lozgti

https://www.scoobynet.com/archive/in...p/t-16707.html

Made me smile but we are soon going to be back there

3x1 salary or 2.5 times joint.

And what will that buy you exactly?

Henrik

iTrader: (5)

that's the thing... back in 2001 it did you buy a nice place, now it will get you a 1-bed ex council flat in a sink estate

stilover

But the more you pay for a house the better, yes?

Mr. Big Bollox brags to his mate that he's just paid £750k for a 5 bedroom house. Look at me, I'm brilliant me.

In 2001 the same house was £180k.

I know which I'd rather pay.

sti-04!!

Rubs hands with glee

Henrik

iTrader: (5)

That seems to be the mentality, unfortunately

MikeCardiff

iTrader: (2)

The people who annoy me are the ones who constantly go on about how much their 'property' ( none of them live in houses, only in properties ! ) is worth as if having a house that would cost £400K to buy - that they paid £60K for 10 years ago - is the same as having the money in cash.

Unless they are planning on selling the house and either renting or moving to a tiny bedsit on the local sink estate, then its meaningless. OK they can 'release their equity' but this is just borrowing more money over a long period of time and paying back twice what you borrowed by the time the interest is all added on.

As an example, my parents have just sold their house for £327K - they bought this 20 years ago for £70K - now that may sound like a great 'profit' - but to move to the area they want to live in now, is going to cost them £400K.

Had they moved to the same area 20 years ago, they would probably only have had to spend £5K or £10K more to get the same house, now they have to come up with £73K more to buy it.

The Rig

iTrader: (13)

i dont think thats the mentality as such, i think its the fact of, in 2001 some1 paid £180k, now,some1 is paying £750k, yes,the £180k house is the samebut what id be think if i owned the £180k house is **** me, what job do they have,they are minted.

whereas the £180k owner was lucky.

speedking

A house can only be sold for what a buyer is prepared, and able to pay. There will be a price readjustment so that those who have to move can sell.

gpssti4

iTrader: (6)

Does it really matter what the property is worth as long as you can afforrd it and are happy to live there.

I'm just about to move and the couple we're buying off paid a quarter of what I'm paying for it, although that was 20 years ago

My only concern is paying for mortgage, I'm not too bothered about negative equity as I've got to live somewhere and in 20 years time I'm sure that it'll be worth more than it is today!

MikeCardiff

iTrader: (2)

Exactly - as a long term investment, houses will always be worth a lot more than you paid in 10, 15 or 20 years ( unless you paid a really stupid price ! ). Also, while the mortgage payments may be a struggle in the beginning, most people earn more as they get older and progress in their jobs, so in real terms the house gets cheaper to pay for as a percentage of your income.

NotoriousREV

It depends on your strategy. We're a young family and have bought a decent sized family home in a nice area with good schools etc. In 25 years time when the kids have left home we'll downsize thus releasing some of the equity as cash.

davegtt

Pretty obvious which idiots sat here crying dont have a house and pissed up their youth up the wall

GC8WRX

Had fun though!!!

apples24

iTrader: (1)

i blame the greedy estate agents pushing up prices

GC8WRX

prices are starting to fall pretty sharpish round here, or the property remains on the market until its competitively priced!

Flats in the good part of town were 120k two years ago, now theyre 98k!

Same for small to medium houses, prices are just about becoming affordable again, thank ****

My mate who bought a one bed flat for 118k two years ago is just coming out of his 2 year fixed deal, if he keeps the place and remortgages it, the best offer he can get will see his flat cost him 180 quid a month extra. If he sells it, its worth 95-100k!

Bad news for him, but good news for me, as im gonna start looking soon!

Petem95

I think they might be even less affordable now though - when the prices were crazy it was down to mortgages being extremely easy to get, and banks lending huge amounts with ease, so you could buy.

Now it's gone the other way - it's become extremely hard to borrow, and you'll need a very big deposit. Even with the property costing significantly less, getting the mortgage will be very hard, and rates higher (despit what happens with 'official' interest rates.

The only winners are those with large amounts of cash.

GC8WRX

Exactly, instead of buying a house i couldnt really afford, i rented and put money away, so i have roughly a 15% deposit, and i could easily make that 20% by the end of the year, so on a 98k flat, i will have approx 75k mortgage, and a bit of money left for a nice telly and some reclining sofas and chairs, and a memory foam bed!

Better than over stretching yourself two years ago, then bragging to everyone you have a 120k property! (which you now owe more on that what its worth!)
And the chance to swap lenders to get a better deal is growing smaller by hte day!

About time house prices became normal again!

john banks

Today is an interesting day for me, end of another tax year, totting everything up etc. Also the weekend the GTR online pre-orders opened. I really, really want to. 3.8 litre twin turbo V6, amazing gearbox and AWD. It is every Scooby/Evo nutter's dream I reckon.

