Tuesday, April 10, 2007

even fewer FTBs. some choice quotes below.

Decline in number of first-time buyers

87% of first-time buyers chose mortgages with a fixed rate in February, but for how long? ----- Ed Stansfield, property economist at Capital Economics, said the fall in numbers of first-time buyers could mean that some of the heat is now coming out of the property market. "First-time buyer numbers have been gently drifting down. They do not have much of a choice - either stretch themselves with larger loans or sit out and wait for easier times. It is very tough at the moment. "This cannot be good for the long-term outlook for the market. It is another argument for expecting the market to get softer as the year goes on. The outlook for 2008 will be pretty soft."

Posted by sam @ 02:24 PM (496 views)
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9 thoughts on “even fewer FTBs. some choice quotes below.

  • My neighbour will not like to hear this. He took out bridging finance to buy the house next to us and is now struggling to sell his old house. He is currently paying out more than his monthly salary on two mortgages and reckons that he needs to sell the house within 12 months. Otherwise he will start accumulating debt to pay the mortgages. Needless to say, he finds the current spate of media headlines very worrying. (I haven’t had the heart to tell him that I blog on this website)

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  • The problem that I see and hear, is that some younger people now think that if they do not get on the property ladder they will never be able to afford to get onto it – I have many friends who think I am crazy to not buy, however I also have several friends who are struggling to keep up with their payments, and have had to resort to taking second jobs to be able to afford. The market seems to be extremely volatile and my guess is that we are now at the peak – the housing market will start to cool over the summer, and there are going to be some big problems. My plan is to sit tight – if it takes another 2 to 3 years for the market to cool then so be it – in the mean time I shall continue with my holidays, knowing that every time interest rates go up I am earning more money each month on the interest I receive… tick tock tick tock.

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  • Bricksnmortarhaha says:

    p.o.o.r

    I hope you’re right that we’re now at the peak. I’m in the same situation as you, with all around me buying and urging me to do the same. It’s hard being a contrarian!

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  • P.o.o.r. is right. Time is on our side. P.o.o.r. also highlights the importance of having a life and not letting house ownership ruin it.

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  • There’s that expression again “softer market”. Like a chewy mint, or a memory foam mattress!

    If the board of a company said “the profits outlook is much errr .. softer next year”, they’d be ripped apart by shareholders. A bit like saying “we’re heading for a bad year, but hopefully, it’ll be like falling onto an eiderdown pillow”.

    As there’s a flight for the exit doors, the reality will be a granite precipice.

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  • On radio 5 just said house price will still rise regardless of this article!!

    Beats me!

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  • Only 25000 FTB’s in February, doesn’t look good for all those naff developments of 1 bed flats that are shooting up on every bit of ex-industrial land. Perhaps the sheeple are finally twigging that if they buy such overpriced new-build offerings they may be stuck on the Firstrung for an awfully long time as they will be impossible to sell against such superior things as a Terraced House.

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  • If you want to discuss inferior buildings, what about those wooden “doll” houses they build in the US within the states that have tornados. I remember when they showed footage after the last florida hurricane. Within a specific street, only the church was still standing. The locals called it an act of God. Upon closer inspection, the viewer would see that it was the only building in the street made of brick. Do they teach the big bad wolf story in the US?

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  • Scott – You are exactly right – i bought my first house in 1990, I was only 19 years old, and for 4 years I struggled with the mortgage and neg equity, whilst all my friends were going on hols and enjoying themselves – This time I have sold and moved into rented, I have a good sum of money in the bank earning interest – OK my rent is probably more than most pay for a mortgage, however I can get up and move on when ever we want, no stamp duty, no risk of Neg Equity – No expensive maintenance – No Worries – Just much more Free time to enjoy life – and that is worth a lot in my books. Whilst I would like to buy again, as you can then personalise the house a little bit, I am in no rush, and at the moment I am enjoying life as there is no stress – Money trouble is probably the biggest cause for most relationships going wrong, and without a mortgage, a lot of that stress is taken away. If prices do carry on up so be it, I will continue to rent and will continue to enjoy myself.

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