house prices 'tumble'

three percent a year. i wish. 12 months since we had 2%, nad another doesnt look like its looming. thats why i,m looking for another job.
i do have sympathy for the peeps that are buying now, if house prices do fall. but life sadly, isnt fair.ok, my house has trebled its value, but thats no use to me if i wanted to buy something bigger/posher/whatever, cos theyve gone up too.
 
0.8% in one month is hardly a tumble. Even if that continued for a year it wouldn't be anything more than a 'minor correction'.

Besides which, this is a Nationwide figure and they're usually way off the mark. I'm sure someone there uses a dartboard to determine figures.
 
badgerbaiter said:
yeah, because we own all the houses in europe and force them all to rent :)
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you sure about that?

I work in countries like Denmark, Swenden, Switzerland and germany, and last I knew its not full of english owned properties. Places like spain, france, and eastern europe have alot of foreign investors, but I knwo places like austria and switzerland discourange foreign investors
 
DiddyDave said:
Estate Agents are not generally interested in getting you top price as it's in their interests to sell rather than sell high; it would actually be in their interests for prices to fall to ensure a higher turnover

...you appear to not own property at this time, perhaps its just jealousy
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:LOL::LOL: I couldnt actually agree more!! As an estate agent, it furiates me when people ask for there property to be put on the market at a non realistic price because they are being greedy...then they moan when it doesnt sell, then they reduce the price to what we originally told them their house was worth! So it definatley isnt about us putting the highest value on a property :razz::razz:

As for your last comment, well...:clap:

Its hard for people to buy a property nowadays then it used to be unless your selling and buying on...for the sellers its obvoiusly beneficial and should hopefully see some more properties coming on the market! Theres demand but no one seems to be wanting to sell in the area I work!! :bang::bang:
We'll see what the new year brings :woot::woot:
 
2nd, 3rd or 4th time buyers are equally scuppered by the cost of property.

If I was to sell my house now, sure I'd make about 100K on top of what I paid for it, but any house I wanted to move up to would suck that up and then some. Then when your so eagerly awaited crash comes, people like myself would be in a serious negative equity situation.

Re. the dislike of owners of multiple properties who rent them out, how are they different to anyone else who offers a service ?
You could blame the banks for lending them the money, it's just commercialism.

I know several companies who don't recognise annual pay awards for their staff, so the comments on the widening gulf is only too familiar.
 
rwotton said:
you sure about that?

I work in countries like Denmark, Swenden, Switzerland and germany, and last I knew its not full of english owned properties. Places like spain, france, and eastern europe have alot of foreign investors, but I knwo places like austria and switzerland discourange foreign investors
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note the smiley.
it was a joke.

although surely Swendon has a lot of UK owners, its just down the M4 from me :)
 
For me it make no difference if they go up or down as I have no intention of moving. If my house is worth 20K or 200K my mortgage will stay the same.

The good thing if the house price crash, there will be less new ones built just on speculation. In my area there are brand new houses they just can not sell, and new city centre flats/apartments will be given away in cereal boxes soon, there are thousand empty that are either too expensive or nobody wants.
 
badgerbaiter said:
i dont know why you think its sad??
narrow minded, it is absolutely.
As for the people who will lose money if the prices go down, i couldnt give a monkeys. I bet they dont give a monkeys about me whilst I've been throwing my money away and getting in debt over my head.
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And I'm sure those like me who did take a plunge they could only just afford a few years ago to get a foot on the ladder will be just those who you will hope to see unable to pay their mortgages and getting repossessed just so you can get your grasping selfish hands on a property. Nice thinking. If it were only those with multiple properties who are the losers then your thinking would be understandable, but the approach of not giving a damn about others who've worked hard to get themselves into their own homes does you no credit whatsoever. If the situation perpetuates itself in a few years time once you have - perhaps - bought a home yourself, please remember that you found the idea of people losing their homes funny now, just as others will find the idea of YOU losing YOUR home funny then.

I suspect the person earlier in the thread who suspected that this attack was borne of jealousy was fairly close to the mark.
 
As with all things, there is a balance. The cheap credit available tipped the balance and caused the boom over the past few years. There was a slowdown in 2005, but interest rates were low and there was a sudden surge in buy-to-let because suddenly everyone thought it was a good idea to invest in properties. That pushed prices up even more.

Suddenly, the cheap credit is gone. The BTL people are becoming aware of reality (that rents aren't covering mortgage repayments, and there is no capital gains to be had left) and first time buyers just can't afford the inflated price, so no one is coming in at the bottom end.

If you have bought your home a year or two ago, you should have worked out that you are able to afford the repayments. Hopefully, your income would have grown a bit since you bought a property so you can take the rise in interest. If you overstretched yourself to get on the property ladder, then it might get a bit difficult for you now.

Personally, I thought of buying a place in 2005, but I compared the mortgage repayment with rental, and it was much cheaper to continue renting. I have no idea how people are able to afford to buy a place on their own. Either they're a couple buying together, or their parents are helping them out.

The housing market is mainly controlled by people's sentiment. Unfortunately, the sentiment now is the market is going down. So it's turning into a vicious cycle. This is the mirror of the other view point when prices can only go up during the boom years. :)

Gordon Brown's promise of 18% capital gains from April 2008 might be holding off the BTL lot from selling up en-masse right now. He's already started hinting that they might not bring that in at all now.

HIPS also come into play at a great time because it makes it more hassle to put properties on the market. There is a drop in demand now, so a drop in supply only serves to prop up the market a bit longer.

These are the two conspiracy theories about the Labour government trying to prop up the property market as long as they can.

0.8% in a month is the turning point. It will only accelerate from here on.
 
