House prices..
- Thread starter fendi
- Start date
Would you wnat more lending?
You should be able to get 4x salary. Which would be 80k and around 500-550 a month repayment. I wouldn't want repayments much more than that. especially as you have to carry out any repairs. You don't want to be making huge repayments.
It's already badly crashed (fastest ever by a large margin) and there's every indication of the crash continuing through 2009.
How does this tie into your inheritance though? So far prices are only down to where they were at the start of 2004 - maybe they will fall back to 2000 levels by 2010. That's only a decade or so which isn't really the time frame people think of when considering inheritance. The only real inheritance threat would be if your family is highly leveraged with all capital spread over a number of properties with little equity in each. Then a modest fall could wipe out the family's net worth.
You make me sick, I never understand people who gloat or glee about inheritance, I remember my mate kept banging on about his parents house and how much its worth and how much he would get turns out his parents have remortgaged and its not looking like they will ever pay it off.
I am 1/4 owner of my parents house, they dont want something they have worked hard being robbed by inheritance tax.
How long did it take you to save your deposit?
..... I'm willing to bet that you'll lose all your deposit due to falling house prices a lot quicker than it took to save it up by scrimping, saving and being sensible (assuming you saved it).
A house is no different to a luxury car right now .... why buy it brand new NOW, when you can wait a bearable amount of time and save a significant amount of money. Its not like 18 months time is pensionable age is it.
Well no one (who cares about money) should buy a house while prices are falling 2% a month - that would just be daft. I think this is a significant part of mortgage lenders reluctance to lend money on houses, or at least why large deposits are needed. The bank doesn't want you to be in negative equity as much as you don't want to be.
So... if we just wind the clock forward a year or two, until we get to a time when Halifax and Nationwide have, for several months in a row, stopped reporting falls then consider buying. At that point banks will be more likely to lend against the asset (now it's stopped falling in value) and the buyers deposit should be relatively safe.
Ripper, wait for the bottom. The trick is spotting it though!
So... if we just wind the clock forward a year or two, until we get to a time when Halifax and Nationwide have, for several months in a row, stopped reporting falls then consider buying. At that point banks will be more likely to lend against the asset (now it's stopped falling in value) and the buyers deposit should be relatively safe.
Ripper, wait for the bottom. The trick is spotting it though!
This is the main crux of the issue. Now the shift in house prices has been negative for a while, I can't see prices stabilising any time soon. They're still well outside long term affordability ratios and will only settle once we fall below this average. With unemployment set to rocket in 2009, house prices will only be saved by inflation. Sadly from my point of view, this is a distinct possibility with the pound falling in value as it is.
I'm just a quiet reader of this thread. Not all of it, just the last few weeks.
I'm one of those people just quietly biding my time. I could buy a house now as I have significant savings and a great paying job.
I'll wait until late 2009 or 2010, when things look to be recovering before dipping in. I'm happy to wait and why buy something that will lose 20% value over a year?
I'm one of those people just quietly biding my time. I could buy a house now as I have significant savings and a great paying job.
I'll wait until late 2009 or 2010, when things look to be recovering before dipping in. I'm happy to wait and why buy something that will lose 20% value over a year?
Soldato
Hmmm, You not planning on spending much time at that property then when you do actually buy? Otherwise i see it as making no difference in buying now or waiting if the right property appears.
thats easy - wait until most people, including this forum, say that they will never buy a house, that its a waste of money and its better to rent - then it will be the time to buy.
Theres a few obvious signs - the simplest one is when it becomes cheaper to buy rather than rent - ie the interest paid should be less than the cost of renting - ie atm I rent a house est vaule ~250k+ for 850 a month using basic figs of 10% deposit and 5.9% rate (best ftb rate with 10% i could find) gives a monthly repayment of 1450 with 1100 going on interest. To me buying the house only becomes viable when the purchase price is <190k as on a princiapal of 170k interest is around 840 with total repayment at 1100
So to keep an eye on the rental market and look to buy once renting starts to become expensive vs buying
No, i'd be buying to live, so i'd be there for many years. The thing is I can't bring myself to buy something now that's going to cost 30k-40k less this time next year (if all the predictions are accurate). I might have to wait another year to see any drop, i'm not convinced London has seen a drop yet but that's just me looking.
Doesn't matter if it's a place to live or if I can afford the mortgage, that's a lot of money and a mortgage is something I look to pay off asap, not over 40 years!
That's an odd way to look at it! People want the best deal, and the more expensive something is the more you should push for a better deal. Buying now is madness when you could buy the same house for tens of thousands less in a year, giving you a lot more disposeable income when you to finally buy.
Some of us knew this was coming and planned for it financially in various ways, ive hidden my money from this government overseas for the just incase i lose my job.
You really think that if i lose my job iam going to start wasting my savings and not sign on your kidding, ive lived by the old book save dont borrow etc and you think iam going to be punished by this, your joking.
You really think that if i lose my job iam going to start wasting my savings and not sign on your kidding, ive lived by the old book save dont borrow etc and you think iam going to be punished by this, your joking.
lol landlords will be hit hard if rents need to drop.
Soldato
Iceland?
Just seen this article on BBC News: http://news.bbc.co.uk/1/hi/business/7811357.stm
Interesting bit was the breakdown of what mortgage products are available compared to feb 08, the 0 and 5% brackets are down to pretty much none (5% with >1000 products gone), 10% is another >1000 product drop, but on the other hand 15% and above haven't really dropped by much at all.
Seems to imply that sensible mortgages with >10% deposit aren't anywhere near as badly hit as the general figures suggest, although obviously doesn't take into account income multipliers.
Interesting bit was the breakdown of what mortgage products are available compared to feb 08, the 0 and 5% brackets are down to pretty much none (5% with >1000 products gone), 10% is another >1000 product drop, but on the other hand 15% and above haven't really dropped by much at all.
Seems to imply that sensible mortgages with >10% deposit aren't anywhere near as badly hit as the general figures suggest, although obviously doesn't take into account income multipliers.
The thing is, even traditionally (and long before the current boom), 10% was considered a reasonable deposit, and the most common deposit amount. The fact that there are so few mortgages for 10% deposits is a big problem, and certainly suggests that even 'sensible' mortgages by traditional standards are much harder to come by than before. It's also worth noting that the number of mortgage products available is still declining rapidly, as the low deposit mortgages are not being replaced with higher deposit mortgages as an alternative...
The problem is, 10% is only ever going to be considered an acceptable deposit in a market where house prices are either static or rising. It amazes me that providers are still in some instances providing mortgages on this basis, knowing full well that the equity that deposit relates to is likely to be wiped out in under a year.
As to the number of mortgage products available declining, it's a phase we have to go through. No matter how painful, the highs of the 00's must be offset by future markets at some point.