drumsterphil

iTrader: (1)

Moved into my 1 bedroom house last October and paid £87k. Just found out the house next to mine (exactly the same) has just gone for £120k, and was sold within 48hrs of going on the market!!

What is going on with house prices or is this a freak?!!You gotta feel sorry for first time buyers at the moment!

And should I sell up, move back in with the parentals and buy an STI7 with the profit?!!

DP.

Luke

Wait for the drop........ Folk will have paid 120k for a flat and it will be worth 105K...

logiclee

DP,

Sell your flat and move into a 3 Bed semi in the Midlands for £45K and park your sti in the Garage.

Lee

AndiThompson

move up here, you can get a small 3 bedroom house for £30k

pslewis

Totally Mental down South here in Hampshire

Its really NOT good news, I am old enough to remember most of the falls and rises - in 18 months time we shall see negative equity again ........................... mark my words - all we need is 4 interest rate rises and that will pop the bubble

I have no worries like a mortgage and my house is about £300,000 but there are only winners when you die and your kids get it!!

Pete

Dracoro

Silly market really.
I bought my 2 bed flat for £124k 18 months ago. Just accepted offer of £175k(asking). it'd only been on the market 3 days 'till I got the offer. & another flat in my block (all the same) went for £160k the day before! (bet they're kicking themselves).

May go up a bit but will sustain or go down. I'm playing 'safe' & getting out of the market & will see what happens.

May be right decision, may be wrong, who know's?! (have to sell as I got made redundant).

InvisibleMan

pslewis, yeah then the government screws your kids for inheritance tax...

but no, dont think we'll see negative equity like years ago

[Edited by InvisibleMan - 6/15/2002 3:27:17 AM]

XRS

IM,

I disagree. All it would take, as pslewis says is a few interest rate hikes and those big multliple mortgages become unaffordable. When I took out my first mortgage I paid 9%. A year or so later it was up to 15%! Don't think it won't happen again.

I think DP has it right (even if it wasn't by choice).

Just my opinion.

robski

Best thing you can do if buying now (IMHO) is to fix your rate

mines fixed for another 14 years, its fully portable, and I know what Im paying each year. Plus it effectively reduces due to Inflation each year anyways

I would avoid flats like a dose of the clap, they rise and fall much more than a house in my experience.

robski

astraboy

<You gotta feel sorry for first time buyers at the moment!>
innit. there are only two places near me that I can possibly afford.
Slough - no thanks.
Langley village - I'd prefer Beruit.
No offence but I jusr dont want to move there.
Any thing else in the area is totally out of my price range.
Somone told me the other day to get 10k together for a deposit. What for? I will only be able to afford the front door at the current prices.
astraboy.

merlin

IMHO few people benefit from house prices going up despite what people think. It's all very good when your house goes up in price and I hear many people boasting about how much their house is worth now. What people forget is that the next house on the housing ladder will have gone up by more, so they will have to find more money to step up. One exception is if you want to move to a cheaper area - eg south-east to the north or abroad.

logiclee

Merlin totally agree.

We complaine about how much we pay for cars and chear when prices come down but some people are pleased because they have to pay a quarter of a million for somewhere to live.

Lee

boxst

Hello

I'm currently looking for a house, and I'm shocked at the prices. My house has doubled in value in four years. That's great BUT the house that I want to buy has done the same and is now some stupid price (more than £500K).

I am now debating whether it's worth moving, as I also think that the current increase in house prices must cause some sort of collapse in the near future. Most first time buyers cannot afford their first house, and that will have an effect all the way up.

Steve.

mannyo1

Myself as a potential first time buyer, would currently find it almost impossible to find a house that is within my budget. at the moment the only ones that would be are in non desirable dodgy areas. Also because I think the bubble is about to burst I am holding on. Interest rates must go up soon pushing up mortage costs, and thats when I think prices will tumble.

