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10-12 Percent Off Peak,, Good Area (Sort After Village) Would You Buy?

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Ok , so I can potentially view this, agent and missus are keen for me to do so. I think values will drop but mortgage interest increase. A good area, will fall but I would say less than other areas, simply not enough places there for sale at any one time. What would you do, to view or not to view, that is the question??????

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Ask the agent if it is OK if you send your butler round for a prelimary inspection. If it's such a good area you don't want to make them think you are going to lower the tone do you?

By the way I think you need to sought your spelling out, in case they are very snooty.

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Ok , so I can potentially view this, agent and missus are keen for me to do so. I think values will drop but mortgage interest increase. A good area, will fall but I would say less than other areas, simply not enough places there for sale at any one time. What would you do, to view or not to view, that is the question??????

Simple maths equation to get you started. Its not the whole answer, but will point you in the right direction.

a.) How far do you think prices will fall before the bottom (whenever you think that will be).

b.) How long can you / do you intend to fix at current low rates and how much will this save you?

Does the potential gain from b merit the potential loss in a?

Edited by Caveat Mortgagor

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10-12 Percent Off Peak,, Good Area (Sort After Village) Would You Buy?

Nope. It may not have many for sale at one time but this is reflected in the current high price. As general demand drops so will the demand for the few houses for sale in that area and hence they will achieve a lower price. Albeit still at a premium to less desirable areas.

If you view with the wife she will almost certainly pressure you into making an offer. So the the question is, are you prepared to buy now for 10% off peak when it's quite likely more falls are coming? If the answer is no don't view it.

Personally I'd rater buy a house at 15% IR with a tiny mortgage than at 2% with a huge one. But it depends on your circumstances how it works out for you.

Edited by Pent Up

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Simple maths equation to get you started. Its not the whole answer, but will point you in the right direction.

a.) How far do you think prices will fall before the bottom (whenever you think that will be).

b.) How long can you / do you intend to fix at current low rates and how much will this save you?

Does the potential gain from b merit the potential loss in a?

That works if you got a time machine and can travel into the future, otherwise it's just guessing, flip a coin territory

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Ok , so I can potentially view this, agent and missus are keen for me to do so. I think values will drop but mortgage interest increase. A good area, will fall but I would say less than other areas, simply not enough places there for sale at any one time. What would you do, to view or not to view, that is the question??????

The amount lower than peak value is a bit irrelevant now. You need to work out what it is worth today and knock 20% off of that to insure yourself against any future falls, if your offer isn't accepted then walk way.

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Ask the agent if it is OK if you send your butler round for a prelimary inspection. If it's such a good area you don't want to make them think you are going to lower the tone do you?

By the way I think you need to sought your spelling out, in case they are very snooty.

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Typed ad a walked so excuse spelling , but very helpful to point it out .........

In respect of taking the piss that it is a snooty area, well I can't help it if people that live in the area have more cash. The fact it Is kept very well, tidy, good schools, nice architecture etc is the reason it's sought after.. In terms of further falls I expect 10 - 20 percent drops but possibly not quite as severe here. To give you an idea, there has only been three possible runners in this area in the last year. So much so we were recently let down on a place ina totally different area (but was about 20 percent down on peak). Good to hear your thought though

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Typed ad a walked so excuse spelling , but very helpful to point it out .........

In respect of taking the piss that it is a snooty area, well I can't help it if people that live in the area have more cash. The fact it Is kept very well, tidy, good schools, nice architecture etc is the reason it's sought after.. In terms of further falls I expect 10 - 20 percent drops but possibly not quite as severe here. To give you an idea, there has only been three possible runners in this area in the last year. So much so we were recently let down on a place ina totally different area (but was about 20 percent down on peak). Good to hear your thought though

PLEASE WATCH THE TRAFFIC!

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Tbh, I'm in the process of buying (shhhh!), why am I buying? Well I've been looking for years, I'm fed up living at home, the mortgage is small, then there is the fact the house I've found is exactly what I'm after for a price I think is reasonable (about 2004/5).

Will prices fall further, yes, but I want to move out, renting will cost me £9k a year plus the hassle so it's the right choice!!

