House prices..
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Halifax reporting house prices up 1.9% in January, contradicting the Nationwide figures: http://news.bbc.co.uk/1/hi/business/7871614.stm . Overall trend is down 17.2% in the 3 months compared to the year before which is a better guide than month-on-month figures, especially as demand for (new) housing is typically quite low at the end of the year.
Mortgage approvals were slightly up in December compared to the previous month, but again one shouldn't read too much into this, it was just a reflection on how low they were in November really. Wouldn't surprise me to see further rises in mortgage approvals over the coming months what with interest rates being so low and the seasonal boom in the housing market.
Mortgage approvals were slightly up in December compared to the previous month, but again one shouldn't read too much into this, it was just a reflection on how low they were in November really. Wouldn't surprise me to see further rises in mortgage approvals over the coming months what with interest rates being so low and the seasonal boom in the housing market.
Can't help but think that the Halifax figure is a bit of a statistical anomaly, they do all sorts of weird things with the figures (raw figures show a sub 1% rise, similar to the 0.4% nationwide reported late last year)...
As for when to buy, all depends on your area and situation, if you've got enough savings to get around 25-40% deposit on a decent property on your area, and can get a mortgage for the rest then buying as a home isn't an overly bad idea. But you will lose money over the next 3-4 years at a guess, but if it's a home and not an investment this doesn't overly matter and you would at least stand the chance of getting a good fixed rate at some point in the future.
On the other hand I can't see house prices stabilising anytime soon, excepting any mad plans by the government/boe to fiddle with the housing market, and if they do that then although the prices might hit the 'bottom' inflation would likely to go through the roof, and the pount going through the floor, not exactly great news.
So basically, if it was my money, I'd be waiting *at least* 6 months, if not longer, but it's almost impossible to predict, with america doing a 'stimulus' package of $750bn ish that might put pressure on GB to do something more (remember we've got the budget on 22nd april), and so far his idea's/plans are scaring me, but then I actually have some savings and i'm not up to my eyeballs in debt, hence I don't matter to the economy.
As for when to buy, all depends on your area and situation, if you've got enough savings to get around 25-40% deposit on a decent property on your area, and can get a mortgage for the rest then buying as a home isn't an overly bad idea. But you will lose money over the next 3-4 years at a guess, but if it's a home and not an investment this doesn't overly matter and you would at least stand the chance of getting a good fixed rate at some point in the future.
On the other hand I can't see house prices stabilising anytime soon, excepting any mad plans by the government/boe to fiddle with the housing market, and if they do that then although the prices might hit the 'bottom' inflation would likely to go through the roof, and the pount going through the floor, not exactly great news.
So basically, if it was my money, I'd be waiting *at least* 6 months, if not longer, but it's almost impossible to predict, with america doing a 'stimulus' package of $750bn ish that might put pressure on GB to do something more (remember we've got the budget on 22nd april), and so far his idea's/plans are scaring me, but then I actually have some savings and i'm not up to my eyeballs in debt, hence I don't matter to the economy.
Personally I wouldn't be looking to buy a house at the moment just for the sake of it. We bought a house in December (arranged a few months before) which was basically a way of trading cash for a better quality of life, I was resigned to the fact that I'm going to lose money on our house purchase at least in the short-medium term. The questions I would ask myself are:
-Am I likely to want to stay in the house for a long time (i.e. do my partner and I have jobs we are happy with)?
-Do I have a large enough deposit to bag the best rates (typically 40%)?
-Would paying the mortgage be no problem if the main breadwinner was out of work for 6-12 months?
-Do I have a strong desire to move?
-Would renting not be cost effective in the area I wish to live?
If there's a few "No"s in there, then I'd be inclined to wait until the market starts to pick back up again, but before interest rates start creeping back up too much.
-Am I likely to want to stay in the house for a long time (i.e. do my partner and I have jobs we are happy with)?
-Do I have a large enough deposit to bag the best rates (typically 40%)?
-Would paying the mortgage be no problem if the main breadwinner was out of work for 6-12 months?
-Do I have a strong desire to move?
-Would renting not be cost effective in the area I wish to live?
If there's a few "No"s in there, then I'd be inclined to wait until the market starts to pick back up again, but before interest rates start creeping back up too much.
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Here's February's report from Nationwide:
http://www.nationwide.co.uk/hpi/historical/Feb_2009.pdf
Down another 1.8% in February, down 4.8% in the last 3 months. There have been 16 consecutive months of falls now. The average price is now £38,298 or 20.8% lower that the peak in October 2007. In real terms taking into account inflation, this is approximately a 25% decline and the fastest house price crash the UK's ever had.
