roy?

I agree with a lot of what the poster states. Ultimately, property price fluctuations will be contingent upon affordability and sentiment. It’s interesting that people tend to get offended when there are posts such as these. Unless interest rates increase to 7-8%, no-one is going to sell. Only a massive volume of distressed sellers entering the marketplace will serve to drive down prices. The question is, will rates rise before property prices?

Why do people enjoy watching other people suffer? Is it only in this country where misfortune and hard times are embraced? This individual has tried to make a commercial decision and make some profit. He/she has attempted to invest in something tangible and long-term. They have not murdered anyone or committed a crime. They merely invested in something. Granted, the timing has been unlucky but why demonize and sneer from a distance? It troubles me to see that someone struggling can be the subject of ridicule. I do not understand why there is such vitriol and hostility towards those who have purchased as investment so as to prepare for their futures. If those of you who are waiting for prices to collapse to the extent that you buy, would you then be dissatisfied if prices rocketed? Would you refuse the proceeds of sale on principle?

It's one extreme to another. Property prices are very over-valued still. However, the snake in the grass is high interest rates. This will be the deal breaker (or maker) which ever side you sit on. There are deals to be made though. I have seen 8-12% rental returns on some properties. When to buy is only right for the person inolved in the deal. I doubt there will be a 50% decrease but then, in 2007, a 20% decline seemed unlikely. One thing is for certain. This cycle of boom and bust will repeat itself because that's how the system is designed. In the UK, property prices either go up or down. They do not linger. There is no specific 'bottom'. For example, if I found a plot that returned anything over 8%, whether it be today, 2001,2007 or 2030, and could afford it, I would consider it. No-one is going to sell whilst rates are this low. Rates will remain low until real inflation becomes unbearable for the administrators. The question is: What will rise first- interest rates or property prices?

It's no good advising to rent it if you have a residential mortgage, unless you get the lender to agree. Frankly, everyone here will render their own opinion, but the best thing to do is subjective to your needs. If i were you, i would get the consent, let it out and rent myself. Rents are relatively low, and whilst interests are low, you can try to pay off the capital. Further, when rates go up (and they will), you must hope that it's to quell HPi and not stabilise the £.

I am very keen to know. If those of you in here are expecting property prices to come down by a further 15%, would you then buy? And when you are thus a homeowner, would you then encourage HPI?

The question is does the BoE try and avoid inflation, by increasing the rates and risk the'housing recovery' or will it preserve rates at their current historic levels to prevent deflation?

I am intrigued. Would anyone on this site turn down the opportunity to make a 335k profit? Or Would you decline it on principle?