Philip Attaway

I don't know how much property is in Leeds but my flat in London which I bought last year has increased in value enough to buy 5+ of your cars !!

The mad thing is flats are the only thing most people can afford in London and because of this demand is pushing the prices up even more! I think you would be mad not to buy! I can't see prices dropping, but more slowing down. In the long term you will always make money on property so go for it.

Phil

The problem being the only time I would get to see any of that money is if I was to move to Leeds where property is cheaper but my job keeps me here in over inflated prices

[Edited by Philip Attaway - 11/1/2002 9:07:49 AM]

father_jack

What's the problem then? Beg borrow or steal a £5k deposit and get a 90k mortgage for around £400 a month at the moment (discounted) or about £600 if not. Easily affordable out of 20k a year I would have thought and cheaper than rent, which is the main thing.
The 3x salary or 4x salary thing doesn't mean **** anymore as borrowing is so cheap.

edited to say you could of course sell your Evo for a £20k deposit, but that would of course be madness
notice original poster hasn't been back to this thread

[Edited by father_jack - 11/5/2002 3:28:00 PM]

RichiW

How much do you guys think house`s are going to rise in the next year and half??

I have a fantastic car ... http://www.lancermods.co.uk ... BUT i cannot afford to buy a house until it is paid off in 1 1/2yrs time!

What i am afraid of, is that if house prices rise much more, then i`ll not be able to afford to buy one, i love my car, its the best car i`ll ever own for sure, and if i do sell it then i`ll not be able to afford another because of the mortgage repayments! Ideally i`d like to wait until the car is payed for, then buy a house, but can i afford to wait any longer??


Rich.



[Edited by RichiW - 10/31/2002 10:09:14 PM]

father_jack

Get your priorities sorted young man
Get a feckin flat asap. The run up to Christmas is a good angle price wise, it goes mental again in the New Year.

Buy a flat - remortgage in 2 years time and buy an Evo with cash and still have some left over.

pslewis

Prices are about to 'Correct' so take your time

Anyway, you can get a 5-Bed house with 200 Acres in Leeds for £5:99 cant you??

Pete

dsmith

I cant see a large "correction" happening.

I can see the rises slowing for a period of stability but whilst money is cheap the market will still move and there wont be a drop.

Prices are being maintened at the momenet by a relative lack of movement of first time buyers due to the ever increasing difficulty in funding the first purchase - This has been exacerbated by the hordes at the top of the market who've bought up the lower end for buy-to-let. Once they get bored that should release a more houses and keep the market going.

Unless there was a significant rise in interest rates I honestly cant see a "correction" anywhere near the propotions of the late 80s when the interest rates were very very different.

All IMHO of course

Deano

fatherpierre

Mr Lewis, if you live in the same place as the team you support that would mean you'd get the same for 20p with £200 cash back

marty_t3

IMO

The demand for houses will slowly drop when the interest rates start to go back up. Fewer people will be able to afford to buy so sellers will have a harder time trying to get rid of thier house... the property market will return to a buyers market rather than the present sellers market

as a result you'll be able to buy a house at nearer valuation price rather than having to paying 20% over the survey price just to get your offer accepted.

At least that's what i'm hoping will happen cuz i don't fancy renting for too much longer

Trout...

Mr Lewis,

£5.99, nah, you've been ripped off, only paid £4.80 for mine - quite a neat back garden tho' North Yorkshire!

Trout

AnDy_PaNdY

Get into property as fast as you can, can't see prices coming down in the near future.

MarkO

What makes you think rates are going to increase in the short (or even long) term? The most likely move in rates in the next 4-6 months is a 25-50 basis point cut, and there's no reason to expect rates will balloon in the long term. If we join the Euro, you can expect rates to fall too.

I think it's just about evens on whether it's a buyers' or sellers' market at the moment anyway, and it depends a lot on geographical location. But there are no reasons to expect a collapse in house prices in the next 6-12 months, perhaps even longer.

I see that the growth rate for last month was 1.4%, and this is being counted as a 'slow down' because last month's growth was 2.5% or so.

If a 1.4% rise in a month can be counted as a slowdown, then I'm a Dutchman!

TopBanana

The problem is that the longer we wait for a correction, the larger it will be - screwing over everyone who's borrowing near the limit

The top end of the housing market has already come down 5% or 6% IIRC

MarkO

Not necessarily. The economy's current state does not imply a large correction. Prices do need to stop rising, but they don't need to drop, necessarily.
Not read anything about this. I know that the ludicrous rises in the top-priced areas of London have stopped, mainly 'cos the prices have gone up by so much so soon that they just can't feasibly rise any more, but I've not seen anything about price drops anywhere! Got any articles?

davyboy

House price thread trend.................

You own a house - House prices will not drop.

You don't own a house - House prices will drop.

MarkO

Exactly. I hate all this BS - particularly prevelant in the SE - where people say "I've made 50 grand on my house in the last 3 weeks" or whatever. It's just cobblers - unless they sell up and either move somewhere cheaper or miraculously predict a crash in prices, the chances are they'll usually be buying a larger property (with an even more over-inflated price), meaning they've not made a penny (and, in fact, by the time you factor in the average £10k cost of moving house, they may have actually lost money. [img]images/smilies/mad.gif[/img]

The only way to make money in the housing market is with a 2nd home which you can sell and take the profit from. Either that or by selling your ludicrously over-valued house in the South East and moving somewhere cheaper like, erm, Scotland.

