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

[exiges]

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

Wait until the very last possible moment and buy the best I can afford, what else can you do ?

[Bruce Banner]

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.

Yup, I'll get on with my life as I've always done. When prices correct, I may buy, or perhaps I'll continue to rent.

Yes there are some nutjobs that post here, but none so nutty as those who have bought a house in the last year .

My life has never been on hold, I'm renting at the moment and taking three or four holidays a year playing with my toys . Owning or renting a house, it makes no difference to life .

[futurepaul]

Done it, moved to Switzerland.

Nicer, politer, safer, better weather, best standard of living, low tax, A multicultural society (21% foreign) that seems to work, stable currency

Still cant buy here but can save for something in the UK, France or Germany, not investment to live

[Monkey]

Well i maybe in a different situation than most, and as long as myself and my G/F stay together and in full time employment

i am just about to start renting (my first place) with my G/F (early next year), we expect to be able to save £15k+per year between us then, in about 3 years time i'll look at the market and see what there is that we are happy pay for, if there isnt anything that interest us then we'll continue to rent and save. if our wages go up in that time so will our savings. i'm actually expecting to have £50k in 3 years time (bar any unforseen circumstances)

we have discussed with my G/F parents that in about 5 years time, they "may" reconsider the need for the family home, and down size to a more modest place to live out their retirement, they have said that if we was interested we can buy that home from them for the cost of their new home, and the equity left would be my G/F inheretence, and the new house would be her brothers inheretence.

that would basically mean (at todays price) a 50% reduction in price

[exiges]

Done it, moved to Switzerland.

Nicer, politer, safer, better weather, best standard of living, low tax, A multicultural society (21% foreign) that seems to work, stable currency

Don't forget the good health service, the fact it's not racist to be proud of your country.

I lived there (Neuchatel) for 4 years, loved every minute of it, and would love to retire there.

[xux42]

What are you going to do..

Carry on with everything else, pay off the rest of the mortgage.

Invest some more in things other than property.

Only looking to upgrade from a perfectly OK house so not as bothered as many TBH.

Most of us are amazed and appalled by what has happened, but I think its only a minority whose plans are wholly dependent on a HPC(I hope!!).

That said, house prices will fall, nothing can stop it now short of killing the rich and using the money to pay down the deficit & pay off billions in personal debt.

And as we don't live in a revolutionary society thats hardly on the cards.

[red]

Well, I don't think it's a case of 'if prices don't fall' - more a case of by how much and by when.

If I was 10 or so years younger (like many of you young bucks here) I'd be happier to sit it out in anticipation of great falls, but we're about to have our first child and the wife is keen to be in a place of our own. Understandable.

This means that we're likely to buy into a falling market rather than wait for a perceived 'bottom', but sometimes the true 'value' of having a family home cannot be quantified in purely financial terms. Affordability is, of course, the main factor.

I'll remain bearish on property, but I'll probably have bought a year from now.

[Soul Reaver]

I think that what this site has shown unequivocally to my mind is that none of us can predict the future. I have given up on the UK as I am not prepared to hock myself to a bank for the rest of my life for a mediocre dwelling. Not to mention the reasons mentioned in my sig

I have also given up caring whether there is a HPC in the UK or not. I just don't care anymore.

[out the loop]

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.

I guess it means you will have ten years less of your (relatively short) life living in your own home. If owning a home and not a house is important to you and you wait and wait, you won't have as long to enjoy it.

Edited July 27, 2010 by out the loop

[twatmangle]

Yup, I'll get on with my life as I've always done. When prices correct, I may buy, or perhaps I'll continue to rent.

Yes there are some nutjobs that post here, but none so nutty as those who have bought a house in the last year .

My life has never been on hold, I'm renting at the moment and taking three or four holidays a year playing with my toys . Owning or renting a house, it makes no difference to life .

Of course it does, or you wouldn't be on a website called House Price Crash. you wouldn't have Googled it in the firstplace.

I am sure what you mean is that you would prefer to own a house, but you are either unwilling or unable to buy one at these prices.

[Democorruptcy]

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!!)

Instead of house hunting have you considered hunting for a wealthier girlfriend?

What about a detached house owning, childless, plenty of cash in the bank voluptuous divorcee?

[Georgia O'Keeffe]

Of course it does, or you wouldn't be on a website called House Price Crash. you wouldn't have Googled it in the firstplace.

I am sure what you mean is that you would prefer to own a house, but you are either unwilling or unable to buy one at these prices.

im not sure thats true, theres probably quite a few people on here that arent particularly interested in houseprices other than their impact on the wider economy, this site is much more about economics and socionomics than housing, i came across it when looking up some Kondrattief stuff and a post from here came up, kept an eye on the site and joined specifically because i was interested in the "what is money" discussions as its a great subject and the site had quite a few well informed posters and improved my knowledge quite alot on the subject.

Edited July 27, 2010 by Tamara De Lempicka

[Democorruptcy]

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.

Isn't he assuming the flat is £100k if they both have £20k in savings?

His situation is getting me thinking about where I've gone wrong. He is securing 6 times PTOV (Partner To Own Value). I'm -8 PTOV. A 20% drop in house prices isn't really the problem is it? I must buy her a lottery ticket.

