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souljahslim

Help! Will House Prices Fall Further

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HI,

I am in the process of purchasing a house.

However after further research I have learnt via a number of oppinions that house will fall further in lead to the general election and after next year.

what I want to know is should I pull out and wait a bit longer ie 1 year.. (I am a first time buyer ) or should I continue with the purchase of the house which is in the East midlands as prices will not fall any further and if they do the fall will be minimal.

Your oppinion would be greatly appreciated.

thanks in advance

Kind Regards,

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Buy now. In fact buy 2 and let one out. Then buy another 3 and let them out too.

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Buy now. In fact buy 2 and let one out. Then buy another 3 and let them out too.

you are always the pessimist!

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.......what I want to know is should I pull out and wait a bit longer ie 1 year..

The mortgage backed securities market which enabled the house price bubble has gone so there's nothing now maintaining the current market except smoke and mirrors.

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Take the initial, glib response as an indication that it is largely considered on here as a waiting game!

Record printing of money and national defecits and record low IRs and the housing market has stagnated at best. The current transaction levels are so low that data saying house prices are going up is tripe. I have seen 1 house out of 340 in the last 2 months that has gone up in price.

Don’t believe the fools saying now is a great time to buy, I would wager these fools listen to Radio 1 newsbeat and occasionally read the Express.

Do some more background reading, Market Oracle is good. Of course if you love the house you are buying and don’t mind losing another 15-20% in its value than do it if you want to live there a long time but as a FTB keep your chain-free powder dry and bag yourself a bargain in 2 years time. Until then enjoy bargain rentals. I do!

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Please man, Ireland, US, Spain, Dubai have had a lot bigger price reductions than UK, and our house price bubble was bigger than any of theirs.

The interest rate reductions were the only thing that stopped about 750,000 buy to let morons losing their homes, we haven't even finished phase 1 of our decline.

Property transactions are about 30% down compared with 12 months ago and 12 months ago things were HORRIFIC. So its still death out there.

The only reason anything is not crashing is people are too bankrupt to sell their houses at current slightly reduced prices and a few rich old farts are gifting their kids deposits or are desparate for some return on capital with interest rates zero.

Don't be a fool.

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Who the f*ck knows.

If buying a house as home, buy one. You could be dead next week.

I wouldn't ask the people on this site. Make your own mind up on the available info. This site is heavily biased in one opinion. The clue is in the name.

Yes biased towards looking at the reality of the macro economic storm that is on all fronts.

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Guest UK Debt Slave
HI,

I am in the process of purchasing a house.

However after further research I have learnt via a number of oppinions that house will fall further in lead to the general election and after next year.

what I want to know is should I pull out and wait a bit longer ie 1 year.. (I am a first time buyer ) or should I continue with the purchase of the house which is in the East midlands as prices will not fall any further and if they do the fall will be minimal.

Your oppinion would be greatly appreciated.

thanks in advance

Kind Regards,

Are you a cash buyer or are you buying with debt?

If you're a cash buyer, there isn't so much to worry about and I'd sooner buy a half decent property than watching your savings disappear.

If you're buying with a mortgage, I'd stay well clear of the housing market. In fact, I'd use the opportunity to leave the UK as fast as humanly possible.

Even is house prices fall further, the cost of living is going to soar in the UK, particularly after Brown is gone. So even if prices fall, affordibility will still make purchasing a house very expensive. Personally I wouldn't bother. Property hasn't been fairly priced since the beginning of the decade. Why sell yourself into perpetual economic slavery to keep a roof over your head. I'd rent. You have much more flexibility and you can just pack up and walk if you need to.

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HI,

I am in the process of purchasing a house.

However after further research I have learnt via a number of oppinions that house will fall further in lead to the general election and after next year.

what I want to know is should I pull out and wait a bit longer ie 1 year.. (I am a first time buyer ) or should I continue with the purchase of the house which is in the East midlands as prices will not fall any further and if they do the fall will be minimal.

Your oppinion would be greatly appreciated.

thanks in advance

Kind Regards,

whilst you're waiting -go to the off-topic forum and entertain yourself with the dirty threads

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Take the initial, glib response as an indication that it is largely considered on here as a waiting game!

Record printing of money and national defecits and record low IRs and the housing market has stagnated at best. The current transaction levels are so low that data saying house prices are going up is tripe. I have seen 1 house out of 340 in the last 2 months that has gone up in price.

Don’t believe the fools saying now is a great time to buy, I would wager these fools listen to Radio 1 newsbeat and occasionally read the Express.

Do some more background reading, Market Oracle is good. Of course if you love the house you are buying and don’t mind losing another 15-20% in its value than do it if you want to live there a long time but as a FTB keep your chain-free powder dry and bag yourself a bargain in 2 years time. Until then enjoy bargain rentals. I do!

+1. Unless you can get a real bargain now (50% of 2007). Unemployment is rising, this will be added to by the public sector cuts, banks are not lending silly money again. IMO house prices will only go one way. House prices do not rise when unemployment is rising rapidly, you don't have to be an expert to know this.

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You should buy now.

The East Midlands is largely unaffected by unemployment and is a mecca for foreign capital investment due to its sophisticated world leading industries.

If you don't strike while the iron is hot, you may be priced out by savvy Russian investors looking to take advantage of the weak pound in order to build money spinning BTL empires in Leicester, Peterborough and Melton Mowbray.

