House prices -good time to buy?
Discussion
Will soon be in a position to make my first potential house purchase. Being a complete novice at the game, was wondering what your thoughts were about the current situation i.e. are prices set to rise and rise and interest rates stay stagnant? or is there a major crash on the horizon? 
General concensus is that now is the time to fix your interest rates if you are getting a new mortgage as the chances are that BOE base rate could rise towards the end of 2003.
Unlikely to be a major crash in prices, especially while everyone is shy of investing in the markets.
Winter is the time to strike a deal on a property
Unlikely to be a major crash in prices, especially while everyone is shy of investing in the markets.
Winter is the time to strike a deal on a property
A tricky one, and I am in exactly the same boat as you.
I am currently living in London, though have no intention of purchasing here, looking for something in the Windsor area.
I think we will probably rent for another 12 months just to see what happens. I am anticipating a crash as growth like this just cannot continue and I really dont trust 'no boom or bust economy' promises because the money has to come from somewhere to maintain our curious economic state.
That said though, if the right place comes up at the right price we will probably go for it.
Matt.
I am currently living in London, though have no intention of purchasing here, looking for something in the Windsor area.
I think we will probably rent for another 12 months just to see what happens. I am anticipating a crash as growth like this just cannot continue and I really dont trust 'no boom or bust economy' promises because the money has to come from somewhere to maintain our curious economic state.
That said though, if the right place comes up at the right price we will probably go for it.
Matt.
In todays FT fears of a possible housing bubble have prompted Standard & Poors (one of major credit rating agencies) to list the UK for the first time as a country facing potential stress on it's banking system.
Bof E does not want to cut rates for fear of fuelling the housing market,but may well need the option of lower rates in the event of a "correction" in the value of property.
Possibly not the best time to buy,but then again I look at it that property is a % game..if your house goes down in value the next bigger house will loose more,so is a little cheaper on a relative value basis.
Bof E does not want to cut rates for fear of fuelling the housing market,but may well need the option of lower rates in the event of a "correction" in the value of property.
Possibly not the best time to buy,but then again I look at it that property is a % game..if your house goes down in value the next bigger house will loose more,so is a little cheaper on a relative value basis.
I am currently living in London, though have no intention of purchasing here, looking for something in the Windsor area.
Living out this way I'd suggest buying in london mate, it'll be cheaper! Seems that a garage in Windsor these days is worth more than the bleeding ferrari to put in it!! All IMHO of course...
speaking as someone who is definitely not an expert in the property market, i've heard a lot of rumours from experts, some saying prices will still rise, some saying there'll be a crash, some saying prices will only creep up from now on...
thing is, if you buy a house now, and it goes up at whatever level, then great, you've saved yourself some money or saved yourself a lot of money. now if it goes down, as long as you don't have to sell it, while you could have saved a bit of money, at least you still have a house. whereas if you don't buy a house and prices go down you can save some money, while if it goes up, you're going to have to spend even more money. So if we take a 4 sided dice (well it does sound like its that random to me!) you're better off buying than waiting as if the worst comes to the worst then you'll just say "ah well!" rather than end up spending even more money to get the same property!
(mind you if your job is at risk then i'd think doubly hard about it as you dont want to take on a mortgage on a house thats just dropped in value and end up having to sell it cos you cant pay it back!)
good luck!
-darren who should use more capitals
thing is, if you buy a house now, and it goes up at whatever level, then great, you've saved yourself some money or saved yourself a lot of money. now if it goes down, as long as you don't have to sell it, while you could have saved a bit of money, at least you still have a house. whereas if you don't buy a house and prices go down you can save some money, while if it goes up, you're going to have to spend even more money. So if we take a 4 sided dice (well it does sound like its that random to me!) you're better off buying than waiting as if the worst comes to the worst then you'll just say "ah well!" rather than end up spending even more money to get the same property!
(mind you if your job is at risk then i'd think doubly hard about it as you dont want to take on a mortgage on a house thats just dropped in value and end up having to sell it cos you cant pay it back!)
good luck!
-darren who should use more capitals
mr_tony said:
I am currently living in London, though have no intention of purchasing here, looking for something in the Windsor area.
Seems that a garage in Windsor these days is worth more than the bleeding ferrari to put in it!! All IMHO of course...
Yeah, if you can find a garage in Windsor. My Tiv is parked on the street along with a cerbie, and any number of other reasonable cars. And Windsor is still going up significantly... see www.hardings.co.uk
If buying to make money - then don't - wait until the New Year.
Been to that Hardings site ... ha ha £200k for a flat which was just that, the downstairs of a normal looking house!
You could buy my 18th century cottage, detached, three beds, garage, opposite a church in a village etc - and have loads of change, for that.
Don't envy you Berkshire lot at all. Monopoly money it is.
Been to that Hardings site ... ha ha £200k for a flat which was just that, the downstairs of a normal looking house!
You could buy my 18th century cottage, detached, three beds, garage, opposite a church in a village etc - and have loads of change, for that.
Don't envy you Berkshire lot at all. Monopoly money it is.
I'd buy, in fact just have myself. As mentioned below as long as you see it as somewhere to live and not a cash cow you should be okay. If the market crashes just hang onto the place, it'll recover again.
A mate of mine tried to sell a property in London just after the last crash as he wanted out (negative equity). He couldn't sell it so he decided to keep it and rent the place out. So, he's had his mortgage paid for for the last x amount of years and it's now worth about 5 times what he paid for it.
If possible IMHO think long term and you will be okay.
Graham
A mate of mine tried to sell a property in London just after the last crash as he wanted out (negative equity). He couldn't sell it so he decided to keep it and rent the place out. So, he's had his mortgage paid for for the last x amount of years and it's now worth about 5 times what he paid for it.
If possible IMHO think long term and you will be okay.
Graham
apeebles said: I am taking the gamble by selling my house and having a years break. I am hoping for the crash as prices in Berkshire have been silly..... BTW my agent has suggested that we were lucky to sell as the market is getting very soft....
Took me 3 months and a drop in price to sell my flat in Reading, Berks. Estate agents at first said it would go within two weeks.
I am at the moment, taking time off to look at property in the Windsor area. 180 gets you a one bed place maybe ith a Garage. Or on the outskirts of Windsor you may get a 2 bed place, just as a guide.
Not fun, think about the car you could buy with the money.
As someone said to me "You can sleep in a car, but you cannot race a house"
Webby
Not fun, think about the car you could buy with the money.
As someone said to me "You can sleep in a car, but you cannot race a house"
Webby
My old firm I worked for did market research into home mover data and therefore dealt with a lot of estate agents. The general consensus was that house prices will continue to rise by about 5% a month over the next year. Even if there is a crash soon it is worth remembering that historically the general trend of house prices is upwards and this has outweighed the short term drops.
Therefore, if I were in your position I would try to get yourself onto the housing ladder asap. Just make sure that you are in a position to afford the house so that even if there is a short term fall in the market you can ride it out until it picks up again. I wouldn't advise getting a stupid mortgage where you borrow vast sums above your earnings and then you should be ok.
Hope that helps, Nigel.
Therefore, if I were in your position I would try to get yourself onto the housing ladder asap. Just make sure that you are in a position to afford the house so that even if there is a short term fall in the market you can ride it out until it picks up again. I wouldn't advise getting a stupid mortgage where you borrow vast sums above your earnings and then you should be ok.
Hope that helps, Nigel.
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