imi Posted April 24, 2010 Author Share Posted April 24, 2010 Firstly as Steve mentioned supply & demand an also people's wages. If everyone's wages went up the way house prices did then their would not be an issue but with wages not going up & house prices were, we was bound to come to a bust. imi still got some riverside apartments opposite me if you got million or so to spend not to mention the lack of 95% LTV mortgages prefer a freehold rather than lease Quote Link to comment Share on other sites More sharing options...
The Raven Posted April 24, 2010 Share Posted April 24, 2010 This WILL Happen! Any reason why you think this will happen? Quote Link to comment Share on other sites More sharing options...
SteveR Posted April 24, 2010 Share Posted April 24, 2010 An aside: I highly recommend getting the (free!) 'Property Bee' toolbar, which works with the usual property websites such as Rightmove, tracking and highlighting changes it sees to the descriptions (and price!) of the properties. http://www.property-bee.com Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 SteveR - is offering good advice -expect large falls for many reasons -in both house prices and rentals Is a race to the bottom in economic terms ,and historically never happened on such a scale , the signs have been there for a long time and mostly ignored the old adage of bricks and mortar no longer apply and unlikely to for another 20 years - expect price falls , despite govt efforts to stop them followed by an slight undershoot in values then a flat line for many years to come This will of course help first time buyers in the future ,but take a huge toll on everyone else Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 http://www.housepricecrash.co.uk/graphs-index.php More information than you could ever wish for -check out some of the graphs , there is only one conclusion for any reasonable person - Bit like reading a dyno of a real crap car !!!! Quote Link to comment Share on other sites More sharing options...
JamieP Posted April 24, 2010 Share Posted April 24, 2010 Property is never a bad investment if you hold onto it, even if it drops next year after a while it will go back up again, far better to be on the property ladder than to rent, renting is just chucking your money away. Quote Link to comment Share on other sites More sharing options...
Abz Posted April 24, 2010 Share Posted April 24, 2010 Another useful link http://www.propertysnake.co.uk/ Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 "Property is never a bad investment if you hold onto it, even if it drops next year after a while it will go back up again, far better to be on the property ladder than to rent, renting is just chucking your money away. " Upto 2007 that would have been true,but not now -renting is the norm in many european countries like Germany ,notice how they all drive nice cars there? Things like job security also come into play ,and who has that nowadays? Public service is about to get mullered.Factor in increasing property taxes,maintenence and repair,interest rises(they cant go down),a lack of flexibility in job market(albility to move ) you can rent cheaper if circumstanses change ,and the effect of the bursting of a bubble -all very uncertain times ahead Quote Link to comment Share on other sites More sharing options...
China Man Posted April 24, 2010 Share Posted April 24, 2010 Its the right time to buy if you have 40% deposit and won't need to sell for at least 5 years. Quote Link to comment Share on other sites More sharing options...
Wez Posted April 24, 2010 Share Posted April 24, 2010 So what's all this media talk of house prices slowly going back up then, in here it appears most believe they are still falling or possibly about to crash again Quote Link to comment Share on other sites More sharing options...
Abz Posted April 24, 2010 Share Posted April 24, 2010 Property is never a bad investment if you hold onto it, even if it drops next year after a while it will go back up again, far better to be on the property ladder than to rent, renting is just chucking your money away. Try telling that to my colleague who brought a flat in St John Woods for £350,000 nearly 2 years ago. Currently valued at £270,000. Though totally understand what you mean. Quote Link to comment Share on other sites More sharing options...
penguin Posted April 24, 2010 Share Posted April 24, 2010 Buy stocks.... Lots of them and go long term ... Rbs and Lloyds are IMO a very good return once the economy grows Quote Link to comment Share on other sites More sharing options...
China Man Posted April 24, 2010 Share Posted April 24, 2010 Try telling that to my colleague who brought a flat in St John Woods for £350,000 nearly 2 years ago. Currently valued at £270,000. Though totally understand what you mean. don't know whats the market rate for rent at St John Woods but if rent is 1000 per month then in 6 years time the rent will cover the loss anyway. Plus the flat will defo worth more than 270k in 6 years time. Rent is like paying someone else mortgage Quote Link to comment Share on other sites More sharing options...
supramkivcork Posted April 24, 2010 Share Posted April 24, 2010 Interesting thread , just in the process of making a move onto property ladder myself, down at a house today thats for sale at 215,000 . Houses were going for 370,000-380,000 in the good times there. Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 "So what's all this media talk of house prices slowly going back up then, in here it appears most believe they are still falling or possibly about to crash again " Media is Media - people can choose to believe it or not , or pick out bits and choose to interpret - I think that there is a second downturn or whatever you want to call it coming .a fallout in commercial property and loans ,higher interest rates,more UK borrowing,another bailout of the Banks possible,rising unemployment (its not possible to have a jobless recovery) On top of this a huge pension problem rapidly becoming apparent ,and larger world problems -All in All a world of shit coming - we have just had an early heads up with Banks becoming insolvent ,and places like Dubai insolvent .. Its all in a mess brought about by the effect of exponential curves and ever increasing borrowing with the expectation of paying back at some point in the future ........ This all assumes that there is an ever increasing amount of resources available to grow with and pay back debt ...principally oil ....and that is now going to be the next issue Quote Link to comment Share on other sites More sharing options...
