House prices. Up/Down/Sideways
Discussion
I have been looking at renting a place just outside bath with a girl I met at uni, but shes evolved the idea into thinking we should buy a house together. No worries with that.
Trying to stay on to one aspect of this, and thats are there likely to be any major shifts in house prices over the next 12 months?
Trying to stay on to one aspect of this, and thats are there likely to be any major shifts in house prices over the next 12 months?
smartTanks for the advice. She earns a fair bit less than me so I daresay an agreement made before buying would have me taking it over. The only problem is if one or the other of us gets married / wants to shack up with someone.
Obviously the ideal solution would be for me + the girl to get together, but well
thats for another thread.
Obviously the ideal solution would be for me + the girl to get together, but well
thats for another thread. So long as you can afford it and have the deal set up properly then buying will always be your best bet. Two years ago I was convinced that I shouldn't buy because the market was too high. My dad convinced me otherwise and i'm glad he did because had i waited I wouldn't be able to afford this house now - and it's only a two bed terrace. The house next door but one just sold for 40% more than I paid and mine is in much better condition.
The only time you are likely come unstuck buying property is if you have to sell it quickly.
The only time you are likely come unstuck buying property is if you have to sell it quickly.
lanciachris said:
Tanks for the advice. She earns a fair bit less than me so I daresay an agreement made before buying would have me taking it over. The only problem is if one or the other of us gets married / wants to shack up with someone.
Obviously the ideal solution would be for me + the girl to get together, but well
Does the title of this thread refer to the types of positions you would like to take her in.
err, crystal ball stuff I'm afraid. General consensus of opinion seems to be that we are heading for a pretty stagnant year in the housing market. There are a lot of people downsizing and releasing equity for fears of the market falling.
Interest rates remain low, and borrowing cheap. Some areas won't be affected as much by a stagnant market, where I work, near Canterbury for example, is in enough demand to stay in its own little bubble for a bit and will probably ride a small trough in the market.
Brighton, will be similar, as will places like the cotswolds.
I imagine Bath will be pretty similar.
Historically, the Housing market has only ever risen. Get on the ladder,but be careful with joint ownership, make sure your solicitor sorts out a plan of action if it all goes 'nipples north'
I wish I could justify it at the moment, but I'm being 'immature' and just bought a TVR
That and some pretty extreme business plans, put a pad at the back burner right now
Interest rates remain low, and borrowing cheap. Some areas won't be affected as much by a stagnant market, where I work, near Canterbury for example, is in enough demand to stay in its own little bubble for a bit and will probably ride a small trough in the market.
Brighton, will be similar, as will places like the cotswolds.
I imagine Bath will be pretty similar.
Historically, the Housing market has only ever risen. Get on the ladder,but be careful with joint ownership, make sure your solicitor sorts out a plan of action if it all goes 'nipples north'
I wish I could justify it at the moment, but I'm being 'immature' and just bought a TVR That and some pretty extreme business plans, put a pad at the back burner right now
Jaglover said:
Historically, the Housing market has only ever risen.
Have you heard of the early 90s or the mid 70s?
Seems to me that there are 2 contradictory and conflicting tensions in play regarding house prices..
On one hand, we are told that there is a shortage of housing to support demand and therefore prices will remain firm.
On the other hand, prices are so high that the limits of affordability for first time buyers have been broken.
I can't reconcile these conflicting positions. And neither can most people I suspect, which is why no-one seems to have a clue if prices are going up or down....
Jaglover said:Yep.
Historically, the Housing market has only ever risen.
Have you heard of the early 90s or the mid 70s?
I was stung by the latter collapse, but only because I had to sell.
If I had been able to weather the storm, then I would eventually have seen the property appreciate well beyond what was paid.
Fortunately it was only a one bedroomed flat in Preston that was bought for £28,000, which I was forced to sell for £24,500.
Mind you, I still ended up living in a static caravan for a few months, complete with wife and 12 month old baby....
The housing market can be very cruel.
Cheers
Pat
toppstuff said:
Seems to me that there are 2 contradictory and conflicting tensions in play regarding house prices..
On one hand, we are told that there is a shortage of housing to support demand and therefore prices will remain firm.
On the other hand, prices are so high that the limits of affordability for first time buyers have been broken.
I can't reconcile these conflicting positions. And neither can most people I suspect, which is why no-one seems to have a clue if prices are going up or down....
The people saying the 1st above are not looking at things globally-Houses prices are rocketing virtually throughout the developed world-Some of the other EU nations have seen even larger rises than here-places with plenty of land and no shortage of housing stock.
It is a boom driven by cheap money as simply as that-whether it is a bubble is another matter.
It might simply be a process of adjustment to a low inflation/interest rate environment a shift to a new equilibrium-in which cases prices may stay at the current levels.
lanciachris said:
I have been looking at renting a place just outside bath with a girl I met at uni, but shes evolved the idea into thinking we should buy a house together. No worries with that.
Trying to stay on to one aspect of this, and thats are there likely to be any major shifts in house prices over the next 12 months?
I would rent for two reasons.
Firstly, you can have a dummy run at seeing if it all works out, if it does, great, if it doesn't, very easy to change direction.
Secondly, if I had to put my money where my mouth is(and I have) I would not see property as a good investment for the next one/two years.
>> Edited by Ribol on Monday 28th March 22:38
In my area, a starter home (small new build, one bed flat ) is £130,000 while a decent sized family home is £400,000 plus, and a LOT more if you want a double garage and big garden.
These figures do not relate well to the incomes of people living in the area. There is a lot of unsold stuff lying around, and local new build developers are practically begging people to buy them with discounts, stamp duty, you name it all being thrown into the deal.
Personally, I'd be happy to see prices fall.....
These figures do not relate well to the incomes of people living in the area. There is a lot of unsold stuff lying around, and local new build developers are practically begging people to buy them with discounts, stamp duty, you name it all being thrown into the deal.
Personally, I'd be happy to see prices fall.....
toppstuff said:
Seems to me that there are 2 contradictory and conflicting tensions in play regarding house prices..
On one hand, we are told that there is a shortage of housing to support demand and therefore prices will remain firm.
On the other hand, prices are so high that the limits of affordability for first time buyers have been broken.
I can't reconcile these conflicting positions. And neither can most people I suspect, which is why no-one seems to have a clue if prices are going up or down....
This completely baffles me too - if first time buyers can't afford to buy, then who is buying the 'entry level' houses? It used to be Buy-to-Let landlords, but apparently houses are now too expensive to give decent (or even any) yield.
I was talking to some neighbours recently and we reckoned that none of us could now afford to buy the houses that we currently live in.
toppstuff said:
In my area, a starter home (small new build, one bed flat ) is £130,000 while a decent sized family home is £400,000 plus, and a LOT more if you want a double garage and big garden.
These figures do not relate well to the incomes of people living in the area. There is a lot of unsold stuff lying around, and local new build developers are practically begging people to buy them with discounts, stamp duty, you name it all being thrown into the deal.
Personally, I'd be happy to see prices fall.....
I bought mine in '95 for 59K, 2bed lounge diner, with small but workable garden. They're all identical around here, and one three doors down sold for 170K about a month back.
Prices have been higher in the last year, but I think they'll just keep going up, all the time the government keeps giving tax breaks.
Eventually, there'll be some kind of break in the economy, and the whole thing will fall down. If I remember from the early nineties, everyone said that the shame of it was that it was allowed to go on for so long.
The government can control it, but it means 15% interest rates. I can't see them doing it myself.
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