[The Masked Tulip]

Now that's something I'd pay to see

You may have to if my new career takes off!

[The Knimbies who say No]

Of course it does, or you wouldn't be on a website called House Price Crash. you wouldn't have Googled it in the firstplace..

Nah, I got the link from CHAMBEAJ's advfn.com 'HOUS' thread. First time I had a look here, I saw the thread 'most overpriced sh*tehole' and the rest, as they say...

Edited July 27, 2010 by cheeznbreed

[The Masked Tulip]

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.

I agree with all of this.

May I add that the British are increasingly becoming, and I think it will hasten in the next 50 years, becoming the poor in their own country.

I suspect we will see more coming here from Europe but also from India and Asia - they will make money out there in ways that will be barred to us or difficult for us and then come to the UK and buy up property. Meanwhile, the increasingly poor Brits will be priced further and further out of a decent home.

[futurepaul]

Don't forget the good health service, the fact it's not racist to be proud of your country.

I lived there (Neuchatel) for 4 years, loved every minute of it, and would love to retire there.

Yes just got out of university hospital zurich (apparently a bad hospital, i disagreed) today. I got good food, good nursing and medical staff a CT scan at 3 hours notice and a Physiotherapist, not bad for 3.5 days. Plus it was CLEAN I mean CLEAN

[Agentimmo]

Of course it does, or you wouldn't be on a website called House Price Crash. you wouldn't have Googled it in the firstplace.

I am sure what you mean is that you would prefer to own a house, but you are either unwilling or unable to buy one at these prices.

Or maybe he's telling the truth? I rented for 10 years (UK and France) before buying. Never gave a thought about buying until about 6months before I purchased. As the poster may be doing, I did have a look at EA's windows, Property pages in the papers etc. Given the price of the asset and the fact it will take 25yrs or more to repay, it's no more than due diligence

Renting allowed me to reach the position I'm in today. Buying a 1 bed shoe-box in the early 90s would have been the death of my ambitions. Glad I didn't give into the hype and VI pressures......

[Agentimmo]

I agree with all of this.

May I add that the British are increasingly becoming, and I think it will hasten in the next 50 years, becoming the poor in their own country.

I suspect we will see more coming here from Europe but also from India and Asia - they will make money out there in ways that will be barred to us or difficult for us and then come to the UK and buy up property. Meanwhile, the increasingly poor Brits will be priced further and further out of a decent home.

Given that the Brits have been doing this for the last 50 years in countries like Spain, France, and the former colonies, then it's really just a case of swings and roundabouts?

[Bruce Banner]

Of course it does, or you wouldn't be on a website called House Price Crash. you wouldn't have Googled it in the firstplace.

I am sure what you mean is that you would prefer to own a house, but you are either unwilling or unable to buy one at these prices.

I am a potential cash buyer.

When I found this site I was intending to buy a house. But, having sold my mortgage free house, to move to a different area, decided that the market was drastically overheated and made the decision to rent for a year or so and see what happened.

That was in 2005, since then, I have discovered that I'm perfectly happy renting and thus will not be buying until I'm sure that it makes financial sense.

[twatmangle]

I rented for 10 years (UK and France) before buying. Never gave a thought about buying until about 6months before I purchased.

Renting allowed me to reach the position I'm in today. Buying a 1 bed shoe-box in the early 90s would have been the death of my ambitions. Glad I didn't give into the hype and VI pressures......

Exactly my story, I rented quite happily (up to a point) for 10 years too. By the age of 32, the interest on my savings was paying my rent. Effectively I had paid off my mortgage without having one.

But I wouldn't say that renting or buying makes no difference in life. It certainly does. If you think it doesn't then you're in denial to some degree. I know which I prefer, and I wouldn't change it for the world.

[Bruce Banner]

Exactly my story, I rented quite happily (up to a point) for 10 years too. By the age of 32, the interest on my savings was paying my rent. Effectively I had paid off my mortgage without having one.

But I wouldn't say that renting or buying makes no difference in life. It certainly does. If you think it doesn't then you're in denial to some degree. I know which I prefer, and I wouldn't change it for the world.

No, I'm not in denial.

I have rented the same house for a few years now. The interest on the money I'd have to draw out of the bank to buy it more than pays the rent. I live in it for about seven or eight months of the year, the rest of the time I'm away on extended holidays.

What difference would it make to my life if I owned the house rather than renting it? The truth is, apart from financial reasons, absolutely none.

[dances with sheeple]

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).

12 years ago in Edinburgh starter flats were well under 50k, there was a credit boom and everything went crazy, if you think the credit is coming back buy now because the nutjobs in this country will do it all again if they get the monopoly money handed to them, if you don`t think it is coming back ( I don`t) then protect yourself the best you can and watch the bust unfold. People are only "stubborn" because of low rates and government intervention, it won`t take much to cause a full scale bloodbath.

[Godley]

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.

Easy tiger.

My response was to the OP. Any reasonable person would concur that he/she feels their life is on hold waiting for the impending house price implosion.

[Ritters]

Do our lives suddenly open up and flourish once we've bought into the property market?