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Debate House Prices
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House Price Crash Discussion Thread
Comments
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To be perfectly honest I hadn't factored in the interest :shhh:
However I'm in the top tax bracket so it's not anywhere near the level I'd like! (especially if they keep cutting interest rates!)saving, saving, saving!0 -
Now here's the odd bit.. I want a property... I have the finances in place and yet right now I'm not even viewing (although I am regularly checking findaproperty/ rightmove). So why am I not willing to buy yet? I'm waiting for prices to fall of course! Now how many others are there like me that impacting the demand?
This is why I expect to see a dip at which point a lot of people in a similar situation to me will rush in & buy. Once these people have bought the surge will be over & prices will fall...
That's called a bull trap. Things fall back from the peak, some people rush in to get 'good value' and things briefly improve again ... until the underlying fundamentals of the market assert themselves and the plunge resumes, usually steeper.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Now here's the odd bit.. I want a property... I have the finances in place and yet right now I'm not even viewing (although I am regularly checking findaproperty/ rightmove). So why am I not willing to buy yet? I'm waiting for prices to fall of course! Now how many others are there like me that impacting the demand?
Me, for one.
I wish the bull trap would hurry up !0 -
This is where I am at the moment, but I've just had an offer accepted on a really super house. And I've had to offer over the asking price to secure the purchase! huh? The house sold wthin 4 days of going on the market, with 2 of us bidding.Now here's the odd bit.. I want a property... I have the finances in place and yet right now I'm not even viewing (although I am regularly checking findaproperty/ rightmove). So why am I not willing to buy yet? I'm waiting for prices to fall of course! Now how many others are there like me that impacting the demand?
Where we live, houses are relatively cheap. The house we're getting was priced to sell at a 2 year old price, so had already dipped. But it is a really super house, and as they say there will always be a ready market for the best houses.
We chose not to wait any longer because:
1. The house we wanted came onto the market.
2. We feel we've gained from the current climate.
3. We didn't like living in rented...
4. The rent goes down the drain, a mortgage payment is coming off your loan. Even with a further dip, at least we're paying our loan off.
5. We're buying a home not an investment (primarily).
6. Our quality of life will be better every single day.
Good luck to those who continue to "hold out". We all use our own logic to justify our decisions (including me!). Whilst prices might drop (or stagnate at the very least), our own situations logic is hard to fault (according to me!).
PS Cool bike, I used to own a 750VFR - first one with a single sided swinging arm.Andy
The older I get, the better I was...0 -
So property prices are 'continuing' to fall.......
http://news.bbc.co.uk/1/hi/business/7214777.stm
Note the third paragraph, after the title:
'The December fall was the first decline recorded by the Land Registry since August 2005, although prices grew in three individual regions.'
So prices 'continue' to fall do they? The press keep reporting the same figures over and over with different headlines. They and many others have been calling time on the bubble since around 2004 (maybe sooner?).
I believe the picture is much more complicated. There are thousands out there who have already lost and lost big on many over priced new developments, often in so called 'up and coming' areas, that have yet to up and come! What I fail to understand is how one minute we have a housing shortage crisis and the next we are going to have to sell our houses at half the price we paid for them??? Unlikely, I think.
I say, get a grip everyone. If you need to buy, buy, if you need to sell, sell. Just watch out for the overpriced newbuilds built almost entirely to sustain an over eager private buy to let market.0 -
4 months now of price falls, its great. Even if there is a cut in interest rates it won't stop the falls just like all the cuts in America haven't.
The only way prices will stop falling is when they will return to 3 x salary as that looks now the only way the credit crunch will end. Banks won't lend on falling properties especially with all there loses.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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What I fail to understand is how one minute we have a housing shortage crisis and the next we are going to have to sell our houses at half the price we paid for them??? Unlikely, I think.
That's because we never had a real shortage of houses to meet the demand for people to live in - just a shortage of houses to meet the inflated 'demand' caused by cheap and easy mortgages and frenzied speculation. Demand fast subsiding as prices fall and credit becomes harder to obtain.
So long as you can pay your mortgage, you don't have to sell at all. Should you find yourself having to sell somewhere down the line however, you can expect to get a lot less for it than you could do now. Lots of people who took on stupid amounts of debt to buy property may well find themselves in the latter camp of 'having to sell' if the economic climate turns sour and jobs aren't so secure or easy to come by.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
If there is a housing shortage how come theres over 1 million for sale on rightmove alone
This might sound sarcastic.....well because it is....but
If I had a million quid on my desk I would'nt claim I had a money shortage.
Could it possibly be that someone has been lieing? y'know like estate agents because they only work on commision and rely on volumes????
shirley not
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4 months now of price falls, its great. Even if there is a cut in interest rates it won't stop the falls just like all the cuts in America haven't.
The only way prices will stop falling is when they will return to 3 x salary as that looks now the only way the credit crunch will end. Banks won't lend on falling properties especially with all there loses.
I'm not sure why there's an assumption that '3 x salary' (whose salary? net or gross? what is 3 x salary?) is given such significance.
Things do change over time. Some changes over the last 20 years would imply that house prices could rise against salary (eg lower cost of things like clothes, furniture, food leaves more to service the mortgage so overall spending remains the same; lower interest rates allow a higher mortgage to be serviced), other things imply that they would be reduced (eg increasing taxes reducing amount of money available to service a mortgage, increased costs of buying and selling (HIPs and stamp duty); less job security and welfare payments being given much later for interest payments leading to risk aversion among buyers).
3 x your salary is just what a building society used to lend when they didn't really have much in the way of risk modelling. It means nothing. It certainly has nothing to do with the credit crunch which is about the willingness and ability of banks to lend money to each other.If there is a housing shortage how come theres over 1 million for sale on rightmove alone
This might sound sarcastic.....well because it is....but
If I had a million quid on my desk I would'nt claim I had a money shortage.
Could it possibly be that someone has been lieing? y'know like estate agents because they only work on commision and rely on volumes????
shirley not
There's a shortage of family homes in the South East hence people commuting increasing distances due to the green belt being very firmly defended by local councils. Whether that's a good or a bad thing depends on you.
Apart from that you're right. If there is a shortage of housing, where are all the tent cities and shanty towns?0 -
I'm not sure why there's an assumption that '3 x salary' (whose salary? net or gross? what is 3 x salary?) is given such significance.
Things do change over time. Some changes over the last 20 years would imply that house prices could rise against salary (eg lower cost of things like clothes, furniture, food leaves more to service the mortgage so overall spending remains the same; lower interest rates allow a higher mortgage to be serviced), other things imply that they would be reduced (eg increasing taxes reducing amount of money available to service a mortgage, increased costs of buying and selling (HIPs and stamp duty); less job security and welfare payments being given much later for interest payments leading to risk aversion among buyers).
3 x your salary is just what a building society used to lend when they didn't really have much in the way of risk modelling. It means nothing. It certainly has nothing to do with the credit crunch which is about the willingness and ability of banks to lend money to each other.
There's a shortage of family homes in the South East hence people commuting increasing distances due to the green belt being very firmly defended by local councils. Whether that's a good or a bad thing depends on you.
Apart from that you're right. If there is a shortage of housing, where are all the tent cities and shanty towns?
I really dont get all that green belt lark and looking at fields and stuff
And them ramblers who dont like wind generators
Them massive white windmills are far more impressive than some sodding grass
Sodding Grassbury sounds like a green belt type of place dunnit?0
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