However if you are unsure, my recommendation would be to buy the house, but also hedge by investing in bank shares, oil futures and the US car industry.

You have done well to come here. Taking suggestions from random strangers on the internet is always a wise idea just before you make the biggest (and potentially ruinous) financial decision of your life. You are guaranteed to get excellent and well informed advice, particularly as you have been so illuminating about your situation and we are all in doubt whether or not you can afford to buy.

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what I want to know is should I pull out and wait a bit longer ie 1 year.. (I am a first time buyer ) or should I continue with the purchase of the house which is in the East midlands as prices will not fall any further and if they do the fall will be minimal.

Your oppinion would be greatly appreciated.

And this declaration of fact is based upon...??

The fact you even wrote that tells me you have absolutely no clue as to what is going on with the housing market, the wider economy and what this whole "credit crunch", "global recession" thing is all about or what caused it.

Nevertheless, welcome to HPC. Read, learn and do yourself a favour: walk away from this purchase and wait until 2011 at the very earliest.

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Guest P-Diddly
Who the f*ck knows.

If buying a house as home, buy one. You could be dead next week.

I wouldn't ask the people on this site. Make your own mind up on the available info. This site is heavily biased in one opinion. The clue is in the name.

Yep. But what no-one wants to recognise is that real incomes are falling a lot faster than house prices, being propped up by banks, being propped up by the government, being propped up by people yet to be born. Affordability has never been worse.

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Please man, Ireland, US, Spain, Dubai have had a lot bigger price reductions than UK, and our house price bubble was bigger than any of theirs.

ITYF that is factually incorrect.

tim

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You should buy now.

The East Midlands is largely unaffected by unemployment and is a mecca for foreign capital investment due to its sophisticated world leading industries.

If you don't strike while the iron is hot, you may be priced out by savvy Russian investors looking to take advantage of the weak pound in order to build money spinning BTL empires in Leicester, Peterborough and Melton Mowbray.

However if you are unsure, my recommendation would be to buy the house, but also hedge by investing in bank shares, oil futures and the US car industry.

You have done well to come here. Taking suggestions from random strangers on the internet is always a wise idea just before you make the biggest (and potentially ruinous) financial decision of your life. You are guaranteed to get excellent and well informed advice, particularly as you have been so illuminating about your situation and we are all in doubt whether or not you can afford to buy.

:lol:

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house prices will only ever go up because we live in an evil country where social mobility is a luxury and controlled by the state and those in power. The powers that be need house prices beyond the reach of plebs so they can control who holds power (land) and who doesn't (flats).

Your question should really be, will we have a revolution within the next 5-10 years? If not, then you might as well buy now, with Paypal.

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Who the f*ck knows.

If buying a house as home, buy one. You could be dead next week.

I wouldn't ask the people on this site. Make your own mind up on the available info. This site is heavily biased in one opinion. The clue is in the name.

Actually, the biased people on this site are well known. Others have more balanced views. Would you walk up to someone in a room full of strangers to ask for advice?

My personal advice (first time buyer, don't have property) is wait if you can until the trend becomes a little clearer if you can.

On the other hand, over the lifetime of the loan a few percentage gain or loss in value either way is neither here nor there. If you need a house to live in, buy it if you can see one at a price that looks vaguely acceptable.

My personal feeling is that there will be very few transactions while the underlying trend is unknown. When it becomes clear (which in my opinion is steadily down), the market will start moving again and estate agents will see a very slow return to a moderate level of business in a stagnating market.

I do think the government and Bank of England have tried to legislate away any major falls in prices. However in the long run it will not work, as its been tried before and failed abysmally in Japan.

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Guest P-Diddly
Actually, the biased people on this site are well known. Others have more balanced views. Would you walk up to someone in a room full of strangers to ask for advice?

My personal advice (first time buyer, don't have property) is wait if you can until the trend becomes a little clearer if you can.

On the other hand, over the lifetime of the loan a few percentage gain or loss in value either way is neither here nor there. If you need a house to live in, buy it if you can see one at a price that looks vaguely acceptable.

My personal feeling is that there will be very few transactions while the underlying trend is unknown. When it becomes clear (which in my opinion is steadily down), the market will start moving again and estate agents will see a very slow return to a moderate level of business in a stagnating market.

I do think the government and Bank of England have tried to legislate away any major falls in prices. However in the long run it will not work, as its been tried before and failed abysmally in Japan.

Sid, affordability, better or worse over the next decade? I'm talking about regular folks, ftb's, not STR's and people with 'loadsamoney'.

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Sid, affordability, better or worse over the next decade? I'm talking about regular folks, ftb's, not STR's and people with 'loadsamoney'.

Affordability will stay more or less the same or will actually go down I reckon. That's deflation for you. House prices and many other prices will fall but so will wages steadily.

Edited by Sir Sidney Ruff-Diamond

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Guest P-Diddly
Affordability will stay more or less the same or will actually go down I reckon. That's deflation for you. House prices and many other prices will fall but so will wages steadily.

That's my take on the situation. I think wages faster than anything else and the last to recover, if ever this time round (see my constant wibbling about West meets East whilst West moves East).

I joined this site because I was bovvered about affordability and the effect on society. Just like to see people have stable homes and families.

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