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guitarman001

What Are You Going To Do If Prices Don't Fall?

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I just had a look on rightmove and some properties in my area (ex-council) are cheapish - but what I really want is a detached house in a secluded area. Prices still fairly high for that sort of place - and in some places costs average £550k (ridiculous).

What are you going to do if, just supposing, house prices don't crash, but remain flat for say 10+ years? Are you going to wait 10 years, plunge in sooner, move away? I do think prices will fall somewhat but the stubborness has been incredible, so slow, and we know the people will never end their love with property and easy money. So what will it be for you if it doesn't happen as you'd like it? Many say in the next year or two for definite - but what if it's not? It feelsl ike an eternity already - I don't think I could pay so much for a place to live, it's an awful situation. Even worse for those that can't get jobs (I see them as I walk past the job centre for my lunch some days and they've no hope in hell if a professional like me can't afford a place).

I like the reasoned arguments and graphs here, but in the end there's a lot more at play - for me I simply see that prices are too high and have been for too long - and as every year drags out it gets more and more depressing. (I'm still a bear, but a despondent one).

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carry on paying this one down, plan is to probably buy a second house abroad for TSHTF protection. The bigger question is what will you do if you have general price inflation

Edited by AteMoose

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I just had a look on rightmove and some properties in my area (ex-council) are cheapish - but what I really want is a detached house in a secluded area. Prices still fairly high for that sort of place - and in some places costs average £550k (ridiculous).

What are you going to do if, just supposing, house prices don't crash, but remain flat for say 10+ years? Are you going to wait 10 years, plunge in sooner, move away? I do think prices will fall somewhat but the stubborness has been incredible, so slow, and we know the people will never end their love with property and easy money. So what will it be for you if it doesn't happen as you'd like it? Many say in the next year or two for definite - but what if it's not? It feelsl ike an eternity already - I don't think I could pay so much for a place to live, it's an awful situation. Even worse for those that can't get jobs (I see them as I walk past the job centre for my lunch some days and they've no hope in hell if a professional like me can't afford a place).

I like the reasoned arguments and graphs here, but in the end there's a lot more at play - for me I simply see that prices are too high and have been for too long - and as every year drags out it gets more and more depressing. (I'm still a bear, but a despondent one).

Can I just ask your current housing status, approx age, deposit amount etc. i.e. You're not a typical FTB are you?

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Just get on with your life.

Don't listen to half the nutjobs on here, the housing market will correct but not in the way many on here wish it would.

10 years of putting your life on hold, naah not for me.

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I've already done it.

I'm living in Paris.

All expenses paid contract.

Just been extended to end of December now.

No shortage of work here at the mo.

I have no intention of buying a house in the UK again unless prices drop 30% more.

If not, I'll continue to live and earn abroad.

You'd be mental to consider buying in the UK at the moment. Wait till the austerity measures finally hit.

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I just had a look on rightmove and some properties in my area (ex-council) are cheapish - but what I really want is a detached house in a secluded area. Prices still fairly high for that sort of place - and in some places costs average £550k (ridiculous).

Slightly off topic - IIRC you are in your early twenties (or am I thinking of someone else)? What's your situation - FTB/STR? If you are in your early twenties and a FTB I think a detached house in a secluded area maybe a bit beyond your means unless you are earning well above the average for your age group or have monumental savings, bank of m&d or a large inheritance.

What are you going to do if, just supposing, house prices don't crash, but remain flat for say 10+ years?

To me this is an impossible scenario. It is kind of like saying what will you do if aliens with big guns arrive and start zapping people. I would be interested to see any evidence of houses being flat for a decade in any country. They will either go up or down. In order for me to buy I would need to see evidence of rising house prices, coupled with rising salaries to pay for them, general inflation and greater mortgage availability. Otherwise I will continue renting.

As I have said before, I anticipate a trend of falling prices being in evidence by the autumn. My advice to you would be if house prices are too high where you live is to do what I did - move to a cheaper area.