Tiggs

if you run a car that stops you buying a house then you are right......"it is the best car you'll ever own"

get your act together..sell the car NOW. buy a house.

T

MarkO

Judging by your costs page , you'll easily be able to afford a nice house if you ditch the car.

marty_t3

MarkO

I don't think the rates have to balloon to put people off buying. Just enough to put people off trying to overstretch themselves with thier borrowing. It isn't likely to happen overnight but they will start to go back up to a more sustainable level.

IF ... That isn't likely to happen overnight either.

MarkO

True. The way some people have got themselves into potential negative equity, though, 'balloon' could mean a rise of 2-3% (not much, but still pretty painful if you've overstretched by a large enough amount).
Bloody hope not - overnight or at any other time.

marty_t3

lol.... agreed. Last thing i want right now is interest rates dropping any further.

I lucked out on my last house purchase.. bought when the interest rate was reasonable... then sold when it dropped. I hope to do the same this time round. Just hope i dont have to wait too long, cuz this renting caper is just throwing money away.

Still, i'd rather throw it away now than find out that a can't afford to pay my morgage in 5 years because interest rates jumped up.

RichiW

Thx for the replies guys, its really doing my head in a.t.m. thinking about the consequences of any actions i take.

Most painfull is that if i sell the car now then i`ve just skinted myself for 2 yrs for no reason at all, yet if i wait 1.5yrs then the cars all mine!! .. yet house prices *could* mean no place to put her on a night other than the road in a crap area.

aaagggghhhhhhh!


Rich.

Barnaby

Another way to look at it is are you buying for an investment or do you expect to own the house long-term?

If you are buying long-term then house price movements shouldn't really impact on you (except as an opportunity cost!).

But if you are buying as an investment then you take on quite a bit of risk. Anything that promises 10-20% growth per year must have some risk

SlowBoy

iTrader: (1)

You're weighing up the pros and cons of where to stick your hard earned. You can pour it into the motor which will be worth LESS than the sum of all your payments at any moment in time, or you can pour your cash into a property which has a (very) good chance of being worth MORE than the cash you put into it. It's a no-brainer. You obviously love your motor, but with a little luck you could end up owning something even nicer. Worth waiting for? I'd say so.

Mark Jackson

Still havent got the Scoob but the house is now wort between 350k and 400k, and its all bought an paid for (no mortgage), cant afford a mental car cos just got a people carrier and loads of bills, my time will come, oh yes it will and when it does, be afraid, very afradi, in the meant time watch out for an aged GTI mithering the **** off you !

mook

Definately go for the house buy. You've not skinted yourself for nothing - you've had two years of some top notch motoring and a bit of cash to put into a house/flat. You really should buy a place yesterday

To add to the BS MarkO hates ( ) my place has gone up by over £70k. It's a nice big three bed detatched, garage, garden etc. which I bought when I was with my girlfriend and kiddie, but we split up, so I'm in the lucky position of being able to downsize when I next move . That was three years ago and wasn't at the very limit of my cash, and with a recent payrise I could relatively easily remove £20 equity and get a top motor - so it's definately worth your while getting the house/flat!!!!

ADP

Prices ARE dropping in some parts of the country already, esp those that are mega high already. Im in Reading and a mate of mine is looking for a house and went to look at one in Pangbourne(nice part of town) - he got there looked at it and said to the estate agent "that aint worth 250K" and the estate agent asked him how much he would give, he said 220K and the estate agent said "is that an offer" - it turned out that the house in question had seen lots of interest but no offers and the owners were now going to drop the asking price.

I personally believe that in some parts of the country prices are just so high that they really cant go up any more, however I cant see a big bombshell drop, just a progressive leveling out/slight dip.

AP

MarkO

ADP, just 'cos a house is on the market but sells for less than the asking price doesn't mean that the prices are dropping. It simply means that the house was ludicrously over-valued by those chancers that call 'emselves estate agents.

For example. Our house cost us £225k 3 years ago. The most recent house sale in our road was about 6-8 months ago, and the house went for £330k - similar sized house, but they had an astounding conservatory and a garden around twice the size of ours.

When ours went on the market in July/Aug, we reckoned it was worth about £300k, but we had valuations from four estate agents. One valued the property at £265k - clearly a ridiculous price in the current market. Another agent thought it was worth about £310k, the third valued it at £340k, and another put the value at a mind-stonkingly idiotic £375k!!! Clearly the latter was just trying to persuade us to go with them by 'flattering' us with a high value. I've no doubt that such a price would have been completely unsaleable.

In the end we put it on for £340k (we thought that was high, but since we weren't in a rush we thought we'd have a punt), and had a bit of interest but not loads. 6 weeks later we decided it was time to get things going, so dropped the price to £330k, and accepted an offer a few days later at that price. We will (cross-fingers) be exchanging contracts today).

So does it mean prices are dropping 'cos we dropped our price? Not at all. It simply means the house was over-valued in the first place.

davyboy

An I believe interest rates are due to drop again this week, whoo hoo!

You should by now!!!

MarkO

Yeah, looks like there's going to be another 25pt drop this week, prompted by the likely cut by the Fed Reserve. Ah well.

davyboy

Just as I am about to get a nice 5 year fixed rate!

ah.........loverly!