10 years ago.....

pamaris

itsgototstop wrote: »

Its not falling prices that upset me, more people posting who are relying on huge price falls to snap up a bargain from a distressd vendor which otherwise they would not be able to afford.

I got by with a 2BR place for 7 years as it was all I could afford by the way, would have loved a house but couldn't afford it, still can't.

Huge price falls now are bad news=recession.

Yeah I know that the situation is crappy all around. I am not hoping for a recession.

We just can't buy a 2 BR place in a falling market, because we have a 6 year old girl and a 3 year old boy. They share a room now and that's fine. But if we bought a 2 BR and then the bottom well and truly fell out of the market, then they would be stuck together possibly until she was a teenager, and I think that might even be illegal/ against regulations.

I don't want vendors to be distressed. The truth is, most of them can afford to drop their price to reasonable levels, but won't because of either fear or greed. If everyone dropped their price across the board tomorrow, say 20%, then most sellers would still be in positive territory, and would have actually saved money by making their next place more affordable.

No one wants a recession. However it will be less painful if the situation is realigned sooner rather than later.

Turnbull2000

itsgototstop wrote: »

Huge price falls now are bad news=recession.

House price bubble > false economy > unsustainable debt > credit crunch > recession

No bubble, no pain. The HPI'ers should take the blame.

itsgototstop

pamaris wrote: »

Yeah I know that the situation is crappy all around. I am not hoping for a recession.

We just can't buy a 2 BR place in a falling market, because we have a 6 year old girl and a 3 year old boy. They share a room now and that's fine. But if we bought a 2 BR and then the bottom well and truly fell out of the market, then they would be stuck together possibly until she was a teenager, and I think that might even be illegal/ against regulations.

I don't want vendors to be distressed. The truth is, most of them can afford to drop their price to reasonable levels, but won't because of either fear or greed. If everyone dropped their price across the board tomorrow, say 20%, then most sellers would still be in positive territory, and would have actually saved money by making their next place more affordable.

No one wants a recession. However it will be less painful if the situation is realigned sooner rather than later.

Agreed, its bad news that prices are now so high, but short of a recession, which no one wants, I just don't see how they can fall by more than 10% in most areas at the most

pamaris

Turnbull2000 wrote: »

House price bubble > false economy > unsustainable debt > credit crunch > recession

No bubble, no pain. The HPI'ers should take the blame.

This is true. It could have been any asset bubble. It just happened to be houses. The same people who have gained a lot will lose a lot. But for most, they have neither gained nor lost anything except the illusion of wealth.

tr3mor

I see that you still haven't let us know what type of job you were doing and how much the flat was you bought.

Doing the same job now would you have any chance of buying a place anywhere in the South East, let alone zone 2?

itsgototstop

tr3mor wrote: »

I see that you still haven't let us know what type of job you were doing and how much the flat was you bought.

Doing the same job now would you have any chance of buying a place anywhere in the South East, let alone zone 2?

Hi,

Sorry, I was on 25k, paid 100k with deposit ( had second job for a number of years and inheritance of 10k from grandparents) and got a lodger from day one. Doing same job now might get 32-35k max I would think.

Ps the flat needed serious work, no CH, bathroom on last legs so cheapish

tr3mor

pamaris wrote: »

This is true. It could have been any asset bubble. It just happened to be houses. The same people who have gained a lot will lose a lot. But for most, they have neither gained nor lost anything except the illusion of wealth.

Houses are owned by a huge proportion of the population, other assets aren't.

The dot-com bubble or soaring gold prices wouldn't lead to Gordon's miracle economy.

:rotfl:

pamaris

tr3mor wrote: »

Houses are owned by a huge proportion of the population, other assets aren't.

The dot-com bubble or soaring gold prices wouldn't lead to Gordon's miracle economy.

:rotfl:

That's not what i meant really. I've had too many glasses of wine now to know what I was trying to say but... errrrr... hic! Now I've lost the plot, I want a house.

TJ27

beingjdc wrote: »

The average house price in January 1998 was £62,903, according to Nationwide.

I bought my house one months before that for £62,500 and my mortgage was with Nationwide, so I guess my gaff fits that model pretty well.

My wife and I saved twelve thousand, as FTBs, and just about got the other fifty odd on multiples of our salaries.

The house two doors away sold for 325k two years ago. Mine is identical, so is probably worth what? 350k??? There is absolutely no chance on earth that we could now afford to buy this house from scratch, if we were in similar positions to ten years ago.

So in my experience, it's FAR more difficult now. Let's hope that changes soon though, as prices fall to a reasonable level.

tr3mor

itsgototstop wrote: »

Hi,

Sorry, I was on 25k, paid 100k with deposit ( had second job for a number of years and inheritance of 10k from grandparents) and got a lodger from day one. Doing same job now might get 32-35k max I would think.

Ps the flat needed serious work, no CH, bathroom on last legs so cheapish

The Nationwide's handy calculator told me that this would be worth £308k now.

http://www.nationwide.co.uk/hpi/Default.asp?calculate=true

You had a £25k salary, you paid 4 times your salary for the flat. This was probably pretty difficult.

Someone on a £35k salary would need to pay nearly 9 times their wage for the flat. This would be impossible.