Buying A House? Would you pay £20k for a £5k car?

Woby_Tide

mr.broderick wrote: »

Wow what a load of tosh...the past 5 years events in 1 post. Where've you been all this time?

with their clucking head up their !!!! it appears

Gonzo

Rover wrote: »

That is apparently the situation over in Jorgan's World. However, back on UK soil, the CML say:

There were just 49,000 loans made to home buyers in February, 3.5% lower than in January and 33% down on February last year. Loans for house purchase made up only 30% of all mortgage lending, the lowest proportion on record.

Might I suggest that both these posters may be correct?

Any price correction will be regional to some degree, Jorgan's may be as yet unaffected. I think he would know best about his own area either way. In addition, from his previous posts, I've always found him to be a valuable source of information. He has an angle, we all do, that's how he keeps a roof over his head, but I've never seen him grinding any particular axe or cheering for HPI.

I'm just in the process of buying and selling a home (that's my angle) and he's right, no'one's even considering silly price cuts at the minute. There are however, some houses priced WAY above what they are worth compared to their competition. We didn't bother looking around those ones, because they or the agent have a need for a reality check. These must surely fall (I'm all for optimism, but please!...) whereas reasonably priced ones are sticking to their guns (maybe to no avail, but that's to be confirmed yet). We've been watching an area for months now, and from what I've seen, the houses with a bit more room and easier parking are selling quite quickly. Nearby, ones that are at similar prices (with the same number of rooms) but more parking issues etc are stuck and starting to drift down in price already.

We took a 4% reduction on ours and got the same on the one we are buying. We tried a few lower offers and got nothing. Even being in a good position with virtually no chain etc. That's the value of these houses, now, today. In six months, who knows. I'll hopefully be long into my new home by then and can ignore this debate for 5 years or so until things get back to normal.

Meanwhile, let's not be spiteful to the likes of Jorgan and others, who bring valuable information to the table. I understand, if you are desperate for a HPC, then that's your angle. Just let's keep this civilized. Without people from the other side of the fence, you have nothing but wild speculation and hysteria, which essentially generates a frenzy of non-opposing points of view and endless mutual backslapping.

That doesn't make for healthy debate in my book... Opinions are good. Facts are good. But let's not confuse the two!

JoJoArmani

wild speculation and hysteria, which essentially generates a frenzy of non-opposing points of view and endless mutual backslapping.

PMSL!

How true......

zappahey

Woby_Tide wrote: »

daft analogy with a car though,

Not at all, many people have paid way over the odds when they have MEW'd to buy cars. By the time they have paid off the mortgage, they have paid much more than the car's "sticker" price.

glen8

Would I pay 20k for a 5k car?

Depends........

Who has valued the car at 5k
Would the car become a future classic worth 10 times its sale price
Has the car got something invaluble to me
Is it a rare model

it's not a simple question

wolvoman

TheChicken wrote: »

I do understand the emotional side as I long for a house, but I don't want to be paying £125k for a rabbit hutch in a 'bad' area because its all I can afford when joe bloggs only paid £60k ten years ago for the beautifull house in the 'good' area which is now selling for £180k!

Ch!ck

Of all the strange debates I have seen of late, this really takes the biscuit!

10 years ago we could buy oil for $12 a barrel. Using inflation that means it should cost about $20 now.

Markets decide prices, not some arbitrary link to inflation.

TheChicken

Well I am astounded.
Yes the "houses are overinflated" topic has been around for a few years now but personally I think enough is enough and the consumer - especially FTB - should use the oppurtunities within the media and mortgages to correct these overinflated prices.
I cannot believe that everyone just wants to argue and people cannot come to the realisation that due to greed, want and need houseprices are not what they should be.
I am sorry to those who have already bought or are selling but the market will show who's right in the long run.
And for those saying it a bad anology, go buy the £5,000 car and hand the seller £15,000 tip, smile and drive away - I think not!
Yes houses are more than just something to throw money at, they can be the be all and end all of peoples lives and families, but wouldnt you live more comfortably knowing that you are paying the right price for your property, that instead of pushing yourself out with a £800 mortgage on the "average house price" your paying the realistic price for your Average House with a £450 mortgage and you CAN cope with raising fuel prices, gas, electric, food, bread and milk.
Cheers for the insults - but why? Have you really convinced yourself your doing the right thing?!

Ch!ck

Markyt

TheChicken wrote: »

Well I am astounded.
I think enough is enough and the consumer - especially FTB - should use the oppurtunities within the media and mortgages to correct these overinflated prices.

They do. It is a little known trick, involving offering to pay what they believe the property is worth. Therefore, they control the market.

TheChicken

I agree Marky, yet if people paid what they truly thought the property was worth we wouldn't have this situation. If property developers, commuters and people who want at any cost weren't involved we would have a saner market.

The phrase 'You can't make a fool of an honest man' comes to mind.People thought that it was brilliant that they could sell there house for at least twice what they paid for it and make a killing, then move to a cheaper house further away but offer 10% more than the asking price as they had the diosh, causing a mexican wave accross the country of increasing house prices and pushing FTB further and further out of the market.
Now people are feeling more than a pinch from the housing market, as not just houseprices rose but the cost of living has too.
Ch!ck

mr.broderick

Markyt wrote: »

They do. It is a little known trick, involving offering to pay what they believe the property is worth. Therefore, they control the market.

mmmmm might be a few people here that think lenders dictate the market...