Can you elaborate here/ provide a source please?
House prices..
- Thread starter fendi
- Start date
I'm currently enjoying the base rate interest plus 2% uplift via Nationwide, paying a keen interest though in what Mervyn decides to do with the base rate.
When the base rate hits 3% or more - I'm jumping onto the nearest fixed deal for 3yrs to weather the storm. My house price has been trashed, so I've spent the last 12 months putting a conservatory on, new bathroom done, new kitchen on the way - anything to try to prop up the value, it was stuff we were due to do anyway and with VAT dropping and tradesmen willing to drop their pants for work - the time was/is right for improving.
Great thing is when the economy starts to recover - almost certainly house prices will respond hand in hand, that increases equity and equity is the deposit you need to jump onto a decent fixed deal. Presto problem solves itself simply by sitting it out.
Another boom though is many many years away, I feel.
When the base rate hits 3% or more - I'm jumping onto the nearest fixed deal for 3yrs to weather the storm. My house price has been trashed, so I've spent the last 12 months putting a conservatory on, new bathroom done, new kitchen on the way - anything to try to prop up the value, it was stuff we were due to do anyway and with VAT dropping and tradesmen willing to drop their pants for work - the time was/is right for improving.
Great thing is when the economy starts to recover - almost certainly house prices will respond hand in hand, that increases equity and equity is the deposit you need to jump onto a decent fixed deal. Presto problem solves itself simply by sitting it out.
Another boom though is many many years away, I feel.
I'm just confused as to how people expect prices to continue rising (this is thinking quite a long way ahead). At what point will it dawn on people that actually a crummy 2-bed semi ISN'T worth £170,000.... ?
I know there is an AWFUL lot of vested interest in the housing market to ensure it continues to inflate - many people milk that for all its worth, including the government. Just how can it be a good thing though? If trends continue you'd see people putting 75% of their wages into a mortgage for 40 years of their life?! I'm afraid I fail to understand how that is beneficial to anyone
Are we going to return to lax lending by the banks to help fuel another boom? Will people's wages be sucked up into expensive mortgages and our personal debt will continue to increase as we borrow more and struggle to maintain the same standard of living that we expect? In the future will we see both parents be forced to work as we chase after the "dream" of our own home? All for what?
Isn't this just going to happen all over again albeit even worse next time .... ?
You just don't see this in many other countries in the world, there is a totally different attitude. We seriously need to have much stricter lending criteria back, as seen in the past imo.
I know there is an AWFUL lot of vested interest in the housing market to ensure it continues to inflate - many people milk that for all its worth, including the government. Just how can it be a good thing though? If trends continue you'd see people putting 75% of their wages into a mortgage for 40 years of their life?! I'm afraid I fail to understand how that is beneficial to anyone
Are we going to return to lax lending by the banks to help fuel another boom? Will people's wages be sucked up into expensive mortgages and our personal debt will continue to increase as we borrow more and struggle to maintain the same standard of living that we expect? In the future will we see both parents be forced to work as we chase after the "dream" of our own home? All for what?
Isn't this just going to happen all over again albeit even worse next time .... ?
You just don't see this in many other countries in the world, there is a totally different attitude. We seriously need to have much stricter lending criteria back, as seen in the past imo.
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Just putting in my input into a long and on going thread:
I am a FTB, currently have an offer of just under stamp duty on a 3 bedroom end of terrace house which me and my partner think is lovely. Really happy that we liked it, put the offer in and was accepted.
We snapped it up when we noticed they had lowered the asking from just above 180k to just where we got it to now.
In my area (Portsmouth/Fareham in Hampshire) house prices did drop a little tail end of 08 and beginning of 09. Now there seems to be a fair amount of FTB properties selling like hotcakes in the area I am buying a house (Fareham).
In general I'd say there was a tiny slump in this area with the possibility of not much momvent and people waiting for things to pick up again. I do know that people buying houses valued at 50-100k+ more than I am doing in the area are receiving much bigger discounts in terms of what is on the market, what is offered and what is finally accepted.
(Know a couple who were looking at a 4 bed 280k property, finally offered 255k and it was accepted!).
Worst deal of it all is that banks aren't willing to give good deals on mortgages at the moment. Even though I have a 15% deposit, there really isn't anything DECENT available until you get at least around 25%. Which on reasonable property of 150k is still 37.5k!!!
Crazy to think 2-3 years ago what they were lending!
I am a FTB, currently have an offer of just under stamp duty on a 3 bedroom end of terrace house which me and my partner think is lovely. Really happy that we liked it, put the offer in and was accepted.
We snapped it up when we noticed they had lowered the asking from just above 180k to just where we got it to now.
