House prices..
- Thread starter fendi
- Start date
rates were too high dont kid yourself they were far too low.
+1 - The house I was buying (at the peak of the market) had the sale fall through. Damn that was lucky!
I've been working my nuts off and saving like mad to build up a 45K deposit for when I want to buy. All I'm doing now is biding my time and continuing to save
The whole house issue will last for years, if anyone things house prices will rise has another thing coming. plenty of people were saying you'd better jump in before its to late well too late for who? i didnt jump and homes are dropping in price, most individuals exposed to debts, the others with black credit histories etc.. leaves a very small group which iam in, (has most of the cash no debts).
No, they always say after some economic crash oh we should have etc.. they always keep a blind eye when theres a boom. i dont see any point in regulations and adjustments, when the problem arises from turning the eye away in a boom.
Why i'm selfish? in infact i'm help them them out, if they can't afford it then i'll gladly purchase it, at a compensated rate reflecting the market.
Did i tell them its ok buy a home even if in the long run they can't afford it, if fact, far from it, iam saving someone financial hardship in the long run.
Thats a childish assumption that wanting a return to sensible economics is a bad thing.
Its almost like your suggesting that house price bears are either dead wrong (if prices didnt drop) or inhuman (if they do drop).
You obviously are banking on property making you rich, or at least wanting it to provide some kind of nest egg you didnt actually earn yourself with your own blood sweat and tears ..... Or you bought at the top and cant stomach the idea that you are indeed wrong.
Put it this way - The generation of people priced out of the idea of owning a pile or bricks and wood to put a roof over their head .... is now going to have half a chance of realising the dreams fed to them from such an early age. And likewise our kids might live in a world where they dont have to put down 8 times their salary to own a 25% share of a crack den newbuild city centre flat so they can 'get on the ladder'.
Just admit that house prices were a bubble that needed to pop
Thats a childish assumption that wanting a return to sensible economics is a bad thing.
Its almost like your suggesting that house price bears are either dead wrong (if prices didnt drop) or inhuman (if they do drop).
You obviously are banking on property making you rich, or at least wanting it to provide some kind of nest egg you didnt actually earn yourself with your own blood sweat and tears ..... Or you bought at the top and cant stomach the idea that you are indeed wrong.
Put it this way - The generation of people priced out of the idea of owning a pile or bricks and wood to put a roof over their head .... is now going to have half a chance of realising the dreams fed to them from such an early age. And likewise our kids might live in a world where they dont have to put down 8 times their salary to own a 25% share of a crack den newbuild city centre flat so they can 'get on the ladder'.
Just admit that house prices were a bubble that needed to pop
+1
+1 - The house I was buying (at the peak of the market) had the sale fall through. Damn that was lucky!
I've been working my nuts off and saving like mad to build up a 45K deposit for when I want to buy. All I'm doing now is biding my time and continuing to save
E-mail in trust if you reach your target and need to offload some
Moving out from living with the Mrs in London and back with the parents for 6months or so for hard saving. Then will probably look at downgrading to a 1 bed rental with the Mrs around the end of the summer for us to move into, as as good at living home with the parents is for saving, travelling to and from london everyday and actually having a life cannot be sustained like this indefinately.
I'm keeping a close eye on the market, and we will be saving as much as possible in the next 2-3yrs for at least £50k so hopefully get at least 25% deposit on a £200k first house outside of London once the market has picked back up.
That'll be Darling (& Brown) then with a recovery in the 2nd half of 2009 and 4% growth in 2010.
Dolph, I don't think many people 'wished' for the house prices to crash, but it was obvious years ago that they were reaching an unsustainable level and hence yes you saw people predicting a crash, the extent of the boom caught a lot of people out, but it was inevitable to crash at some point.
Am I happy now it's happened (or happening), on the whole yes, banks lending became stupid, both secured and unsecured lending was far too easy to get. This caused people to be idiots, to buy houses with 125% LTV mortgages, to borrow against their house for 10's or 100's of thousands of pounds worth to live the life of riley on the 'never never' method of payment. What is happening now is the market correcting and going back to sensible lending, and those that borrowed recklessly will be hit, very very hard by the looks of things.
People will lose their jobs, go bankrupt and lose their homes and investments, businesses will go bust. This isn't a good thing but it is needed, as too many people are living far beyond their means, that can't go on, you can blame the banks, you can blame the regulatory bodies or you can blame the idiots who took every bit of credit they could get their hands on, either way it's happening, and although there is pain on the horizon for pretty much everyone, in a few years time the economy will be a lot better for it.
