House prices continue to fall (Hometrack Report)

GreenB_2

meanmachine wrote:

Does it wreck your credit rating? Is that actually true or is it yet more estate agent speak?

Gets very tedious after a while, you know.

It's not accurate, so again I ask what's your motivation for having such a downer on renting?

Yes it does - moving address constantly effects the willingness of lenders and credit companies - it looks suspect.

And why meanmachine do you talk the market down constantly?

You have decided you don't want to buy a house at current prices - thats your choice.

My reason for posting on here is to balance out the "doomersters"....

A FACT: NOBODY , I REPEAT NOBODY knows what is going to happen to the property market - all you can do is make an educated guess.

If comparing like for like you have to look at renting in comparission to Interest only mortgages as at the end of the day you will own neither (though in the long term going by all historical data your house will be worth more than you paid , so you will get something out of it).

The fact of the matter is people on the forum are just as fed up with you and nelly and the like talking the market down as its in your interest.

I own a house and am not looking to move for ac onsiderable time, have a good fixed rate mortgage , a reasonably stable job, so I have no vested interest as it doesn't effect me whether prices go up or down. My view is you need somewhere to live and I would rather I call the shots thean someone else. Rented property where I am is dearer than an interest only mortgage for like for like size so I made the choice to buy and am happy with that.

Woby_Tide

dccarm wrote:

So obviously whether renting or buying is more "financialy sound" depends on local circumstances as well as relative interest rates.

There is no concept of local circumstances in nelly and meanmachines housing market. Whilst they have good points, they undermine themselves by forgetting this.

Woby_Tide

nelly wrote:

well seeing as borrowing on a mortgage is the worst percentage wise money you can borrow people pay back over double what they borrow.

Renting and saving up a huge deposit is far more financialy sound an idea.

Trying to work in my head but given the varying rental prices compared to a comparable mortgage the same property, any got any idea on the relative costs of:

a) a £175k house on a 25 year mortgage(total mortgage outlay, plus probably have to consider maintenance costs and general upkeep)

compared to cost of

b) a £175k house, where you rent paying £x(?) per month for first 10(?) years whilst saving £x(?) per month so you end up with a 25/50% deposit then take remaining 15 years as a mortgage(so total cost is the rent, the savings and then the mortgage and associated upkeep/maintenance costs as with the mortgage scenario)

admittedly it's a pretty rubbish calculation as it takes no account of changing interest rates/house price changes over time etc. but wondered if there was some sort of 'calculation' (like on the offsets question where it is only worthwhile when your savings > certain amount of mortgage) that says renting then buying in time is cheaper than an outright mortgage if the follwoing conditions are met etc.?

ReportInvestor

Here's a direct comparison between rental and mortgage on a £150K two bedroom flat

Rental is £7.5K pa = 5% gross yield for a landlord before expenses, if permanently occupied.

Woby_Tide

the person I was trying to work out a situatiion for wouldn't be the landlord though, they'd be renting someone elses property whilst saving a deposit to buy a similar property

johannamse

GreenB wrote:

The fact of the matter is people on the forum are just as fed up with you and nelly and the like talking the market down as its in your interest.

2 people cannot talk the market down, nobody can stop a market moving in whatever way it wishes.

I am not fed up with ALL the different opinions. Keep posting, am learning all the time.

nelly_2

GreenB wrote:

The fact of the matter is people on the forum are just as fed up with you and nelly and the like talking the market down as its in your interest.

.

Ok I'll do this in big letters for you

M O N E Y S A V I N G E X P E R T

not money wasting

money saving = paying as little as posible

money wasting = paying to much.

People come here for advise and tips on how to save their hard earned, not to be told its ok to pay well over the odds for something.

And the housing thread is the ONLY thread where people even attempt to say paying a lot is a good idea.

In fact I think I'll start a thread in the hollidays section advising everyone to fly 1st class and only stay in 5 star hotels and tip everybody £100 quid.

Or tell people to phone up their banks and offer to up the interest on loans/overdraughts etc just cos paying over theodds isnt that bad an idea after all.

And I'll email Martin and tell him it turns out his carrer is rubbish and he should be encouraging people to just sling there money down the grid, rather than saving it.

Right I'm off to find a massively overpriced house and get a whopping big mortgage on it too and I'll offer them to pay a 20% apr just for good measure.

Yeah that makes sense

Woby_Tide

*catches flying toys*

Ember999

Woby_Tide wrote:

*catches flying toys*

All this stress on here makes me want to go nip my cats tail

:rotfl:

djohn2002uk

WHA wrote:

As long as you're absolutely certain you won't have to move in the next few years, i.e. job relocation, more children needing bigger house, moving to be closer to relatives, etc.

In the last property recession a lot of the negative equity problem was caused by unforeseen influences like these. I certainly knew a fair number of people who were "trapped" because they couldn't sell - their mortgage was higher than the house value.

Personally, I wouldn't buy a house 'now' regardless of whether it was long or short term - the risks are too great. Few, if any, people actually think property will increase in value over the next year or two. Most think there will be a "correction" of 5-10%, and some think there will be a major crash. On balance, I think we've passed the height and are heading downhill. My advice is now is for FTBs to wait and see for a few months.

Even if you're already on the property ladder it makes sense to wait. Sure, your house may fall, but so will the ones you are thinking of buyer - theirs will fall by more in "numbers" so you'll have to pay less of an increase.

Your last paragraph cancells out the first one.

Your second paragraph is wildly off the mark. It was caused by a mixture of high interest rates and high numbers of job losses during the Thatcher regime resulting in record numbers of repossessions.

As for talking the market up or down, I think it's a bit silly to think that the 757 readers of this thread will have any bearing on the housing market, even if they were all in the market for a new house and all were FTBs.

I have noticed that the loudest voices on here are not house owners, and are happy to lose more money in a year to a landlord than I'm losing with the drop in house prices. 5 yrs renting could mean anything between £10k and £20k in the landlords pocket instead of off the cost of your house.

At present day prices there is a long way to go before they are back down to the prices of even 6/7 years ago.

And finally, would I recomend my kids to buy now? Of course I would. The sooner you buy, the sooner you pay it off, wage rises usually outstrip mortgage rises.