price drops

LillyJ

Selly Oak/Harborne border.

If you don't think as an average wage earner that is a nice place to live you are deluded. I am a higher than average wage earner and I feel glad to live there, and currently rent there. Harborne is extremely desirable, but near the high street is mainly flats and I have a dog. If you don't think harborne is posh then I am sorry but I come from stockbroker belt in Hertfordshire and I think it's posh!
I actually was looking between 130 and 140 and found tons of 3 beds.

How will we lose money?? Once I am living in it I couldn't care less how much it is worth, that is just something to brag about at dinner parties (which is particularly vulgar).

I am buying a home, not an investment, and I am going to live there. It is a roof over my head and I can raise a family there. So why a paper loss is of any relevance to me I don't know.

LillyJ

boinging wrote: »

Okay, losing money is something your happy to do... I would be interested to know which "lovely" "posh" areas of Birmingham have 3 bed houses for 130K, as there are only 22 properties on sale in the whole of Birmingham on Rightmove for this price with 3 or more bedrooms.

Hahaha have just done the rightmove search, whole of Birmingham 3 bed or more, more than 100 properties to display (doesn't tell you the number if it is over 100!)

Please don't lie about stuff that is freely available on the web it just makes you look very silly indeed!!!

Stevenic

LillyJ wrote: »

How will we lose money?? Once I am living in it I couldn't care less how much it is worth, that is just something to brag about at dinner parties (which is particularly vulgar).

I feel so left out that I have never had one of these conversations at a dinner party or even the pub

I do wonder why anyone would want to discuss their finances with people and why anyone cares what someone's house is 'worth'

MrSafeGaz

It depends on your definition of affordable. There are probably many FTB's out there that can 'afford' to pay a mortgage on a decent house over 35-40 years and 95% LTV but to me that's not affording thats madness. The fact that income multipliers of 5-6x an income or mortgage products of 100% or more LTV even existed is all the evidence you need that affordability on housing has been reduced. Without these products it would have been impossible for many people to get a mortgage.

I guess its the mindset really. Financial sense and logic seems to go out the window when it comes to mortgages. "Everyone has one, its just something you have to do". "I paid 120K for a house over 35 years". No you didn't, you just blew 270k because of the interest you are going to incur.

Maybe I am just being too stubborn with my money? I can 'afford' a decent 3 bed semi in a nice area but I refuse to commit myself to the ridiculous amount of interest I would have to pay. Given the market condition it seems likely that 12 months down the line, FTB's who have saved will be in a better position that they are now.

LillyJ

Stevenic wrote: »

I feel so left out that I have never had one of these conversations at a dinner party or even the pub

I do wonder why anyone would want to discuss their finances with people and why anyone cares what someone's house is 'worth'

Precisely. I hate it, and I certainly won't be telling people how much I have/haven't gained/lost on my house. Nor will I tell them what I paid (if they want to know they can look at the land registry!)

What I do know though is that after the pub/dinner party I will be going home to my lovely home which I will have made my own, from which no 6 month AST is going to force me to move every 6 months.

boinging_2

LillyJ wrote: »

Selly Oak/Harborne border.

If you don't think as an average wage earner that is a nice place to live you are deluded. I am a higher than average wage earner and I feel glad to live there, and currently rent there. Harborne is extremely desirable, but near the high street is mainly flats and I have a dog. If you don't think harborne is posh then I am sorry but I come from stockbroker belt in Hertfordshire and I think it's posh!
I actually was looking between 130 and 140 and found tons of 3 beds.

How will we lose money?? Once I am living in it I couldn't care less how much it is worth, that is just something to brag about at dinner parties (which is particularly vulgar).

I am buying a home, not an investment, and I am going to live there. It is a roof over my head and I can raise a family there. So why a paper loss is of any relevance to me I don't know.

None of the 130K houses currently on Rightmove were anywhere near Harborne. You'd have to spend at least £150K to get a 3 bed in Harborne (Quinton Road) right on the border.

Desirability is not based on how much you earn, it doesn't change over time. area's shouldn't become no go area's based on earnings... I'ts an interesting view that people with certain incomes should not be entitled to live somewhere. I know many people that were born and raised in Harborne, they are average people priced out of the area - how can that be right?

As for how a decreases in price will effect people who buy now, I'll leave for the other threads on here to explain.

LillyJ

MrSafeGaz wrote: »

It depends on your definition of affordable. There are probably many FTB's out there that can 'afford' to pay a mortgage on a decent house over 35-40 years and 95% LTV but to me that's not affording thats madness. The fact that income multipliers of 5-6x an income or mortgage products of 100% or more LTV even existed is all the evidence you need that affordability on housing has been reduced. Without these products it would have been impossible for many people to get a mortgage.

I guess its the mindset really. Financial sense and logic seems to go out the window when it comes to mortgages. "Everyone has one, its just something you have to do". "I paid 120K for a house over 35 years". No you didn't, you just blew 270k because of the interest you are going to incur.

Maybe I am just being too stubborn with my money? I can 'afford' a decent 3 bed semi in a nice area but I refuse to commit myself to the ridiculous amount of interest I would have to pay. Given the market condition it seems likely that 12 months down the line, FTB's who have saved will be in a better position that they are now.

I earn just over average and we are buying at 2x joint income with 10% deposit over 25 years. I think that is fairly sensible, and very affordable, and in fact is similar in monthly repayments to what we are paying in rent (to live in a crumbly miserable house with disgusting decoration, old fashioned boiler system, the list goes on.)

boinging_2

LillyJ wrote: »

Hahaha have just done the rightmove search, whole of Birmingham 3 bed or more, more than 100 properties to display (doesn't tell you the number if it is over 100!)

Please don't lie about stuff that is freely available on the web it just makes you look very silly indeed!!!

Yes I'm lying. Maybe if you narrowed your search to:

Houses
Min - 130,000
Max - 130,000
Min Bedrooms - 3

You'll see what I was referring to.

LillyJ

boinging wrote: »

None of the 130K houses currently on Rightmove were anywhere near Harborne. You'd have to spend at least £150K to get a 3 bed in Harborne (Quinton Road) right on the border.

Desirability is not based on how much you earn, it doesn't change over time. area's shouldn't become no go area's based on earnings... I'ts an interesting view that people with certain incomes should not be entitled to live somewhere. I know many people that were born and raised in Harborne, they are average people priced out of the area - how can that be right?

As for how a decreases in price will effect people who buy now, I'll leave for the other threads on here to explain.

NO YOU DON'T I HAVE JUST BOUGHT ONE!!! And it is nicer than quinton road. I will find one and then post it. Have you actually learned to use rightmove? PS before you start I am not going to actually post one in the precise area where we are moving for obvious reasons but near by and similar in a nice area.

Also you think that I should be able to afford to live in mill hill or something? Or where my parents live? cos I will never be able to afford that, because my work doesn't pay as well as my dad's. Do you really think people in my home town should sell me a house there cheap because I have birth rights? Don't make me laugh.

MrSafeGaz

LillyJ wrote: »

I earn just over average and we are buying at 2x joint income with 10% deposit over 25 years. I think that is fairly sensible, and very affordable, and in fact is similar in monthly repayments to what we are paying in rent (to live in a crumbly miserable house with disgusting decoration, old fashioned boiler system, the list goes on.)

I don't doubt that in your scenario the house you are buying given your earnings is affordable, I am talking in the more general sense. You seem to say that housing is still affordable but I feel that this is entirely situational and looking at the housing market as a whole, using the past 10 years as a comparison, housing is not nearly as affordable as it was back then.