House prices..

[fendi]

With the decrease of house prices recently, is there going to be a shortage of houses in the future with more people wanting to buy?

 

[fendi]

i guess that is true. It will be interesting to see though what the govenment will do to try and increase the amount that will be built if prices do continue to fall.

 

[fendi]

Decrease of house prices? where do you live? Houses prices are still on the rise just not as fast.

there's already a housing shortage(affordable).

I live in Cambridge. A friend recently bought a 1 bedroom flat for 112k. Granted it isn't big but it is a lot cheaper than i have seen them go for recently.

 

[fendi]

That's pretty amazing for Cambridge. Was it council subsidised?

To be honest i'm not really sure, he said it was Newmarket Road way, i'll try and find out. Crazy price though.

 

[fendi]

Instead of building these box houses, why don't they start with apartment blocks? Not everyone wants a garden to maintain, surely apartments would take up a lot less space and would be cheaper.

 

[fendi]

Of course they will continue to fall, otherwise I won't be buying anytime soon

 

[fendi]

It will almost certainly be better by then (for a buyer)

how can you be so sure?

 

[fendi]

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.

Does having a guarantor in any way get you more lending?

 

[fendi]

I hope new build shared ownership plots continue to fall