Money for Property......

simonfr

When i say dream house, its not a £3m mansion, its a nice place where i can do what i want to do and never need to move again. Its not a property where i need 6 balls to come up....... or anything to happen to anyone else's balls...... lol

I'm doing OK, the properties i have are modest, but what gets me is the money for these properties, and how do other people get it?? If everyone is high on debt and cant afford payments for cars and loans and stuff, if the papers and doomsters are to be believed, then why are banks giving the money away? Low interest rates, low inflation, 'high' employment. Life looks good to some peeps..... hopefully something will happen, not being nasty or anything, but Meanmachine has a good point on some of his postings....
I dont want a housing crash, then my 'perceived' wealth evaporates, but if i do, then i have a vague hope of actually getting where i want to be!!
And if the prices continue to rise, i'm royally screwed!!

Now where's those razor blades????? Whats that website link again??

GreenB_2

Many of us get our properties by jointly buying with a partner I guess.

I am on an average wage and my partner is on an average wage so therefore a combined income of circa £55k therefore we can/or have purchased a property around the £200k mark Because I managed to save by living at home till I was 27 - yes an average of 3k a year I had a good deposit available.

It is not rue to say that a drop in house prices would necc. effect bigger houses more, - you are unlikely to see a same % drop on all types of houses and in all areas.
As we see now some places are rising and others dropping.

My view is people seem to have less to spend on their house as they do far more things than say 10 years ago - Holidays abroad, new cars, new mobiles and people live in a spend now save later culture and unsecured credit is far to easy to get.

Ask older relatives and they will say it was hard to buy a house too.

In reality we have far more disposable income than people 20 or 30 years ago, but people expect and want more from life.

Banks give money away because they make money on what they lend you! Banks never do badly they are in a win win situation.

Whilst the slowdown in the market in my view is a good thing (i.e. its stable if house prices increase 2 or 3% per year). With low interst rates those saving and renting hoping for a crash don't really make that much in-roads into gaining ground.

Personally I think however unlikely, that if some crash/large drop does happen you will find that prices of larger and older detached properties will not drop as much as the newer compact houses that are being built now. Government guidelines means developers are cramming lots of houses into a small space and its not what many of us want as our "dream" house is it?

Ian_W

Simon,
CHILL ... sit down ... darkened room ... count slowly to 10 thousand ... RELAX.
Crisis intervention over? Phew!!

Got to go out now - will you be ok until later? Fine, you've still got the number for Samaritans if you need it?

simonfr

Ive only got 10 fingers and 10 toes.......... what do i do after 20?

meanmachine_2

GreenB wrote:

Whilst the slowdown in the market in my view is a good thing (i.e. its stable if house prices increase 2 or 3% per year). With low interst rates those saving and renting hoping for a crash don't really make that much in-roads into gaining ground.

And that's exactly WHY the market won't have this fabled soft landing, because it won't rectify the situation. Sales are down massively. EAs can't put up with that forever, so prices will have to come down (which they are in most areas), and if they're falling now, they might fall tomorrow, which means I can delay and delay and wait and wait...

I've given up on looking for the time being. Won't bother again till after Xmas. What's the rush?

The original poster does make me laugh though. I was expecting them to be a struggling FTBer...."yes I have two properties...but I want MORE!"

Mate, you're the reason for this madness. Live with it.

GreenB_2

I see it as a catch 22 - Less BTL's would mean less properties availbe for renting meaning higher rental prices due to lack of competition and more people trying for the same reental properties.

Higher rental prices mean those renting can save less to buy or those renting all trying to buy houses as the rent is significantly more than buying so demand for houses incresases the price further.

I don't think there is ever an ideal time to buy or sell , its whatever fits your circumstances at the time. We are all different and have differnt needs.

The world revolves around business and money and buying and selling homes is a business. Maybe we all get too attached to what is basically a pile of building materials stuck together....maybe travellers have the righjt idea, just go whever you fancy!

simonfr

Im not the reason for this madness!! I bought mine more than 4 years ago.... When the market was more sane and stable!! Im certainly not going buy anything at these daft prices!! Of course i want as good as i can get in a short time as possible, as does anyone.
So im going to sit tight until something happens, its not only FTB's who have problems. I have friends who have property, but their incomes are not enough to make the next step. So they are stuck on that rung of the ladder. For example, one bought a flat for around £30k, now worth £46k, but the houses he wants are £100k ish (semi 2 or 3 bed). His deposit, and earnings are not enough to get him there....... so he's stuffed.

meanmachine_2

GreenB wrote:

I see it as a catch 22 - Less BTL's would mean less properties availbe for renting meaning higher rental prices due to lack of competition and more people trying for the same reental properties.

That's a fair point. Rents have flatlined in most areas of London for the past 10 years, thanks to the BTL gold rush.

Just shows you how, 10 years ago, it WAS a good time to buy. It ain't rocket science.

GreenB_2

He "wants a 3 bed house". Is he single ? Does he therefore need one?

I want a Ferarri in place of my old car - but I can't have one and I don't need one. Its what I said peoples expectations are too great. You have to be realistic.

Once he has a partner earning money too and they want to live together then he can afford to move up the ladder jointly.

So why not sell your rental property while you can "make" good money on it and wait for the "daft" prices to change?