Jump to content
House Price Crash Forum
Sign in to follow this  
craig12

Steady As History Used To Be And Values

Recommended Posts

as this is my first post please forgive me if this is covered elsewhere,, could i ask all members please a 2 part question?

how much do you think homes are over valued as of today in % terms

will we ever see the history as it was , where by there was always a steady streem of first time buyers, you moved in to your first home , kept it and maybe moved up to a semi, then a detatched, 2.5 x joint income would suffice and checked by the lender, i have a carpet shop and although i dont depend on the housing market, i would be 3 x times as busy with a steady /not/ buoyant market...im no expert on the housing market , there will be many members with better answers .. but what i still cant get my head round is this..

as history provides a good clue , ie . 60s,70s,80s,90s,up to 2006 ish there was always the steady climb and the wage ratio to lending was sufficiant with around a 10% deposit to buy your first home, then 2007 came and it all went nuts, vendors making silly amounts of money in a short time, i wondered if longer lending might kick start the market .. ie 30-45 yr mortgages, that would bring the payments down ..

Share this post


Link to post
Share on other sites

as this is my first post please forgive me if this is covered elsewhere,, could i ask all members please a 2 part question?

how much do you think homes are over valued as of today in % terms

will we ever see the history as it was , where by there was always a steady streem of first time buyers, you moved in to your first home , kept it and maybe moved up to a semi, then a detatched, 2.5 x joint income would suffice and checked by the lender, i have a carpet shop and although i dont depend on the housing market, i would be 3 x times as busy with a steady /not/ buoyant market...im no expert on the housing market , there will be many members with better answers .. but what i still cant get my head round is this..

as history provides a good clue , ie . 60s,70s,80s,90s,up to 2006 ish there was always the steady climb and the wage ratio to lending was sufficiant with around a 10% deposit to buy your first home, then 2007 came and it all went nuts, vendors making silly amounts of money in a short time, i wondered if longer lending might kick start the market .. ie 30-45 yr mortgages, that would bring the payments down ..

1) My gut feeling is 25% over valued in London/SE eg 500k properties falling to 375k within 3-4 years ,steady falls per annum.

2) Be careful with history. Anything before the majority of families having joint incomes, ASTs , right to buy and property porn etc in my eyes is irrelevant. I know people whose first and only house was a 3 bed and served them well raising a family. When homes were relatively cheap (60-70s lots of social hse building) there was no need for a ladder, you saved and saved, got married and struggled to buy. With inflation the struggle was short and the mortgage faded away. Happy days.

Also for many years there was a waiting list for mortgages. Working people were deemed in the main to be feckless and a poor credit risk. Property ownership was much lower then and even hire purchase was seen as a bit risque. The working masses also distrusted borrowing as many had memories of unemployment pre welfare state.

Share this post


Link to post
Share on other sites

Also for many years there was a waiting list for mortgages. Working people were deemed in the main to be feckless and a poor credit risk. Property ownership was much lower then and even hire purchase was seen as a bit risque. The working masses also distrusted borrowing as many had memories of unemployment pre welfare state.

This may very well come around again.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.