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Can I just ask your current housing status, approx age, deposit amount etc. i.e. You're not a typical FTB are you?

25 - wage approx £30k - £20k in savings with ~£1k savings per month - girlfriend (yes yes, big assumption) has a paid-for flat and similar savings - we both want a house. In total approx £140k all in and building each year.

To get the detached house I'd be prepared to put down all (edit - well... a large chunk of) of my money and take on a mortgage of £60k or so. I'd hope to pay off any mortgage within a decade at absolute most so I can then pile in for pension etc.

Oh and I currently live at home, which is why I'm saving so much (for an engineer, anyway!!)

Edited by guitarman001

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I've already done it.

I'm living in Paris.

All expenses paid contract.

Just been extended to end of December now.

No shortage of work here at the mo.

I have no intention of buying a house in the UK again unless prices drop 30% more.

If not, I'll continue to live and earn abroad.

You'd be mental to consider buying in the UK at the moment. Wait till the austerity measures finally hit.

Hey I was in Paris just a few weeks ago! Very expensive place!

Each time I go abroad I think I'd love to live in the place, but then I really miss the UK! Want to visit Canada/Oz to see if the feelings would be the same.

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25 - wage approx £30k - £20k in savings with ~£1k savings per month - girlfriend (yes yes, big assumption) has a paid-for flat and similar savings - we both want a house. In total approx £140k all in and building each year.

To get the detached house I'd be prepared to put down all my money and take on a mortgage of £60k or so. I'd hope to pay off any mortgage within a decade at absolute most so I can then pile in for pension etc.

Oh and I currently live at home, which is why I'm saving so much (for an engineer, anyway!!)

Umm.....

So £140k of which you are contributing £20k, gf £20k and you are assuming that the flat is worth £80k

Am I right? The bulk of your savings is not in cash but actually tied up in a depreciating asset. IMHO you are making a major assumption on the bulk of the money you have listed. To my ultra conservative mind you have 40k between you.

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Slightly off topic - IIRC you are in your early twenties (or am I thinking of someone else)? What's your situation - FTB/STR? If you are in your early twenties and a FTB I think a detached house in a secluded area maybe a bit beyond your means unless you are earning well above the average for your age group or have monumental savings, bank of m&d or a large inheritance.

You're right. It's banking on me and the missus working out - very fortunate in that respect. If it doesn't I'd still be looking to get a place for myself, maybe a flat somewhere.

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25 - wage approx £30k - £20k in savings with ~£1k savings per month - girlfriend (yes yes, big assumption) has a paid-for flat and similar savings - we both want a house. In total approx £140k all in and building each year.

To get the detached house I'd be prepared to put down all my money and take on a mortgage of £60k or so. I'd hope to pay off any mortgage within a decade at absolute most so I can then pile in for pension etc.

Oh and I currently live at home, which is why I'm saving so much (for an engineer, anyway!!)

So if average detached houses in secluded areas in the area you're looking at around £140k, that doesn't seem an unreasonable aspiration. That's all I wanted to clarify.

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Umm.....

So £140k of which you are contributing £20k, gf £20k and you are assuming that the flat is worth £80k

Am I right? The bulk of your savings is not in cash but actually tied up in a depreciating asset. IMHO you are making a major assumption on the bulk of the money you have listed. To my ultra conservative mind you have 40k between you.

I've dropped the price of the flat big-time, so hefty depreciation factored in. She has ~£30k+ savings and building. I have £20k and building. The plan was actually to wait approx 3 years or so to save enough up.

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Just get on with your life.

Don't listen to half the nutjobs on here, the housing market will correct but not in the way many on here wish it would.

10 years of putting your life on hold, naah not for me.

What exactly do you mean by 'putting your life on hold'?

How is not buying a house putting your life on hold? I'm living with my parents saving for a deposit. The longer I wait the bigger the deposit, the smaller the mortgage. My life is continuing regardless I don't need to but a house to start 'living'. I suspect it's similar for those who rent.

