Jump to content
House Price Crash Forum

Would You Buy A House Now ?


Recommended Posts

I'm surprised 25% of people would buy at todays prices, when pretty much all on here were refusing to buy at prices in the run up to 2007 which were a lot cheaper. Unless of course that 25% is in N Ireland or somewhere in the less prosperous parts of Northern England.

I'm looking at 2013/14 prices plus 20-25% in my search area(which Gidiot is 100% responsible for), if i could go back in time i'd buy at 2013 prices as it's going to take an epic crash just to get where we were a couple of years go.

2012/2013 prices would suit me now , the pace of the increases is staggering

Link to post
Share on other sites
  • Replies 92
  • Created
  • Last Reply

Top Posters In This Topic

2012/2013 prices would suit me now , the pace of the increases is staggering

A reminder of what Davelie Camoron was saying in Jan 2014 about Help to Buy Bail Banks not causing a house price rises:

Mr Cameron said: "Where we are today, house prices are still way below the peak they reached in 2007. Forecasters do not think they will get back to the level before the crash even in 2019. So there is no evidence of a problem.
He added: "I think if you look across the country, there are many parts of the country where house prices are barely moving at all.
"Nationally, excluding London and the South East, house prices are up just 3 per cent over the last year. I think there are some people who are rather London-centric about this."
Economists from the Institute of Directors, the Institute Monetary Fund, Capital Economics and Societe Generale have joined former analysts from the Bank of England in criticising help to buy as misguided.
A Financial Times poll of leading economists this week found that most were in favour of building more housing to calm frothiness in the housing market.
Last month, Professor James Mitchell from Warwick University said property prices were overvalued compared to incomes in 10 out of 13 regions in the UK.
Professor Mitchell calculated that there was a 77 per cent probability that the UK is in the grip of a housing bubble and could see prices crash in the future, rising to 93 per cent in London.
In October the Bank of England's markets director Paul Fisher said he did not see any evidence of bubble behaviour but said the Bank would "keep a close eye" on the housing market.
Labour's shadow housing minister Emma Reynolds said: "Any help for first-time buyers struggling to get on the property ladder is to be welcomed.
"But rising demand for housing must be matched with rising supply if this scheme is to bring the cost of housing within the reach of low and middle income earners.
Link to post
Share on other sites

I am with Shared ownership. 2 bed house, 2011 build. Mortgage and rent comes in at under £360 per month. As I'm only buying a 25% share I won't occur much of a loss if/when we have a HPC.

Can easily overpay the mortgage as I'm used to much tighter margins or save it up. The main reason is that I don't want to be anywhere near the BTL bloodbath in the PRS.

Either way I have to pay rent to someone :lol::lol:

FYI market rates in the area are around £650

I always thought the sharer ie you incurs all losses but gains only the percentage owned.

Link to post
Share on other sites

A reminder of what Davelie Camoron was saying in Jan 2014 about Help to Buy Bail Banks not causing a house price rises:

He is traitorous sc um of the lowest order who constantly goes back on his word, this referendum negotiation sums the failed excuse for a man up.

Both he and Gidiot spoke about high house prices being a bad thing before 2010, then they realised its the quickest and easiest way to get GDP rising along with mass immigration they continued with the policy.

I only wish bad on the man.

Link to post
Share on other sites

He is traitorous sc um of the lowest order who constantly goes back on his word, this referendum negotiation sums the failed excuse for a man up.

Both he and Gidiot spoke about high house prices being a bad thing before 2010, then they realised its the quickest and easiest way to get GDP rising along with mass immigration they continued with the policy.

I only wish bad on the man.

The King of housing bubbles in 2013:

Osborne's Help to Buy scheme might boost the property market but it must be ditched, King warns
Yet already there are murmurings that the new-improved Help to Buy scheme spells trouble. Former Bank of England governor Sir Mervin King recently declared the scheme unsustainable in the long-run. Others say it could lead to another housing bubble.
There is 'no place in the long run' for the Chancellor's mortgage guarantee scheme, Sir Mervyn King has warned.
The outgoing governor of the Bank of England says that George Osborne's plan to boost the housing market is in danger of replicating mistakes made in the U.S. mortgage market.
The scheme, part of the Government's Help to Buy plans, will see the state guarantee up to 15 per cent of a mortgage on properties worth up to £600,000 from next year. King said that was 'too close for comfort' to a general state guarantee for mortgages.
It is due to run for three years starting from next January and Sir Mervyn warned it must not be allowed to become permanent.
The other aspect Help to Buy, which launched last month, sees interest-free equity loans of up top 20 per cent be provided to people buying new-build properties so they only have to raise a 5 per cent deposit to get a 75 per cent mortgage.
In an interview broadcast on Sky News' Murnaghan programme today, Sir Mervyn said: 'I'm sure that there is no place in the long run for a scheme of this kind.
'This scheme is a little too close for comfort to a general scheme to guarantee mortgages. We had a very healthy mortgage market with competing lenders attracting borrowers before the crisis, and we need to get back to that healthy mortgage market.
'We do not want what the United States have, which is a government-guaranteed mortgage market, and they are desperately trying to find a way out of that position.
Link to post
Share on other sites

I am with Shared ownership. 2 bed house, 2011 build. Mortgage and rent comes in at under £360 per month. As I'm only buying a 25% share I won't occur much of a loss if/when we have a HPC.

Can easily overpay the mortgage as I'm used to much tighter margins or save it up. The main reason is that I don't want to be anywhere near the BTL bloodbath in the PRS.

Either way I have to pay rent to someone :lol::lol:

FYI market rates in the area are around £650

Why was I under the impression that with shared ownership, if the property makes a loss, it is your share that suffers the loss first as opposed to the property as a whole??