If u can buy a place where u think I'll be happy and it ur fine with themortgage, then buy!

Know 1 knowswhat will happenin the next 12 months, I've given up predicting because something unexpected always happens!

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Simple maths equation to get you started. Its not the whole answer, but will point you in the right direction.

a.) How far do you think prices will fall before the bottom (whenever you think that will be).

b.) How long can you / do you intend to fix at current low rates and how much will this save you?

Does the potential gain from b merit the potential loss in a?

bizzarely, you maybe better off waiting for interest rates to rise before buying, as this will drive down prices.

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Tbh, I'm in the process of buying (shhhh!), why am I buying? Well I've been looking for years, I'm fed up living at home, the mortgage is small, then there is the fact the house I've found is exactly what I'm after for a price I think is reasonable (about 2004/5).

Will prices fall further, yes, but I want to move out, renting will cost me £9k a year plus the hassle so it's the right choice!!

If u can buy a place where u think I'll be happy and it ur fine with themortgage, then buy!

Know 1 knowswhat will happenin the next 12 months, I've given up predicting because something unexpected always happens!

the only thing id say to that is, if in 2-3 years time you find that you could have bought the same house for 20-30% cheaper youll kick yourself.

it will be like the feeling you get when you buy something then find the same item cheaper next door, only magnified 1000 times.

the cuts in the economy havent even begun to take effect yet, we are nowhere near the heart of this economic crisis.

yes you maybe able to afford it, but imagine if someone who buys a similar house to you next door, is paying £150 a month less for 25 years in a row because they waited a couple of years - you ought to also think about the opportunity cost of buying now.

Edited by mfp123

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...depends how long you are planning to live there, how secure your job is and possible future promotion, wage increases also if you can continue living a good quality of life factoring in falling house prices requiring to move, a possible rise in interest rates and higher inflation/cost of living.....tick the boxes.

....the higher the price the harder the fall. ;)

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the only thing id say to that is, if in 2-3 years time you find that you could have bought the same house for 20-30% cheaper youll kick yourself.

it will be like the feeling you get when you buy something then find the same item cheaper next door, only magnified 1000 times.

the cuts in the economy havent even begun to take effect yet, we are nowhere near the heart of this economic crisis.

yes you maybe able to afford it, but imagine if someone who buys a similar house to you next door, is paying £150 a month less for 25 years in a row because they waited a couple of years - you ought to also think about the opportunity cost of buying now.

Not that I disagree, but just as a word of caution - the above was said on this board in 2005, 2006, 2007, 2008, 2009, 2010...

So, you may wake up in 2-3 years time to discover that inflation is so high that people's big mortgages from 2011 look small now (and your cash savings for a deposit even smaller).

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Yeah the whole inflation v fall thing is the worry. Should houses fall further, of course, will they , who knows. The current policy and sounds from BOE seem to suggest their policy of prop up against all odds , is still the medicine they prefer. I agree the Market now is falling and my instinct and reasoning will suggest it will but let's all be honest none of is know for sure. The whole cost benefit is the only thing you can do. I am a devil though, buy now and then it turns out I've lost a packet or could have purchased cheaper or wait and nothing happens or stock dries up and then IDE wish I had gone for it. I really don't know the answer and I seem to change my view as often as the wind.

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Ok , so I can potentially view this, agent and missus are keen for me to do so. I think values will drop but mortgage interest increase. A good area, will fall but I would say less than other areas, simply not enough places there for sale at any one time. What would you do, to view or not to view, that is the question??????

Why would a sought after village not fall more than anywhere else? All prices will fall as the market has nothing left to support it. 10% might look good right now but 20-30% will look much better. If someone in the village gets desperate they will ask a desperate price. Interest rates are completely irrelevant unless you are locking in fixed for 15 years? By definition you have less to lose buying a cheaper house! The trend is down. Don't try to fight it.

It's strange how the agent is keen for you to view a property. :blink:

Edited by Xurbia

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if you are in the market and a place you want comes up...go for it.

what I would do is a side issue.

