Soldato
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50% house price crash would not be unreasonable, especially in the SE.
House purchase thoughts in current market
- Thread starter SpeedFreak
- Start date
Never going to happen
Soldato
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Never say never!
Will be living in one of these from July... a student one of course but I can't wait. So so much nicer than the halls I'm in at the moment!
Soldato
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Permabanned
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House prices could drop over 50%-80% in some areas imo.
Well i hope they do. Not because i am evil and want people to lose money, well not completely, but if i buy a house i don't want to pay inflated prices.
House prices could go back to mid 90s prices which imo is about reasonable price. But don't worry the government and the BOE will do anything they can to prevent that.
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And if that were to happen, what would happen to those people who have less than 50-80% equity in their house? (which I'd imagine is a pretty hefty proportion!!)
Permabanned
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Well that is what happened in States. It reaches a point where it is more economical to walk away from the house than to keep paying your mortgage.
Some people in the states paid $600k for their house in the height of boom and then 3 months later they can' even sell it. Not even for $100k. The cost of renting the same property becomes less than they are paying in a mortgage and they end up just walking away from the house, losing their deposit.
My sister took out an interest only mortgage for £180k now its worth £160k if she tried to sell it. But she says that she will just keep living their even if she goes in to negative equity.
Check out youtube videos, search for, real estate crash us, empty homes las vegas etc.
Some people in the states paid $600k for their house in the height of boom and then 3 months later they can' even sell it. Not even for $100k. The cost of renting the same property becomes less than they are paying in a mortgage and they end up just walking away from the house, losing their deposit.
My sister took out an interest only mortgage for £180k now its worth £160k if she tried to sell it. But she says that she will just keep living their even if she goes in to negative equity.
Check out youtube videos, search for, real estate crash us, empty homes las vegas etc.
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You can look at http://www.zoopla.co.uk to see estimate prices in your area and the price of all actually sales.
As a current home owner, if house prices did fall would i actually sell?
No is the answer.
And i would imagine thats what the majority would do if house prices fell.
Could dropping prices cause a housing shortage?
I dont see the point in people wishing / thinking prices would drop 50% in the UK.
And houses are not over priced, people dont have the right to buy a house, you have to work hard to earn one.
If you like a house, buy it and be happy with it.
You can rent and give away money, which isnt so bad, you get look at all that cash in your bank if you like doing that sort of thing?
No is the answer.
And i would imagine thats what the majority would do if house prices fell.
Could dropping prices cause a housing shortage?
I dont see the point in people wishing / thinking prices would drop 50% in the UK.
And houses are not over priced, people dont have the right to buy a house, you have to work hard to earn one.
If you like a house, buy it and be happy with it.
You can rent and give away money, which isnt so bad, you get look at all that cash in your bank if you like doing that sort of thing?
Caporegime
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For people that a) can afford the mortgage and b) don't need to downsize, it doesn't really matter what happens to house prices does it?
I'd just keep living here and paying the mortgage even if I'm in negative equity, happy in the home I love.
I'd just keep living here and paying the mortgage even if I'm in negative equity, happy in the home I love.
its all about affordability - when interest rates return to normality, many people will be unable to pay their mortgage, and will walk away from the house. The bank will then sell the house for whatever price it can get, this will bring the average price for that particular area down... If your house is on the market for 200k but your neighbour gets reposessed, and the house goes for 120k, this figure will get recorded, and you will find it much harder to sell for 200k when people know that your neighbour only paid 120k last month.
its already happening: http://www.bbc.co.uk/news/business-17234257
banks are starting to increase interest rates even without the bank of england raising rates.
Anyway, cheaper housing will be good for the country, so I am looking forward to it..
Caporegime
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This is good for people wanting to upsize and for people that can and want to stay put, does it really matter? If you have someone in a massive house relying on it for a pension when they retire and downsize then yes, this is bad news.
I would agree with some of this.
In a black a white perspective you would have thought that before people commited to a house they would have done all the calculations.
I know i did. I made sure i could afford the payments even if rates went up to 7%. Current increases are small, i would hope most could afford it (even if they had to dip into savings).
But there are so many factors invloved such as a houshold loosing one persons income / kids etc..
I dont know why it would be good for the country for house prices to go down. There are lots of people out there who can still buy houses and who are choosing to still buy them!
In fact would it be good for banks to take back houses, sell them cheaper than the actual mortgage value?
Exactly, I rented for about 8 years before buying my first flat in 2003. I then remembered the difference between just having a place to stay and actually having a home. Also if I had listened to similar house price crash conspiracists I wouldn't be sitting on the equity I am now. My monthly mortgage payment on my current detached 4 bedroom west of London is certainly a lot less than I would be paying if I was renting and it's only going to keep decreasing in real terms compared to renting before finally being nothing (I am nearly a third of the way through the mortgage already now - where does the time go!).
Thank god I didn't listen to people like the ones in this thread who mostly I genuinely believe post rubbish like this because they are jealous of people who took the plunge.
I have a house and either way, I'd be happy to see a crash because I'd just go and snap up another property in all honesty.
