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Imminent_plunge

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We spent the weekend with my sister and brother-in-law, who over the last 2/3 years, have been urging us to get our own place ASAP (we have a good deposit in place). You all know the arguments - property prices only go up, why pay a landlord's mortgage?

Only this weekend it was different. I have always maintained that house prices were too high and had to come down and for the first time ever, my sister agreed.

She has a friend who owns a number of properties and wants to get out of the game completely by 2012 and it finally appears to have struck a chord with her. The only thing she did say is to bear in mind our high outgoings on rent (£1400 a month for a 2 bed end of terrace) and what we would potentially save by buying. We're renting in SW London now but there is no way we would buy here with poky terraced houses a minimum of £360k going right up to £500k, so it's North of the M25 for us when we are ready.

Anyway, it was bliss to hear her finally acknowledge that property can fall in value as I'd have counted her as a pretty hard-line bull, so if her sentiment's changing, I feel it's finally going to happen :D

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She has a friend who owns a number of properties and wants to get out of the game completely by 2012 and it finally appears to have struck a chord with her. The only thing she did say is to bear in mind our high outgoings on rent (£1400 a month for a 2 bed end of terrace) and what we would potentially save by buying. We're renting in SW London now but there is no way we would buy here with poky terraced houses a minimum of £360k going right up to £500k, so it's North of the M25 for us when we are ready.

I don't understand - buying a house where you live is clearly much more expensive than renting, from your figures,

so she is saying that buying a house in a cheap place is cheaper than renting a house in an expensive place?

has she considered comparing it to renting a house north of the M25, say?

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I don't understand - buying a house where you live is clearly much more expensive than renting, from your figures,

so she is saying that buying a house in a cheap place is cheaper than renting a house in an expensive place?

has she considered comparing it to renting a house north of the M25, say?

Buying a house where we rent is a no-brainer, they cost far too much here. We have to weigh up whether the advantages of being in London right now outweigh the rental outgoings.

If we do move north of the M25, we would be looking to rent for at least six months to get a feel for the area as a prelude to buying. Her argument is that we're now paying £16,800 a year on rent. Yes, we could move and rent for far less further north but we both have work commitments based around London right now.

We can buy a place for £100k with no mortgage right now and have no major outgoings or more realistically, buy somewhere for around £160k and have a small mortgage. But is the £160k property going to be worth £100k 2-3 years down the line, in which case it's worth hanging on where we are, or are we just throwing money away on rent in the meantime? It's the first time she's acknowledged our side of things, that house prices may fall.

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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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