How do you not get stressed / affected by house price?

RelievedSheff

Crashy_Time said:

steampowered said:

Don't try to make or lose money with your property. If you try to do that you will probably fail, because you don't have any special information the market doesn't. See your property as a place to live.

You have to take a long term view of things. You will likely want to be a home owner until you die. There will be numerous recessions during that time. 50+ years is more than enough time to go through the ups and downs of recessions.

As hazyjo pointed out, if house prices drop due to a recession, that also means that the cost of a property you might want to move into goes down. If property prices drop by 15%, that will reduce the cost of a £200,000 property more than it will reduce the cost of a £400,000 property. So, if you are currently a 2-bed and want to move into a 3-bed, it actually becomes easier to do that, as long as you aren't sitting in negative equity.

But if you bought recently and prices drop 15% you will be?

That all rather depends on how much deposit you put down when you bought.

GarciaLorca

Crashy_Time said:

GarciaLorca said:

Thank you all for the reassurance.  Sorry I should have clarified - I'm not renting for the sake of it - I'm moving in with long term partner somewhere larger before we buy together in a few years.  
I guess I have been spooked / panicked by loads of people in my development putting their properties up for sale recently after lockdown.  But then there may be all sorts of reasons they are doing that and even if they are panic selling - maybe they're making a short sighted mistake and it's better to sit tight and ride it out and hopefully make more money. 

For people who bought London property at Peak Bubble (last few years) the opportunity to "make more money" is gone for good IMO, many will be stuck in their expensive debt boxes for life now.

So you think because I bought a flat 4 years ago I am trapped with it for life?! 

Parking_Eyerate

Crashy_Time said:

GarciaLorca said:

Thank you all for the reassurance.  Sorry I should have clarified - I'm not renting for the sake of it - I'm moving in with long term partner somewhere larger before we buy together in a few years.  
I guess I have been spooked / panicked by loads of people in my development putting their properties up for sale recently after lockdown.  But then there may be all sorts of reasons they are doing that and even if they are panic selling - maybe they're making a short sighted mistake and it's better to sit tight and ride it out and hopefully make more money. 

For people who bought London property at Peak Bubble (last few years) the opportunity to "make more money" is gone for good IMO, many will be stuck in their expensive debt boxes for life now.

It could equally be said that for people who sold to rent in the nineties that the opportunity to "buy basic shelter" is gone for good IMO, many will be stuck living in, and paying for, other people's properties for life now.

ciderboy2009

OP - ignore Crashy's doom & gloom rants.  They've been spouting the same rubbish for years and are desperate for there to be a crash in prices so they can finally have their 'I told you so' moment.

At the end of the day, there still aren't enough properties in this country to fulfil demand so, even if prices do drop a bit, then they are likely to soon recover.

At the end of the day, unless you've got a working crystal ball then nobody knows what is going to happen to house prices.  There have been a number of things happen in this country over the past 5 years which were predicted to have a catastrophic effect on them but it's not happened yet.

However, I'm another one that would suggest that renting is not the right way forward for you (assuming that your mortgage company or even your lease would even allow you to rent it).  It's not as easy as it seems and the likelyhood is that you would lose money.

Crashy_Time

RelievedSheff said:

Crashy_Time said:

steampowered said:

Don't try to make or lose money with your property. If you try to do that you will probably fail, because you don't have any special information the market doesn't. See your property as a place to live.

You have to take a long term view of things. You will likely want to be a home owner until you die. There will be numerous recessions during that time. 50+ years is more than enough time to go through the ups and downs of recessions.

As hazyjo pointed out, if house prices drop due to a recession, that also means that the cost of a property you might want to move into goes down. If property prices drop by 15%, that will reduce the cost of a £200,000 property more than it will reduce the cost of a £400,000 property. So, if you are currently a 2-bed and want to move into a 3-bed, it actually becomes easier to do that, as long as you aren't sitting in negative equity.

But if you bought recently and prices drop 15% you will be?

That all rather depends on how much deposit you put down when you bought.

Ok, so what % of buyers up until recently had more than 15% deposit? The main point isn`t really the NE itself though, it is the effect on buyer sentiment that it creates, once NE is a "thing" people will struggle to sell for anything near what they paid.

Crashy_Time

ciderboy2009 said:

OP - ignore Crashy's doom & gloom rants.  They've been spouting the same rubbish for years and are desperate for there to be a crash in prices so they can finally have their 'I told you so' moment.

At the end of the day, there still aren't enough properties in this country to fulfil demand so, even if prices do drop a bit, then they are likely to soon recover.