The average price is £147,746, same as it was in April-May 2004. It's taken just 16 months to lose the gains for almost 5 years (58 months).
http://www.nationwide.co.uk/hpi/historical/Feb_2009.pdf
Down another 1.8% in February, down 4.8% in the last 3 months. There have been 16 consecutive months of falls now. The average price is now £38,298 or 20.8% lower that the peak in October 2007. In real terms taking into account inflation, this is approximately a 25% decline and the fastest house price crash the UK's ever had.
The average price is £147,746, same as it was in April-May 2004. It's taken just 16 months to lose the gains for almost 5 years (58 months).
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for me, as a first time buyer living in the south, the drop in house prices is welcomed, but the increase in LTV deposit price isnt. I need a 20% deposit to get a decent rate. If i want to buy a property thats anywhere near what i'm renting i'm going to have to spend in the region of £275,000, meaning a mortgage would require a £55000 deposit - all very affordable in repayment terms.
Yes there are cheaper LTV amounts, but the rates shoot to 7% (meaning monthly repayments are considerably more).
Yes, i dont need a 3 bed detached when a one bed terraced would do - but both myself and fiance are both professionals in good jobs with above average salaries (double income) so i personally wouldnt settle for less (perhaps a nice semi - but these arent massively cheaper). We both have 0 debt (not even student loans) and have saved and worked hard (considering we are paying £1000 a month rent and saving £1400 a month, as well as paying bills & living)
The best bit is i dont even expect a free-ride - we have £25k saved up for a deposit, an amount i thought would get me the pick of a mortgage rate, but clearly not. The problem for FTB's now isnt house prices its mortgage lenders. The £25k deposit, on a crap 15% LTV will get me a whopping ~£175k ish of property, which down here is **** all.
Yes there are cheaper LTV amounts, but the rates shoot to 7% (meaning monthly repayments are considerably more).
Yes, i dont need a 3 bed detached when a one bed terraced would do - but both myself and fiance are both professionals in good jobs with above average salaries (double income) so i personally wouldnt settle for less (perhaps a nice semi - but these arent massively cheaper). We both have 0 debt (not even student loans) and have saved and worked hard (considering we are paying £1000 a month rent and saving £1400 a month, as well as paying bills & living)
The best bit is i dont even expect a free-ride - we have £25k saved up for a deposit, an amount i thought would get me the pick of a mortgage rate, but clearly not. The problem for FTB's now isnt house prices its mortgage lenders. The £25k deposit, on a crap 15% LTV will get me a whopping ~£175k ish of property, which down here is **** all.
Hi guys I would appreciate your opinions on my options for going about getting mortgage, I don't really know much about it at all so any advice would be greatly received!
I have recently moved into a rented flat with my girlfriend, all is good except for us being able to decide on our long term goals in terms of property ownership. The flat is great and we could quite happily stay here for a while but obviously not indefinitely. We have both recently finished university (me in 2006 her in 2008) and neither of us have any savings at all, so if we wanted our own place we would have to start saving from scratch for the deposit.
Because of the way house prices have gone over the previous months and the forecast for the coming years the goalposts for house deposits have changed and this is what we are trying to get our heads around. Surely we could have an opportunity to grab a good deal if we saved like mad over the next 2 years (say £800pm) with a view of saving £20k(?) for a deposit.
But herein lies the problem, is it worth living like students again to do this? I think it could be worth it, but it means putting on hold things like holidays/eating out/etc. Or is it worth saving for less but for longer? Or saving at the same rate but for longer for a larger deposit?
I don't even know how much we would be looking to spend on a house, traditional mortgages are 3 X your salary? How does a partners salary affect this?
Argh too many options. When we moved into our new flat we didn’t consider buying a place, but with prices falling surely there is scope to get something beneficial out of it?
Cheers
I have recently moved into a rented flat with my girlfriend, all is good except for us being able to decide on our long term goals in terms of property ownership. The flat is great and we could quite happily stay here for a while but obviously not indefinitely. We have both recently finished university (me in 2006 her in 2008) and neither of us have any savings at all, so if we wanted our own place we would have to start saving from scratch for the deposit.
Because of the way house prices have gone over the previous months and the forecast for the coming years the goalposts for house deposits have changed and this is what we are trying to get our heads around. Surely we could have an opportunity to grab a good deal if we saved like mad over the next 2 years (say £800pm) with a view of saving £20k(?) for a deposit.
