Yer but no but, its all supply and demand innit?

Couple of points:

Forced sellers IE those having to move due to work, divorce (that one is popular once money gets tight) death, emmigration and of course, reposession, account for approx 1/3 of all sales. So its not an inconsiderable number.

HC, read your last post and have to agree

Its funny, because mine and your outlooks on how to live life are very similar, no holidays apart from those in the UK (or camping in France) why do people always seem to need the next big thing, need designer clothes etc?

As for why I ever posted on here, I said it back in 2005. I was sick of the repeated tosh spouted by such programmes as Location X 3 in promoting the view that Property is always a safe bet and that its ok to extend yourself to the max, which is certainly what I observed on that programme most of the time. That was financial armageddon in my view. Now, I know very few will have bothered to read what I wrote back then, but if even one person researched what they were getting themselves in to, the risks, that property is not a one-way bet than it was worth it.

If we end in a world where wide screen tvs, mobile phones and cheap consumer goods are once again out of financial grasp of the masses, yet housing (IE a home for most of us out there) once again becomes affordable, then I would say we are in a better place. Perhaps we could all start to enjoy what is important in life, Ie giving people something to work hard towards, instead of just slapping it on the plastic for instant consumer gratification.

I've just heard on the news that in America a restaurant is selling half portions, obviously cheaper, of food so

"working couples can still feel they can go and eat out a couple of times a week"

make some bleeding super-noodles at home and stop affecting my country's economy with your American needless splurging!!

What is wrong with people when faced with a credit crunch? Stop eating out at all!

Aaah! but don't forget an American half portion is equal to a Belly Bustin' British portion HC
Mel.

Thank you Spampman for the economics reminder.


I agree HC - if someone can afford to eat out twice a week then they are not strapped for cash. During the first five years of our mortgage we couldn't even afford a bottle of wine at home in the evening, never mind eating out, and the annual holiday was a cheapo week in the UK (before coming home to lick the road clean ) There was an irritating article in one of the Sundays about an allegedly impoverished couple whose mortgage payments had increased so that "they had to reorganise their holiday plans, UK instead of Italy". My heart bleeds - not!

quote:

Property is always a safe bet and that its ok to extend yourself to the max

I think the first point is true, property IS a safe bet if you are buying a long term home, but if you are extending yourself to the max and/or speculating on property for the short term cash, then you take a risk.

quote:

Originally posted by velvet:
I think the first point is true, property IS a safe bet if you are buying a long term home, but if you are extending yourself to the max and/or speculating on property for the short term cash, then you take a risk.

I kinda agree (unless personal circumstances change). But what do you consider "extending yourself to the max" ?

I am risk-averse, personally I would only buy a property as a home, and I would not take out a 100% mortgage, I found it hard enough with a 30% deposit.

Thats about a 57K deposite required.

Would take a bit of saving up.

quote:

impoverished couple whose mortgage payments had increased so that "they had to reorganise their holiday plans, UK instead of Italy".

this makes me want to chain people to their houses all summer and throw dry bread and water at them. It's just the most pathetic issue. I've been on 2 holidays. I have to have the money for it there in front of me to even consider it. But I'm too busy using it for boring luxuries like gas and food

If I heard of someone paying their mortgage with a credit card then going on holiday I would make them live in a tent or a caravan if I ran the country. There'd be fields of them learning a lesson.

Seriously though, I'm so worried about my mum's situation. I've tried talking to her about it but she keeps fobbing me off. She's 61, and is taking out a 100% mortgage over 10 years. She hadn't even factored stamp duty in till I asked her about it. I won't go into it, but she's been very silly with money these last few years so how she's going to be able to keep this mortgage up is worrying. She said we have to buy or have nowhere to live as she has loads of cats and "can't" rent, but she dismissed all the cheaper properties that were more feasible. Parents get more trouble as they get older! Talk about extending yourself to the max, I think she's going beyond that. But will she listen?

quote:

Originally posted by SplendiferousII:
Thats about a 57K deposite required.

Would take a bit of saving up.

For my house in 1994 it was £40K (actually I think that made it about 28%) so not a walk in the park then either.

I agree HC, I will join you in the bread-throwing.


Taking out a mortgage at the age of 61 - bl&&dy hell that is a big ask

a 100% one at that! But she's managed it. Probably ranted at them like she does until they gave in.

HC - maybe I'm off the mark here, but is there any decent social / council property in your area? I ask because she might qualify, and if she remains in the property for a certain number of years she'll be entitled to buy the property at a significant reduced rate. The end point is the same (property ownership), but the risks are greatly reduced.

