price drops

LillyJ

I came on here originally to find out information on buying my house as I am an FTB I needed to understand it. This site has helped me understand that we are indeed able to afford it, and that we are not at risk of repossession. It has also helped me in other aspects like life insurance etc.

Sorry if you want a one sided discussion then I will go away. I had mistakenly thought this was a public forum where people could discuss their views on house prices etc, not just for people who hope prices fall far enough for them to be able to buy a 5 bed detatched in Solihull in 25 years time.

boinging_2

LillyJ wrote: »

I came on here originally to find out information on buying my house as I am an FTB I needed to understand it. This site has helped me understand that we are indeed able to afford it, and that we are not at risk of repossession. It has also helped me in other aspects like life insurance etc.

Sorry if you want a one sided discussion then I will go away. I had mistakenly thought this was a public forum where people could discuss their views on house prices etc, not just for people who hope prices fall far enough for them to be able to buy a 5 bed detatched in Solihull in 25 years time.

Firstly I have no desire to live in Solihull, secondly I've already owned two properties and sold to move back into rented last summer.

If you are comfortable with being a home owner for 6 months longer of your life for potentially losing 10 - 20% value of your home then you know the risks and you are taking them so fair play.

I would rather watch the market fall and buy when I'm either getting more for my money or have a much reduced mortgage.

LillyJ

Or the next 6 months, or the next, or the next. When will it end? No one knows.

Good luck with waiting, but I don't want to. I will not lose any money whatsoever unless I sell, so it is arbitary anyway. My mortgage is affordable (I know this as I pay that amount in rent anyway) and in 25 years time (probably a lot less) I will own it.

LillyJ

Jimuth wrote: »

Hey Lilly, no problems with you moving, and I work in Brum - and yeah, Harborne's nice etc. and I totally agree with going with your heart rather than your head if it works for you (some people on here can't see the wood for the £££££ signs sometimes).

What I do have a problem with is your acceptance of market forces and saying that people should "know their level". For example, it seems very unfair to me that someone in rural Wales gets priced out because of English holiday homes, for example, even though them wanting to stay near friends/family/work and price used to be affordable for them are all factors you've used to defend yourself against boinging in your calcs (and fair play for that).

What if Harborne was unaffordable for you & OH apart from renting or a crappy flat? Would you be as happy then to accept that "people must have realistic expectations"? What if you parents were gravely ill and you had to care for them but couldn't afford to live back in Herts?

Is that not being realistic? Should we allow the market (in the form of absent owners, BTL landlords) to separate communities in such a way?

Not having a go at all, just wondering what you thought. We're creating slum areas (for want of a better word) by HPI, and it's the quiet majority who are like you, happy to have a home ("I'm alright Jack"), who don't seem to see this as a problem that I'm currently trying to understand...

Apologies if you DO think HPI is a social problem; it just didn't come across in your posts.

I do think that HPI is a problem, and yes, I would not be able to buy back home is Herts. I am just saying it is more of a problem in some places than others. To the comment about Wales, that is true and I do not really agree with 2nd homes like that, and it is not as if people there can move down the road to a cheaper place. However such areas, jobs are often the biggest issue.

Boinging made the comment about people growing up in Harborne being priced out. Now that is not such a sensible comment. They can move to Kings Heath (just an example!) and get the bus for 10 minutes to get back home. Why they should be given a cheap house in Harborne centre is beyond me.

I was just trying to prove the point that to say a FTB cannot afford housing at all is a bit silly because it is so regional, and that people on average wage cannot expect to buy a house in the most sought after area. It has always been this way, even before the increase. Some areas were more expensive than others, therefore more affluent people moved there.

I personally think (and I thought this before I decided to buy) that the most stable thing for the economy would be stagnation. A large crash helps no one as people will lose their jobs, those FTBs who waited would not be able to get mortgages, people would be in negative equity, etc etc. Stagnation would allow wages to catch up without too much detrimental effect on the economy.

I also think 10% decrease would be fair as well, but drops of 30-50% like some people are hoping for would cause a lot of problems for a huge number of people.

MUDGUTS

As we are slightly off topic I will add a couple of things.

Firstly, I would say that true intelligence pushes one towards the best solution or outcome, not the most expensive one, such as a house.

Secondly, anyone buying property at the top of the market is exposing themselves to a lot of risk.

Thirdly, ANYONE can lose their job, Armed forces, Police, etc., maybe not through redundancy but through health issues or simply leave because they have had enough and leave expecting the same salary or security.

Looking at this thread I wonder who is trying to convince who that this purchase by LillyJ is the right or wrong one?

Finally, Investing 'emotionally' is great and I would agree to some extent with this concept but on the other hand renting does not have to be so bad, lets say your neighbours are particularly bad or any other 'local' problem develops, renting does give you freedom.