Robertio

iTrader: (1)

I knew there had to be some positive reason for staying in Glasgow, I paid a bit under £70k for my house just over a year ago, and a house along the road just went for the same I had enough trouble getting a mortagage over a reasonable term as it was (27 years ) so I hate to think how bad it must be down there (a first time buyer will be collecting their pension before they pay the house off).

drumsterphil

iTrader: (1)

Totally agree with Merlin (although if you were accusing me of being one of the ones boasting then I most certainly was not!) that the cost of a house to a certain extent is artificial for non-first time buyers and the house that you are moving to will, in all likelyhood, have gone up by the same rate.

I am just shocked by how much house prices have gone up in such a short space of time. I can see many tears falling if interest rates rise and the housing market declines substantially - I can see a lot of people simply not being able to afford mortgages they took out over the last year or so.

My sister has just qualified as a solicitor and is in the process of trying to buy her first house. Even on a reasonably decent salary there is little that she can afford in a decent area and she is having to stretch to get on the housing ladder.

DP.

InvisibleMan

yeah you dont really benefit unless you make a dramatic change of location, south to north.

I think what was meaning lastnight was that im sure we wont have the dramatic slump in house prices that happened in the last price crash

Therell be a struggle keeping up the payments with interest rises but its the firsttime buyer catagory that im glad im not in now

[Edited by InvisibleMan - 6/15/2002 3:17:31 PM]

Tiggs

there is no indication of a slump in prices- just cause some of you cant afford them it doesnt mean others cant- my brother has just bought a house that should be worth 120k in Reading but has had to pay 185k for it, all 4 others on the plot have sold and they have not laid a brick yet. the second phase of the development is already asking for 5k more and they cant even take deposits for 6wks cause they arent sure what the plans are gonna be like!

as long as they are selling them they will rise in price, it would take about 6-8 1/4% rises before a noticible difference showed in house prices.

T

ps- this all relates to the south- and whoever said sell and move north, be aware you will struggle to come back if you do.

Clarebabes

I bought my house 19 months ago for £57K with a 95% mortgage which seemed really resonable at the time. It's a two-bed semi without garage, but still nice.

Last November I had it valued at £67K and last month had it valued again and it was worth £78K

I am moving, but decided not to sell my house and instead rent it out and use it as an investment. Will be enough there hopefully in a couple of years for a nice big deposit for a bigger house and maybe a Porsche

I would not want to be a first time buyer. Dave's lodger is currently looking for a house in Northampton. He hasn't anyone to buy one with, so he can only borrow £85K. Cannot get a flat for that and a house is totally out of his range. He could of course go and live in an area where his car would be set on fire on his drive, (beats having to put central heating in!), but he'd rather not!!

Nightmare for them, good for us I suppose.

father_jack

You should try buying a house under the Scottish system.
I've just seen one today I really really want and will have to go £80-100k over the asking price to get it. Good when I sell mine I suppose and no poxy chain to deal with

Mark Jackson

They aint all that cheap oop north, Not round our way.

Bought mine for 160k in 1998, Now worth 350

I cant beleive it and I dont really think its worth that much but if people want to buy.

This is why I still cant afford a Scoob I hasten to add

NotoriousREV

Mark, you're house may be worth £300k in Crumpsall, but if it were darn sarf the only the Queen would be able to live there

Just to make you £100k+ flat owners sick, my 3 bed detached house with garage cost me £47,500 4 years ago. Like someone said earlier, sell your flat and buy a mansion house oop north

DanTheMan

I bought my 1 bed house 4 yrs ago for £60K and sold it in feb for £116K to get a 3 bed house which was then £177K and its now been valued at £195K but the contracts have not gone through yet and I'm dreading the seller might put it back on the market for more

ADP

Seems like lots of potential first time buyers on here, me included.

I consider myself to earn a reasonable wage for a 25 year old(paying higher rate of tax, just) but that really doesnt buy me enuff as a single buyer - living in the thames valley. All I could afford round reading way would be a crappy little flat or very small house in a really dumpy area - I have no interest in either of these so have now given up considering buying.

