FreeFall Posted July 30, 2005 Share Posted July 30, 2005 OK, really just looking for feedback on this. Supposing that we have a continuing decline in property prices for the next couple of years, is the following a likely scenario? People who have recently bought stuck in negative equity People who sat on deposits are now ready to enter market Buying power of 2007/8/9 FTB's significantly higher due to falling prices FTB's buying into middle of market (2/3 bed places) as one bed places are in negative equity. Just a thought - obviously it depends on prices continuing to fall, assumes that there's sufficient stuck in NE to keep 1BR places off market, etc. Waddaya think? Realistic? Quote Link to comment Share on other sites More sharing options...
IMupNorth Posted July 30, 2005 Share Posted July 30, 2005 OK, really just looking for feedback on this. Supposing that we have a continuing decline in property prices for the next couple of years, is the following a likely scenario?People who have recently bought stuck in negative equity People who sat on deposits are now ready to enter market Buying power of 2007/8/9 FTB's significantly higher due to falling prices FTB's buying into middle of market (2/3 bed places) as one bed places are in negative equity. Just a thought - obviously it depends on prices continuing to fall, assumes that there's sufficient stuck in NE to keep 1BR places off market, etc. Waddaya think? Realistic? <{POST_SNAPBACK}> No - you're dreaming and hoping at the same time. Go get a big job and earn some big money, its the only way. Quote Link to comment Share on other sites More sharing options...
FreeFall Posted July 30, 2005 Author Share Posted July 30, 2005 No - you're dreaming and hoping at the same time. Go get a big job and earn some big money, its the only way.<{POST_SNAPBACK}> Funny. Got a good job. Got plenty of money. Just not willing to spend at the moment. Ta for your concern though. Quote Link to comment Share on other sites More sharing options...
Jason Posted July 30, 2005 Share Posted July 30, 2005 This is very interesting, and I have thought along the same lines. At the moment I could buy a terrace at approx 120k - but with prices falling I have decided to hold until next summer where I could get a nice semi with my ever increasing deposit and a pay rise next april (current price 150-160k) (based on 15% falls). But if I were to wait until April 2007 I could afford todays 200k detached (assuming 15% falls over that time). And this is based on 4% pay rises every April (very modest), 4x my salary in a mortgage (ok, I should only get 3.5x) and property falls of 15% (extremely modest). Things are looking good for me, and I jump several rungs in the ladder!!! But I dare say there are alot of people who do McJobs who need to buy those cheap flats!!! Quote Link to comment Share on other sites More sharing options...
FaTB Posted July 30, 2005 Share Posted July 30, 2005 OK, really just looking for feedback on this. Supposing that we have a continuing decline in property prices for the next couple of years, is the following a likely scenario?People who have recently bought stuck in negative equity People who sat on deposits are now ready to enter market Buying power of 2007/8/9 FTB's significantly higher due to falling prices FTB's buying into middle of market (2/3 bed places) as one bed places are in negative equity. Just a thought - obviously it depends on prices continuing to fall, assumes that there's sufficient stuck in NE to keep 1BR places off market, etc. Waddaya think? Realistic? <{POST_SNAPBACK}> Definately realistic, same thought occured to me only the other day. Have saved a large deposit, which is getting larger all the time, if house price drop even 20 %, I will definately be raising my expectations from a 2 bed flat, to a 2 bed terrace as a first property. There is no doubt in my mind now that prices will be coming down, its just a matter of how far, and over what period of time. JUST KEEP PACKING THE MONEY AWAY !! Quote Link to comment Share on other sites More sharing options...
erd Posted July 30, 2005 Share Posted July 30, 2005 You might be surprised to see how easy it is to build £60k places in a couple of years! Some new build 1 bed flats (sorry - apartments) around here are under 80K now. It is not hard to see that they could go for £50K in a couple of years. Quote Link to comment Share on other sites More sharing options...
FreeFall Posted July 30, 2005 Author Share Posted July 30, 2005 FaTB Kinda where I'm coming from as well - where I am, 1/2 bed new builds are 150-180k, 2 bed victorian terrace 190-200k, and 3 bed semis about 220+. Only needs 20% fall to make it a nightmare scenario for people in the 1/2 br flats. Quote Link to comment Share on other sites More sharing options...
AgeingBabyBoomer Posted July 30, 2005 Share Posted July 30, 2005 Totally agree, but not now. I could have bought during the last few years, but I would have scraped onto the bottom rung of the ladder and struggled to stay there. I decided to wait it out, and leapfrog the market segment where the competition is highest, and quality of life is poorest. That decision is beginning to pay off, the longer I wait, the better prospects becom ABB Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted July 31, 2005 Share Posted July 31, 2005 Go get a big job and earn some big money, its the only way. Done both. Still not buying though, not at current prices. Quite happy to stay where I am and build up my deposit even more. Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted July 31, 2005 Share Posted July 31, 2005 FTB's buying into middle of market (2/3 bed places) as one bed places are in negative equity.Waddaya think? Realistic? <{POST_SNAPBACK}> I sold a 2 bed flat in 1994 and moved right up to 4 bed det. It is absolutely going to happen as you say. Quote Link to comment Share on other sites More sharing options...
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