The Raven Posted April 24, 2010 Share Posted April 24, 2010 "So what's all this media talk of house prices slowly going back up then, in here it appears most believe they are still falling or possibly about to crash again " Media is Media - people can choose to believe it or not , or pick out bits and choose to interpret - I think that there is a second downturn or whatever you want to call it coming .a fallout in commercial property and loans ,higher interest rates,more UK borrowing,another bailout of the Banks possible,rising unemployment (its not possible to have a jobless recovery) On top of this a huge pension problem rapidly becoming apparent ,and larger world problems -All in All a world of $#@! coming - we have just had an early heads up with Banks becoming insolvent ,and places like Dubai insolvent .. Its all in a mess brought about by the effect of exponential curves and ever increasing borrowing with the expectation of paying back at some point in the future ........ This all assumes that there is an ever increasing amount of resources available to grow with and pay back debt ...principally oil ....and that is now going to be the next issue Might as well hang myself now. Do you by chance write for the mail? Interest rates are a given maybe by then end of next year. So by your count we are all doomed? no one will be safe. Happy days. When would be a good time to buy a house? how many years do you expect this to affect the market? Do you think it will recover? Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 don't know whats the market rate for rent at St John Woods but if rent is 1000 per month then in 6 years time the rent will cover the loss anyway. Plus the flat will defo worth more than 270k in 6 years time. Rent is like paying someone else mortgage Rental income is dependent on the market - if its cheaper to buy then rent must go down , so with a fall in house prices you get a fall in rental , If salaries cant sustain high rental then they dont rent ! You again follow the old rules "its defo worth more than 270k in 6 years " WHY -what makes a FLAT worth that much ? land ? build cost ? or because everyone else paid that much? ie a market price - That is over 10 times the average salary in the UK , so who exactly Can afford 10x the average salary as a mortgage - Average houses must cost relative to the average salary or you are back to filling the gap with debt .....and we see the results of that now Quote Link to comment Share on other sites More sharing options...
The Raven Posted April 24, 2010 Share Posted April 24, 2010 don't know whats the market rate for rent at St John Woods but if rent is 1000 per month then in 6 years time the rent will cover the loss anyway. Plus the flat will defo worth more than 270k in 6 years time. Rent is like paying someone else mortgage Rental income is dependent on the market - if its cheaper to buy then rent must go down , so with a fall in house prices you get a fall in rental , If salaries cant sustain high rental then they dont rent ! You again follow the old rules "its defo worth more than 270k in 6 years " WHY -what makes a FLAT worth that much ? land ? build cost ? or because everyone else paid that much? ie a market price - That is over 10 times the average salary in the UK , so who exactly Can afford 10x the average salary as a mortgage - Average houses must cost relative to the average salary or you are back to filling the gap with debt .....and we see the results of that now Ask someone over 60 how much thier first house was. 10k? at the time that was a huge sum of money. My dad told me when he was a sparky they where sitting down one day when an old timer said he would live to see the day when a sparky would earn £100 per week. He was laughted out the door. Quote Link to comment Share on other sites More sharing options...
jagman Posted April 24, 2010 Share Posted April 24, 2010 Might as well hang myself now. Do you by chance write for the mail? Interest rates are a given maybe by then end of next year. So by your count we are all doomed? no one will be safe. Happy days. When would be a good time to buy a house? how many years do you expect this to affect the market? Do you think it will recover? It is very easy to simply big up everything - we did that for nearly 20 years , and all sat back and counted our money ,as houses shot up in prices . In order to repair something you must first acknowledge its broken ... then you put the fixes in place House prices to recover to what purpose,why ? they were way overpriced and will adjust to become affordable but not an investment ie some place to live which is the way is was not so long ago Inflation will kick in at some point do try to reduce debt but it will take many years ,to rebalance ... there is a massive amount of it The future will be driven with new industry to overcome the shortage of oil , alternative power,cars , plastics,etc and the 2 decades of greed will become history and we will learn from it ,and move forward in a more reasonable fashion ...no more 50 million pound footballers for example Quote Link to comment Share on other sites More sharing options...
Chiefgroover Posted April 24, 2010 Share Posted April 24, 2010 In N.I. we had the fastest growth in europe ever, between 1993 and 2007, many properties trebbling in price. The big crash has happened and now it seems we are on the up very very slowly again. So in terms of recovery prob 2 years ahead of mainland UK. I will be speaking with a property expert this week, i'll get back to you after that to see the latest feel for the market. Quote Link to comment Share on other sites More sharing options...
den1 Posted April 24, 2010 Share Posted April 24, 2010 Any reason why you think this will happen? The Derivatives Market GONE! Quote Link to comment Share on other sites More sharing options...
China Man Posted April 24, 2010 Share Posted April 24, 2010 paying rent is like working for landlord, this go back many hundreds of years of history. Once you up the ladder then other people work for you. We live in a capitalism world therefore money make money. I am totally against renting regardless of what the market is like, unless is a council house which you pay silly money with benefit claim Quote Link to comment Share on other sites More sharing options...
den1 Posted April 24, 2010 Share Posted April 24, 2010 Lets just wait and see Gold like houses produce nothing Quote Link to comment Share on other sites More sharing options...
den1 Posted April 24, 2010 Share Posted April 24, 2010 The word mortgage means "Death Pledge" in Latin! Who's renting and who is not..... Just Don't pay that Death Pledge for a few months and see who really owns what! Quote Link to comment Share on other sites More sharing options...
China Man Posted April 24, 2010 Share Posted April 24, 2010 That is why I said the right time to buy is when you have 40% deposit and not need to move for next 5 years. The bank own the house until you paid it off completely, but if you are paying rent you get nothing back. Nothing... Quote Link to comment Share on other sites More sharing options...
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