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tommy75

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  1. If I'm to put an offer in on a house with the EA. What sort of years price do you think the market will/should go back to if you are presenting your case for why you offered a certain amount. Personally im tied into my rental until after Feb anyway but Im still keeping an eye everyday on what is going on. I personally can only offer a sub 100k amount as I only have about 14k deposit at the moment and my earnings are 25k pa approx. I want to offer around 90k on a 150k house which I feel the particular couple of houses im looking at is more than worth to me. On one of the streets I was looking at, the current price is 155k: http://www.rightmove.co.uk/property-for-sa...maxPrice=170000 2003 prices look to be around 115k which I still think is overpriced http://www.houseprices.co.uk/e.php?q=st48xy&n=10 It seems to me that 2001/2 prices seem right to me but people have different opinions. I'm guessing people with say 400k in the bank would have a slightly different view than those with nothing. What do you think?
  2. Can the government save the housing market? By John Stepek December 05 2008 This housing market crash is getting worse, but is there anything that can be done to help it? First, let's have a quick look at how bad things are right now: figures from Halifax show, in November alone, prices fell by 2.6%, taking the annual decline to around 16%. That's the biggest drop the index has ever recorded. The average house is now worth £36,000 less than at the peak in August 2007 and there's no sign of things getting better - the number of mortgage approvals slipped back down to 32,000 in October, suggesting that demand is nowhere near picking up. Falling house prices by themselves are not necessarily a huge problem. Negative equity (where you owe more on your mortgage than your house is actually worth) is unpleasant, but it's not a big deal unless you have to move. Far more important is your ability to keep paying your mortgage. Paying for the crash This is where the problems are really starting: during the boom years, it became almost impossible to get on the housing ladder without taking on more risk than would have been considered wise during more sensible times. Interest-only mortgages with no plan for repaying the capital to back them up; couples borrowing to the hilt against their joint incomes; the idea that the economy might hit a brick wall didn't seem to occur to either borrowers or lenders. But now it has. Unemployment is rising steadily, just as many borrowers' financial situations are more precarious than ever. And it's when the job losses start in earnest that people really start running into trouble repaying their mortgages. The Council for Mortgage Lenders reckons repossessions will hit 45,000 this year, and could reach their 1991 peak of 75,000 next year. Plans to help those in need Some of this might come as an unpleasant surprise to any voters who believed Gordon Brown's boast that he'd abolished boom and bust. So the government is desperately trying to find ways to stop the carnage. Hence the last-minute addition to the Queen's Speech - a two-year payment holiday for people having problems paying their mortgages. Details are somewhat sketchy, and a little confused, but here's what we know about the scheme so far. The scheme would cover mortgages of up to £400,000, and apply to those with savings of £16,000 or less. Households would also have to demonstrate that they were experiencing "genuine economy hardship", and have had trouble making payments for 13 weeks. If they can, then they will be able to defer a proportion - up to 100% apparently - of their interest payments for up to two years, giving them some breathing space to get back on track. And people could also be switched to interest-only mortgages, so that in some cases, they could end up paying nothing at all. Will it work? That sounds like a pretty good deal. After all, more than 10 million homeowners out of 11.7 million have a mortgage of less than £400,000. So it sounds like it covers almost everyone. And the banks don't have to worry about it, because the government is going to underwrite the deal. If a borrower ends up defaulting anyway, then the government will pay the banks any interest they missed out on by giving the payment holiday in the first place. The government reckons this guarantee could cost up to £1 billion, but in practice will end up being around £100 million. But as they say, the devil's in the detail. Will borrowers have to pay interest on the deferred interest? How will "financial hardship" be defined? As Ed Stansfield at Capital Economics put it: "It is going to be difficult to distinguish who deserves the support and who doesn't." Housing minister Margaret Beckett added to the confusion by saying only 9,000 homeowners would benefit, a drop in the ocean compared with the potential number of repossessions next year and suggests that far fewer people will be eligible than the initial numbers suggest. Not just for homeowners It's not the only move being used to prop up householders. The Income Support for Mortgage Interest scheme has also been improved. Homebuyers will also become eligible for help with mortgage interest payments three months after losing their jobs, rather than the current nine months. Interest on mortgages up to £200,000 will be covered, up from £100,000 before. And of course, the Bank of England is pulling out the stops to help too. Britain's key interest rate is now at 2%, and is likely to go lower to levels never seen before in this country. Not all homeowners will benefit - some banks are passing on more of the cut than others and it'll depend on what type of mortgage they have - but some will certainly see their payments fall. So all of these moves may help to keep some people in their houses. That seems a good thing - no one wants to see people lose their homes. But you don't get something for nothing. All of these measures have a cost. And the more people who are bailed out, the more of a cost they'll extract. The real cost of the plans Repossessions are one of the ways that the