House price increases. Is everyone absolutely loaded?

RelievedSheff

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

davilown

James-may said:

I'm looking to buy right now, my ability to buy just happened to fall right now, after years of being unable to.

But properties are selling the same day agents are putting them out there, and I mean selling without even viewing, crazy.

My worry is that the properties won't be valued at the price you agree.

I found a place that was £120k, I thought at first glance it was a bit steep, after viewing, it needed a complete rewire, the roof retailed, and the whole house remodeled due to things being half added or removed, and all walls replastered.
Houses in better condition on the same street last year were going for 110k.
I offered £110k, was told no as seller already had offers above asking price.

If the genuine prices have gone up, fair enough, I'll need to pay that, the question is will the lender refuse to lend if they look at it and say it's not worth that money?

That might be an issue that crops up in a month once valuations start coming in.

Maybe not, I don't know, guess I'm just frustrated.

I think you may get some that come back on the market, but these will go pretty quickly, potentially to buyers with a larger deposit at a slightly lower sale price

RelievedSheff

MobileSaver said:

lookstraightahead said:

Honestly a 90/95% mortgage at such low interest rates and able to buy a property because people have been able to save this year. what happens next year.

The people who bought carry on living in their lovely new home, happy in the knowledge they...

• Are now paying off their own mortgage instead of their landlord's mortgage
• Are one year closer to owning their home outright
• No longer have to ask a landlord for permission to hang a picture
• No longer have to worry about receiving two month's notice to find somewhere else to live

Sounds like a no-brainer to me!

Exactly this. I don't know why people get so hung up about house prices maybe dipping in the future.

It isn't the be all and end all. 

Provided you can pay your mortgage and have no need to move being in negative equity isn't really a problem. You still own the home (with the help of the bank) and provided you pay your repayments your home is safe.

grumiofoundation

MobileSaver said:

zpargo said:

They don't care about the young people of this country who are trying to get a foothold on the property ladder. ... At the current rate, I do worry about the future of young people. Education is expensive and now properties are unaffordable. 

There's loads of affordable properties available!

The problem is that they're not good enough for the self-entitled "young people" of today who seem to want nice houses in nice areas just like their parents, conveniently forgetting that in most cases their parents had to work hard and make sacrifices for decades to get where they are today...

Replying to sweeping statements with more sweeping statements. How helpful! Good to see at least there aren’t as many differences as people like to portray! 

It may surprise you but there are some ‘young’ people who manage to make it though the day without spending all their money and can generally go a week or two without their self-entitlement coming out. (Obviously we have to have a moan about how tough our life is over an avocado breakfast at least once a month). 

Despite our generational proclivity for incompetence some young people even manage to buy decent houses in nice areas due to their ability to manage their money. 

Obviously if someone wants to dismiss all young people as frivolous and self-entitled and believe that being good at managing money is solely the domain of older generations that is of course their prerogative (although I would assume the same people are not impressed with the lumping of all older people into homogenous groupings...). 

Reddington85

RelievedSheff said:

MobileSaver said:

lookstraightahead said:

Honestly a 90/95% mortgage at such low interest rates and able to buy a property because people have been able to save this year. what happens next year.

The people who bought carry on living in their lovely new home, happy in the knowledge they...

• Are now paying off their own mortgage instead of their landlord's mortgage
• Are one year closer to owning their home outright
• No longer have to ask a landlord for permission to hang a picture
• No longer have to worry about receiving two month's notice to find somewhere else to live

Sounds like a no-brainer to me!

Exactly this. I don't know why people get so hung up about house prices maybe dipping in the future.

It isn't the be all and end all. 

Provided you can pay your mortgage and have no need to move being in negative equity isn't really a problem. You still own the home (with the help of the bank) and provided you pay your repayments your home is safe.

I think this is an important point, if you go in eyes open and are sensible - then negative equity is just a thing!

The house we hope to move to shortly is probably over what we'd ideally pay but our house is going for a higher price. We've decided unless there's a huge financial change (a lottery win perhaps!) this will be our forever home (until we up sticks to Spain with the sale price in our 60s!) 

I know folk shouldn't house shop with their heart but sometimes it makes sense. 

Greymug

Prices are unlikely to ever going down.

Especially when sale price/valuations are based on the sale prices of similar properties in the near past. So, even after the stamp duty holiday is over, still my hypothetical property will be put on the market at a price based on the one of a property sold 2-3 months ago when the holiday was still on.