Am I happy now it's happened (or happening), on the whole yes, banks lending became stupid, both secured and unsecured lending was far too easy to get. This caused people to be idiots, to buy houses with 125% LTV mortgages, to borrow against their house for 10's or 100's of thousands of pounds worth to live the life of riley on the 'never never' method of payment. What is happening now is the market correcting and going back to sensible lending, and those that borrowed recklessly will be hit, very very hard by the looks of things.
People will lose their jobs, go bankrupt and lose their homes and investments, businesses will go bust. This isn't a good thing but it is needed, as too many people are living far beyond their means, that can't go on, you can blame the banks, you can blame the regulatory bodies or you can blame the idiots who took every bit of credit they could get their hands on, either way it's happening, and although there is pain on the horizon for pretty much everyone, in a few years time the economy will be a lot better for it.
The current situation isn't anything approaching sensible economics, just as the practices encouraged by the US government with regards to securitisation and how it was managed weren't sensible economics though. What we currently have is a catastrophic collapse in the credit market, not a return to sensible economics. Sensible economics sit somewhere in between the two.
Not particularly, all I was suggesting was that many of those who thought a crash would be a good thing for people hadn't thought through the position very well. I've always maintained that if house prices did crash, it would be the result of significant negative influences that would outweigh any percieved positives of the fall in prices. This is currently being seen the world over, well unless you think large scale unemployment and the like is a good thing.
Wrong on both counts, nice try though. It amazes me that I clarified my position only a page ago with posts dating back to 2006 and yet still people get it wrong.
Well, except they can't get a mortgage for the reduced price property at the moment, so it's no more accessible to them than it was before despite the price drop.
If mortgage lending picks up and availability improves, it might change, but then again it might just create another boom...
Just admit that house prices were a bubble that needed to pop
Just admit that the bubble popping is not beneficial for most due to the surrounding circumstances that caused it
Spot on. Here's a post I made on HPC, 4th Nov 2007:
And here's one of mine from 4th May 2006:
So I hope you're not counting me with those claiming house prices would crash in isolation!
I disagree with this, from people's posts in this thread, a lot of people were 'wishing' for a price crash, planning how they were going to take advantage of it, how they would finally be able to afford a house etc, without taking into account the circumstances that would surround such a drop.
I've been cautious, I've been advising caution for a long time, but I've not been wishing for a crash, even though it would probably benefit me overall, because of the surrounding circumstances.
Agreed. Banks became stupid because they were instructed by the governments on how to hide the risk, supported by the credit agencies in doing so, and finally the whole house of cards came down when the investors holding the securities started to realise, many people embraced this without thought for the long term, and yes they will now hurt. You won't find me arguing otherwise.
Again, not really for argument now, whether it's desireable or not in the form that it's coming in is another matter. The sentiment is good, the current reality is much above what's needed to implement the desired changes.
No, I'm not, for the reasons you've already said, (although you were totally wrong on the causes of the recession, I believe you said it would be high inflation driven by skyhigh energy costs due to oil running out among other things), but one thing we've always agreed on is that if house prices crash, it will be as a symptom of wider and deeper economic problems.
I'm hoping to have 15-20k deposit by the time summer rolls around. Add then i'll hopefully be a qualified teacher starting a job in September (21k to begin with). I'll be looking to buy a house as soon as possible really, can anyone hazard a guess at the range of house prices I should be able to afford?
Depends on your level of debts elsewhere (Credit Card etc...). Once you've been in your job for a few months, you'd be looking at somewhere between:
Mortgage: 3-4x 21k
Deposit: 15-20k
Property Price: 78-104k
But you have to also factor in your repayment method, term of repayment before deciding on affordability. Whatever you borrow, just make sure you're comfortable with the repayments when rates rise and the equity in your property disappears. Although these events are not guaranteed, it's always best to plan for the worst scenario.
Aye I just had a bash round some online calculators. No debts elsewhere apart from student loan (4k). Halifax seemed to suggest a 120k property might be possible, HSBC's calculator said 114k. Not particularly great to be honest 
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Aye I just had a bash round some online calculators. No debts elsewhere apart from student loan (4k). Halifax seemed to suggest a 125k property might be possible, HSBC's calculator said 114k. Not particularly great to be honest
Most of the online calculators with offer you 5x your salary. However, once you go through the application process, it's unlikely they'll be quite so generous. You also have to determine just because the bank will offer you X amount, whether that's affordable or not is something else.
It just goes to show that property is still overpriced at current levels, in my eyes at least.