Postive thread about buying now!

ixwood

I don't think 8% IR is all that unlikely. That's the long term average isn't it?

I reckon we'll see 8% and beyond within 5 years.

brit1234

danksybaby wrote: »

in your opinion........you cant call someone a moron just because they are buying a house for god sake.

It depends on the circumstances. If they are buying at todays prices or up to 15% off with out desperate need to own some where, then yes they are morons. However if someone is buying with 50% off, then fair play.

The fact is in most circumstances it is stupid to buy when we have years of price falls to come and a return to normal interest rates on the horizon.

danksybaby wrote: »

im a FTB and will have a 10% deposit by august at which i hope to buy a house and i am no moron.i know what im doing

I hope you do, your need to haggle a massive reduction or you will lose out. Thats if the 10% deposit is enough, banks are increasingly requiring 20-25% deposits now. The higher deposits often come with better interest rates which will be useful when rates rise again as some of the banks are now calling for.

danksybaby wrote: »

but with the press scaremongering and people like you emphasizing (sp)

For one the press aren't scaremongering, they are stupidly reporting what is happening now. They should of reported the dangers years ago when all the signs were being ignored, liar loans, +5x salary mortgages, land registry manipulation, interest only mortgages, double digit house price inflation etc.

It was plain to see. House prices go up by inflation unless you add value to them. The only shortage of homes were caused by the buy to let buying up first time buyer properties with their tax advantages.

danksybaby wrote: »

what they say is pathetic.who can guarantee what the houses are going to be like in a years time????

I can, quite easily and if you know anything about markets or economics you would agree.

Think of the housing market as an oil tanker. Almost unstoppable in a single direction but when it turns it takes ages and does it slowly and then speeds up. This mirrors the traditional housing market who's turns take years to unfold.

It takes a lot of force to change the direction of a tanker when it is being pulled in one direction. With the housing market there is not a lot of positive variables on the horizon, infact it is looking worse as the credit crunch deepens and spreads.

Prices are returning back to normal, at the moment they are 50% overvalued based on traditional lending rates (3.5 times salary). Now if banks are returning to traditional lending rates then prices have to fall or nothing sells. The credit crunch won't stop till banks lend sustainably again.

borntobefree

Hi

Good Luck with your purchase:money:

For the record though:-

speculating in food causes food riots
speculating in oil leads to lorry drivers blocking the highways
speculating in property leads to people being priced out of a home and makes them sad, bitter and angry

Sorry you did ask.

RedTomato

halia wrote: »

why exactly do you wish house prices down? if you own a house then you won't want to see it go down in value so I assume what you are saying is you don't own so you would like to see other peoples possessions/financial position become worse? Isn't that just a wee bit nasty? to activly WANT something to happen that would cause lots of people unhappiness and pain?

urm...not exactly, if I own a house valued at 100k and I want to buy a bigger one/one in a more expensive area at 150K, I have to raise an extra 50K. If prices go down 10%, mine now gets 90K and the bigger one 135K, so I have to raise an extra 45K. I also have to pay less stamp duty. Hence, falling prices (if fall uniformly) are better for upsizers.

Caffca

Despite all the doom and gloom about the economic climate and the "passionate" stances that members of both the HPC and HPI cliques take, I am buying a house (looking to complete end of June). I realise that house prices could/will in all likelihood drop over the next year or so and who knows after that. I won't predict how much (my crystal ball being at the repair shop) and to be honest I don't really care that much.

I want a place of my own again (over a year living with family is not ideal when you've lived away for 20 years). I didn't sell my last place to "cash" in before the bubble burst (I didn't know it would happen) I sold simply because I had the option of volunatary redundncy with a good package and decided that I wanted to move back to my home town to be nearer family.

I've put down a deposit of 35% and my mortgage is 2.9 times my income. I don't have any debts and will still have a savings pot after fees equivalent to 65% of my gross annual salary (or 85% of take home pay). I don't intend to move - ever! Apart from the last move to the crematorium by which time I really won't give a damn what's happening to house prices!

I can very comfortably afford the repayments for the 10 year fix that I have and I intend to overpay as well during this time. I also looked at what happened if interest rates rose to 10/15% when I came out of the fixed period and although it might be a bit tough - I could still afford the repayments and living expenses - I did these calculations based on my current salary so not even taking into account any pay awards over the coming years. And the monthly mortgage payments on the repayment mortgage are about the same if not less than to rent an equivalent property in this area.

Yes, life circumstances may change and I may have to sell up before I die but I can't live my life based on uncertain / unpredictable factors that may or may not result in me losing some money / equity.

Life is for living, it comes with risks and no certainties apart from taxes and death (as the saying goes). To me, the benefits of having my own place again far outweigh any potential risks that life / home-ownership may throw at me.

mircea

Captain_Mainwaring wrote: »

Very bitter, you obviously lost out. I wish house prices down for the same reason others wished them up - call it what you will. I'm probably worse becuase I'd like to see interest rates hit 14% and really separate the men out from the boys.

You are a cretin - how about the people who had a family illness, divorce or a loss? Let's say someone's mother had cancer, they had to take time off to look after her, in the end lost their job, missed some mortgage payments and the only option to keep the house was to borrow some money. What do you say to them if the interest hits 14% and they loose their house? That they deserve it and that is good because it will separate the boys from the men?

Of course there were excesses during the easy credit years - there are everywhere and in everything. But to make such a simplistic generalization and disregard the individual circumstances makes for very bad taste. As it has already been pointed out to you - a lot of decent, honest, hard working people will suffer. Most probably the ones you seem to loath, the heavy borrowers will walk away scotch free...

pickles110564

RedTomato wrote: »

urm...not exactly, if I own a house valued at 100k and I want to buy a bigger one/one in a more expensive area at 150K, I have to raise an extra 50K. If prices go down 10%, mine now gets 90K and the bigger one 135K, so I have to raise an extra 45K. I also have to pay less stamp duty. Hence, falling prices (if fall uniformly) are better for upsizers.

That is in your perfect world.In the real world the bottom end falls a lot more than those in the middle.

geoffky

whats the point of this thread????

pickles110564

brit1234 wrote: »

It depends on the circumstances. If they are buying at todays prices or up to 15% off with out desperate need to own some where, then yes they are morons. However if someone is buying with 50% off, then fair play.
I think that you are talking about yourself again.
The fact is in most circumstances it is stupid to buy when we have years of price falls to come and a return to normal interest rates on the horizon.
How come you are not minted with your vision into the future.


It was plain to see. House prices go up by inflation unless you add value to them. The only shortage of homes were caused by the buy to let buying up first time buyer properties with their tax advantages.
Here we go again blaming BTL's for your own shortfalls.


Think of the housing market as an oil tanker. Almost unstoppable in a single direction but when it turns it takes ages and does it slowly and then speeds up. This mirrors the traditional housing market who's turns take years to unfold.
Rubbish. How old are you? You have not been around long enough to comment on that.
Last time the dip lasted no more than 3 years and look how high it went.

Prices are returning back to normal, at the moment they are 50% overvalued based on traditional lending rates (3.5 times salary). Now if banks are returning to traditional lending rates then prices have to fall or nothing sells.

Where is your proof of this?
People will have to drop their prices by loads to get back to your magical 3.5.
This will not happen except for a small fall by a few desperate sellers.

pickles110564

geoffky wrote: »

whats the point of this thread????

Or your remark????????