Why not buy a property now?

mr.broderick

geoffky wrote: »

How Times Change/// April 2008

Actually unfortunately for me nothing has changed, mortgage fixed.

kriss_boy

Rollerball wrote: »

Well stone the crows. There was me thinking that we were in the middle of one almighty housing crash . I must have dreamt it all up

I dont know if Id call it a crash in Scotland.

Im still viewing houses and yes, some flats in town are selling in the 60s compared to the 70s 18 months ago. But many people didnt pay those prices back then.

I got my place in March 2008 and I reckon I got a bargain. I was lucky the way the sale went and I reckon the place is worth what I paid considering the circumstances.

Plus Ive viewed a few houses lately and seen the sell for good prices.

Kenny4315

Personally I'd wait another 6 months, in your position. By that time you'll be fairly sure that the bulk of the correction has occured, whatever is left is small fry, and you'll have covered the market correction by your ability to negioated hard on your transaction, in the strong position your in. 2 years of heavily falling market is not going to happen. So by early autumn I'd expect you to be able to get a price including falls to then and your negioating of 20% below end of feb position, probably 10-12% of fall and the remainder on negioating on the right property.

confused31_2

I think it may take 6 months for it to start to steady out, but i definately think some buyers are coming back, if you can get 20% of a proper priced house i think you will be okay.

People are going on about america i watched sky news yesterday and they reckon their housing market has started to pick up, the banks have started lending and some of the rates are unbelievable i seen a 30 year fixed rate mortgage at 3.8%.

They were saying it was good as the construction workers were going back to work because of the buyers coming back, so it was doing two things getting house buyers back and construction workers back building them.

The lady they interviewed said thats whats the bailout was for, to get everyone spending, i personally think there are not many people buying here, has they can not get a mortgage.

PasturesNew

If you have a £200k house which you can buy at £160k, you then make all the houses in that road worth £160k... THEN there's a further drop. If you buy at £160k it doesn't leave all the other identical houses still 'worth' £200k. It makes them all £160k.

Where I live two properties went up for sale at £75k in December 2007. One withdrew in February. The 2nd eventually sold in auction in August 2008 at £55k. The second one is now back on the market - priced at £55k.

The last selling price is the new asking price.

ukcarper

PasturesNew wrote: »

If you have a £200k house which you can buy at £160k, you then make all the houses in that road worth £160k... THEN there's a further drop. If you buy at £160k it doesn't leave all the other identical houses still 'worth' £200k. It makes them all £160k.

Where I live two properties went up for sale at £75k in December 2007. One withdrew in February. The 2nd eventually sold in auction in August 2008 at £55k. The second one is now back on the market - priced at £55k.

The last selling price is the new asking price.

That's not right and your explanation is not correct, as there are 15 months of falling house prices to take into account. If OP has got a genuine 40k discount he should be ok but it’s difficult for him or us to know if he has.

ad9898_3

ukcarper wrote: »

That's not right and your explanation is not correct, as there are 15 months of falling house prices to take into account. If OP has got a genuine 40k discount he should be ok but it’s difficult for him or us to know if he has.

A genuine 40% discount from what ?, as PN has said, if a street of houses are the same i.e terraced,semi etc.. the last selling price is the new selling price for the whole street, this is how valuations are done.

The 15 months of falling prices is not relevant, only the current sold prices.

ukcarper

ad9898 wrote: »

A genuine 40% discount from what ?, as PN has said, if a street of houses are the same i.e terraced,semi etc.. the last selling price is the new selling price for the whole street, this is how valuations are done.

The 15 months of falling prices is not relevant, only the current sold prices.

But the original price was in 2007 and house prices have dropped 20% since then.
A genuine 40% from today’s value not 2007 value. Of course no one knows what today's value is.

System

My post never appeared... I'll try again.

If you want to buy a home rather than an investment I don't think it makes much difference. I personally don't care if my flat is suddenly worth 1p as long as I have a fair opportunity to repay my mortgage without being trapped on a sky high SVR. Sure you might be able to save 15-20k but on a monthly basis it's really not much difference, and that difference might seem like good value for owning your own home compared to waiting years for house prices to fall.

Speaking of which, I don't believe they'll fall "another 50%".

Ultimately, you're asking in the wrong forum, people here would love nothing more than to see everyone become bankrupt and lead unhappy lives.

chucky

PasturesNew wrote: »

If you have a £200k house which you can buy at £160k, you then make all the houses in that road worth £160k... THEN there's a further drop. If you buy at £160k it doesn't leave all the other identical houses still 'worth' £200k. It makes them all £160k.

Where I live two properties went up for sale at £75k in December 2007. One withdrew in February. The 2nd eventually sold in auction in August 2008 at £55k. The second one is now back on the market - priced at £55k.

The last selling price is the new asking price.

not strictly true in the real world - but i understand and agree with the logic that's how it should be.

the asking price is usually and always decided by estate agents.
the price they tell you is because they want your instruction and then it's highest price that they think that they can get for the property.

so just because a property was sold for £160k it doesn't mean the EA will price it at that - he will still price it at £200k as he represents the seller and also it's increased commission.

if people need to sell, they have to be realistic and go for the £160k price to sell the property, otherwise they play the waiting game of seeing if someone comes along at £200k not knowing about the £160k sale.