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firsttimebuyer

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

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"but am worried at the ridiculous prices! what should i do?"

I think you know the answer to this question, if your worried then buying is not a good option?

"when will prices drop"

Depends on the effects of rising energy prices and inflation, the effects and knock ons of IR hikes overseas, maybe birdflu...who knows the guns loaded just needs the trigger squeezed.

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Predicting a time is very difficult. It's similar to predicting when somebody else's mood will swing.

If you get it right it's probably down to luck.

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welcome :) and have fun watching this unfold :P This site is going to be very useful over the next few years....

What to do... er save LOADS, minimise your out goings and invest in something other than property...

How did you find the site?

Edited by moosetea

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Depends on the effects of rising energy prices and inflation, the effects and knock ons of IR hikes overseas, maybe birdflu...who knows the guns loaded just needs the trigger squeezed.

Brilliant, analogy of the day without question. Keep it up FM

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What should I do? - Don't rush in to anything: educate yourself and make your own mind up.

When will prices drop properly - No-one knows for certain: it depends how many ignorant & impatient people are still buying, changes in interest rates, unemployment, etc. etc. It will probably take several years for 'real' prices (i.e. after taking into account inflation or purchasing power) to hit their low. These things can take a while to start; and then a while to stop once momentum has gathered...

One note I would add:

Estate agents etc. always talk about affordability - lower interest rates off-setting high house prices. However, the two are not interchangeable:

1) If repayments of £1000 per month are based on high house prices and low interest rates, the risk is that repayments can only rise as interest rates rise. And as rates are low, any rise is a significant increase in percentage terms. Couple this significant percentage increase with the large amount borrowed and payments can soar. The risk is pretty much one way and very high.

2) If however the same monthly payments are based on low house prices and high interest rates, the risk is that payments can only fall as interest rates fall. And once interest rates have fallen, that fall can be locked in by remortagaging with a fixed rate mortgage... Much lower risk: any increase in rates would be much smaller in percentage terms and any fall can be locked in.

Therefore the initial buying price is far more important than interest rates in the affordability equation. The mortgage can always be changed later as rates fall but the purchase price stays the same.

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

I found this site about 15 months ago, signed upto MoneyWeek and The Economist about the same time. In this time I have learnt a huge amount about economics and in particular the housing market.

Now I'm spending my hard saved house deposit on changing my career instead. Not being ripped off by UK housing and not going to sign up to a lifetime debt that I'll struggle to pay off.

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I found this site about 15 months ago, signed upto MoneyWeek and The Economist about the same time. In this time I have learnt a huge amount about economics and in particular the housing market.

Now I'm spending my hard saved house deposit on changing my career instead. Not being ripped off by UK housing and not going to sign up to a lifetime debt that I'll struggle to pay off.

wow its like housepricecrash testimonies! :lol:

"housepricecrash saved my life...."

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

Prices will universally fall without warning by 50% on the 1st of april 2007. Only people who read this forum know this so don't tell anyone else B).

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wow its like housepricecrash testimonies! :lol:

"housepricecrash saved my life...."

The fact that I spend so much time on this site to relieve the boredom of work was the biggest signal that I needed to change something in my life....the views on this site just reaffirm what I already believe.

I was trying to tell my dad at the weekend that it was a good idea for him to sell now if he could. He told me that he had read that the average house price was going to be £1M by 2020 or something and that he doesn't think that prices will go down as 'they never have'.

This attitude is an example of why this site provides so much relief.

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Prices will universally fall without warning by 50% on the 1st of april 2007. Only people who read this forum know this so don't tell anyone else B).

Dammit, you fool! You've let it slip. <_<

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

welcome

youve just joined in time for the main show to begin, many of us have been watching the trailers and talking about when the main show begins for a long time.

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Guest Winners and Losers

wow its like housepricecrash testimonies! :lol:

"housepricecrash saved my life...."

I know you jest, but give it a couple of years....

average house price was going to be £1M by 2020 or something and that he doesn't think that prices will go down as 'they never have'.

:lol::lol::lol::lol::lol:

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

all you have to remember is that there hasd never been a bubble that has not burst.

Not once.

Not ever.

the only thing that can stop prices coming down is Wage inflation coming up to meet prices.

but as we have been told many times..

That will not happen.

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Hi People

At last a website with people who are talking sense. I am a first time buyer, not bought a property yet, but am worried at the ridiculous prices! what should i do? when are the prices going to drop properly, not just fluctuate??

Prices will only fall when the last bear turns into a bull. Spend your deposit NOW on a porche.

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  • 301 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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