Witch said:
And I'm sure those like me who did take a plunge they could only just afford a few years ago to get a foot on the ladder will be just those who you will hope to see unable to pay their mortgages and getting repossessed just so you can get your grasping selfish hands on a property. Nice thinking. If it were only those with multiple properties who are the losers then your thinking would be understandable, but the approach of not giving a damn about others who've worked hard to get themselves into their own homes does you no credit whatsoever. If the situation perpetuates itself in a few years time once you have - perhaps - bought a home yourself, please remember that you found the idea of people losing their homes funny now, just as others will find the idea of YOU losing YOUR home funny then.

I suspect the person earlier in the thread who suspected that this attack was borne of jealousy was fairly close to the mark.
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ahh i see why rwotton and yourself are annoyed with what i said now. I was missunderstood slightly.

What i meant was a really dont care if people lose money in their buy to let houses. In fact i will laugh my arse right off.
I didnt realise we were talking about people who have recently bought their own house. I didnt realise it because if you have just one house then a house price crash surely doesnt make a difference (correct me if i'm wrong).
If you bought a mortgage you can afford then youre not going to lose your house. If you bought a mortgage you cant afford then you are going to lose your house if the prices crash or not. If you ever need to buy a house you wont be able to sell yours for as much, but then your new house will be cheaper.
 
badgerbaiter said:
ahh i see why rwotton and yourself are annoyed with what i said now. I was missunderstood slightly.

What i meant was a really dont care if people lose money in their buy to let houses. In fact i will laugh my arse right off.
I didnt realise we were talking about people who have recently bought their own house. I didnt realise it because if you have just one house then a house price crash surely doesnt make a difference (correct me if i'm wrong).
If you bought a mortgage you can afford then youre not going to lose your house. If you bought a mortgage you cant afford then you are going to lose your house if the prices crash or not. If you ever need to buy a house you wont be able to sell yours for as much, but then your new house will be cheaper.
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I think I understand what you mean, however if prices crash people just won't move. Therefore demand outways supply and the prices creap up again.

I know people who buy to let, and most of those won't be affected as the mortgage repayments are out weighing the monthly rental. Therefore they still get a monthly income, and most are in it for the long term as a replacement for pensions.

I know people don;t all agree with buy to lets, but how else would you live? not everyone can afford to buy properties, therefore if you didn;t have rental properties you would all end up living at home.
 
rwotton said:
I think I understand what you mean, however if prices crash people just won't move. Therefore demand outways supply and the prices creap up again.

I know people who buy to let, and most of those won't be affected as the mortgage repayments are out weighing the monthly rental. Therefore they still get a monthly income, and most are in it for the long term as a replacement for pensions.
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Most reports are showing that demand is falling faster than supply in the past month or two. :rules:

Also, unless the BTL people bought in 2004, rental income is not going to cover mortgage repayments unless they've put down a big deposit.
 
We have just had our house reposessed as we can no longer afford to pay the mortgage which is now £2,000 per month (interest only) not actually buying the house.

The house has hopefully sold as quick as poss and we will be renting for half that cost.

No choice. My husband works over 80 hrs of physical work a week and he is 70.

I have nothing to say to all your above comments other than........I hope it never happens to you.
 
Sorry to hear that Janice, but would it have helped you if house prices have continued going up?

Renting is not dead money. Paying £2000 interest is dead money.
 
Dont think it wouldve made much difference to be honest. But one upside..the second person to look offered the full asking price! (y)
 
Really sorry to hear that Janice :(

Edit: the first bit, not that you got full price :)
 
:agree: :coat:
 
Really sorry to hear that news Janice. :shake:

Hope that your buyer comes through for you.
 
DiddyDave said:
There's a whole load of Estate Agents are not generally interested in getting you top price as it's in their interests to sell rather than sell high
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While what you're saying isn't entirely incorrect (they want high turnover) these estate agents need to get people on their books and they do that by giving good prices to sellers. So in actual fact, the opposite is true.

When I sell my house I'll go to the agents who offer the highest value. They'll then simply say to buyers that such and such a house down the road sold for x amount so therefore this house is worth a bit more...

Estate agent certainly do push prices up, but then it's also the fault of buyers who don't try and keep prices down.

I know the estate agents hated the way I haggled with everyone but screw 'em. Next time I buy I will try to avoid using estate agents all together as they did very little but get in my way - I actually managed to seal the deal without them but they still got their commision.

That's my experiences in greater london anyway.
 
Sorry to hear that too Janice. Its just indicative of the whole crazy situation.

How can something like a home (not a house, but a home) be allowed to be affected in such a way that some of us have to work our arses off just to pay rent or mortgage interest.
I realise there isnt really anything that can be done, i just mean that its just a messed up situation for everyone.

Last week i got totally abused on this forum for buying some nintendo wiis in order to make a profit. Seems like your the devil if you help increase the price of a video game console, but if you help blow the price of a home out of all proportion then thats OK.
Is it really only me that can see how messed up that is?

Just to underline something i said earlier - i dont want anyone to lose their homes (again i said home not house) i just want to finally be able to afford a home for myself! I'm getting old, I want to give my wife somewhere to live where we can afford to settle down and have a couple of kids.
 
badgerbaiter said:
Just to underline something i said earlier - i dont want anyone to lose their homes (again i said home not house) i just want to finally be able to afford a home for myself! I'm getting old, I want to give my wife somewhere to live where we can afford to settle down and have a couple of kids.
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A house is a home to those who live there, so just think about the poor sod who'd be evicted when the buy to let deal goes belly up.

On the face of things, I can't see much of a difference between buying up games consoles for profit, or houses.....both are product.

Janice, sorry to hear about your troubles :( especially coming up to the season of cheer and goodwill to all others.
 
Aye, sorry to hear that Janice, hope it all works out. If I win a few million on the lotto tomorrow, you'll be the first to know ;)
 
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