homepage Welcome to WebmasterWorld Guest from 54.242.200.172
register, free tools, login, search, subscribe, help, library, announcements, recent posts, open posts,
Accredited PayPal World Seller

Home / Forums Index / Local / Foo
Forum Library, Charter, Moderators: incrediBILL & lawman

Foo Forum

This 36 message thread spans 2 pages: < < 36 ( 1 [2]     
Will UK HousePrices Decrease?
Just wondering about houses/flats
rj87uk




msg:3515752
 12:17 am on Nov 29, 2007 (gmt 0)

Hey All,

I live in a big city in the UK, Glasgow. I am looking at buying a small flat within 8 months - a year. Does anyone think house prices will go down any or just keep going up? I remember Brown saying he would tackle the house problem - is he?

Also wondering what people think about holding off and saving up a deposit of for example 15k or 20k?

RJ

 

ronin




msg:3528904
 1:44 pm on Dec 16, 2007 (gmt 0)

House prices were lower but salaries were also very low.

I'll wager that house prices were not 8.6 times average earnings and that banks were not offering trans-generational mortgages.

Houses are a most unusual commodity in that they are the one thing that, even when bought second or third hand, pretty much everyone has to buy on credit.

Thus when demand starts to fall, because people can't borrow as much as they need, and this threatens to bring property prices back to an affordable level, all mortgage lenders have to do is find ways to extend more credit than they have to date and thousands of prospective buyers are once again in a position to generate demand.

This is what we've been seeing over the last couple of years: the explosion of interest-only mortgages, mortgages shared between friends, favourable rates for buy-to-letters etc.

Some people fell for the trap - they thought that if they didn't buy (even when they were asked to pay a princely sum for a wretched dwelling) then prices would keep going up and things would reach a stage where they would never be able to afford their own home.

Sadly, if they had been less dazzled by what the mortgage lenders were saying, they would have realised that if they didn't buy and lots of other people in a similar position didn't either, prices would not keep going up. In fact they would come down.

There aren't too many first-time-buyers left who think that they will have to buy quickly or else they will be priced out of the market.

In fact, it's going to be something of a waiting game from now on.

Who can wait the longest?

The seller who has to move because they are emigrating or being transferred to a new work location or who needs a bigger house because they are starting a family or because they are retiring and want to downsize?

Or the renter, who has been renting for the last couple of years because house prices have been too high to buy and is now completely accustomed to renting?

HelenDev




msg:3529430
 12:40 pm on Dec 17, 2007 (gmt 0)

my first "hovel" (we didn't have unrealistically high expectations in those days)

Please describe what your first hovel was like? Was it a single room (bedsit, studio flat) with not even enough room for normal furniture? That is what I mean by hovel. I'm guessing you think I mean an old house or flat which needs a bit of TLC. I do not expect a mansion, but I do expect somewhere I can have a decent life.

If your first house is not as nice as you would like it to be, regard it as a step on the way to your dream home.

How can it be that if I'm stretching myself to the limit, with a prospect of falling prices in the future?

aspdaddy




msg:3529470
 2:13 pm on Dec 17, 2007 (gmt 0)

I do also feel that young people in the UK have unrealistically high expectations about owning properties.

If you cant afford to buy a decent property why not rent one or share one? Why must everyone own thier own property?

btw - many areas in the midlands have decent properties available at 3-4 x salary, and very nice ones for around 200K.

HelenDev




msg:3529485
 2:34 pm on Dec 17, 2007 (gmt 0)

I do also feel that young people in the UK have unrealistically high expectations about owning properties.

Why so? Are you a homeowner? If so, what did you buy first?

If you cant afford to buy a decent property why not rent one or share one?

I do. Both.

Why must everyone own thier own property?

Do you own your own property? If you rent you will know that renters do not have many rights at all. The private rental stock in this country is often substandard, with damp and other problems commonplace. If you are asked to leave you have no real rights to stay in the property and could be homeless within weeks. If you rent you generally cannot have pets or make improvements to your home, or in some places you can't even have your own furniture. You are a second class citizen.

The culture in the UK is for owner occupation with 70% of properties being this way. Perhaps this will change but the rights of renters will need to be improved.

many areas in the midlands have decent properties available at 3-4 x salary

Examples?

very nice ones for around 200K

That is more than twice my budget.

ronin




msg:3529534
 3:55 pm on Dec 17, 2007 (gmt 0)

If you cant afford to buy a decent property why not rent one or share one?

Almost all the people I know under 40 are all renting and sharing. (I can think of only two couples who are exceptions to this).

That's everyone I know up to the age of 40 except for four people who are renting and sharing. Everyone.

It's not because we can't afford to buy decent properties. It's because we can't afford to buy rubbish properties either. We can't afford to buy anything. (And I would suggest that, on average, university-educated professionals - as most of my friends are - see a higher annual income than most of the rest of the working population - so if we can't, most other workers definitely can't, whatever lies the mortgage lenders have fed them).

The only option for the last few years to anyone on an annual income resembling anything normal has been to club together with at least one other person and to mortgage themselves up to the hilt so they will have monthly repayments bordering on constant pain for the first 5-10 years of their mortgage. (And significant problems if either one ever gets made redundant).

Lots of us have chosen not to go for that option. Because we don't consider it much of an option.

Ant_C




msg:3533566
 10:39 pm on Dec 22, 2007 (gmt 0)

You need to research the area in which you are buying.

In some cities too many flats have been built, while in more rural areas there are none. Don't rush into buying anything at the moment if you are unsure.

This 36 message thread spans 2 pages: < < 36 ( 1 [2]
Global Options:
 top home search open messages active posts  
 

Home / Forums Index / Local / Foo
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About
© Webmaster World 1996-2014 all rights reserved