But herein lies the problem, is it worth living like students again to do this? I think it could be worth it, but it means putting on hold things like holidays/eating out/etc. Or is it worth saving for less but for longer? Or saving at the same rate but for longer for a larger deposit?
I don't even know how much we would be looking to spend on a house, traditional mortgages are 3 X your salary? How does a partners salary affect this?
Argh too many options. When we moved into our new flat we didn’t consider buying a place, but with prices falling surely there is scope to get something beneficial out of it?
Cheers
no boat to miss - unless you have multiple 10's of thousands as a deposit you arent buying a property
In my opinion i would do both. You're probably young enough to wait a few years, do some saving and living. You're not going to get enough of a deposit together in a few years so may as well clear as many debts instead, liv a bit and save the rest.
my 2p though (and probably why i cant buy a house now, despite owning one 10 years ago and selling to the Ex - all bought with £5k deposit.)
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My parents bought January 2008 for £255,000.
On the market now for £215,000
Two doors up is on the market for £195,000
No offers on either properties. This is a proper crash.
On the market now for £215,000
Two doors up is on the market for £195,000
No offers on either properties. This is a proper crash.
Here's February's report from Halifax:
http://www.lloydsbankinggroup.com/media/pdfs/halifax/HousePriceIndexFebruary2009.pdf
Showing another 2.3% fall in February.
http://www.lloydsbankinggroup.com/media/pdfs/halifax/HousePriceIndexFebruary2009.pdf
Showing another 2.3% fall in February.
Amazingly, there were people on Sky News and BBC this morning reccommending investing in property and shares!
Its a safer investment to bury your money in a hole in the middle of the garden these days..... AND the return is higher.
The housing market bubble was born on top of a credit bubble.... Unless that bubble is re-inflated, or prices fall to levels that pass lending criteria, then nothing will start selling in any numbers.
Once again, just because someone 'thinks' their house is worth xxx, doesnt mean thats what someone both wants to and CAN pay.
People need to understand what drove prices up in the first place if they are going to have a chance of coming out of this one safely.
Its a safer investment to bury your money in a hole in the middle of the garden these days..... AND the return is higher.
The housing market bubble was born on top of a credit bubble.... Unless that bubble is re-inflated, or prices fall to levels that pass lending criteria, then nothing will start selling in any numbers.
Once again, just because someone 'thinks' their house is worth xxx, doesnt mean thats what someone both wants to and CAN pay.
People need to understand what drove prices up in the first place if they are going to have a chance of coming out of this one safely.
There is still a nationwide housing shortage and the buy to let market is exploding in a lot of places as the number of tennants rockets. maybe no capital gains to be made but with lower mortgage rates there are some tidy incomes to be had.
Eh? There is no housing shortage - just look at all the new builds that have stopped because theres no one wanting to buy them!
Rental prices are also falling at the moment due to the market being flooded by all the people who have had to give up selling their houses!
It would be a very brave person to dip their toes into BTL at the moment
Rental prices are also falling at the moment due to the market being flooded by all the people who have had to give up selling their houses!
It would be a very brave person to dip their toes into BTL at the moment
Pull the other one! There's no shortage.
Economic migrants are going home, students and young people are staying at home longer as finding jobs is harder, average occupancy rates (number of people per property) are increasing as people lose their jobs or money becomes tighter, many new developments completed in the last year remain empty.
As for BTL being a good idea, rents are falling and house prices are falling even quicker. I can't think of many worse investments than property today.
Where/why is the number of tenants 'rocketing'?
... Cause the BBC and the Metro said so 
Its all a bunch of lies with the sole intention of keeping the public calm and in peaceful servitude to DEBT.
What there is a shortage of .... is AFFORDABLE HOUSING.
When the average price is 100k and not 160k, and the average person has both a stable, safe job and a decent deposit AND the bank is willing to loan them money... THEN the housing market will get moving again.
(Which it wont for the next 18 months at LEAST)
Its all a bunch of lies with the sole intention of keeping the public calm and in peaceful servitude to DEBT.
What there is a shortage of .... is AFFORDABLE HOUSING.
When the average price is 100k and not 160k, and the average person has both a stable, safe job and a decent deposit AND the bank is willing to loan them money... THEN the housing market will get moving again.
(Which it wont for the next 18 months at LEAST)
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Are you sure it's not because the firms building them can no longer expect to sell them for OTT exorbitant prices?