Hopeful FTB

I have been wanting to buy a place for a while but cant afford it and have had to watch as friends make a fortune on their places and quite a few now have 2 properties- was feeling a bit depressed about it as really want to buy soon. Still get that reaction of "you are just bitter as you dont own" whenever I mention the HPC and "its never going to go down". One of my friends has just done a self cert mortgage borrowing, and sit down for this, 8 times their income to get a 200k interest only mortgage. I am now really starting to get scared for people- does everyone think that this is going to get very messy very fast? I intend to spend the next year saving like a woman posessed as I think things will be very different by then. I am scared for my mates as they arent the only people I know who are doing this now- there are still a people taking out massive mortgages and MEWin to BTL. Is it me?!

Whats a BBW? Should I even ask? Get the impression it has nothing to do with house prices

What exactly?

All this "are house prices going up or down" is becoming a total obsession- does anyone else think that it can get a bit unhealthy?! I used to be a normal, well rounded girl that just wanted to enjoy life- now I am obsessed with what the blo*dy house market is doing and if I am ever going to be able to afford bricks and mortar. The fact the it has apparently gone up by 1.6% has the effect of ruining my day- I scan the papers for any evidence of a crash and am filled with joy if there is an article talking about a downturn- In my 20's, I never cared- I am now in my early 30's and think about it a lot, becoming more and more bitter that I didnt buy 5 years ago (when actually I was travelling and enjoying my life to the full!) I am sure its becoming psychologically damaging- is it just me?!

I have commented on the situation in south wales in the local area forum as I am originally from wales. The average income in south wales must be below £29000, especially in Merthyr- that would be hilarious if it wasnt so depressing!! The south wales valleys have some of the highest levels of social deprivation in the whole of the uk having never really recovered from losing all their traditional industry. The average salary is about £15k and in merthyr, I would imagine that a lot of the locals commute to Cardiff as there is no work there. Has anyone ever been to Merthyr- its not the nicest of places! (no offence!) House prices there are seriously over-valued and according to a friend who lives in the valleys, not very much is selling as no-one can afford it. Bear in mind that 100k for a terrace is WAY out of most peoples price range when 4 years ago they were going for about 25-30K. Everytime I hear stuff about south wales, it depresses me as its gone crazy there and there are going to be some people in real trouble when the sh*t hits the fan.

So, what are the predictions for Interest rates this week? Seems that every time the bank of england is due to make its decision, there are LOADS of stories in the paper about how bad it is in retail etc. Probably remain as they are? Can't see them doing anything contraversial after the divide last month- be very surprised if they were cut again. Any opinions?

As I have said previously, its going to go very T*Ts up in south wales- its one of the poorest area in the UK with the lowest wages and large pockets of serious deprivation- combine that with flashing fake wealth and you have a combination for disaster! And its sad because south wales has suffered very badly over the years, especially with losing all its traditional industries- people are trying to make their lives better but are going to end up in the sh*t again!

According to a lot of media reports, the market in south wales is still rising. Was down there at the weekend and its a very different story. In cardiff, there was a street of terraces with at least 15 to let signs in houses- lots of people have tried to cash in on the BTL market down there but there are a lot of empty houses. A friend also told me that nothing is selling, especially in the valleys where they have some of the poorest people in the uk and the lowest wages. A house that costs 100k in the valleys is way out of the price bracket of most local people. Wales was apparently one of the few places that was still rising but this trend has definatly stopped as the houses are just way way way out of reach of everyone. South wales has a real "keeping up with the jones's" culture and its going to hit very badly as there is a lot of debt there. Have read all the articles over the weekend that are finally acknowledging a declining market- there was definate evidence of this in south wales at long last.

I agree! I heard splott being described as an " up & coming area"- biggest load of cr@p I have heard in a long time! It is a grim area where prices are traditionally very low and its only because of the madness of recent years that anyone is even buying there. Cardiff is going to go badly badly T*Ts up - in an area of average salaries that are 15k- prices are going to CRASH big time as its even more unaffordable than other places in the uk. This is sadly mixed with a tradition of materialism and "keeping up with the jones", flashing wealth that people dont have- its going to be very bad in south wales!

Yet again, these housing surveys ignore the main reason for the nimber of people renting- HOUSES ARE TOO BLO*DY EXPENSIVE FOR FTB- thats it, pure and simple - not really rocket science is it?!