You could potentially talk her into this, selling it to her as the same end result without the worry.

you all thought I was a snob. Mother nearly didn't buy this bungalow as it was with other bungalows and therefore a "retirement area". Being 61 doesn't come into it apparently. It's just a road with bungalows. She even had a panic attack at living at this house with a number instead of a name. Shameful isn't it, even when she's desperate she's still being picky and snooty!!

Unfortunately I wouldn't even bother suggesting it. Obviously it's a very good, sensible idea but that would completely escape her. She would only hear the words "council" and "house" and any pros would be completely ignored.

They are not council houses any more, HC. Have you never heard of housing association properties?

Would this be any easier for Mother HC to accept. Very posh, you know!

Hmmmm

"Hey Ma, I've found such a good alternative to buying your bungalow. There is a company out there that, look at this brochure, provides desirable, bijou living spaces..."

"what are they called?"

"err, Kow'n'Sill Associates... but as the accomodation they provide is to a high standard, for select candidates that meet stringent class criteria..."

"like what?"

"errr, they love er, people who fill their lives with the joy and laughter of children from multi-faceted gene pools, free spirits who prefer to shun convention and lead employment less lives - anyway for those few chosen ones, they will actually subsidise the chance to live in one of these, they even have a special name Japanese for them, erm where is it, here! Po Kee Shu Boks. And they're all very modern, no old-fashioned grass just quaint patio, and ooh designated waste removal container space! Seriously Ma I think you should go for it!"

I'm still thinking it's a no. Unless they have house names and not numbers....

I dont think that properties are necessarily dropping in price that much. They just arent rising in price at stupid amounts any more.

However, a lot of sellers are still being unrealistic about asking prices and they are then having to drop them when they cant get viewings.

In a way the credit crunch is a good thing as it stops people borrowing more than they can afford to pay back and it is forcing sellers to stop being so greedy and expectign tp push prices up and up.

We bought our first 2 bed flat in East Devon for 130K last year and knocked 10K off the asking price to get it. I think 130K is very high for a flat, but it was the best value property that we could find. We are quite stretched to pay back to mortgage (just over four times our joint salaries), but it is not impossible and we are able to save a very small amount each month to fall back on. we are not particularly concerned about the credit cruch cos we signed up for a 3 year fixed rate.

Two more flats went up for sale in our block this month. They are virtually identical in terms of space. One is up for sale for 140K the other up for sale for 170K. Guess which one is has already changed estate agents and reduced the price to 160K. I wonder which will sell first.... hmmmmm!

Its great to hear that you & your partner bought in the end, Sal.

Best wishes.

quote:

Originally posted by Baldricksbrother:
I’m really enjoying reading Malkie posts

What I would like to know about the ‘Property Prices and credit crunch’ is at what point will people like Pflusk, Splendiferous, pgui, reverand, Gimmemoney decide its time to buy a property? I am interested, please tell us what percentage fall you would buy in at?

My own personal view is that house prices may fall around 10% this year, but its impossible to know what will happen after that. It would be sad if you missed the boat (again) and spent the next five years looking back, if it turns out to be a house price 'blib' as opposed to House Price Crash.

Regards

Actually,I already own a house thankyou.I'm looking at it from the view of maybe selling to rent then buy when prices are lower.Like most people I assumed high interest rates and high unemployment were the only things that could cause a price crash or correction.However,no-one could forsee what was going to happen in the states and the impact here.Thousands of mortgages taken away,many first time buyers out of the picture.Surely this will cause a huge slowdown in property sales causing sellers to reduce their prices.
It can go down the way it went up so the 25% drop this year that some predict is a possibility.I wouldn't now be surprised.
Any know-it-all out there who thinks they know what will happen for sure should keep thier opinions to themselves.

Also,does anyone know what is the percentage drop in house prices overall this year?
Plus,doesn't it differ alot depending on the region?

My crystal ball tells me an overal rise of around a few percent - many regions staying flat, but the big money areas (south east etc) will rise by around 5%.

Meanwhile the capital continues to reduce on my property as it continues to rise in value.

quote:

Also,does anyone know what is the percentage drop in house prices overall this year?
Plus,doesn't it differ alot depending on the region?

there's a site, this is money blog, that makes interesting reading. What Halifax didn't mention when releasing their figures, was that some places, the Midlands possibly, actually rose about 2% and in the North West where I am, fell 0.1% I think.

Swings and roundabouts, some dropped, some didn't. Releasing vague gloomy figures without the FULL story doesn't exactly help much, just spreads panic.

Just put our place on the market and had an asking price offer in 24hrs, no chain. Strange times we live in.

congrats !