chrisstevens Posted March 6, 2008 Share Posted March 6, 2008 I've been a long time lurker on here and a bear at heart although a property has come onto the market and it is reduced quite dramatically for a quick sale. Its a 10-15 year old house in a decent area. 4 bed detached on for £155,000(fixed price). The exact same style house a couple of doors down is currently on for £177,000 and its not in a better state. I also have a 15% deposit and can afford the mortgage payment quite easily but I am living in fear of the current econimic state however I believe this house could be a safe bet. Any thoughts are appreciated! Quote Link to comment Share on other sites More sharing options...
Guest Steve Cook Posted March 6, 2008 Share Posted March 6, 2008 (edited) I've been a long time lurker on here and a bear at heart although a property has come onto the market and it is reduced quite dramatically for a quick sale.Its a 10-15 year old house in a decent area. 4 bed detached on for £155,000(fixed price). The exact same style house a couple of doors down is currently on for £177,000 and its not in a better state. I also have a 15% deposit and can afford the mortgage payment quite easily but I am living in fear of the current econimic state however I believe this house could be a safe bet. Any thoughts are appreciated! I think you would have to be completely mad to touch real estate with a barge pole right now. Residential property is almost certain to drop 20%. It is highly probable it will drop 30% and there is a fair chance it will drop more than this. One of a number of explanations spring to mind for why you would even contemplate such a thing and then post it here: You are ignorant of the gravity of the economic situation at the moment You are too thick to grasp the gravity of the current economic situation (though your vocabulary would certainly not suggest this) You are on a wind up and this is a joke You are an EA ramper in disguise A growing body of economic commentators are wrong and so is this forum and you are a very far sighted individual. EDIT: no....this is a piss take Edited March 6, 2008 by Steve Cook Quote Link to comment Share on other sites More sharing options...
beans on toast Posted March 6, 2008 Share Posted March 6, 2008 If you're happy with buying then go for it. But i would only he happy with a reduced price of around 10% off the asking price. This way you get some cushion if prices fall continues into next year. Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 6, 2008 Share Posted March 6, 2008 I've been a long time lurker on here and a bear at heart although a property has come onto the market and it is reduced quite dramatically for a quick sale.Its a 10-15 year old house in a decent area. 4 bed detached on for £155,000(fixed price). The exact same style house a couple of doors down is currently on for £177,000 and its not in a better state. I also have a 15% deposit and can afford the mortgage payment quite easily but I am living in fear of the current econimic state however I believe this house could be a safe bet. Any thoughts are appreciated! A lot of financial imbalances still need to be addressed, and when this is all said and done, that house won't even get 100k. Don't buy it. Yet. Quote Link to comment Share on other sites More sharing options...
_w_ Posted March 6, 2008 Share Posted March 6, 2008 Any thoughts are appreciated! If you can afford it and that is where you want to live then go for it! Be very mindful of affordability though. Although we've had a couple of decades of extraordinarily low inflation, 1970s style inflation _might_ make a come back in a few years time. That would mean interest rates in the teens as they were back then. Quote Link to comment Share on other sites More sharing options...
Paddles Posted March 6, 2008 Share Posted March 6, 2008 Good for you. Now go away and play on Housepriceinflation.co.uk. Quote Link to comment Share on other sites More sharing options...
FernandoMorientes Posted March 6, 2008 Share Posted March 6, 2008 I think your crazy even contemplating buying now, how much more evidence do you need that this is probably the worse time to buy property in HISTORY! Quote Link to comment Share on other sites More sharing options...
Guest anorthosite Posted March 6, 2008 Share Posted March 6, 2008 Good for you. Now go away and play on Housepriceinflation.co.uk. I don't think that site exists anymore Quote Link to comment Share on other sites More sharing options...
Bubble&Squeak Posted March 6, 2008 Share Posted March 6, 2008 I've been a long time lurker on here and a bear at heart although a property has come onto the market and it is reduced quite dramatically for a quick sale.Its a 10-15 year old house in a decent area. 4 bed detached on for £155,000(fixed price). The exact same style house a couple of doors down is currently on for £177,000 and its not in a better state. I also have a 15% deposit and can afford the mortgage payment quite easily but I am living in fear of the current econimic state however I believe this house could be a safe bet. Any thoughts are appreciated! You were clearly not completely truthful when you chose Bear ... should have gone for Neither Quote Link to comment Share on other sites More sharing options...