Did anyone hear the estate agent/ property expert on radio 2 yesturday afternoon-on the steve wright show? According to him, the decline in london is all to do with the media and not real at all! (apparently the media is very irresponsible!) To which one of the presenters replied "well, that isnt what is happening in my area- prices are very stagnant and nothing is selling" The EA responded with, well, that is because there is 20% less property on the market and thus the slowdown is all in everyones imagination and really, its flying out as there are so many buyers to fewer properties! It was a bit mad to be honest! He was a tad smug aswell!

So what if, and this is the other response that I get all the time, its a "long term investment" for pension purposes that they dont plan to sell for 25 years? Do the same principles apply then? Most people seem to think that this wont go wrong as you just ride the storm of the ups & downs of the market and hope for a profit in the long term? (again, this isnt a wind up)

Actually it wasnt a wind up- just wasnt sure why there is such a big deal about BTL- I am fully aware the site is about house price crashes! I am not trying to sound like a muppet either as it goes!! Just I have people all around me doing this and I am getting constantly conflicting reports about what is good and what isnt- some people take the advice of their parents in the judgements to buy to let, all of whom have been though previous crashes with BTL properties! Of course I think they are all completely insane to take out massive interest only mortgages but when you are the only person saying that its idiocy and they are looking at you in pity as some kind of wishful thinker, you do start to doubt your certainty!

Is that an answer??!!

I posted a thread about prices dropping in Brighton a few days ago & a lot of the responses mentioned that the BTL market would be the first to collapse if the crash happens- can someone explain to me why this is? I have friends who are mortgaging up their properties at the moment to the max on interest only to let & then using the equity to get big interest only mortgages on other places- is this a bad idea at the moment? Thanks

My second post in one day but have a lot to comment upon! Been holding this in for a long time!! Like most people on this site ( it appears), I didnt jump on the property ladder 5 years ago in that 6 month window before it all went crazy- had some travelling to do as it goes! Anyway, have spent the last 5 years being reminded pretty much all the time by a great deal of rather smug friends who have made upwards of 100k on their properties how I am some kind of social pariah for this mistake- I quote " I feel really sorry for anyone trying to get on the property ladder these days as you have probably missed the boat" So, what do you say? What do you do? I now actually am ready to buy a house but funnily enough, even with a decent joint income, I can only afford a poxy one bed flat when actually I just want a 3 bed home to have my kids in. I dont mean this in the wrong way but I earn more than my parents ever did but, unlike them, seem to have no chance of having the "normal" life that they did due to soaring house prices that price pretty much everyone bar the very wealthy out of the market. As I have said before on this site, why do the media address every other issue about the housing market bar the most obvious "HOUSES ARE TOO EXPENSIVE FOR MOST NORMAL PEOPLE"- where is this going to go? How many normal people in this country can afford a house without getting into scary amount of debt? Surely this situation is deeply unsustainable? People keep saying to me that prices will never go down now but I read recently that if HP inflation continued in the way it has, by 2050 your average semi would cost about 50 million!! I am in despair about ita all! Any comments?

I didnt actually think about the title of my post until people startign commenting- there was no pun intended!

Cardiff is utterly ridiculous at the moment given the ratio of wages to house prices. So, I have mates who bought a house in splott about 4 years ago for 66K that is now APPARENTLY worth 200K- its a bog standard terrace on a bog standard street that looks like every other street in cardiff. The city is going to be hit by the worst of the decline if it happens simply because no - one in cardiff or south wales for that matter earns very much. Its really crazy and really scary! My mates for the recors have mortgaged themselves up to 190k on interest only and bought another house while renting the other one out on the premise that 'prices never go down'- is that right?!

As it goes, my mates have just got themselves a very large mortgage on interest only in Brighton- no-one seems to pay much attention to what is starting to happen down here as people have made so much money on property!

This is my first post so bear with me- think its a great and somewhat addictive site when you are trying to get on the ladder, as I am. Anyway, Things appear to be on the slide in brighton and noticeably in the one bed flat area- there are now flats for sale for about 20k less than they were a year ago, depending on the area. There are also more properties on the market here than I have seen in a long time, many with 'new price' and reduced. They also have seemed to be on the market a lot longer- there is a one bed on my street that has been on the market for 9 months. So, is this the beginning of the end? What do people think?- many of my friends disagree because they say the brighton is different due to the london influx and that property will never go down here- does this seem a realistic idea? thanks