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First of all, agent is keen for obvious reasons, what I mean to say is that it's refreshing the agent is playing ball, and being more realistic than orhers , do I trust them, of course not.

Secondly , I agree prices will fall etc. But one thing I will not agree with is that every area decreases invalue at the same rate, to say that a general fall of 10 percent would also happen by default in this area is just not accurate. You only have to look at the decreases happening already and the falls seem to happen at a different pace and different level. I think it nieve to assume that say a national drop of. 20 percent average , would then mean no matter where you look everything will be 20 percent off. I don't rule it out but I believe it's unlikely.

Edited by D179

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First of all, agent is keen for obvious reasons, what I mean to say is that it's refreshing the agent is playing ball, and being more realistic than orhers , do I trust them, of course not.

Secondly , I agree prices will fall etc. But one thing I will not agree with is that every area decreases invalue at the same rate, to say that a general fall of 10 percent would also happen by default in this area is just not accurate. You only have to look at the decreases happening already and the falls seem to happen at a different pace and different level. I think it nieve to assume that say a national drop of. 20 percent average , would then mean no matter where you look everything will be 20 percent off. I don't rule it out but I believe it's unlikely.

Naive? I saw the last crash and prices everywhere, including chocolate-box villages dropped significantly. The South is likely to remain more buoyant but don't fool yourself in to thinking prices won't all drop together. If petrol prices climb further it will make more sense to live nearer to work in the cities and towns. Also, remember that sought after villages have risen to ridiculous levels during this boom.

You'd have to be naive to buy at the first whiff of a correction. The most important thing is remain in work. Nothing else matters right now. I'm not sure why anyone would contemplate buying right now unless they want to impress their friends with negative equity stories. The banks are not lending. Ask yourself why.

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I am prepared to accept your argument if you have the evidence that does not show a difference in value decrease in percentage terms depending on location. I accept they will drop no matter where but I need evidence that the same drop will be experienced in each location. I will be happy and interested to see this as afterall I want the comfort that everything will drop like a stone

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Ok , so I can potentially view this, agent and missus are keen for me to do so. I think values will drop but mortgage interest increase. A good area, will fall but I would say less than other areas, simply not enough places there for sale at any one time. What would you do, to view or not to view, that is the question??????

10-12% off a peak that was 100% too high to begin with is not much of a deal in my opinion. Whether the collapse comes about more or less in nominal terms does not alter the reality that houses remain grotesquely expensive and money would be better elsewhere. This bubble has been epic in both scale and duration and the entire process, from beginning to its end is very painful for just about everyone - excluding bankers and politicians (please forgive my presumption if 100% rise in retail prices in the last six years has not affected your standard of living)

Edited by Peppa Pig

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I am prepared to accept your argument if you have the evidence that does not show a difference in value decrease in percentage terms depending on location. I accept they will drop no matter where but I need evidence that the same drop will be experienced in each location. I will be happy and interested to see this as afterall I want the comfort that everything will drop like a stone

I don't need you to accept my argument. The South will recover first and flats will be virtually unsellable. That's what happened last time and will, no doubt, happen again. If you are convinced that you'll be insulated against falls living in a desirable village please go ahead and buy. We can revisit this debate in 2 years' time and see how you're doing. Perhaps you learn how to spell simple words like naive and sought before buying a home. Just a thought.

Edited by Xurbia

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Why are you taking it personally, and just because I have issues with spelling a problem I have always had , does not give you the right to mock me and doing so is offensive to others who also struggle with various issues of learning.

I have not said it would be insulated have I? Read my posts again. But would be less severe to drop in values a point that you do not agree with? I may not be 100 percent correct which I accept , but you may not either..

Edited by D179

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Why are you taking it personally, and just because I have issues with spelling a problem I have always had , does not give you the right to mock me and doing so is offensive to others who also struggle with various issues of learning.

I have not said it would be insulated have I? Read my posts again. But would be less severe to drop in values a point that you do not agree with? I may not be 100 percent correct which I accept , but you may not either..

I apologise for the mocking. It was out of order. I just get fed up with multiple "loose" and "lose" postings on HPC.

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  • 312 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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