In my area (Portsmouth/Fareham in Hampshire) house prices did drop a little tail end of 08 and beginning of 09. Now there seems to be a fair amount of FTB properties selling like hotcakes in the area I am buying a house (Fareham).
In general I'd say there was a tiny slump in this area with the possibility of not much momvent and people waiting for things to pick up again. I do know that people buying houses valued at 50-100k+ more than I am doing in the area are receiving much bigger discounts in terms of what is on the market, what is offered and what is finally accepted.
(Know a couple who were looking at a 4 bed 280k property, finally offered 255k and it was accepted!).
Worst deal of it all is that banks aren't willing to give good deals on mortgages at the moment. Even though I have a 15% deposit, there really isn't anything DECENT available until you get at least around 25%. Which on reasonable property of 150k is still 37.5k!!!
Crazy to think 2-3 years ago what they were lending!
Except you are forgetting that when the economy recovers, interest rates will go up, pushing thousands living on a financial knife- edge over, unemployment will still be high for a while, and these will push prices down further.
You're not going to see a return to 2007 levels for a while yet...
Over the last year we have seen many unprecedented measures put in place to ensure that as few people as possible go "over the edge". The whole point of reducing interest rates, was to increase lending and prevent people from going over the edge.
Are you suggesting that in a few months/years, the Government is going to do a complete about turn and change its strategy to ensure that people go over the edge?
The economy will improve. Unemployment will go down. And when these things happen, the BoE will begin to hike interest rates. Until then, I dont see interest rates being responsible for pushing people over the edge.
Also, do bear in mind that house prices are VERY important to giving people confidence, when it comes to spending. Consumer spending is what will bring the economy out of recession. The Government will do all it can to prevent a sustained nosedive.
Associate
- Joined
- 11 Sep 2008
- Posts
- 148
Do what though? Buy more banks, lend more money and push people into more debt.
Lending too much money to people is what pushed the whole thing over the edge in the first place. Surely encouraging people, to borrow more, spend more and buy more will send it all over the edge again shortly.
Before the Government started bailing the banks/businesses out, I dont think any of us could've predicted their actions.
At this point, I have no idea how the Government would handle the situation if it got worse, but I'm sure it would do something, given that it has stepped in previously.
I just dont see the Government standing by while interest rates rise, people go over the edge, bankrupcies increase, etc.
Traditionally, there is definitely downward pressure on house prices. However, in the last 10 years or so, houses have ceased to be merely a place to live. With all the property porn (which has undoubtedly accelerated house price inflation), the masses are shown how to make money out of property and many people have and are giving property investement a go. This means that where normally house prices would be on the decline, the fact that the masses may still be looking to invest in property, means there is also a upward pressure.
I understand where most of you are coming from and I would agree if we were in the 1990s, but in the 21st century, things are happening that are simply unprecedented.
No idea what your own circumstances are but TBH, you sound just like 95% of ppl from housepricecrash.co.uk...
These ppl complained for years about rising house prices because they couldnt get on the ladder and, since the crash, they are rubbing ppl's noses in it and basically mocking everyone that took the leap...
Its pretty crass TBQH.
/2p
Im looking at a house in Darlington, i rang the agent and asked about it, how much interest there had been in the house, turns out that its been on the market for 6 months at 150k, i want to make an offer but not sure where to start, i want to go in low but not be laughed at, what do you suggest?
Estate agent won't laugh at you, I put in a low offer in on mine, the agent said he didn't think the owners would accept it as they'd already received a higher bid, but put it to them anyway as I was a FTB. They didn't go for it but still worth a try.
The market has changed since then - back then I had to compete with other buyers. At the moment buyers should be competing to get you to buy their house. Make sure you have a mortgage agreed in principle and the estate agents will love you.
Everything is sorted on the money front, mortgage sorted have a good deposit, first time buyer, i have been welcomed into all but one estate agent, i just want a good house that needs little to no work. i will mull over it tonight and put an offer in tomorrow.
What with prices seemingly starting to stabilise I'm starting to wonder if we should have pushed the boat out when we moved house last year, we bought a 3-bed terrace but could have got a 4-bed detatched in the same road for around another £50k. I was a bit wary of buying an expensive house in a falling market (more to lose) and didn't want to get nailed with 3% stamp duty either (a bit of a fallacy really as it only equates to an extra £5k or so over 1% duty). As we don't have children yet it would have been more of an investment than out of necessity but obviously it would also have been a nicer and more impressive house to live it (also had a study in addition to 4th bedroom).
A friend of mine always buys the best house he can afford when he moves, and I saw him move in July 2007 (peak of boom) paying £290k for a 4bed which has probably dropped in value a bit. Having just had a baby I know things are quite tight for them money wise. This scared me but at the end of the day he still has a great house whereas I'm left with merely a 'good' house.
