Price Drop on house I like!

Microstar_2

Jonbvn wrote: »

Careful when you say such things on this forum. You may get a visit from the HPC mafia;)

Unfortunately (for me) I have a gut feeling that there could well be a crash. I have been around for a good few years and was caught in the property crash of the early 1990's. In some ways I think things could be worse this time around. Back then prices became inflated over a short period of time (due to Nigel Lawson messing with MIRAS etc) and there was less unsecured lending IMHO. Now there is whole new younger generation involved who have university debt, lots of credit card debt etc etc - the whole thing seems a lot more highly geared. Couple that with an economy which is more dependent on nebullous 'service' jobs and its looking very fragile to me...Hope I'm wrong.

chelseablue

Microstar wrote: »

Unfortunately (for me) I have a gut feeling that there could well be a crash. I have been around for a good few years and was caught in the property crash of the early 1990's. In some ways I think things could be worse this time around. Back then prices became inflated over a short period of time (due to Nigel Lawson messing with MIRAS etc) and there was less unsecured lending IMHO. Now there is whole new younger generation involved who have university debt, lots of credit card debt etc etc - the whole thing seems a lot more highly geared. Couple that with an economy which is more dependent on nebullous 'service' jobs and its looking very fragile to me...Hope I'm wrong.

I hope your right!

A lot of people I know are priced out by the BTL people buying all the FTB places.

Everyone has a different opinion I guess

EliteHeat

Microstar wrote: »

I own several properties. I was hoping to sell out in a few years time and leave the UK. That plan may have to be put on hold if prices fall back.

Very nice for you to own several properties and not have mortgages on them. Personally, I don't think I'd worry too much if I were in your position.

Microstar_2

chelseablue wrote: »

I hope your right!

Well, I hope I am wrong. Its naive to think that a house price crash would just make houses cheaper and all those FTB's will suddenly be able to afford to buy. It would actually presage a much bigger economic downturn, the construction sector would suffer and unemployment would climb, people would default on loans etc etc. Many foreign workers might be tempted to leave the UK, thus depressing demand in the rented sector. The best outcome would be a period of stagnation to allow incomes to rise and hence improve affordability.
Like it or not, the UK economy is underpinned by property and if things go pear-shaped we all suffer.

Innocenti

I have just bid on a house that has dropped by £10,000. We had to offer the asking price as it is a repo so there are 3 of us bidding on it. It needs some work but is worth the money. Fingers crossed we get accepted, first time buyers etc.

I have noticed that the higher end of the market (£200,000 houses) are the ones that are dropping but the ones I am looking at £100,000 are not dropping too much as there are too many first time buyers who cant afford any more

Microstar_2

EliteHeat wrote: »

Very nice for you to own several properties and not have mortgages on them. Personally, I don't think I'd worry too much if I were in your position.

Oh, I'm not worrying. Just may have to alter my plans slightly, that's all.

chelseablue

Just an update:

The rightmove page to the house now says: The property has been sold, under offer or temporarily removed from the market.

:rolleyes:

chelseablue

Another Update!:

It is on the EA's website as under offer

After only 5 days at £280K!

ragdoll

Don't get too down yet, we offered on two properties in December, neither accepted and both then went under offer. Both have since fallen through and both agents came back to us, but we said we have decided to not buy at the moment, both have now been reduced in price, not low enough for us yet, but will keep watching.