I also fear that it is too late anyway and that if I did buy now I could have really big payments to squeeze out enuff money for what I want. THis is fine till interest rates go up and I cant afford to pay anymore, then what? stuffed thats what.

So personally Im gonna ride out the current storm it CANT last forever - history tells us this, it is a market like any other serviced by market forces, supply and demand. If these fall out, then I am sure we will see the bubble burst. I dont expect a CRASH, but I do expect leveling AT LEAST and soon.

In the mean time, enjoy your Scoobies instead, use your money to pay them off(if you need to), save up more for a deposit and prepare yourself for the right time to buy.

my bit

andy

Tiggs

"ride out the storm"..... good luck in 12 months when theyve gone up another 10%!

T

ps- anyone who is moaning about not being able to get a house yet is driving a scoob is either- a) not that bothered about the house or b) a mug.

GM

The people who are doing well out of the increases are people whose family have left home and who can trade down to something smaller. I suppose I shouldn't complain - my bro and I have sold my late mother's retirement flat for nearly 20% more than our lawyer reckoned we'd get (and even that was more than the valuation). Ultimately there is only one way to establish what a property's worth - and that is to sell it. But.... I want to trade up myself later this year - the type of property I want to buy will have gone up in price by more than enough to take away the advantage of what my own flat has increased by.

But the Bank of England say property prices will fall - yeah, but not in Edinburgh I'd suggest. Booming financial sector, lots of new jobs = continued price increases. Still, at least I have a house.......

tony jones

house asle depend on a chain, the chain is only as strong as it's weakest link, so prices have to fall, when no new buyers can afford to come into the market, that isunless 50 yr morgages become readily available.

The fact is most consumer goods are coming down in price due to technology adavances, so any spare money the consumer has is pt to housing. The country is getting more populated year on year and a house is the most important comodity we own. It's simple supply and demand.

novice

House prices on the up are a good way to disperse the population, from the saturated areas which have got a real shortage of plots to build on, without the Government having to spend anything to instigate it.


I don't think anyone would go for a 50 year Mortgage to live in a crap area. I saw the other day that a 50 year mortgage would change the amount repayable a month by just £80. So lets get this right a 25 year mortgage at x amount or a saving of £80 a month but payable for another 25 years, I don't think many people will be going for that option somehow.
Prices will come down it is just a matter of waiting for the last people wishing to commit financial suicide to dry up, for it to then start the decline.

One way to gauge the market is the private rentel sector, where in my local area rents have come down by as much as 15% recently as the rental market is totally saturated with empty properties littering the Ads for months on end.


The more first time buyers that don't get on the property ladder the sooner this boom will end, don't think that they are all going into private rented accomodation either as there is an increasing trend of people staying at home with their parents hence the saturation of private lets available.


When the market does drop, prices will go down by about 30-40% I had a look the other day at my first house which I brought 6 years ago for £60K, today that same house would change hands for £145K for a 2 bed mid terrace with Garage, this was on a good estate but in a crap area.


Why is it as well that 6 years ago when I wanted to borrow right upto the hilt so I could get the best house available as the Market was flat, lenders would only give me 2.5 times joint or 3 times single earnings, but now when prices are high they will give me 4 times joint or as much as 4.5 times single. They wouldn't be trying to extend this boom by any chance?


novice

Mark Jackson

NotoriousREV, I was born in Crumpsall in 1970, dont live there !

I think it is now a bit of a dump, they havent got over me moving away, hence prices have plummeted, still on the bright side you can get a 3 bed terrace for 2.50 round North Manchester

ADP

they may well go up 10percent in 12 months yeh, but Im already priced out of the market so it makes no odds really if they go up 10 percent or 50 percent(though Id rather they didnt go up 50percent)

Not a mug either - so Im priced out of the market, am I bothered yes, but I cant realistically do anything about that so I continue to drive a scoob and have my fun - you cant die with it.