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Why Should House Prices Come Down?


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Given that most potential FTB's have no deposit how on earth are they going to take advantage of these fantastic cheap deals supposedly coming up.

Maybe if house prices become completely unaffordable we will become more like Europe where there are a few super Landlords and everyone rents.

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Simply put.

I would never have saved 300 thousand pounds.

So in my world the ability to get a mortgage and buy a house is an asset.

Its as simple as that, I know of nobody who has saved a decent sum of money when in rented property.

Ask the renters on this board how much they have saved from their wages and they will most likely tell you very little if any.

Its a fact of life, people spend what they have. Owning a property to me is like a piggy bank as I am useless at saving. Hence the reason I only take 15 years mortgages because I know that the more I have in hand the more I will spend.

The other thing with my piggy bank is that I live in it, try living in your savings account.

That's your autobiography,laurejon.We're not all as feckless as you.

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Really so what type of world are you living in if you think that people in rented accomadation have saved 300k of tax free money.

The bears on this site such as yourself are wishing the market down, in reality what is the first thing you are going to do when you are in a position to get onto the housing ladder?. I know the answer you are going to purchase a house because in reality you know it makes sense. You are only kidding yourself.

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Sorry, but this is what I realised today. Property prices are affordable for FTBs in my area. Please refer to my first post of this topic.

Yes, I have seen your first post.

Stats on FTBs for last 2-3 years show that most are not prepared to take on silly multiples on a self-cert. Even the FSA acknowledge that self-certs are a small proportion of overall mortgage lending.

Ofcourse anyone willing to lie and defraud will be able to 'afford' anything. Why stop at 170k flat, why not go for a higher self-cert mortgage and get a bigger place...you may be able to rent out two rooms?

On your second point re BTL'ers buying if prices fall - as I mentioned before look at the rental market in any major UK city now - massive oversupply; hence it makes no financial sense to go into the BTL market now, or to add to a portfolio.

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NAHM

That is because I don't know how things are in your area. What I mean is that they seem affordable where I live but I don't know how matters are like in your location i.e. Is it easy to find tenants? If so, are rents comparable to interest only repayments? etc.

If house prices have risen by 50% in the last 3 years why haven't rents, its called affordability old boy, sooner or later the penny going to drop for p1$$ pot landlords.

Interest rates are now back to late 2001 levels, average house back then was 90k, with little wage inflaion since then we'll be back to 100K in about 18 months, just sit back and enjoy the fireworks.

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Its perfectly feasible.

The figures do stack up for a commercial loan.

Lets all be honest here, students are now paying 100 quid a week for a room in a hall of residence.

I am sure a 750pcm rent for working couples is the norm and easily affordable and as happens in the past they will decide at some time to take the pluge and buy. As RENT MONEY IS DEAD MONEY

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Its perfectly feasible.

The figures do stack up for a commercial loan.

Lets all be honest here, students are now paying 100 quid a week for a room in a hall of residence.

I am sure a 750pcm rent for working couples is the norm and easily affordable and as happens in the past they will decide at some time to take the pluge and buy. As RENT MONEY IS DEAD MONEY

Interest on a f***me mortagage in a crashing market is even deader money.

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What is that meant to prove exactly?

It proves that times have moved on.

It proves that a working couple should be in a position to pay around a grand a month in Mortgage repayments and proves that houses are affordable.

I think they have a way to go before they become unaffordable to the masses at present its a minority that are unable to get onto the ladder.

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What is that meant to prove exactly?

It proves that times have moved on.

It proves that a working couple should be in a position to pay around a grand a month in Mortgage repayments and proves that houses are affordable.

I think they have a way to go before they become unaffordable to the masses at present its a minority that are unable to get onto the ladder.

laurejon, you have posted a lot of good comments over the last couple of days but I think you are wrong on this.

I think that in a regular, stable (in other words, non-existant) house market, only a minority would not be able to get on the ladder. Some people will always have to rent, that's what happens in our sort of society. But I think the popularity of sites like this go to illustrate the fact that a very large number of people are priced out of the market, meaning they ain't a minority any more.

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  • 440 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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