How far will house prices fall [volume 4]
Discussion
Amateurish said:
I'm honestly wondering what I should do about my current house purchase. I'm quite far down the line, exchange soon. Big mortgage, expensive property. Incurred survey fees and legal fees. How worried should I be?
If you like the place and have a secure job that's more important than two years of volatility, IMHO.I guess you could try for a cheeky gazunder!
But above all remember that if you change your mind survey fees and legal fees are complete peanuts vs. the house price, and need to be amortised over the time you expect to be in the house before moving again.
Candellara said:
Amateurish said:
I'm honestly wondering what I should do about my current house purchase. I'm quite far down the line, exchange soon. Big mortgage, expensive property. Incurred survey fees and legal fees. How worried should I be?
Proceed as per normal. The dust will settleWhen the housing market fluctuates, people win and people lose. I am determined to not be one of the losers but to do that it seems I need to carry on with my purchase so that I am one of the people demonstrating that everything is still OK meanwhile the FTSE and pound are in the toilet. All the LEAVE camp are saying it will pick back up etc. but no one knows for sure!
Treat the bloody thing as a HOME, not an investment. You only realise the equity from your HOME if you sell it, and then go live in a field in a tent. When I bought my houes, it value dropped to 75% within a year. But it's now worth 5x's what I paid. You never loose on property in the end. Don't care anyway. Not interested in moving.
robinessex said:
Treat the bloody thing as a HOME, not an investment. You only realise the equity from your HOME if you sell it, and then go live in a field in a tent. When I bought my houes, it value dropped to 75% within a year. But it's now worth 5x's what I paid. You never loose on property in the end. Don't care anyway. Not interested in moving.
With all due respect, the younger generation are having to put down huge amounts of money to only achieve 10% deposit on properties that are in areas that they may not particularly want to live in but that's what they can afford so to get on the "ladder" they do so.Those of us that are now in a position to purchase and about to are rightly considering our options. Why am I going to buy a property for £350k now that may be £300k in the next 6 months if the market crashes?
robinessex said:
Treat the bloody thing as a HOME, not an investment. You only realise the equity from your HOME if you sell it, and then go live in a field in a tent. When I bought my houes, it value dropped to 75% within a year. But it's now worth 5x's what I paid. You never loose on property in the end. Don't care anyway. Not interested in moving.
Easy to say. But our business could be severely affected by an economic downturn.robinessex said:
Treat the bloody thing as a HOME, not an investment. You only realise the equity from your HOME if you sell it, and then go live in a field in a tent. When I bought my houes, it value dropped to 75% within a year. But it's now worth 5x's what I paid. You never loose on property in the end. Don't care anyway. Not interested in moving.
Easy to say when you're not looking at getting stuck on a 5.8% mortgage 
Amateurish said:
loafer123 said:
It depends where you are. What is the price per square foot?
Rural location, Warks, £280. What difference does that make?At £280psf, well over half the price is the physical bricks, mortar and wood, which is a good thing in my eyes.
If you were paying £1,500 psf for a central London flat I would say run for your life!
Al U said:
With all due respect, the younger generation are having to put down huge amounts of money to only achieve 10% deposit on properties that are in areas that they may not particularly want to live in but that's what they can afford so to get on the "ladder" they do so.
Those of us that are now in a position to purchase and about to are rightly considering our options. Why am I going to buy a property for £350k now that may be £300k in the next 6 months if the market crashes?
Indeed, the last fews years have been completely against trend in terms of the rate of increases i.e crazy.Those of us that are now in a position to purchase and about to are rightly considering our options. Why am I going to buy a property for £350k now that may be £300k in the next 6 months if the market crashes?
Many were forecasting drops regardless of Brexit, saying 'go on, give it a chance' to FTB'ers who are pulling out £50-100k and then endebting themselves with £3-400k worth of debt in a likely declining market.
It could be many years before any drops are recouped and you are then stuck in a 1 bed box in the east of London for the next 10-15 years.
Who knows what will happen, but certainly not clear cut.
I am still waiting on the final price of a new build house in zone 3, it will need to be astonishing value to make many people continue IMO.
BRISTOL86 said:
robinessex said:
Treat the bloody thing as a HOME, not an investment. You only realise the equity from your HOME if you sell it, and then go live in a field in a tent. When I bought my houes, it value dropped to 75% within a year. But it's now worth 5x's what I paid. You never loose on property in the end. Don't care anyway. Not interested in moving.
Easy to say when you're not looking at getting stuck on a 5.8% mortgage anonymous said:
[redacted]
Apart from there already has been? Or so I understood.Chinese and Russian money was pulling out before Brexit
BTL demand has waned – which made up a stonking amount of demand for property
Then you have the Brexit effect:
Unknown reaction of Europeans working and living in the country
Uncertainty in how and who will govern the country, already talk of potentially huge amounts of money leaving the country for the reason of ‘uncertainty’
Although you could argue that the weaker pound will result in property looking cheaper, but then it’s still set against the backdrop of massive market uncertainty.
jonah35 said:
thelittleegg said:
Barclays down 35%
Some house builders down 40%
House builders are worst affected. Read of that what you will....Some house builders down 40%
cashmax said:
jonah35 said:
thelittleegg said:
Barclays down 35%
Some house builders down 40%
House builders are worst affected. Read of that what you will....Some house builders down 40%
Me mum sent me a link yesterday; the first property I bought (about 17 years back) is on the market for £250k. I bought it for £60k. Sold it a few years later for £100k. That sort of price (for a 2 bedroom end terrace) is utter insanity.
I think prices are going to go up over the next few years now, its almost certain we will see a rush of people from the EU coming in to establish themselves before any legislation comes in. I think that will put serious demand on the rental market which generally always pushes prices up.
clonmult said:
That sort of price (for a 2 bedroom end terrace) is utter insanity.
Has there ever been a point at which people have not looked back 10-20 years and said house prices are insanity though? It seems to be a constant generational feature. The variance between house prices and wages is pretty big but people in employment still s33m to have a lot of disposable income because other major spend areas such as food, cars, petrol and even newer spend areas such as technology are relatively low cost.cashmax said:
To me this points to an increase in house prices. The big builders are down so much because the costs to build a new home are likely to increase significantly as a result of Brexit. They are unlikely to absorb all this extra cost.
I would interpret that as the market saying their land banks are over-valued and they will struggle to sell what they have.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff