Soldato
You can also overpay as much you want between initial terms.
House Prices / Interest Rates 2022 onwards
- Thread starter Richie
- Start date
I get where your coming from sadly. I understand it would be a lot more saving to achieve it now that prices may have risen more in the new area your looking at.
The house i currently live in was bought for £110k in 2002, i paid £263k in 2015. Yes that's a heck of an increase for where i live but compared to what is currently available now around the nearby new housing developments this house is actually cheaper, bigger and closer to amenities generally.
My brother and wife have moved 3-4 times, each time the property is sold for more than they paid.
I know i will be in a minority saying this but we need a market crash tbh, or some regulation on the values of property. Estate agents & surveyors seem to be forever increasing values on property to increase profits and make the seller happy doing that as well as finding scrupulous buyers wanting it.
I find this topic of property prices and mortgages is never ending.
i like reading about it all but the actuality of how the system works is shocking. Even the recently mentioned news of 5-7x salary borrowing is stupid and horrendous.
Soldato
Problem is it won’t crash until people can’t afford the prices. Houses have tracked gold so it’s inflation in value has appeared more by the weakness of the pound. Cheap credit is not helping and that’s going to be around for a while. Unless we are going to have a sustained booming of the economy I can’t see inflation running away for a while yet. Plus many of the most valued areas of the country like London have the least debt to value ratios (leverage). Even compared to the rest of the world it’s very low in the UK so there’s a lot of value just from cash coming in or just built up historically. This also means it’s more resilient to shocks than other markets.I get where your coming from sadly. I understand it would be a lot more saving to achieve it now that prices may have risen more in the new area your looking at.
The house i currently live in was bought for £110k in 2002, i paid £263k in 2015. Yes that's a heck of an increase for where i live but compared to what is currently available now around the nearby new housing developments this house is actually cheaper, bigger and closer to amenities generally.
My brother and wife have moved 3-4 times, each time the property is sold for more than they paid.
I know i will be in a minority saying this but we need a market crash tbh, or some regulation on the values of property. Estate agents & surveyors seem to be forever increasing values on property to increase profits and make the seller happy doing that as well as finding scrupulous buyers wanting it.
I find this topic of property prices and mortgages is never ending.
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Having a crash may not help. It could result in people being in negative equity and effectively trapped in their current home unwilling or unable to sell which will reduce the supply and inflating the houses for sale due to increased demand.
Soldato
The housing market literally won't crash, the tories would loose too much money, they won't let it happen.
Plus supply and demand, we don't have enough houses in this country as it is.
You might see prices fluctuate a bit in parts of London, and possibly some other places if they are particularly ****** areas, but generally no.
You have to think about the BTL industry and landlords with literally streets of houses, some of the portfolios I've seen are 60-70 houses and those are the ones that need mortgages, the really wealthy ones will just cash buy and then it's a scary thought how much of this country those people would effectively own.
They all have their fingers in each others ********, and there is A LOT of money involved, no way those capitalist pigs are going to let that go.
Plus supply and demand, we don't have enough houses in this country as it is.
You might see prices fluctuate a bit in parts of London, and possibly some other places if they are particularly ****** areas, but generally no.
You have to think about the BTL industry and landlords with literally streets of houses, some of the portfolios I've seen are 60-70 houses and those are the ones that need mortgages, the really wealthy ones will just cash buy and then it's a scary thought how much of this country those people would effectively own.
They all have their fingers in each others ********, and there is A LOT of money involved, no way those capitalist pigs are going to let that go.
Crazy? As in stupid? Like the decisions made are reckless? No.
That's reality for the vast majority of anyone buying in the south east. Round my way you'll be paying about that if you want a terraced 4 bed. What should people do instead? Rent for life and pay the same amount and have all the cons of renting for nothing to show for it? Wait for a crash that will never come? Save more so when they come to buy prices have risen again wiping out savings when they could have bought earlier?
You can't blame people for trying to get on the ladder at any point. It's easy to laugh and point downwards at people taking on big debts when you're alright having bought ages ago. Have some compassion.
I'm with @HangTime
I wish we had a flat market where you could guage and at least aim for a target.
Is obviously not the end of the world when you have a house. But for the FTB so much is out of reach.
Bought my first house in 2020 it was the very top of the mortgage that bank would allow. Wasn't sure if I was stupid. But I'm absolutely glad I did.
Look on right move at that price now and you get so much less.
So I look at my. Forever house getting further away but then feel even worse for FTBs seeing thier first house getting further away, in many cases probably not being able to out save the rises
I wish we had a flat market where you could guage and at least aim for a target.
Is obviously not the end of the world when you have a house. But for the FTB so much is out of reach.
Bought my first house in 2020 it was the very top of the mortgage that bank would allow. Wasn't sure if I was stupid. But I'm absolutely glad I did.
Look on right move at that price now and you get so much less.
So I look at my. Forever house getting further away but then feel even worse for FTBs seeing thier first house getting further away, in many cases probably not being able to out save the rises
Associate
When the choice is between a 35 year mortgage or privately renting until the day you die, paying 130% of what the mortgage payment would be each month yet having 0 to show for it at the end, it's an easy choice if you can do it.
Soldato
I agree
Soldato
Crazy being a 35 year mortgage term. Of course it’s not stupid or reckless if you can afford it.
I can't see a full on crash happening. But I can see a tax (1% value of the property etc) that needs to be paid per year, on all second homes happening. It's about the only tax I can think about the government could get away with that relates to housing without getting kicked out of power.
Soldato
Cant see that happening under a Tory government.
Soldato
They tried to tax it, so you used to be able to offset rental income against the mortgage payments, effectively so you only paid tax on the profit, but it got changed so you pay tax on all of the rental income.
So all people did was put all their properties into limited companies and run them as businesses, and guess what? Now you only pay tax on the profit.....less actually because it's more tax efficient to draw income from a limited company in dividends.
Guess what?
Rich people who already got this stuff setup just gained.
Love this government......
So all people did was put all their properties into limited companies and run them as businesses, and guess what? Now you only pay tax on the profit.....less actually because it's more tax efficient to draw income from a limited company in dividends.
Guess what?
Rich people who already got this stuff setup just gained.
Love this government......
The rich have the resource to work with any changes in law to make it offer the most for them.
Interest rates can only rise going forward but it will be slow and measured. The housing market will always be propped up. The system is broken beyond repair and will always remain so unless there was some major effort to "fix" it. It will never crash imo.
Interest rates can only rise going forward but it will be slow and measured. The housing market will always be propped up. The system is broken beyond repair and will always remain so unless there was some major effort to "fix" it. It will never crash imo.
House prices fell nearly 20% in 2009, it is entirely possible a financial market crash like 2008 will come along and cause the market to crash harder. I doubt the UK housing market will implode without a wider financial disaster to support it though.
Soldato
Exactly. People are missing the fact that a 20% drop probably puts us just a little below pre-pandemic prices.
Associate
It wont happen under a Labour government either, though unlikely to see one of those, they lost Scotland and can't win with the current system as a result.
At least the Tories are relatively obvious about their intentions. Labour want to prop up house prices too but will hide behind their facade of doing things for the "working men/women". I told much the same to our local Labourite who came knocking the other day. You only need to look at what Tony and Gordon did to explode the hobbyist landlord market and see the damage they did to the property market. Tony Blair's property portfolio says it all.
