House prices continue to fall (Hometrack Report)

richwesthorpe

Bit the bullet and brought my house in 1994 for £45000 (Which seamed a lot of money at the time). Its cost me about £40000/£45000 in mortgage payments during that time, about what i would have paid in rent. I have just sold it for £170000.I think all you doomsters should stop lining landlords pockets , get yourselfs on the property market and take a gamble. In ten years time you will wonder what all the fuss was about.

PS Thats what i call saving money

meanmachine_2

"Doomsters"? Wanting housing to be affordable for all is a most positive aspiration.

And you were absolutely right to buy in 1994. Had I had the means I would have done the same. I could have picked up an average property for 2.5 times my salary.

Today I would have to pay 6 times my salary. No ta.

And I'm glad you "made" so much money on your property. Er, except where are you going to live? Or do you have the ability to go back in time and buy another property @ 1994 prices?

:rolleyes:

richwesthorpe

I didn,t say i had made any money, i am going to move up the ladder. What i am saying is i have done much better by buying ,so might you

deemy2004

What if you had bought in 1990? Perhaps for £90k followed by £90k of mortgage payments...

yeh, if you get the timing right, i.e. buy at the bottom and sell at the top then you can make big profits. Though a lot people tend to jump on the bandwagon as the market approaches the top, given the jump in number of transactions.

meanmachine_2

richwesthorpe wrote:

I didn,t say i had made any money, i am going to move up the ladder. What i am saying is i have done much better by buying ,so might you

And now your next step up the ladder is even further away thanks to rampant house price inflation.

Everyone loses in this scenario except banks and estate agents.

When will people wake up to this blatant fact?!!!!

wibble68_2

richwesthorpe wrote:

Bit the bullet and brought my house in 1994 for £45000 (Which seamed a lot of money at the time). Its cost me about £40000/£45000 in mortgage payments during that time, about what i would have paid in rent. I have just sold it for £170000.I think all you doomsters should stop lining landlords pockets , get yourselfs on the property market and take a gamble. In ten years time you will wonder what all the fuss was about.

PS Thats what i call saving money

Let's not forget that interest rates are still relatively low and may be heading lower in the short term.

If ftb's take your advice and get on the property ladder now at 4.75% and borrow 5-6 times their salary, in ten years time they might not have a house at all.

When you bought in 94 this was not a gamble. House prices were below the long term average. We are still some 20 - 25% above the long term average making it a very big gamble indeed.

dippy

How does buying just after the last big housing market crash in 1994 compare with buying at the peak of the market right now (flat house prices and all)?

meanmachine_2

Yeah, let's just clear something up - I'm not saying people should rent forever, but the point at which you get on the property ladder will affect your wealth, life and possibly your health for the next 25 years.

I think it's disgraceful for current owners (who bought at the market bottom) to coax FTBers to join this pyramid scheme now.

Independent studies are now concluding that house prices are at their highest and will be so until at least 2010.

Why buy? What's the rush?

The BEST time to buy is when homeowners are all crying into their beer and telling you to steer clear as prices "will never go up". In other words, after a correction.

People are dumb. They follow the herd. It's up to FTBers to stand back and see this madness for what it is.

ReportInvestor

meanmachine wrote:

I think it's disgraceful for current owners (who bought at the market bottom) to coax FTBers to join this pyramid scheme now

I wouldn't describe it as that, mm. It's often argued on this board that comfortably off homeowners can't realise their investment & so don't actually benefit from high house prices.

It would only be a pyramid scheme if the airwaves resonated to the keyboards of professional buy-to-letters who were enticing FTBs in order to offload their extensive portfolios prior to a crash.

That doesn't describe debate on the MSE property forum, does it :cool: ?

meanmachine_2

ReportInvestor wrote:

It would only be a pyramid scheme if the airwaves resonated to the keyboards of professional buy-to-letters who were enticing FTBs in order to offload their extensive portfolios prior to a crash.

That doesn't describe debate on the MSE property forum, does it :cool: ?

As I understand it, pro landlords stopped buying back in 2001/2 anyway, once the sums stopped adding up. They don't need to offload anything.

It's only gullible telly-watchers with one or two properties who have kept this lunacy going for so long.

How many posts have there been on this forum in which muppets come along and want to buy a BTL, but don't even know how to calculate yield!!!!!

Madness.