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Hi i am currently looking to get my first house with my girlfriend ...

is it a wise move or is there going to be a dip in prices or a complete crash ..

anyother info would be greatful ....

I think if you have a really good look round this site you may just find a little bit of information on the subject of house prices.

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Guest Bart of Darkness

If you have a price range in mind I would suggest using one of those online mortgage calculators and seeing what your repayments would be if interest rates were to reach 5.25%. Some (incuding myself) might say that it's not unreasonable that IRs could reach this level within a year.

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Hi i am currently looking to get my first house with my girlfriend ...

is it a wise move or is there going to be a dip in prices or a complete crash ..

anyother info would be greatful ....

All speculation of a crash has been just that, speculation.

If you can afford the repayments and are not paying over the value, I don't see any reason not to buy.

Just consider all other outgoings before commiting to a mortgage, and don't discount an interest only mortgage for a year or so until you have all your finances in place. Then you can change to a repayment mortgage and slowly chip away at the debt.Of course this must be a condition that your lender is happy with.

It would help if you told us where you are considering buying. There are members from all over the country and beyond :D

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All speculation of a crash has been just that, speculation.

If you can afford the repayments and are not paying over the value, I don't see any reason not to buy.

Just consider all other outgoings before commiting to a mortgage, and don't discount an interest only mortgage for a year or so until you have all your finances in place. Then you can change to a repayment mortgage and slowly chip away at the debt.Of course this must be a condition that your lender is happy with.

It would help if you told us where you are considering buying. There are members from all over the country and beyond :D

I came to this site considering buying a house, but I have decided that I will wait and see, it would be tight on me and my partners joint salary which is the first reason why I am not going to buy now, (and even tighter factoring the 2% interest rate increase that you ought to consider before taking a mortgage, ps. the average interest rate over the last 20 years has been about 7%) the second reason is all the real experts (the economist magazine for example) say that and it can be proven that houses are well over valued from their historical averages. I won't tell you there will be a crash, though I strongly suspect house prices will return to their average position or below when the exceptional low interest rates (which are set to go up sometimes soon) and when the level of speculation in the market falls.

Also as long as houses prices rise slowly, or stays level (as they are now) or even falls , I will be making more money renting and saving the money I would have had to pay into my mortgage and maintanence of the house, than I would have gained from trying to pay off my mortgage (as the first few years will only pay off a very small amount of the loan, the majority of the payment will be paying interest on it (wasted money)). Also renting I can get a little flat as I don't need anything bigger at the moment, while I would have to buy a larger house as you may potentialy have to live their for much longer to make it an efficient investment, especially if house prices don't go up by much if at all.

The reason that people had in the 1950-90s for feeling comfortable with mortgages was that inflation made the loan worth less in future money. Unfortunately the bank now sets out to control inflation at a low level, which it has done with reasonable success (though atleast for me inflation is higher than is quoted) so your loan won't get eroded (but neither will your savings). So now having money is better than having a big debt.

Some of the people on here are a bit nuts but other ones make sense, house prices can and do go up and down be aware of the risks and try to minimise them.

The average age of a first time buyer now is in their 30s and is on about £38,000 a year that about says it all for the strength of the market. Do not believe any of the spin that you are missing out on a wonderful investment opportunity if you don't buy, no one can predict the future, you can only balance risks and rewards.

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Guest Cletus VanDamme

I have no idea why people want to ask these questions to a forum largely made up of renters.

I don't get you TTRR. In any other business you would simply not be able to get away with openly having such contempt for your customers, or potential customers.

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I have no idea why people want to ask these questions to a forum largely made up of renters.

because all people who rent are idiots...yeah yeah yeah whatever..

anyway back to the question, i think the sensible thing to do is calculate how much your monthly repayment mortgage cost would be and give yourself at least £100 contigency for IR increases. If you would like to buy, go for it...if that is what you realy want. My parents were hit badly during the late 80's/early 90s when IRs went sky high, and they HAD been careful and had made sure they weren't mortgaged to the hilt. I personally wouldn't buy at the moment, because i believe house prices are far too highand that there is a serious risk of IR increases.

I'm not here to push people in either direction(unlike some posters-you know who you are), but i think anyone considering buying needs to think carefully about what they can afford.

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Maybe I don't think of you as a potential customer.

yes imagine most of you lot would be a right ****** to have as tenants. Sorry lots of champers in me tonight ....

Edited by mercsl

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Guest prudence

I think if you have a really good look round this site you may just find a little bit of information on the subject of house prices.

Exactly. What is it you want to know that hasn't been written about on this site ten times over, at least.......

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Spend a few weeks hunting out the best mortgage deal: use websites like moneysavingexpert.com.

Get to know your local property market. After a month or two you should be able to tell what is a good buy and what is not, and if prices are beginning to dip or edge ahead.

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Hi i am currently looking to get my first house with my girlfriend ...

is it a wise move or is there going to be a dip in prices or a complete crash ..

anyother info would be greatful ....

There may be a crash, it's possible. What is certain is that interest rates will rise shortly. Prices may dip (in some areas they are doing already).

If you can afford it now, and afford for your repayments to be higher becauseof IR rises, go for it.

You should be able to find a lender that allows overpayments. If you can afford to overpay by an amount each month, then reduce the overpayment as IR rises come in, you'll not feel worse off, and your mortgage will be repaid a little quicker.

Don't get an IO mortgage though. Get a repayment one.

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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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