Well been renting for 5 years now but now a house at an attractive price has come up question is are house prices now on the rise or will they drop even more? 
House prices
- Thread starter captaincaveman1
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S
Sombrero
Who knows? but they can't go loewr shorely, and if they do, they hav to go back up!!
You hear about negative equity and all that though?
S
Sombrero
you need profesoinal advice, not forum opinoin! IMO!
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Check the sales history of your proposed purchase on zoopla.
Ive been on zoopla seems a good deal but this ar5e h0le goverment have yet to unleash the worst of the cuts so what willl happen then ?
C
Chunkydoc
If you're in a stable job then go for it.
Prices are static at the moment and will fluctaute slightly but not by much. Long term, they'll certainly go up again but beware of Int rates.
Whilst Base Rate is low at the moment, it's anticipated that in 5 years time it will invariably be higher. Can you afford the repayments if that happens?
Prices are static at the moment and will fluctaute slightly but not by much. Long term, they'll certainly go up again but beware of Int rates.
Whilst Base Rate is low at the moment, it's anticipated that in 5 years time it will invariably be higher. Can you afford the repayments if that happens?
too right, but there are other things to factor in as well, like parking costs (if you move to near where you work and don't have to pay for parking you'll save £x a day...)
stick it all down on a spreadsheet and you'll work it out
Well been renting for 5 years now but now a house at an attractive price has come up question is are house prices now on the rise or will they drop even more?
I dont think anybody knows for sure if they will move up/down but while you are renting it is dead money.....if it was me I would go for it
Decided to go for it and had my offer accepted . But what has surprised me was I got told I was pre-approved for a mortgage 5 times my salary . People who take that offer up must be asking for trouble surely.
. But what has surprised me was I got told I was pre-approved for a mortgage 5 times my salary . People who take that offer up must be asking for trouble surely.Well been renting for 5 years now but now a house at an attractive price has come up question is are house prices now on the rise or will they drop even more?
So many ways to look at this, do you want to buy a house or buy a home. If the latter then short term price fluctuations are not a concern.
Dose the housse tick the boxes in terms of what you currently perceive as where you want to be living in 5-10 years time.
Yes the year on year price massive rises have gone but buying your own home is still a good option.
Only you can decide what's right for you and since you've gone for it I'll wish you good luck.
I think it is wise though for anyone taking such a big decision to give some thought to the wider historical picture and question accepted norms such as 'houses always go up' and 'renting is dead money'.
Houses are a depreciating asset. They wear out and therefore require expensive ongoing maintenance, some on a short timeframe e.g. exterior painting, some on a medium timeframe e.g. replacement boiler and some on a long timeframe like pointing and re-roofing. If you rent, the landlord is covering these costs, along with the capital costs associated with owning a house. The only dead money you are handing over is the portion (if any) over and above the maintenance and capital costs. The landlord is also taking a capital risk (or reward) depending on what prices do.
On the question of whether prices will go up or down you need to understand what determines the price. The obvious answer that is touted about is supply and demand. That would be true if everyone paid cash but obviously most people don't. Thus what drives house prices is the price and availability of credit.
House prices basically tripled over a decade from 98-08 with most of the increase coming between 2001 and 2005. Most people's incomes did not triple, far from it but what happened is that we had a massive credit bubble. Rates got progressively lower and banks threw money at anyone with a pulse, safe in the knowledge that they were no longer taking the risk of default because they were packaging the mortgages up and selling them off to investors.
So for anyone buying a house they had easy access to lots of money at low monthly payments. This is the demand that drove up prices. There is now a huge difference between average earnings and average house prices because interest rates are at the lowest they can possibly be so affordability in terms of monthly payments are as low as they can possibly be.
The reason interest rates are this low is because rather than let things correct and the bubble deflate, the Bank of England is creating money via 'quantitative easing' which is flowing into Gilts to fund goverment deficit spending. Cut through all the BS in the media and you will find that this makes us all poorer because the money supply is expanding faster than the economy. A simple example to illustrate: If the economy is simplified down to 1000 loaves of bread and money supply is £1000, each loaf costs £1. If the BOE prints £100 to buy Gilts the money supply is now £1100 and each loaf will cost £1.10. Your wages haven't gone up. You have been robbed and are now poorer.
This cannot continue indefinitely, eventually you will go hungry and start rioting. It will have to stop before this point. The market knows this. The choice then will be for the goverment to cut £150,000,000000 from it's annual spend to match income received or interest rates go up very dramatically.
You can probably work out what this does to house prices.
I think it is wise though for anyone taking such a big decision to give some thought to the wider historical picture and question accepted norms such as 'houses always go up' and 'renting is dead money'.
Houses are a depreciating asset. They wear out and therefore require expensive ongoing maintenance, some on a short timeframe e.g. exterior painting, some on a medium timeframe e.g. replacement boiler and some on a long timeframe like pointing and re-roofing. If you rent, the landlord is covering these costs, along with the capital costs associated with owning a house. The only dead money you are handing over is the portion (if any) over and above the maintenance and capital costs. The landlord is also taking a capital risk (or reward) depending on what prices do.
On the question of whether prices will go up or down you need to understand what determines the price. The obvious answer that is touted about is supply and demand. That would be true if everyone paid cash but obviously most people don't. Thus what drives house prices is the price and availability of credit.
House prices basically tripled over a decade from 98-08 with most of the increase coming between 2001 and 2005. Most people's incomes did not triple, far from it but what happened is that we had a massive credit bubble. Rates got progressively lower and banks threw money at anyone with a pulse, safe in the knowledge that they were no longer taking the risk of default because they were packaging the mortgages up and selling them off to investors.
So for anyone buying a house they had easy access to lots of money at low monthly payments. This is the demand that drove up prices. There is now a huge difference between average earnings and average house prices because interest rates are at the lowest they can possibly be so affordability in terms of monthly payments are as low as they can possibly be.
The reason interest rates are this low is because rather than let things correct and the bubble deflate, the Bank of England is creating money via 'quantitative easing' which is flowing into Gilts to fund goverment deficit spending. Cut through all the BS in the media and you will find that this makes us all poorer because the money supply is expanding faster than the economy. A simple example to illustrate: If the economy is simplified down to 1000 loaves of bread and money supply is £1000, each loaf costs £1. If the BOE prints £100 to buy Gilts the money supply is now £1100 and each loaf will cost £1.10. Your wages haven't gone up. You have been robbed and are now poorer.
This cannot continue indefinitely, eventually you will go hungry and start rioting. It will have to stop before this point. The market knows this. The choice then will be for the goverment to cut £150,000,000000 from it's annual spend to match income received or interest rates go up very dramatically.
You can probably work out what this does to house prices.
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Apparently :-
"The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The Rothschild brothers of London writing to associates in New York, 1863.
-----------------------------
"I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people." Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.
Buy the house then rest easier in retirement.
-0-
"The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." The Rothschild brothers of London writing to associates in New York, 1863.
-----------------------------
"I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people." Reginald McKenna, as Chairman of the Midland Bank, addressing stockholders in 1924.
Buy the house then rest easier in retirement.
-0-
Good thinking Batman .
I think that way too.
As a matter of thank you to a friend across the ocean-- we have today sent you a present .
Abdul Hamburger- or whatever his name is.
We here in Uk hope you treat him as he wished to treat others in the Western World.
God Bless America .
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