However, I'm not doing as I'm saving it all for a house. I intend to play this housing cycle for all it is worth, even though it means waiting longer for my dream car. Must have discipline LOL Meantime I stay a scabby tenant. The waiting for it all will be good for the soul

Petem95

The hard part will be when do you jump back in?... exactly how long do you think you'll wait before buying?...the rate of price falls will probably start to snowball as sellers start to realise they really will have to drop the price heavily, but I don't see prices falling much more than 15% each year (on average - suppose certain areas or properties may fall a lot more), so you could be looking at 3-4years until things start to bottom out - and even then prices may continue falling for some years to come, but only a very small amounts.

john banks

Might take longer/fall less in Scotland too, I guess it could be anywhere from 2009-2012? The next house I'm renting is £800 per month, 3 reception/4 bed stone built farmhouse with tree canopy over the drive and stunning coastal views. 1980s kitchen and bathroom, LPG heating, single glazing though. Available long term though, so we can rough it as long as we need to So far six years' net income saved and hopefully increasing if the LPG costs don't bankrupt us. I don't have a tin hat, a gun, or lots of tinned food, but otherwise feel reasonably prepared

apples24

iTrader: (1)

funny though attitudes are changing it was only six months ago there was the usual house prices threads and ppl were saying its gonna happen prices are gonna drop then there was the other 50 percent which were more than likely house owners saying no chance there gonna keep going up never gonna drop etc.

now all replys on here seem to be in agreement.

i only know two ppl who are trying to sell there propertys at the moment and both have had to reduce, the house from 175 to 155 and a flat from 135 to 125

if it does drop fantastic, atleast i will actually be able to buy a house for my wife and kids rather than renting

boxst

Doesn't it depend on why you bought a house? I don't really care how much my house is worth, I like living here, I am not that keen to sell and hopefully (touch wood) I will continue to work and pay the mortgage.

Steve

jjones

as soon as the prices reach a level when i can buy somewhere decent for 2.5 times joint salary i am planning on buying a second home as a long term investment.

BooSH

Renting is the way forward i'v given up on buying my own house and to be honest i don't care, there is no way i'm commiting to buying a house which i'm going to struggle to pay for most of my life, my circumstances may change and i might one day get a house but at the minute i'm happy with a long term rent, no hassle, no worries about the boiler/heating breaking down, roof getting blown off, flooding etc, if i get some loser move in next door or i get fed up of the area, i move, and it suits my job, just like a gipsy, lol.

Terminator X

iTrader: (7)

You're a fool if you think "property" will ever be a bargain again. Was it ever BTW ...

TX.

fatherpierre

Want some pegs orlucky heather?

I'm looking to move and soooooooooooooo please I bought where/when I did as it was on the start of the wave of silliness. Just had 4 est agents value at around 70% over what I paid for this one .

Yes, everywhere else has gone up too, but I'm cashing this one in. £130k in 8 years is more than many people earn before tax.

fast bloke

I asked you this a year ago and a month ago and you still haven't found the answer in the daily mail, but I'll ask you again..... we are entering a period of high inflation and low interest rates (I may be wrong, so if the BoE decide to increase rates on Thursday to curb the increasing CPI rate you can freely tell me that I know nothing,) so how do the cash rich manage to win over the next two years? How do they manage to beat those who have a massive but affordable debt? Inflation will eat up the debt and the savings equally quickly. Joe Average is probably paying near 6% on his mortgage. So Joe Savings would need to get 8.4% gross on his cash to stay in the frame with Joe Debt. Where do you get 8.4% gross on an unlimited amount of cash?

MikeCardiff

iTrader: (2)

I honestly think you should buy a home ( not a 'property' a HOME ) when you can afford to and find somewhere you want to live. Dont worry about if it is going to go up or down, or how much equity you will have - its all BS as while you are living in the house, the value is completely irrelevant.

As long as you can afford to pay the mortgage without struggling, and dont borrow too much ( which is going to be harder now anyway as the banks wont be handing out 5x salary and self certified mortgages anymore ) then who cares what it is worth ?

Renting is fine, and there is nothing wrong with it if it suits your financial situation or lifestyle ( but FFS dont stay at home with your parents until you are 25+ like some people do now - stop poncing off them and get your own place ! ), but owning your own home is much better - even with the added costs and liabilities, having somewhere you can do what you want, have any pets you want, change, redecorate, extend etc... is well worth it.

Even though mortgage payments are high at the moment, the way to look at it is that you are paying for something that will be worth slightly more than the sum of all the mortgage payments by the time it is all paid off. Even with the inflated prices of houses now, I'll bet in 25 years they will still be worth more than the 25 years of mortgage payments has cost you - probably not by a huge amount, but overall you still come out on top.

lozgti

Why is everyone missing the obvious points?

1.House prices increased ridiculously in a very short period of time

2.People were able to help fuel it because lenders all followed suit and lent on silly multiples of income

3.Peoples incomes have in no way shot up in line with house price increases


4.There has been a complete U Turn by virtually every lender.They now want big deposits and will restrict severely the amount people can borrow based on income

5.House Prices are still high.No one can borrow the money to buy them

Now what?

Luminous

iTrader: (3)

Now what?

Either the cash flow frees up between banks to get more credit into the market, or there is a big crash. An election is not far away, big crash equals the end of labour. Expect to see (even more) emergency government funding to try and help banks lend.