Link to post
Share on other sites

I am happy to stay renting for now. I think the life of the working renter is about to get a whole lot better.

I am sure security of tenure (3+ year leases) is coming. It is too much of a vote winner with very little downside for the politicians to miss. I am slightly surprised that is hasn't been used yet in the Mayoral election.

I also think there are going to be A LOT of people in the next few years that just can't sell for many reasons but can't afford to live where they do / need to move for work etc. These properties will be too far above the HB level for many but the owner will need at least some income. I think there will be a lot of good properties where the owner will actually be losing money every month but can do absolutely nothing about it. They will be looking for good tenants since they won't be able to afford a void.

I am more than happy to rent a nice property knowing that the LL is subsidising me every month, eating the capital losses and having to pay all the repairs. I know one or two properties already like this but I expect there to be many, many more in the next couple of years.

This is how it used to be and how it should be; rents never used to cover mortgage payments; landlords always had to make up the shortfall unless my memory has left me.

Link to post
Share on other sites

I'm surprised 25% of people would buy at todays prices, when pretty much all on here were refusing to buy at prices in the run up to 2007 which were a lot cheaper. Unless of course that 25% is in N Ireland or somewhere in the less prosperous parts of Northern England.

I'm looking at 2013/14 prices plus 20-25% in my search area(which Gidiot is 100% responsible for), if i could go back in time i'd buy at 2013 prices as it's going to take an epic crash just to get where we were a couple of years go.

Exactly, it sounds like most people have got used to these high prices which is just ridiculous. We really should be holding out for 70% plus falls in my opinion or as someone else said, 'prices which are in line with 3.5 times earnings' and you should be able to buy by yourself and to not have your partner or friends income included in that.

Link to post
Share on other sites

Exactly, it sounds like most people have got used to these high prices which is just ridiculous. We really should be holding out for 70% plus falls in my opinion or as someone else said, 'prices which are in line with 3.5 times earnings' and you should be able to buy by yourself and to not have your partner or friends income included in that.

So long as interest rates are this low i cant see property being 3.5 times wages, best we can hope for for that is a run on the pound ... even then i bet they wouldn;t raise rates substantially.

Link to post
Share on other sites

Exactly, it sounds like most people have got used to these high prices which is just ridiculous. We really should be holding out for 70% plus falls in my opinion or as someone else said, 'prices which are in line with 3.5 times earnings' and you should be able to buy by yourself and to not have your partner or friends income included in that.

I'd bet that a lot of the same people complaining about high house prices would be rioting in the streets, if joint income mortgages were banned. They wouldn't see the return of disposable income and just want their debt to a banker.

Link to post
Share on other sites

So long as interest rates are this low i cant see property being 3.5 times wages, best we can hope for for that is a run on the pound ... even then i bet they wouldn;t raise rates substantially.

It would create inflation and drive more people into buying houses? Plus more foreigners would take advantage of the lower sterling rate?

Since 2007 the pound in your pocket has lost nearly 30%, so buying a £300k house is like handing over only £210k of 2007 pounds. If it were £210k there would be a queue for it?

Link to post
Share on other sites

I'd bet that a lot of the same people complaining about high house prices would be rioting in the streets, if joint income mortgages were banned. They wouldn't see the return of disposable income and just want their debt to a banker.

I didn't mean that joint incomes should be banned; I just meant that you should be able to buy on your own at 3.5 times earnings as opposed to most people nowadays being forced to include their partner or friend or parents incomes because they can't afford it on their own.

Link to post
Share on other sites

He is traitorous sc um of the lowest order who constantly goes back on his word, this referendum negotiation sums the failed excuse for a man up.

Both he and Gidiot spoke about high house prices being a bad thing before 2010, then they realised its the quickest and easiest way to get GDP rising along with mass immigration they continued with the policy.

I only wish bad on the man.

+ 100%. It takes a lot to be comparable to the one eyed git - he has got there

Link to post
Share on other sites

I had to vote yes as I've just bought late last year. Second house I've bought in my life, and only really possible because of the ridiculous growth in my last house (worse area, but close to cross rail so prices went through the roof - 70k increase in 2014 alone on a 2 bed semi). Don't think I'll need to buy again any time soon - this one is plenty big enough for the family for next 20 years, great schools catchment, and mortgage is less than the rent on something much smaller in the same area.

All luck rather than judgement though. If I had seen all this coming I'd have been mortgaged up to my eyeballs in the early 2000's and retiring sometime around now. Continues to worry me though how my kids will manage when they're old enough to want to leave the family nest.

Link to post
Share on other sites

I always thought the sharer ie you incurs all losses but gains only the percentage owned.

Not sure if it answers it but from .gov:

"The cost of your new share will depend on how much your home is worth when you want to buy the share. If property prices in your area have gone up, you’ll pay more than for your first share. If your home has dropped in value, your new share will be cheaper"

If house prices dropped 20% I'd still be in some equity in terms of the outstanding mortgage vs 25% share. It's full market value is about the same as my current PRS house which is 10 years older.

It's a home to live in, not to flip to the next mug :P:lol::lol:

I posted this on another thread but was interesting to see:

Couple on 2016 living wage: £104832 borrowing capacity?

(£7.20 x 40 hours x 52 weeks = £14976 x 2 & £29952 x 3.5 salary)

It has to go to £9 an hour by 2020, so that would mean £0.45p increase an hour every year. So in yearly salary terms with borrowing at 3.5x:

2016: £29952 = £104832

2017: £31824 = £111384

2018: £33696 = £117936

2019: £35568 = £124488

2020: £37440 = £131040

Mini boom by 2020? GO as PM? :lol: :lol: :rolleyes:

Edited by Assume The Opposite
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...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • 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.