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What does the future hold for first time buyers?

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  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    house price inflation has already peaked so don't worry about it too much, mortgage approvals have dropped off a cliff because lenders are going broke or tightening up, when you see crazy schemes like shared ownership and guaranteed income on empty 2-bed BTL estates you know you are at the top, just look at the share price of the top homebuilders like barratts, wolseley, persimmons etc....the only thing holding house prices up is london and the layoffs in the financial sector after Q4 earnings will sort that, the only problem is that credit won't be available for much longer so forget about 90-100% mortgages, you will need a serious deposit to get a mortgage from the banks in a few years and interest rates will be a lot higher.....

    it's just not worth taking on so much debt when you're so young, especially when there are much nicer places to live and raise a family. i'm on 37k which is ok for london but i'm not even tempted to get an ex-LA highrise 2-bed rundown flat in a lovely "up-and-coming" area like Brixton or Plumstead, which is about all i could reasonably afford.....i'm just gonna travel and save then disappear to SE Asia or NZ and live it up.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    That's reassuring, Senor Miguel :yes:
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    That's reassuring, Senor Miguel :yes:

    yeah it is, unless you bought a house in the last 3-4 years :p
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Yep but I didn't, so that's ok! :D
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    http://www.ft.com/cms/s/0/20d093be-915c-11dc-9590-0000779fd2ac.html?nclick_check=1
    The property market is set for a more severe slowdown than in 2005, according to the most authoritative survey of estate agents, which shows they believe house prices are already falling in almost all areas of the UK and even the rampant London market has recently hit the buffers.

    New buyer enquiries have been withering for almost a year, the Royal Institution of Chartered Surveyors reported on Tuesday, and now the first signs are emerging that home owners are rushing to try to sell before the market tumbles. New stock on estate agents books leapt 8.8 per cent in October at the same time as newly agreed sales were lower that at any time since April 1999 when Rics members were first asked how their businesses were faring.

    Mind you, this is just part of the business cycle. Long term outlook looks grim. I mean, I think the reality will be that, people will accept a 3 bed in out of their means and will settle for rented flats, like in many other countries of the world. I've looked at it more than once and we're experiencing a population boom in the UK. More mobile labour is coming to the UK and making us a world leader in productivity, however the less able labour *cough*dolites*cough* don't seem to want to move out, for some reason. With an increasing demand for housing that is sustainable, but without a good supply of homes to meet this demand, price is only going one way over the long term 25 - 30 years you may have your mortgage for. So if you've got one, don't panic (unless you intend to sell up soon and buy a canalboat), over the long term it should be a very healthy investment, especially in the south east.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    ShyBoy wrote: »
    I've looked at it more than once and we're experiencing a population boom in the UK. More mobile labour is coming to the UK and making us a world leader in productivity, however the less able labour *cough*dolites*cough* don't seem to want to move out, for some reason. With an increasing demand for housing that is sustainable (what does this mean exactly??) , but without a good supply of homes to meet this demand, price is only going one way over the long term 25 - 30 years you may have your mortgage for. So if you've got one, don't panic (unless you intend to sell up soon and buy a canalboat), over the long term it should be a very healthy investment, especially in the south east.

    you're trotting out all the cliches mate what have you been watching, that's like telling someone to hold onto their stocks at the top of the dot com bubble, sure the markets have recovered a bit since but how much time have you lost?....if you bought your house pre-2002 you'll be okay i reckon, you'll be surprised how quickly the population boom reverses when all the immigrants realise there's no jobs for them and they don't get as many zlotys for their pound as they used to, the supply and demand argument is too simplistic with the housing market (hell who doesn't want a house?) because very few people can afford to buy outright, and when house prices start falling the banks aren't so eager to lend you the cash anymore, at the end of the day it comes down to affordability.....

    oh and world leader in producing what exactly? care to explain the huge trade deficit and debt-GDP ratio, even america is more productive per capita and that hasn't stopped them slipping into a recession......oh wait, we've got NS oil exports to keep the economy strong right? hmm maybe not...no surprise Brown has been kissing America's arse, they're all we've got left lol.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Reading all of this, I'm only able to come to one conclusion. Money matters. Money arguably matters more than it ever has done.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    It's very hard to buy. I didn't read the thread but Ricardos figures were way out to survive and save.

    £250 a month or something for rent and bills?? lol

    For me, the missus and my nipper just go break even every month costs me about 1500

    That covers rent, food, petrol, childcare, council tax, electric, gas, tv license etc, phone, broadband, mobiles

    it all adds up!

    Clothes! etc

    you could go on forever.

    IMO even if prices drop they will rise again at some point, and either way, what we are seeing now is probably one of the most defining moments in modern history in the rich/poor divide become massive again in certain terms.

    We are almost back to wealthy people renting to poor and no one else being able to buy.. crazy times, go labour. :rolleyes:
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