Vicious circle that will make almost everyone poorer in the long run because we're borrowing more and for longer.

FTB_Help

grumiofoundation said:

MobileSaver said:

zpargo said:

They don't care about the young people of this country who are trying to get a foothold on the property ladder. ... At the current rate, I do worry about the future of young people. Education is expensive and now properties are unaffordable. 

There's loads of affordable properties available!

The problem is that they're not good enough for the self-entitled "young people" of today who seem to want nice houses in nice areas just like their parents, conveniently forgetting that in most cases their parents had to work hard and make sacrifices for decades to get where they are today...

Replying to sweeping statements with more sweeping statements. How helpful! Good to see at least there aren’t as many differences as people like to portray! 

It may surprise you but there are some ‘young’ people who manage to make it though the day without spending all their money and can generally go a week or two without their self-entitlement coming out. (Obviously we have to have a moan about how tough our life is over an avocado breakfast at least once a month). 

Despite our generational proclivity for incompetence some young people even manage to buy decent houses in nice areas due to their ability to manage their money. 

Obviously if someone wants to dismiss all young people as frivolous and self-entitled and believe that being good at managing money is solely the domain of older generations that is of course their prerogative (although I would assume the same people are not impressed with the lumping of all older people into homogenous groupings...). 

Completely agree with you.

Im in my early 30s just bought my first house in London with my fiance.

It took me 10 YEARS to save for a 20%  deposit, i was never a high earner in my 20s, never owned a car, didnt have coffees/ lunch at pret, would walk 3/4 miles home after work to save £1.50 bus journey!

I did however splurge on holidays and dinners out, but scrimped and saved in other areas.

I think alot of people who want to buy don't spend long enough saving for a deposit, and assume saving for a year or 2 would be good enough, but realisation hits when they actually start looking to buy.

I think a lot of people have it in their heads to own, own, own, but home ownership does not work for everyone.

Grumpy_chap

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

How does the risk of losing your house and, therefore, homelessness compare between mortgaged buying and renting?

Are there statistics about number of repossessions versus number of evictions, and the speed / ease of each process?

RelievedSheff

Grumpy_chap said:

RelievedSheff said:

lookstraightahead said:

Ramouth said:

Houses are worth what people are willing to pay.  People can afford to pay more (low interest rates, lower spending during lockdown) and are seeing their home environment as a higher priority as they spend more time there.  This leads to buyers willing to pay more to get a house they love.

I’m in no way saying this is a good thing. HPI is bad for most people.  But I don’t feel strongly enough about HPI being wrong to waste money renting for the next 10 years rather than bidding high to secure a property that ticks all the boxes.

Yes good point.

I do think there is a risk of losing your house though, which then makes you homeless effectively.

What risk?

Provided you can pay your mortgage there is no risk at all!

How does the risk of losing your house and, therefore, homelessness compare between mortgaged buying and renting?

Are there statistics about number of repossessions versus number of evictions, and the speed / ease of each process?

Mortgage repossessions are seemingly quite rare. Just 4580 in 2019.

https://www.ticfinance.co.uk/stats/

The same time period there were 30,813 county court rental evictions leading to possession being taken of the property by bailiff. The true number of rental notices will of course be much higher as not all cases will go as far as court.

https://www.nimblefins.co.uk/business-insurance/eviction-statistics

Ditzy_Mitzy

Greymug said:

Prices are unlikely to ever going down.

Especially when sale price/valuations are based on the sale prices of similar properties in the near past. So, even after the stamp duty holiday is over, still my hypothetical property will be put on the market at a price based on the one of a property sold 2-3 months ago when the holiday was still on.

Vicious circle that will make almost everyone poorer in the long run because we're borrowing more and for longer.

Ironically, the price crash that the majority of renting millennials clamour for is likely, if it happens, to be the worst possible thing that could happen to them.  They'll get their parents' houses eventually and, having little in the way of other savings, need to pray to God the places will be worth enough to cover their retirements.  Which is difficult as inflation in other parts of the market, new builds and so on, will encourage them to try and sell their inherited baby boomer seventies execs for even more.  But execs aren't in fashion, presently, for reasons of lifestyle.  Maybe they will be in time, when the current generation of modern newbuilds have fallen down.  Good Lord we're in a mess.