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House Price Crash Forum

To Commit Or Not Commit


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First get your mindset right. You either view your house as a home to live in and enjoy or you view your house as an investment to either make or lose you money.

So if you want to buy a house as an investment, then stop right now and do not bother until houses have dropped 30% at least (they may not do this as all housing experts/predictors have been made fools of over the last 18 months).

If you want to buy a home to live in for at least 10 years and maybe 20 then feel free to think about it. But get a repayment mortgage and try and negotiated something off and make sure you buy a place that you will enjoy living in house, locality, etc. Do not compromise as a place you do not like living in with negative equity is called a prision cell.

I have only ever owned two properties in my life and have enjoyed living in both. The one I am in now is for life, I need no more it is my home.

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BS35

Looks like quite a nice area.. not a lot for sale and much of it apparently currently SSTC. This contrasts heavily with the area I'm looking at which has barely seen a transaction in months.

If you haven't already done so, it is definitely worth installing firefox and then Propertybee. With this you will at least see that many properties are seeing price drops.

This one dropped £20k.

This one has dropped £15k so far.

This one also down £15k

That said.. all of these properties look poor value for money compared to what I see in my area. Where does all the demand come from near you? Is it mostly P/S work? Commuters from Bristol? I'm very surprised that the market there still seems so strong. :blink:

Edited by libspero
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Purely my opinion and personal thoughts.

Property is massively overpriced in the UK and can only fall. Maybe not by as much as we'd all like. But your chances of missing out on the next boom I am sure are close to zero, so you don't need to panic into the property market. Time is well on your side. And why get into any kind of interest paying loan when you don't need to.

Some hard assets wouldn't be bad, in these days of suspect currencies. But you can also have some fun with your money with stuff like collectables . . . vintage guitars, vintage cars, art or antiques. If one of these areas turns you on and you have some expertise, it's as good an asset as any. Plus you indulge a financially rewarding hobby.

If you have long term plans, how about buying some land? Maybe in a country you'd like to retire to eventually or a favourite country for holidays. Some people have an emotional second home. You can always stick a caravan on it, build on it later, or if the worst comes to the worst, dig that bunker and get a goat and some seeds. A little arable land somewhere does impart a feeling of greater security for me than say, RBS or Santander. And it can be a nice long term project - it depends what kind of person you are.

As I said, purely my personal views. Putting savings in the bank doesn't even cover inflation these days. And meantime, you don't have any fun.

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Just another update 15 months on. I'm still saving but I am almost at the point of "going for it" and getting a 60% LTV lifetime tracker deal with HSBC. You will note that I joined this site in 2004 and regularly look at this site to see the interesting points of view.

Can any of you hardcore posters put me off buying for a little while longer or is now as good a time as any? I'm into cash but the great fixed rate deals are all coming to an end soon.....

Help, I have been patient but waiting 7 years is a long time.....

I'm not going to put you off buying. All I'll say is on 4th December I bought a home. A few weeks in there are a few niggles, particularly with the parking situation. Me and my bf payed 2007/2008 prices, but there is hardly any movement in this area (newish development with a 3 minute walk to the station). I am not worried about house prices going down in the next 7 years, as we will be living here for hopefully around that length of time, if not longer. We got a good fixed rate deal, and the extra money paid over what we were paying in rent is the repayment portion of our mortgage.

The aim now is to:-

repay the mortgage

progress in our careers

save cash

I couldn't care less what happens to the house prices in the area in the next couple of years. As a long term plan we now have a home, and there is something great about knowing we've got a base. You really do end up concentrating on other apects of your life, which are not HPC or savings rate related. All I can say is if you follow too many people's opinions on this site, you may NEVER end up making the move, and before you know it another 3 to 4 years will have passed. Do what is right for you and your circumstances and life goals.

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  • 7 months later...

Cheers. The problem I have is that in the area I want to buy, no one appears to be selling and the houses that are for sale are still stuck at 2007/08 inflated asking prices. Its as if no one wants to take the hit, a kind of stalemate stagnant market, who will win who knows? all I reckon is that the current set up will do almost anything to prevent housing assets to fall in nominal terms because it will hit too many families.

I remember posters predicting a massive fall when interest rates were going up to 5.25% but then they were slashed to 0.5%, money printed and now we are where we are..... I'm kind of in a strange situation. cash is losing value, gold is going crazy, houses are still being propped up and shares are not really following any credible logic given the state of the economy. Oh I love a bit of debate but when your gonna fork out £200K, you want to make the right decision..... Tough times....

Well here we go. 8 months on and I have looked at 4 properties in the area (one of them 3 times). It was first on for £265K and stayed at that level for 4 months and now has dropped to £249K. I would have never have paid above £250K because I am a first time buyer and will benefit from the 2 year stamp duty freeze.

I feel the time is right to buy our first home (I have waited nearly 8 years) and the market in my opinion has reached the point of stagnation. I could take out a a 5 year fix at 3.39% (£1495 fee) or a lifetime tracker at 1.89% above base rate and to be honest, I don't know which one to go for. I tempted with the tracker because I believe that the economy is way too fragile to start jacking up rates and if the BoE are going to inflate this problem away, then I want to get on this ladder pretty soon.

Would an offer of £220K be too cheeky? The problem is that not many properties have sold on that street and the house has oil heating which is outdated (I would want gas central heating) and the house needs a little bit of updating. Although I believe I am in a strong position. I can move in really quick if need be as I am renting at the mo. Nice area and have been renting here for 5 months to see how things are.

Any thoughts/views would be appreciated as always. Cheers

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Any thoughts? I keep changing my mind on a daily basis!!! :o

The thing to do is to stop thinking small picture.