Anyway, IMO money today (if you have kids) is probably better spent on private education than a house.

Jimuth

LillyJ wrote: »

I personally think (and I thought this before I decided to buy) that the most stable thing for the economy would be stagnation. A large crash helps no one as people will lose their jobs, those FTBs who waited would not be able to get mortgages, people would be in negative equity, etc etc. Stagnation would allow wages to catch up without too much detrimental effect on the economy.

I also think 10% decrease would be fair as well, but drops of 30-50% like some people are hoping for would cause a lot of problems for a huge number of people.

I completely agree - although the 10% has to be framed by a timescale, 10% over 3 years being less than 1 year... I'm hoping for a 15% reduction over 2 years for completely selfish reasons (nice house, cheap mortgage!) :rotfl:

Thank you for taking the time to reply and enjoy your new home :beer:

LillyJ

MUDGUTS wrote: »

As we are slightly off topic I will add a couple of things.

Firstly, I would say that true intelligence pushes one towards the best solution or outcome, not the most expensive one, such as a house.

Secondly, anyone buying property at the top of the market is exposing themselves to a lot of risk.

Thirdly, ANYONE can lose their job, Armed forces, Police, etc., maybe not through redundancy but through health issues or simply leave because they have had enough and leave expecting the same salary or security.

Looking at this thread I wonder who is trying to convince who that this purchase by LillyJ is the right or wrong one?

Finally, Investing 'emotionally' is great and I would agree to some extent with this concept but on the other hand renting does not have to be so bad, lets say your neighbours are particularly bad or any other 'local' problem develops, renting does give you freedom.

Anyway, IMO money today (if you have kids) is probably better spent on private education than a house.

Do NOT get me started on private education. I am very highly educated to PhD level with a good job and I went to a comprehensive. My Father could afford to send us to private school but didn't, as my Mother is a teacher and agrees with state schooling. I got straight As and A*s at GCSE and 4 As at A level. I then went on to get a 1st class degree from a redbrick university and a PhD. It also provided me with a very rounded education.

It is not like I have not tried renting, I have done it for 7 years and I don't like it.

Police officers cannot be made redundant, and my partner is a career officer so is not going to leave. If he becomes ill he is retired on medical grounds and gets a pension. The likelihood of that happening AND me losing my job and being unable to get another is so small it isn't even worth thinking about.

If that is your argument then no one should ever buy. Apart from a couple consisting of 2 police officers I cannot think of a much more secure couple in terms of jobs. I cannot live my life thinking ooo we might lose our jobs next month so we had better not book that holiday.

I also decided to buy after all this news came out about crashes so it is not like I am trying to convince my self it is a good idea. I know what I want for my life, and life is too short to walk around with pound signs in your eyes.

You think I am stupid to buy a house, I think you are stupid to pay out for education we get free in this country. That is fine, neither is doing the other any harm.

LillyJ

Jimuth wrote: »

I completely agree - although the 10% has to be framed by a timescale, 10% over 3 years being less than 1 year... I'm hoping for a 15% reduction over 2 years for completely selfish reasons (nice house, cheap mortgage!) :rotfl:

Thank you for taking the time to reply and enjoy your new home :beer:

Maybe we could compromise; 10% drop over the next year, then stagnation for the next 3-4, then rising with inflation?? That would be pretty fair to everyone, and should allow you to get your cheap mortgage! Good luck.

neverdespairgirl

LillyJ wrote: »

Well you are obviously very happy there and are lucky to have a good landlord and a nice home. I haven't found that rented place, and I have looked hard. My house has been sold from under my feet, I have had landlords who don't fix showers and then when I pay for repairs I get a warning letter from the agent etc etc

Surely it is personal choice and I don't think anyone could slate me for wanting to own a home when I can afford it and understand the risks and costs involved.

I'm not, and haven't, slated you. We all make our own decisions, and they are different for different people.

WE have great LLs. She pops round every so often, with plenty of warning and at a mutually convenient time. She doesn't inspect the place, just checks everything is OK, schedules repairs, etc. She arranged to have painting and floors re-done when we were on holiday, for example.

neverdespairgirl

LillyJ wrote: »

Do NOT get me started on private education. I am very highly educated to PhD level with a good job and I went to a comprehensive. My Father could afford to send us to private school but didn't, as my Mother is a teacher and agrees with state schooling. I got straight As and A*s at GCSE and 4 As at A level. I then went on to get a 1st class degree from a redbrick university and a PhD. It also provided me with a very rounded education.

I went to private schools from ages 4 to 18. My experience was great, I had a wonderful education.

OH went to a good comprehensive from 13 to 18, after going to a private, religious school before that.

Both OH and I got all As at A level, and went to the same university, where we met each other, and did post-grad qualifications as well.

My education was, over all, better than his. My grammar and general basic language training was more thorough, extra school activities more varied, and facilities such as the library far better.