Number86, on Nov 5 2008, 05:30 PM, said:
While being a FTB near London(or should I say potential FTB) I don't have a STR fund burning a hole in my bank, but I sure hope that's true. It would be nice to bypass the overpriced shoebox flats and move straight onto a detatched house!
this interests me... it seems a lot on here either ftb or str are aiming to bypass the 'first rung on the ladder'.
now as far as flats go, i never even considered these the first rung, you rent a flat in your early years, and later you, or you and your partner buy a house.
but we now have th dilemma where a lot of ftb's with despoits that were being saved for the average 2007 priced house are now seeing the market collapse - therefore, with 40-50% falls that deposit could buy 40% of the average house at the market bottom.
so what is the average house - i'd certainly say detached, and maybe 3 bed wouldn't be a bad call.
but there won't be that many too buy, and getting one in a decent area may be even harder (plus decent areas are going to be harder to come by as 50% from peak means a lot of unemployment - hpi didn't happened on debt and employment, hpc happens on the reverse, plus too many other numerous factors to mention).
what i am getting at is that i don't see how every ftb is going to skip the terraced/semi stage (though i'd be perfectly happy if i could buy the semi detached i live in now at a reasonable price - i'd say it's peak 'value' was around 120k, i would have no qualms at 60k even though i know it was 44k in 2000/01).
i suppose it could happen if those who are 'leveraged' to the eyeballs lose it all and end up in the slums they speculated on in the first place, and those that they thought would live in these shoeboxes end up living where they used to live as they wasn't daft enough to gamble their last bean in a crazy market but keep it safe for later. that would be sweet justice come to think of it.