Big picture what's going to happen to rates, lending, GDP, demographics, existing debt etc

Don't buy in 2011.

Forget 2004. From then rates fell, lending rose etc

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I am currently renting and own no properties as I feel that renting is better value for money in the current climate. I have no debts an earn a fairly good wage.

I have the opportunity to take up a job for around 2.5 - 3 years where the company provide a house as part of the package, I can't complain there.

The dilemma I have is what would be the best course of action to take in the current climate? I personally think that House prices have peaked/levelled out, but then again, I though that back at the end of 2004, how wrong I was.

You see I have a few options:-

1. Save as much money as possible over the period, cash is king and all that and then use this as a deposit for a house purchase in a few years time.

2. Take out a hefty mortgage (4.5-5 times income) in a area that me and the family would settle down, good schools, not far to commute etc. etc. but try and rent it out for 3 years before we move in.

3. Borrow at 3.5 times income and buy a 1 or 2 bed house/flat in the commuting belt, over pay on the mortgage in the first few years (i.e take advantage of fairly low interest rates), rent it out and then either move in or try and sell in a few years time.

4. Save, save, save and then rent in a few years time?

They say after marraige the next biggest decision is to sign on the dotted line for a mortgage....

Any thoughts? I keep changing my mind on a daily basis!!! :o

Feels like a liability at the moment - worth less with each passing hour and restricts access to benefits

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get in there and secure a good mortgage rate

That old misconception again. As a HPCer you should know better. To put it simply: fixed rates have already been set to price in any likely base rate increase in the next 2/3 years and still yield the lender a good profit (that is after all the whole point of fixed rates), house prices however have not and will not do until the actual rate rises occur.

Edited by goldbug9999
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Or look at it this way: a fixed rate is you and lender betting against each other, and who do think has the better chance of winning - you, or the CEO of the lender who play golf with merv ?.

When you put it that way.....

So, what about a £220K offer on a house on at £249K (originally £265K) and then go on a 1.89% above base rate term tracker. I don't think any of us can predict the bottom of the market but I want to know whether the above stats suggest a good deal (ish)

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l like multi-year threads.

great rereads.

yeh, 4.5 years aint bad, is that some sort of HPC record? It just shows I have really been waiting all that time, and I was one of the first to join the forum. The amount of time I spend looking through stuff on here is crazy.

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1. Don't buy property - dead money

2. Don't save - spend all your money enjoying yourself.

3. F**k tomorrow - enjoy today and let the rest take care of itself. Do what you want to do not what you think you ought to do.

That's my advice.

It works for me! :-)

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Would an offer of £220K be too cheeky?

Well, would you be willing to pay 220k? If thats your ceiling then you will want to start lower to barter up to that price. Start as low as possible, but you'll have to justify it (as you've done) and make sure you don't alienate the EA/Vendor by having them think you're just taking the piss.

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...and now has dropped to £249K. I would have never have paid above £250K because I am a first time buyer and will benefit from the 2 year stamp duty freeze.

I feel the time is right to buy our first home...

I'm confused. I thought first time buyers didn't pay stamp duty up to £175k, which is an increase over the standard threshold of £125k. My understanding is that anything above £175k will attract 1% no matter who you are, so even at £220k you'll still have to find £2.2k for stamp duty.

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I'm confused. I thought first time buyers didn't pay stamp duty up to £175k, which is an increase over the standard threshold of £125k. My understanding is that anything above £175k will attract 1% no matter who you are, so even at £220k you'll still have to find £2.2k for stamp duty.

No stamp duty up to £250k for first time buyers at the moment.. (until March 2012 I believe)

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  • 2 months later...

No stamp duty up to £250k for first time buyers at the moment.. (until March 2012 I believe)

Well here is an update on my property searches.

House came on the market a month ago for £185K, I viewed it twice and put in an offer for £165K which was rejected instantly. Waited a couple of weeks and put in an offer for £168K, which was rejected. EA said Vendor was looking for around £180K. The thing is that there is another 2 properties in the same street that are on for £175K (originally £190K) and have not sold for over 9 months albeit not quite as nice (i.e NE rear garden, garage in block)

I was thinking of putting in a 3rd and final offer of £170K / £172.5K, thoughts??

My hpc days maybe over....

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Well here is an update on my property searches.

House came on the market a month ago for £185K, I viewed it twice and put in an offer for £165K which was rejected instantly. Waited a couple of weeks and put in an offer for £168K, which was rejected. EA said Vendor was looking for around £180K. The thing is that there is another 2 properties in the same street that are on for £175K (originally £190K) and have not sold for over 9 months albeit not quite as nice (i.e NE rear garden, garage in block)

I was thinking of putting in a 3rd and final offer of £170K / £172.5K, thoughts??

My hpc days maybe over....

For the sake of £5k just go £175k, full and final, it is just enough to not be insulting from the vendors point of view, and only £32 a month in real terms a month over the life of the mortgage to you.

Then you can forget all about this house hunting nonsense and relax in your own home. ......

Until you lose your job/interest rate hike etc and you get repossessed.

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  • 4 weeks later...

For the sake of £5k just go £175k, full and final, it is just enough to not be insulting from the vendors point of view, and only £32 a month in real terms a month over the life of the mortgage to you.

Then you can forget all about this house hunting nonsense and relax in your own home. ......

Until you lose your job/interest rate hike etc and you get repossessed.

Well, after 7 years of waiting and lurking on this very informative website, I have put in an offer of £175K which has been accepted. Early days yet but hopefully I have made the right decision. Only time will tell if the the timing was right.....

Cheers

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  • 441 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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