Sorry - very naive question...

JayScottGreenspan

True, the house price boom we've been through has made gamblers of us all. Oh for some stability...

dean_ham

HC wrote: »

Yes, I understand what you mean.

However, while you're waiting for the bottoming-out (and how will you know when it's there?), savings interest rates will go down and mortgage interest rates will go up. In 1986 I bought a house for £70k. In 1987 it was worth £120k. I sold it a year later for £70k. We may well be heading for a similar situation now.

It seems you need a PhD in economics these days to know what to do.

But many of us FTB's are luckily enough to be in a situation where we are can pick and chose when to make the biggest decision of our lives.... When is it the best time to buy and get out foot on the property ladder.

As you said above in 1987 your house was worth £120k. In 1988 it was worth £70k.

I refuse to buy at stupid levels as it was in 1987 (present) and will wait until they drop to reasonable levels. Obviously in time i will have to bite the bullet and buy, im hoping in 12-18 months time i will. But by then i hope to see upto 20-25% reduction in asking prices.
Yes im gambling that prices will drop over the next 12-18 months but i know one thing, they wont increase in that period.
Also in the mean time while i wait i would have saved an extra £12k-£18k towards my deposit on top of the £xxxxx ive saved over the last 5 years for a deposit.

RHemmings

neas wrote: »

I'm not wishing pain on others...but I am not naive to think that if house prices continue dropping people won't feel the pinch.

They go hand in hand as with everything in capitalism..

To wish for house prices to fall is to wish pain on home-owners who bought recently with huge mortgages, or who wish to downsize.

To wish for house prices not to fall is to wish pain on those who want to buy a property, or to eventually move to a larger property.

I can't see how the first option is morally worse than the second.

Phirefly

lauraandclive wrote: »

It's like buying a top in Marks and Spencer's for £20 and then complaining when it's reduced by 50% a week later. You were the person that was prepared to pay £20 for it, so it's your tough luck if no-one else does and so it gets put in the bargain section.

Unless you bought it from Gap in which case you'll get your £10 back

LillyJ

dean_ham wrote: »

Im more than likley in the same age range as you two (in my early 20's) and neither do i wish pain on others.
But i have no simpathy for people remortgaging in a rising market for a new car/holidays/hobbies when they have no foresight that the market can turn the other way!
Neither do i have sympathy for people borrowing 100-125% LTV @ 6+ times their annual salary.....

END OF

Me neither, but if predictions go correctly there will be people who bought a year or two ago with sensible 10% deposits, with sensible multiples, who may have to move but will be in negative equity. What did those people do so wrong to wish pain on them? Many of the posters on here would be in the same position if they had been able to buy a couple of years ago.

fimonkey

RHemmings wrote: »

To wish for house prices to fall is to wish pain on home-owners who bought recently with huge mortgages, or who wish to downsize.

To wish for house prices not to fall is to wish pain on those who want to buy a property, or to eventually move to a larger property.

I can't see how the first option is morally worse than the second.

Completely agree! Some win, some loose. ... it's called life and has a million cliches to describe it.

dean_ham

LillyJ wrote: »

Me neither, but if predictions go correctly there will be people who bought a year or two ago with sensible 10% deposits, with sensible multiples, who may have to move but will be in negative equity. What did those people do so wrong to wish pain on them? Many of the posters on here would be in the same position if they had been able to buy a couple of years ago.

Ok so them people who bought in the last 4 years and borrowed sensibly and saved 10-20% deposits and at sensible multiples 3-4 times.
If they thought to themselfs we will be moving to a bigger house in under 5 years time because they were sensible they should have enough disposable income to carry on saving for that bigger house and for the deposit that goes with it.

LillyJ

dean_ham wrote: »

Ok so them people who bought in the last 4 years and borrowed sensibly and saved 10-20% deposits and at sensible multiples 3-4 times.
If they thought to themselfs we will be moving to a bigger house in under 5 years time because they were sensible they should have enough disposable income to carry on saving for that bigger house and for the deposit that goes with it.

What? I never said a word about moving to a bigger house. People move for many other reasons than upsizing! Moving nearer to family, work reasons etc. So why would they have been saving for a bigger deposit? I think maybe you misunderstood my post?

beautifulgorgeous_2

Phirefly wrote: »

Unless you bought it from Gap in which case you'll get your £10 back

Not any more.