Naive ?

[DICKDASTARDLY]

Am I being Naive here, but since when has a terraced slum in the North of england been something

to aspire to ? Only 4 yrs ago could be bought under £20k so isnt it common snense that those houses at the cheaper end will revert to type ? Eventulaly

[A late entrance..]

I don't think we will ever see prices 'reverting', IMO the younger generation (including myself!) will have to accept that house prices will always be higher in relation to earnings etc. than they used to be. Lower expectations are needed but within reason, the 'crash' so often referred to on here could turn out to be over hyped and therefore the above applies - think of it as simply a largescale social change for the new millenium

[since the beginning]

I think that if there is no crash the amount of extra money being sucked out of the ecomomy (i.e. the average FTB'er today will have say £80,000 plus interest over 25 years say £200,000 to £250,000 less to spend on other goods. So if there is no crash the wider economy could be devestated in the long term.

[AteMoose]

houseprices were overvalued in the last boom, with many people priced out, a few years later property was cheap again.... a Permanantly high platuau, or people being permanantly priced out isnt possible as you always need new entrants to a market. Without entrants you get eventual price reductions, the longer the period of stagnation the harder the crash as pressure starts to build and money has stopped flowing... Stagnation will reduce the amount of money the economy has, and doesnt wipe out bad debt, it just causes bigger problems in future..

Edited November 11, 2005 by moosetea

[DICKDASTARDLY]

Btw, The reason Im asking is cos last summer I almost bought a two up two down in Bury Lancs, for about £75 k, I didnt go through with it at the time as a) its quite far out, had just started new job- 3 months c) prospect of price drops/crash d) Although it had been developed and done well, I just thaught what the hell am I doing considering for this when 3 years ago I wouldnt have looked twice about somewhere so far away. NOW ; 18 months later am no better off or no worse off as nothings changed so somedays I think Shouldve just gone for it, would've paid a years mortgage off by now, other days I think I did the right thing, as saving more all the time. Today just think it will stay at this level for a few years whil Im forking out rent each month - although low - 220 per month, so can save up to £500 month.Maybe shouldve just gone for that at the time, and got on with me life ? Fed up and confused. Manchester