housing market finds a bottom. Distressed asset sales drag prices down further, getting them closer to the point where they reach affordability. While helping people get over a blip seems a good idea - and one which you can't rely on the banks to do themselves in this sort of environment - there is the danger that all you do in some cases is delay the inevitable. That means drawing the housing correction out. And the longer you draw it out, the more reluctant people become to buy, as they go from believing that "property prices can only go up" to believing - equally wrongly - that "property prices can only fall". And also - I hate to bring this up as it seems deemed impolite - but there is also the small matter of personal responsibility here. No one forced anyone to take loans from the banks. Some individuals chose to rent rather than buy, to save rather than spend, or to at least save up for a reasonable sized deposit and not overstretch themselves. All of these bail-outs aimed at saving the over-indebted extract a cost from the more prudent. The big worry Deflation may be the big worry of the moment and it certainly looks as though consumer price index inflation will turn negative at some point next year. But even so, the Bank of England's rate cuts are going to hammer savings rates at a time when CPI is still way above target. And with sterling plunging, and the Bank now looking at the nuclear option of "quantitative easing" (that's printing money to you and me), there's no guarantee that deflation will be as significant a problem in the UK as anyone expects. The trouble is that punishing savers is another great way to drag out the correction, because households need to rebuild their savings. Before the current government came to power in 1997, households saved an average of around 10% of their income. That cushion has vanished. At the start of this year, the savings ratio actually went negative - meaning people were spending more than they earned and taking money from their savings to fund it. We won't get out of this recession until consumers have saved a much larger financial cushion and so feel comfortable about spending again. But rate cuts, a shrinking pound and bail-outs funded by higher taxes make the job of building that cushion a lot harder. We're in real danger of dragging this process out - and in the long run, that'll be more painful for us all. John Stepek is the editor of MoneyWeek Link
  3. I refuse to buy a 100 year old, falling down terrace house for over 100k (Not that the bank would let me anyway) Either houses drop back to 40-60k or Im never going to be able to afford a house again and have to rent forever and ever! Im actually crossing everything atm 'Rattles tin' 'cough' 'rattles tin' 'cough' Is this the first begging thread?
  4. Too many BMWs on the road anyway, nice car but every other car is a BMW. I heard about someone who owned a newish C class and it cost him just under £3000 for 3 services. I don't know if this was a one off case or not but don't garages charge at around 3-5 times more for the same general work on a premium brand to a standard? If something really goes wrong with your Merc then it gets expensive doesnt it. Knowing my luck it would cost me what the cars worth to run it every year :s
  5. I was looking at buying a second hand car next year. Heart says : http://cgi.ebay.co.uk/ws/eBayISAPI.dll?Vie...em=200270231175 a Merc 2005 C180k sport with 35k on the clock. Head says: 2007 Mondeo Zetec/Titanium with a 2.0l or above diesel engine. I'd love the Merc but the running costs scare me. Does anybody run a Merc C180k or similar ie premium badge? I was wondering what are the running costs and is it a rip off to own one compaired to a mondeo/Vectra/Volvo etc?
  6. Another recent view on the current situation House prices
  7. So a full reccession would basically seperate the rich from the poor at a larger rate. I'll have to remember to pass down a note for my great great grandson to buy up lots of property so we don't miss the next boat. I really wanted one of those Range Rover Sports too, damn.
  8. Probably answered a thousand times somewhere else but If what everyone is saying theres about another 25% - 70%+++ fall in the house prices and the fact that everybody I seem to be passed on the motorway has a range rover sport, aren't all these people with 300k and over in the bank just going to buy up all the houses? And what does this mean to everyone else such as joiners, butchers, postal workers and cleaners who are already struggling? If everybody has too much money now and the reccession puts prices up so much, even to an extent where the better off are struggling, then where do the everyday working class man and woman stand? Back to water and home made bread with jam as a luxury?
  9. http://www.findaproperty.com/displaystory....p;storyid=22181 . Does this mean a slight hold or a pickup with more ftb's comming in?
  10. Well I hope your prediction is right, let me be the first to buy you a pint if it is!
  11. Hi everyone. I came across this site last week after looking round for information on house prices and have been reading a lot of views and its not doing my nerves and good! Me and my family are on the bottom step of the ladder just outside Bury, Greater Manchester. We have just sold our property for 8% under valuation on a terraced house last week to first time buyers who have already paid for the survey. We will lose a little bit of money from this deal but will still take our 10% that we worked hard for and put in originally so we are happy to let it go. After reading a few threads, I am beginning to wonder if it is all a little bit to late! We are looking at a sale date of around mid/late September 08. I've read that most people are expecting huge falls soon.. But how soon? Anyone guess at a timeframe? As it seems everyone thinks that house prices are going to continue to drop, would most people think there will be a gradual decline over the next few years or are we heading to a cliff face and a sudden drop is to be expected? Thanks for any opinions and I will be staying glued to these boards for a long time to come!
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