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So if average detached houses in secluded areas in the area you're looking at around £140k, that doesn't seem an unreasonable aspiration. That's all I wanted to clarify.

£140k + £60k mortgage means we could get one right now (price approx £200k). But prices are a complete rip-off - waiting for them to come down to £140k and below. She used to have a 4-bed detached for just £95k which would now be 'worth' £200k... so I'm using this as an indicator. Even if the price of the flat falls even more, so (hopefully) will the price of other properties, lessening the overall cost difference. Only bugger with nice areas is the rip-off council tax.

Anyway - enough about me - how about the rest of you?

Edited by guitarman001

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Hey I was in Paris just a few weeks ago! Very expensive place!

Each time I go abroad I think I'd love to live in the place, but then I really miss the UK! Want to visit Canada/Oz to see if the feelings would be the same.

Yeah, it is very expensive, but when you are living on expenses it's okay :-) Beautiful city mind. Was down the beach ( man made one ) in Paris at the weekend :-) Would like to try amsterdam next .

The Euro/£ exhcange rate would beet to be 2 euros to the pound for it to be "normal"

I have a friend in Oz and it''s become expensive in the last few years. We really need a BIG bout of deflation.

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Yeah I've heard that - the days of cheap living in Oz and getting a big house with pool for 'cheap' are over.

Good luck in Paris - just watch out for the French! ;)

1000 Years of Annoying the French - Amazom.co.uk

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If the madness continues then I'm moving overseas, destination unknown at the minute but I'm getting less and less picky as time goes on.

It's not just houses that are overpriced in the UK either, it's just about everything. Paying top whack for a substandard lifestyle doesn't strike me as the way to spend the rest of my life if I'm honest. Some class waiting around for realistic prices as a waste of life but so is working a career to afford a shoebox. Money needs to have value again - the average single wage needs to be able to buy the average home for 3 - 3.5x income.

There are a lot of people who criticise the US and the American Dream. Sure it was funded like ours on easy credit and debt, but at least some of the Americans lived the dream, for a while, and on decent plots too. Look at what we got out of our cracker.

The missus wants a walk in wardrobe, I want a games room and a home cinema room, stuff that with two careers on the go we would have in the likes of US or Canada, but here in old Blightly, oh no, it's a cramped little house with the inability to do much other than place the essential bits of furniture in the essential rooms.

Britain takes the piss.

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Renting, I worked out we had about 2 years of no price falls to get to a position where we would be losing money compared to buying, so waiting those 2 years. Although we can't afford to buy here anyway and would need to move to a less desirable neighbourhood anyway.

If it doesn't come then there are other options including leaving the country, so medium term I think we're looking to keep renting anyway and saving cash to keep our assets liquid rather than tied up in property.

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25 - wage approx £30k - £20k in savings with ~£1k savings per month - girlfriend (yes yes, big assumption) has a paid-for flat and similar savings - we both want a house. In total approx £140k all in and building each year.

To get the detached house I'd be prepared to put down all (edit - well... a large chunk of) of my money and take on a mortgage of £60k or so. I'd hope to pay off any mortgage within a decade at absolute most so I can then pile in for pension etc.

Oh and I currently live at home, which is why I'm saving so much (for an engineer, anyway!!)

My situation is almost identical to you're except I'm 2 years older and don't have a flat. All our savings in cash approx £70k looking to buy a small house for around £110k in a secluded village location currently similar houses are priced about £170k+ here.

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What are you going to do if, just supposing, house prices don't crash, but remain flat for say 10+ years?

I won't need a family home in 10+ years, the kids will be nearly old enough for uni, will stay renting until retirement then buy for cash.

The good news is that it probably saves me £20K in stamp duty and fees if I simply skip the family house rung on the ladder.

VMR.

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I have a fall-back position re a sex-change operation - not one of those lorry driver ones mind you but a hot babe one - and a career as a Vegas showgirl or cocktail waitress.

:blink:

Now that's something I'd pay to see

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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