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At what price will HPC people buy at ?


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when we can afford to live comfortably (and that means space, money, location etc)  and get a home that will be suitable for 20+ years

It's not just the year we need to drop back to in prices but the right type of home coming on the market at the right price. If prices do drop but only the dross goes on the market then I won't buy

 

 

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2 hours ago, MattW said:

£80,000 is my magic number.

At present it just about stretches to a studio flat...I'd like a 2 bedroomed flat or even better, a freehold house.

Sort of the same here too. In my area the average freehold semi would be £64,500 if prices had gone up with inflation. If I moved elsewhere I could buy in cash but what's the point when everything going to come down anyway.

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Just as soon as I can buy a reasonably priced place with a reasonably priced mortgage. Not an overpriced place with an artificially low mortgage. In more real terms, when I can buy a reasonable family home for 4x our joint income. 

 

Why not 3x? Because I think there will always be a degree of idiocy and greed amongst the general population, meaning prices will always be a bit of stupidity in them. It's just a case of jumping in when the madness isn't complete 'mad as yer hat' mad.

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16 hours ago, Beaker said:

Just as soon as I can buy a reasonably priced place with a reasonably priced mortgage. Not an overpriced place with an artificially low mortgage. In more real terms, when I can buy a reasonable family home for 4x our joint income. 

 

Why not 3x? Because I think there will always be a degree of idiocy and greed amongst the general population, meaning prices will always be a bit of stupidity in them. It's just a case of jumping in when the madness isn't complete 'mad as yer hat' mad.

I actually suspect you could hit 2.5x average family income - as when this crash occurs no-one is going to want to buy property....

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  • 1 month later...
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  • 3 months later...
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  • 4 months later...
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Good friends bought late last year and I think they did well.

It's only trebled since 2000.

And no, they don't need the hard-green ego pitying them, and believing them idiots, and blabbing on about future suffering, as such types have for 10 years as prices doubled again and BTLers bought up so many more homes.

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On 26/10/2017 at 14:43, SE10 said:

When the yield looks like it would be a good investment compared to other asset classes.

My 1st contribution since 2011! (long story).

I started following HPC with great enthusiasm in about 2006, totally convinced that a crash was around the corner, so we STR in early 2008.

My HPC hero in those days was ERIC, plus, I find 'Durhamborn' is very interesting, and worth following.

So, since my exile over 7 years ago we have reversed our STR decision, and rejoined the OO, but sadly, we are surrounded by renters.

'Sadly', because the LL's are of my generation, pricing out the young from owning, rather than renting.  

Our cash in the bank was earning not a lot, so reluctantly we did buy again, a new build 4 years ago. A neighbour has just sold at a figure of £40,000 more than the purchase price, so £10,000 per year HPI, that's way more than some can save!

I'm still waiting the 'correction' that I put so much faith in (on HPC), in 2008, but HTB etc. has kept it pinned ever higher, still when the crash comes (still around the corner 10 years later) it will be greater than it would have been, without the government props.

I don't believe that buying property now would be a sound investment, but, I thought the same 10 years ago!

IT CANNOT CONTINUE, can it?

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On 27/10/2017 at 18:53, Dorkins said:

When the mean local house price is back to 3x the mean local full time single wage.

Im not sure thats ever really been the case, apart from exceptional times - mid 90s.

Historically, the average appears to somewhere between 4 and 5 average earnings.

The OP is asking the wrong question.

It needs to be  - 'How much credit/mortgage will a bank offer a HPCer'

At the mo thats a max 4.5x household income minus regular spend.

And dont get excited about household income. IMHO 2 people tend to have other spendign commitments - debt, car finance, student loan etc - that cancle out most fo the 2nd income.

 

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On 02/10/2018 at 08:29, robbingXpat said:

My 1st contribution since 2011! (long story).

I started following HPC with great enthusiasm in about 2006, totally convinced that a crash was around the corner, so we STR in early 2008.

My HPC hero in those days was ERIC, plus, I find 'Durhamborn' is very interesting, and worth following.

So, since my exile over 7 years ago we have reversed our STR decision, and rejoined the OO, but sadly, we are surrounded by renters.

'Sadly', because the LL's are of my generation, pricing out the young from owning, rather than renting.  

Our cash in the bank was earning not a lot, so reluctantly we did buy again, a new build 4 years ago. A neighbour has just sold at a figure of £40,000 more than the purchase price, so £10,000 per year HPI, that's way more than some can save!

I'm still waiting the 'correction' that I put so much faith in (on HPC), in 2008, but HTB etc. has kept it pinned ever higher, still when the crash comes (still around the corner 10 years later) it will be greater than it would have been, without the government props.

I don't believe that buying property now would be a sound investment, but, I thought the same 10 years ago!

IT CANNOT CONTINUE, can it?

Did you miss 2008 and most of the UK banks going under ....

Seriously,, they might have stopped prices fallign much but number of of sales have crashed. Prices will follow later.

80^ of house prices aredriven by bank credit. MMR killed that now. And banks are really retreating, reducing their balance sheets.

Its a multi decade fuxup and were only 10 years in. And gloves are off as US has broken rank and raising IRs.

 

 

 

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6 minutes ago, spyguy said:

Im not sure thats ever really been the case, apart from exceptional times - mid 90s.

I think the bottom of the next HPC will be truly exceptional, even compared to the mid 90s. So much economic value has been destroyed by 20 years of crazy HPI and the price level in the next bust will reflect that. For example, a median dual income couple in their early 40s living in private rentals in London/SE are both running out of years left in their working lives and have had very little chance to accumulate wealth thanks to the high level of private rents but at some point I think they will be the marginal buyer and hence set the market price. The kind of price they can afford to pay will astonish people by how low it is.

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