So a question to the masses, what do you do when buying a house, buy the best you can afford or just what you think is good value? Have I shot myself in the foot by worrying too much about making a loss on property and then looking out the window at a nice double fronted mansion across the road thinking "I could be living there!"?
A friend of mine always buys the best house he can afford when he moves, and I saw him move in July 2007 (peak of boom) paying £290k for a 4bed which has probably dropped in value a bit. Having just had a baby I know things are quite tight for them money wise. This scared me but at the end of the day he still has a great house whereas I'm left with merely a 'good' house.
So a question to the masses, what do you do when buying a house, buy the best you can afford or just what you think is good value? Have I shot myself in the foot by worrying too much about making a loss on property and then looking out the window at a nice double fronted mansion across the road thinking "I could be living there!"?
Buy what you need and stop trying to keep up with the Jones's
After all, they are usually the unhappy ones and need material things in their lives to make them feel better!
Buy the best you can afford, it's your house, probably the most important thing you'll buy in your life. If you try and save a few quid and end up compromising on something then you're probably going to regret it for a few years at least.
Soldato
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- 7 Aug 2003
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- Bedfordshire
I've always thought of house prices being too high. (begin rant....
Is the population really so high and is there really such a shortage in houses to explain this? It makes me wonder if a natural disaster or a world war is the only thing that is going to sort out this massive salary to house price gap. Best way to get all the greedy institutions off their high horses. Or rather, are a group, like a government run committee or something; artificially keeping property and living costs high. And we just sit there, feed their greedy clown-pockets while they're all sniggering at us and calling us mugs?
I don't know why anyone can justify a small house costing £120,000; the only people who can afford to buy a house without a mortgage are the super rich.
I want to know why a house, around 100 years ago, maybe less only costed £500-£1000 and you were able to pay that in cash and why now I have to get a mortgage for 15-25 years, in order to securely buy the house and eat up the rest of my earnings in high food prices, high fuel bills and the rising costs of keeping a car, council tax and all that other rubbish we're forced to pay (or it's jail, or a massive fine!).
It takes the ****.
I worked out that it will cost my fiancee and myself £15-18,000 a year (that's after tax) to get a mortgage on small house (over 15-25 years) along with fuel bills, food shopping, keeping a cheap car on the road and not being able to enjoy myself. I won't even be able to save money into a pot!
Rent costs nearly the same as a mortgage - what madness!
I don't even earn £12,000 after tax! What about everyone else who earns even less then that? What about the others who get taxed to the hilt?
The unfortunate thing is, if my fiancee and myself want to get a house that is affordable, I'll have to get a shared ownership mortgage (if you can even get one nowadays) and still part rent on the rest of the property.
We'll both be living on the bread line because she will only be able to work part time due to her poor health and every single penny I earn goes into bloated fuel prices, high food costs etc. We all just sit back and let it happen. It's all we can do it would seem.
So I feel really hard done by...and I just let it happen and we are all guilty of letting it happen.
end rant..)
Is the population really so high and is there really such a shortage in houses to explain this? It makes me wonder if a natural disaster or a world war is the only thing that is going to sort out this massive salary to house price gap. Best way to get all the greedy institutions off their high horses. Or rather, are a group, like a government run committee or something; artificially keeping property and living costs high. And we just sit there, feed their greedy clown-pockets while they're all sniggering at us and calling us mugs?
I don't know why anyone can justify a small house costing £120,000; the only people who can afford to buy a house without a mortgage are the super rich.
I want to know why a house, around 100 years ago, maybe less only costed £500-£1000 and you were able to pay that in cash and why now I have to get a mortgage for 15-25 years, in order to securely buy the house and eat up the rest of my earnings in high food prices, high fuel bills and the rising costs of keeping a car, council tax and all that other rubbish we're forced to pay (or it's jail, or a massive fine!).
It takes the ****.
I worked out that it will cost my fiancee and myself £15-18,000 a year (that's after tax) to get a mortgage on small house (over 15-25 years) along with fuel bills, food shopping, keeping a cheap car on the road and not being able to enjoy myself. I won't even be able to save money into a pot!
Rent costs nearly the same as a mortgage - what madness!
I don't even earn £12,000 after tax! What about everyone else who earns even less then that? What about the others who get taxed to the hilt?
The unfortunate thing is, if my fiancee and myself want to get a house that is affordable, I'll have to get a shared ownership mortgage (if you can even get one nowadays) and still part rent on the rest of the property.
We'll both be living on the bread line because she will only be able to work part time due to her poor health and every single penny I earn goes into bloated fuel prices, high food costs etc. We all just sit back and let it happen. It's all we can do it would seem.
So I feel really hard done by...and I just let it happen and we are all guilty of letting it happen.
end rant..)
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