At the end of the day, unless you've got a working crystal ball then nobody knows what is going to happen to house prices.  There have been a number of things happen in this country over the past 5 years which were predicted to have a catastrophic effect on them but it's not happened yet.

However, I'm another one that would suggest that renting is not the right way forward for you (assuming that your mortgage company or even your lease would even allow you to rent it).  It's not as easy as it seems and the likelyhood is that you would lose money.

So can you explain sales volumes between 2002 and 2019?
https://www.plumplot.co.uk/North-West-property-transactions.html

Parking_Eyerate

Crashy_Time said:

ciderboy2009 said:

OP - ignore Crashy's doom & gloom rants.  They've been spouting the same rubbish for years and are desperate for there to be a crash in prices so they can finally have their 'I told you so' moment.

At the end of the day, there still aren't enough properties in this country to fulfil demand so, even if prices do drop a bit, then they are likely to soon recover.

At the end of the day, unless you've got a working crystal ball then nobody knows what is going to happen to house prices.  There have been a number of things happen in this country over the past 5 years which were predicted to have a catastrophic effect on them but it's not happened yet.

However, I'm another one that would suggest that renting is not the right way forward for you (assuming that your mortgage company or even your lease would even allow you to rent it).  It's not as easy as it seems and the likelyhood is that you would lose money.

So can you explain sales volumes between 2002 and 2019?
https://www.plumplot.co.uk/North-West-property-transactions.html

So do you think that everyone who wants to buy a house just goes out the next day and does it?

Angela_D_3

I think buyers regret is a post 2000 thing when property became more than just a home.   We really do need a shift in attitude, i'm as guilty as anyone btw.   But the next house I buy I'll be leaving feet first so long term it's irrelevant what they rise or fall by. 

JGB1955

Today I amused myself by looking at the selling prices of our first two houses on the outskirts of London.  Our first home, a 3 bed Edwardian terrace house cost us £11,850 - sold in early 2019 for £380K.. Our next house ( 3 bed 1930's semi) we bought for £32K and sold for 54K 3 years later - it's estimated 'worth' (only 3 sales in the road in the  past 15 years) is above £700K.  We moved to Gloucestershire in 1985 and had to reduce our mortgage to buy a 4 bed detached house.  Been mortgage free for over 20 years now but the 'worth' of the house means diddly squat to us as we are only leaving in a box.  Current market value? £360K.  Suits us as it fits in nicely with the RNRB.  Sorted!

Crashy_Time

Mickey666 said:

Crashy_Time said:

RelievedSheff said:

Crashy_Time said:

steampowered said:

Don't try to make or lose money with your property. If you try to do that you will probably fail, because you don't have any special information the market doesn't. See your property as a place to live.

You have to take a long term view of things. You will likely want to be a home owner until you die. There will be numerous recessions during that time. 50+ years is more than enough time to go through the ups and downs of recessions.

As hazyjo pointed out, if house prices drop due to a recession, that also means that the cost of a property you might want to move into goes down. If property prices drop by 15%, that will reduce the cost of a £200,000 property more than it will reduce the cost of a £400,000 property. So, if you are currently a 2-bed and want to move into a 3-bed, it actually becomes easier to do that, as long as you aren't sitting in negative equity.

But if you bought recently and prices drop 15% you will be?

That all rather depends on how much deposit you put down when you bought.

Ok, so what % of buyers up until recently had more than 15% deposit? The main point isn`t really the NE itself though, it is the effect on buyer sentiment that it creates, once NE is a "thing" people will struggle to sell for anything near what they paid.

I don't know the % but I'd say pretty much everyone who is not a first time buyer has more than 15% deposit/equity.

In practice negative equity really only affects FTBs, but even then as long as they can afford their mortgage payments (which they obviously can because otherwise they wouldn't have a mortgage in the first place) then what's the actual problem?

People tend to focus on the short term rather than the long term but the reality is that the short term doesn't really matter all that much because the only real choice is rent or mortgage and, broadly, both are going to cost the same on a monthly basis.  The REAL difference is that if you choose to rent then you have to pay for as long as you live, but if you buy with a mortgage then you only have to pay for 25/30 years.

When you're only 25/30 years old yourself, 25/30 years in the future is difficult to imagine and that's the problem - many (most?) people don't imagine planning over such a timescale.  Much the same is true for pensions.  And that's why there are so many people on this forum in their 50s posting questions about how can they afford to retire?  Unfortunately, 50 is a bit late to start thinking about such things . . . it's also a bit late to start thinking about buying a house when you've been putting off the decision for years and year either waiting for the next downturn in the market or worrying that there might be a downturn in the market.  Such procrastination is a sure way to lose out in the race of life.

The race of life? LOL. You sound like someone who "bought" recently?