don't have to become an economist you just need to make sensible decisions so that you can pay for your own home instead of paying rent to a landlord.
    After a while you don't need to hope as you own equity in a house an then a whole house. That's not hope it's an asset.

    As I've provided evidence of 180 year government debt, what is your evidence for the limits of monetary policy?


  • lisyloo
    lisyloo Posts: 30,113 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Crashy_Time said:
    RelievedSheff said:
    Crashy_Time said:
    lisyloo said:
    Crashy_Time said:
    RelievedSheff said:
    MysteryMe said:
    Why are you assuming they would be remortgaging?  If they were on a fixed rate deal they would just go on a SVR once it ended, they don't apply for another mortgage.
    It isn't the end of the world. Our last property was in negative equity for a long time that we lived there. We bought at the back end of 2007 right before prices dipped. At the end of our 5 year fixed rate the mortgage just reverted to the SVR. As long as we could make the payments (which we did with overpayments on top) then there was not a problem.

    Negative equity isn't the huge problem that people perceive. It only becomes an issue if you are forced to sell or can't keep up with the repayments. 
    And we all know what happened next. What do you think will be done this time to stop the dip becoming a crash?
    I don't have a crystal ball as to what the chancellor with do in future, but if you want a cast iron example lets go for a stamp duty holiday

    The problem I see with the "crashists" theories are that the worst case scenario relies on everyone doing absolutely nothing in the face of the slings and arrows of outrageous fortune, whereas what happens in reality are actions from the chancellor and seperately the Bank of England to do everyting possible to minimise te impact as well as the hundreds/thousands of scientists around the world.

    Everything humanly possible on all fronts will be done by all kinds of people to minimise the impact.

    Whats the current crash prediction? The last time I was pondering holding off was 2001 and I guess some are still waiting for it. Quite literally generations of my family have passed whilst some have been waiting.


    Waiting for what, the chance to hold hundreds of thousands in mortgage debt? Do you really believe that the stamp duty holiday will make much difference to anything? They will need the revenue soon, so either it will be a short holiday or they will just tax the sellers when they manage to sell in future, unless you think our government can do a bailout of everything for an indefinite time? The problem with being so invested in something that you become the classic "VI" is that your hopes for your special area, your VI, to be protected impair your ability to look clearly at the limits of monetary policy in the face of economic shocks.
    There is only the one person on here with an impaired ability!
    Yes, just like there is no one in the country hoping for a large and overdue correction.
    Of course they are hoping.
    They have been hoping since 2001.
    FACT - Hope doesn't influence the future, paying off a mortgage every month is positive action that does influence the future.

  • Getting_greyer
    Getting_greyer Posts: 609 Forumite
    500 Posts Third Anniversary Name Dropper
    Now is a great time to buy.  For me.
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