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When Will You Buy If Prices Do Drastically Fall As A Result Of Interest Rate Rises?

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If we saw a repeat of the last crash - massive falls in price due interest rate hikes, when would you buy if interest rates were again to shoot up to over 10% say, and prices of everything fell by 30%.

What signs do you look for when interest rates are high, with regards to getting back into the market after a IR hike and property price fall?

Thanks

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If we saw a repeat of the last crash - massive falls in price due interest rate hikes, when would you buy if interest rates were again to shoot up to over 10% say, and prices of everything fell by 30%.

What signs do you look for when interest rates are high, with regards to getting back into the market after a IR hike and property price fall?

Thanks

I'm not even going to think about buying until every last property programme has gone from the TV and nobody want's to talk about property. That will be the sign to buy. Rough estimate is 8-10 years from now, about 2015.

Just how anybody thinks that this market is sustainable is unbelievable. Who is going to afford the 4-5 bed detached houses all over this country that now seem to be worth £450K+ wherever you live? These are the houses that I grew up in, the houses that families used to be able to afford on one wage and afford to have 3 kids aswell. Now you are stretching to buy a 1 or 2 bed property in your mid 30's.

It's just not sustainable in the longterm, with or without a shock HPC and higher interest rates in the short term.

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If we saw a repeat of the last crash - massive falls in price due interest rate hikes, when would you buy if interest rates were again to shoot up to over 10% say, and prices of everything fell by 30%.

What signs do you look for when interest rates are high, with regards to getting back into the market after a IR hike and property price fall?

Thanks

Interest rates are unlikely to go anywhere near 10%, although they don't need to in order to keep houseprices falling as Joe Public is under enormous financial pressure as it is with wallet inflation running rampant at 6 to 8%.

First thing you'll need when houseprices have fallen significantly is a job, as we are likely to be in the midst of a huge NU LAbour induced recession......

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I'll buy when I can acquire a property that fulfils my requirements for no more than four times my salary. I'll borrow three times my salary and have one times my salary saved up to use as a deposit.

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If interest rates are high, and prices drop i will buy as soon as

possible and struggle :) 2 years of 15% wage inflation will erode

the debt away quickly. Im in a recession hardened company atm.

Edited by moosetea

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Guest Baffled_by_it_all

I'm looking to buy in the next couple of years. I want to get in before I'm 40 so I won't be hanging around until 2015.

I think a shift to a buyer's market will suit me fine. I'll wait until prices start dropping and the EA's and sellers are desperate then I'll start putting in low offers to hedge against further falls.

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If we saw a repeat of the last crash - massive falls in price due interest rate hikes, when would you buy if interest rates were again to shoot up to over 10% say, and prices of everything fell by 30%.

What signs do you look for when interest rates are high, with regards to getting back into the market after a IR hike and property price fall?

Thanks

Once the balance tips I think the really big drops will occur in the first 18 mths to 2 years. After the desperate have off-loaded their houses there will be a period where fall is more gradual and I will consider buying while there is still a reasonable selection of houses available.

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Emerging market equity tracker with a high weighting to India and Korea, and Japanese equities in sectors that focus on the reflation story. Particularly Jap regional banks.

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I'm a bit like the first replier...

I've always said that when everyone's telling you that buying a house is the worst thing you can do, then that's the time to buy.

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Emerging market equity tracker with a high weighting to India and Korea, and Japanese equities in sectors that focus on the reflation story. Particularly Jap regional banks.

You've either been drinking (on mummy and dadies handout) or are on the wrong Forum. :rolleyes::lol::rolleyes:

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Once the balance tips I think the really big drops will occur in the first 18 mths to 2 years.

Such a scenario is without precedent, as far as I am aware - sharp, nominal falls will only happen as a result of sharp shocks (think what happened last time). A change in sentiment tipping the balance will not be enough.

Also, we need to get away from the idea that the HPC will happen in isolation; when (if?) it comes, it will be accompanied by horrendous economic conditions that are likely to make getting on the ladder tricky. If it was as simple as waiting until prices drop, don't you think everyone would do it?

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Guest Baffled_by_it_all

Andrewmal - he's a sharp one. They certainly weed out the chaff for those City training schemes. He'll never be out of work...

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After at least a 35% drop in real prices so at least I guess 25% in nominals.

IR of 10% will not be needed for that.

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I have set a MORTGAGE OF 90K maximum. We could potentially have 100K in late 2008! So I can buy at 190K. These houses are up for 200>250K now. When they reach 190K purchase, depending on IR's at the time and my employment situation, I will jump in then. However, if they are continuing to fall I may TRY MY LUCK and throw in LOW LOW offers on houses that have been on the market for a while.

One thing is sure - I will buy at MY PRICE. Not the EA's or the sellers price. Otherwise I just wait and sweep up all the irresponsible borrowers houses.

TB

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Andrewmal - he's a sharp one. They certainly weed out the chaff for those City training schemes. He'll never be out of work...

:lol: it's sad when you're following these forums closely enough to make and understand such jokes... ;)

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Such a scenario is without precedent, as far as I am aware - sharp, nominal falls will only happen as a result of sharp shocks (think what happened last time).

I agree, however my line of work is not so much service sector orientated so I'm hoping (touch wood) that it's a bit more crash proof. A crash will be painful but anyone here who has saved up during the good years will probably ride the storm in better shape than most.

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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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