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House prices seem to be crashing
Former Member
Posts: 1,876,323 The Mix Honorary Guru
http://news.bbc.co.uk/1/hi/business/7336010.stm
BBC wrote:House prices fell by 2.5% in March, the biggest monthly decline since September 1992, the Halifax has said.
As much as I don't want people to end up in debt (edit: mean negative equity), for someone who may be a first time buyer in a few years this can only be a good thing, surely? I was looking at homes and realistically I want to be spending £60k and I can get something in Wales or Scotland (Ireland is too expensive) - but then I looked at jobs and they're so ridiculously low paid - it might be worth working for McDonalds in either of these areas as the minimum wage affords you so much more 'real' money than it does in central England. (And no doubt the south)
Will we see house prices fall dramatically to allow new buyers onto the market? If they do fall a lot I may ask my brother to see if we can sort out a mortgage arrangement so I can jump on the ladder, as leaving it 4 years may be too late. I don't want to end up like they are in Japan, with 100 year mortgages.
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ETA: mortgage lending at 16 year low as well, hmm wonder what that means...
http://news.bbc.co.uk/1/hi/business/7336066.stm
Thats if anyone will give me a mortgage, me and my boyfriend don't have amazing credit rating
Yeah :yes: I meant them paying £15-20k more than if they'd waited 6 months more than when they sell on though
:no: house prices definitely won't be higher in 3-4 years, look at uk property and land value cycles they are 16-18 years norm, and this one is coming on the back of a global recession.
Will the price drop affect renting aswell?
Not immediately no, landlords normally have mortages to pay, and those arent going down.
But if there is a glut of properties on the market then yes, rents will come down.
In principal it's something that could at least increase the number of houses being rented out - as is a chance that as house prices decline less landlords being prepared to hold out for higher rents on vacant flats and rooms.
Fingers fucking crossed anyway.
The sad thing is the that thousands are about to loose their homes ...Thtachers britain all over again.
So if there is an increase in rentable property it will go some way in easing the pain.
you have to look at the bigger picture - if there is something like a recession looming were all gonna be fucked! if you lose your job you wont be getting that nice semi with the pretty garden youve got your eye on
I watched that today as I like looking at the houses - but it made me furious some professionals from bradford bought a lovely house in Leicestershire for £200k that would make a perfect family home 'cos it was close to the pub' and then another one in birmingham, so they only spend 2 days a week in their Leicestershire house.
I can't get my head round it really. Other than a crash, which might not be massive because there are so many FTBers waiting to jump on, the people who are buying lots of houses are making money on them (except for now), so we were heading towards a kind of feudal age landowner / worker situation, where you would be held to ransom by your landlord for all your hard earned cash whilst they relaxed on holidays living off your hard work.
We'll have to see what happens in the next month. I have a suspicion this article from the BBC could spark a panic, and once that happens people will flood the market with their investment properties and prices will drop dramatically, especially when it appears they might not go up again for a good few years and 'investors' are desperate to get rid.
More than that, house prices rise and fall, the minute they start going up you can guarantee that they will come down again.
Can I therefore be the first to predict a future rise in house prices. Just so that I can come back on here and say "I told you so"...
If you have any cash ...get rid of dollars and pounds like yesterday and grab Euros. But no ...some will sleep walk into poverty.
Some people will make money, other "experts" will lose money. That's how it works. Always been the same.
It's easy to predict a crash because sooner or later you will be right. It's been predicted ever since the last one
If the crash is a wide as you have predicted then the bext thing would be to sell up and go native
Prices havnt actually massively dropped.
Personally i might be able to afford a house some day if they do!
I know here in Iceland the house prices are going down a little because the banks have put much stricter restrictions on who they give mortages. There's not many that can actually buy the properties at this time as there's no money to finance it.
The prices are unlikely to drop too much because if they do I imagine that most normal house owners will just not sell.
It also shows a strong trend though, which is what I was hinting at when I say - investors see this downward trend and panic sell, further pushing the rate of change down.
It's a good thing anyway, for any market to stay healthy it needs new money and at the minute nobody can afford to put more money into it. If things continue the only way people would be able to get a house would be inheritance, and then we're exactly where japan are.
Not for those of us that are already struggling to meet remortgage payments because we've had to pay over the odds for a house it isn't.
I wouldn't be so sure - falling house prices would make that a more realisitic option for me - afterall my salary has still stayed the same and my spending power has now increased - my dream of a flat in chelsea and a house in sussex is now even further within my reach - excellent.
On a more realistic note i'm actually quite excited that it means that i will be able to afford a house in the area i live in now which has a garden for my as yet unconcieved children to play in. Yes the price of my house will come down proportionaly but the hit i will have to take will be less than the hit that the house i plan on buying will take.