Greg WP Posted March 6, 2008 Share Posted March 6, 2008 Having cleared my student debt and saved up about 12k Ive decided to go for it and buy a 3 bed terrace in Bolton. Ive been telling my friends to hold off purchasing for the last few years but now I feel confident enough to take the plunge. I hate the idea of renting until the day I die and have concluded that Im buying for the long term and dont expect to see any HPI for years. I know its a gamble but my offer goes in tomorrow. I guess Im looking for reassurance.....anyone? Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted March 6, 2008 Share Posted March 6, 2008 I think it'd only be worth buying now if you could buy cash and it was already dirt cheap. If I can pick up a suitable place for around £70K at the end of the year I might go for it. My needs are modest - 2BR with a big garden on a hill and within a couple of miles of Leeds city centre. It's probably just about possible now but I haven't been here long so I want to see how it pans out and the choice at this price range is pretty low. Meanwhile rents are pretty good - £440 for a 2BR house - so there's no real hurry to look either. I certainly wouldn't be considering a mortgage at the present time though... Quote Link to comment Share on other sites More sharing options...
Fairies Wear Boots Posted March 6, 2008 Share Posted March 6, 2008 Go for it dude! Such a good discount, and owning your own home (even if the bank owns most of it!) must be great! I'm really looking forward to buying my first house, in three years time! Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted March 6, 2008 Share Posted March 6, 2008 Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted March 6, 2008 Share Posted March 6, 2008 4 bed detatched for £155K is an amazing deal if it's a good area as you said would buy it straight off. I searched around on home.co.uk and could only find that kind of property in areas like Port Talbot , Swansea and such like. Al lthe rest were France or further abroad. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted March 6, 2008 Share Posted March 6, 2008 Having cleared my student debt and saved up about 12k Ive decided to go for it and buy a 3 bed terrace in Bolton. Ive been telling my friends to hold off purchasing for the last few years but now I feel confident enough to take the plunge. I hate the idea of renting until the day I die and have concluded that Im buying for the long term and dont expect to see any HPI for years. I know its a gamble but my offer goes in tomorrow. I guess Im looking for reassurance.....anyone? You've been telling your friends to hold off buying for the last few years while HPI has rocketed, and now the market is utterly ******ed, you want to jump in with a 12K deposit? Go for it mate, as you say, you're in it for the long term... Quote Link to comment Share on other sites More sharing options...
mfp123 Posted March 6, 2008 Share Posted March 6, 2008 I think you would have to be completely mad to touch real estate with a barge pole right now. Residential property is almost certain to drop 20%. It is highly probable it will drop 30% and there is a fair chance it will drop more than this.One of a number of explanations spring to mind for why you would even contemplate such a thing and then post it here: You are ignorant of the gravity of the economic situation at the moment You are too thick to grasp the gravity of the current economic situation (though your vocabulary would certainly not suggest this) You are on a wind up and this is a joke You are an EA ramper in disguise A growing body of economic commentators are wrong and so is this forum and you are a very far sighted individual. EDIT: no....this is a piss take it is ignorant to assume that no property is worth buying under any circumstance. a 4 bed detached house for £155,000 doesnt sound far off the mark to me. a lot of people on this site are likely to miss opportunities if theyre not even prepared to look at them. Quote Link to comment Share on other sites More sharing options...
Scott Posted March 6, 2008 Share Posted March 6, 2008 (edited) I think you would have to be completely mad to touch real estate with a barge pole right now. Residential property is almost certain to drop 20%. It is highly probable it will drop 30% and there is a fair chance it will drop more than this.One of a number of explanations spring to mind for why you would even contemplate such a thing and then post it here: You are ignorant of the gravity of the economic situation at the moment You are too thick to grasp the gravity of the current economic situation (though your vocabulary would certainly not suggest this) You are on a wind up and this is a joke You are an EA ramper in disguise A growing body of economic commentators are wrong and so is this forum and you are a very far sighted individual. EDIT: no....this is a piss take Yet another first time poster that has been lurking for some time now! Do you reckon the estate agents are passing the baton round the office as to who creates a new poster account and then puts the next first time post on saying they are buying now having lurked here for years. Great post Steve. If you were to number your bullet points I reckon the OP is 1, 2, 3 and 4. Edited March 6, 2008 by Scott Quote Link to comment Share on other sites More sharing options...
