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First time buyers + Crash. Is this our chance?
jago25_98
Posts: 623 Forumite
Anyone else planning this?
Order of events: Banks lose our money -> get bailed out -> were inflating GBP to cover it -> now taxing us -> next will grab your funds direct -> things get really desperate to balance the books. What should have happened?: banks go bust and we lost our money much quicker
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Yep, been 'planning' - ie, saving and hoping! - for just over a year now. By December I'll have all the capital I need and then I just play the waiting game to see how muc they come down :jI am not really an Eskimo. I can hear what you're thinking... "Inuit!"0
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yup......
Official DFW Nerd Club - Member no. 784 - Proud to be dealing with my debts0 -
The key is not to jump in too soon.
A fair few people will enter the market when prices have dropped a reasonable amount and will be caught out because the fundamentals dictate the market will go lower.
I'd guess that it'll be 18 months at least before the time is right to think about buying. Quite possibly three to four years.
It all depends on how the correction/ crash/ reversion to trend goes. The steeper and nastier the initial drop, the sooner it will be over. A slow steady 1% a month affair will make it last years. One way or another, prices will revert to the trend so better to get it over with quickly IMO.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
JonnyBravo wrote: »:rolleyes:
No !!!!!! sherlock!
Crash - no I doubt it. Long, drawn out correction, probable. So don't expect miracles.
People brighter than me suggest the market will bottom ~ 2011/2. Therefore, 'asking' prices will cling as they slide. Selling prices will be deterioate quicker, setting new market prices as they go.
This will be in conjunction with rocketting commodity prices, fuel, energy, food, pork bellies and orange juice. Inflation will, by some accounting miracle, remain low. If only we could eat Chinese memory chips and run cars on Indian clothes!!!!! So peoples pay will not keep pace.
In short, we're in for a couple of 'tight' years. House price normalisation is just part of the process.
But rest assured the orchastrators of this artificial credit boom, even the most incompetent, will be just fine. Even Mr Applegarth will survive with his 3/4's of million pay off and his £200k pension. Stinks doesn't it.anger, denial, acceptance
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I speak as a first time buyer who is currently waiting to exchange. I've come to the opinion that a crash isn't going to happen. We're seeing a slow down due to lack of availability of credit which is effecting people who are on the borderline of being able to afford to buy a house.
Those who sit and wait for a crash to occur before buying a house are fooling themselves IMHO. The effect a crash would have on the economy would, in all probability damage average joes capability to buy anyway!
I know plenty of people who are waiting to buy and are seeing a dipping market as being the trigger for them to make the move. In my area of the world (Sussex), decent properties are being snapped up in days of them going on the market. There certainly isn't the correct conditions for a crash as the supply of houses on agents books is pretty low.
If you'd have asked me a few months ago I would have advised buying if you could afford it. Now, considering how mortgages have dried up and decent deals are hard to find I would suggest waiting. Personally I suspect we will see the start of the summer bringing a mortgage price war (I have a source in a large building society who tells me they are sitting on a war chest from the ex-Northern Rock savers) and prices will either level or start gently rising again.0 -
Also factor in that once prices have dropped a certian level, those with the money may start buying second properties which could bring reduce the fall as demand increases. That's my theory anyway, and that's what I would do.
Don't forget that mortgages are even harder to get now, especially for FTBs so price drop or not, less FTBs will be able to get mortgages unless they have healthy deposits0 -
bull trap for teh win!0
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You don't visit this board very often, do you? :rolleyes:Anyone else planning this?
You can do what you like, my friend, but I would recommend waiting for as long as possible. As !!!!!!? says, keep a close eye on prices but don't jump in too soon. Ultimately, you have to do what is right for you, your circumstances and your finances. These will, of course, differ for everyone but I certainly wouldn't panic buy at the first fall otherwise you may live to regret it.0 -
I think I posted this post in the wrong section but:
http://forums.moneysavingexpert.com/showthread.html?t=848091
Why are we paying OTT!
Ch!ck0
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