chrisstevens Posted March 6, 2008 Author Share Posted March 6, 2008 Ok I guess I have all the answers I expected to get from HPC but I assure you I am a genuine non VI FTB. I have linked the house below for opinions if it has any effect? I have also linked the house that is for sale just a few houses down. http://www.rightmove.co.uk/viewdetails-199...=1&tr_t=buy http://www.rightmove.co.uk/viewdetails-156...=2&tr_t=buy Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 6, 2008 Share Posted March 6, 2008 If I was in your shoes I would be buying it. For the following reasons. Worst case scenario is that the property will drop 40%, and that is very debatable as we have a Government that exists solely due to their efforts to inflate property prices. Interest Rates remain at a low, believe me money today is very cheap!!!!!. Mortages of 85% are available at around 5.5% fixed. Now weigh this up. 125% mortgages have all been removed 100% mortgages are being pulled daily. Industry thought is that 70% mortgages will become the norm. Interest rates are headed up, Bank of England Base Rates have become irrelevent, the cuts will not be passed on. So a worst case scenario of a 40% drop in prices, however that will be driven by the rise in interest rates well above 10%. Australia currently has a mortgage rate of 9.5%, people did not believe it would ever happen, but it has and its headed up further. Given that you will be looking for a 90% mortgage, take the cheap money today, as it will most certainly not be on offer in a couple of months!!!!. Make sure you fix the rate for 5 years at the very minimum, do not fall for the rates might come down gag, many people today who borrowed at a fixed rate of 3% for three years now face a SVR of 8%!!!!!. Good Luck and let us know how you get on, I think the house is very nice for the money, I recently paid more than that for a flat on the south coast!!! Quote Link to comment Share on other sites More sharing options...
Monopoly Posted March 6, 2008 Share Posted March 6, 2008 Ok I guess I have all the answers I expected to get from HPC but I assure you I am a genuine non VI FTB.I have linked the house below for opinions if it has any effect? I have also linked the house that is for sale just a few houses down. http://www.rightmove.co.uk/viewdetails-199...=1&tr_t=buy http://www.rightmove.co.uk/viewdetails-156...=2&tr_t=buy I would buy it..but only because I would not need to get a mortgage for that price...same house her would cost you 500k+ Very nice house..I'm jealous Quote Link to comment Share on other sites More sharing options...
FernandoMorientes Posted March 6, 2008 Share Posted March 6, 2008 I'll have ten quid with you the house will be worth 50k less in 3 years time..... Ok I guess I have all the answers I expected to get from HPC but I assure you I am a genuine non VI FTB.I have linked the house below for opinions if it has any effect? I have also linked the house that is for sale just a few houses down. http://www.rightmove.co.uk/viewdetails-199...=1&tr_t=buy http://www.rightmove.co.uk/viewdetails-156...=2&tr_t=buy Quote Link to comment Share on other sites More sharing options...
bob monkhouse Posted March 6, 2008 Share Posted March 6, 2008 Christ Stevens, your economic vision has more in common with Stevie Wonder. Then again, we all need a greater fool. Buy a house, its economic Darwinism in action, and you're a dodo. [This guys a troll, hence the agression]. Quote Link to comment Share on other sites More sharing options...
chrisstevens Posted March 6, 2008 Author Share Posted March 6, 2008 Christ Stevens, your economic vision has more in common with Stevie Wonder.Then again, we all need a greater fool. Buy a house, its economic Darwinism in action, and you're a dodo. [This guys a troll, hence the agression]. Agression? where have I posted any agression. I posted on here to attempt to get a non biased view based on the property prices of two very similar houses in my area. Instead I have simply been flamed from the majority simply because I have dared to post a thread about buying a house in the current econmic climate. Shame on me! I'm off to MSE Quote Link to comment Share on other sites More sharing options...
laurejon Posted March 6, 2008 Share Posted March 6, 2008 I'll have ten quid with you the house will be worth 50k less in 3 years time..... And I will have ten quid on you that although the property will drop 50k, the finance will rise 100% to around 11% and that would be on offer to those with very secure jobs, and 30% deposit as a minimum. Quote Link to comment Share on other sites More sharing options...
bob monkhouse Posted March 6, 2008 Share Posted March 6, 2008 (edited) Agression? where have I posted any agression.I posted on here to attempt to get a non biased view based on the property prices of two very similar houses in my area. Instead I have simply been flamed from the majority simply because I have dared to post a thread about buying a house in the current econmic climate. Shame on me! I'm off to MSE Okay! Sorry about that, I've had a shite day in the office, missed the gym, and am venting into the digital aether...I had'nt even read your subsequent posts (and i meant my agression, not yours). First question...have you stress-tested your finances to cope with high interest rates?? i.e drop in wages 10%, increase in IR's to 9%? Edited March 6, 2008 by bob monkhouse Quote Link to comment Share on other sites More sharing options...
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