Hi , after a short break (if you could call it that) filled with sleepless nights spent looking after our new daughter, I remembered that I actually enjoy reading this forum. So now I am back, but frustrated with the lack of topics. So I have decided to start another more general discussion leaving behind the Pflusk - Malkie style arguements. This based on my new found enthusiasm for the future, I hope, will have a positive view going forward. My thoughts are that generally it is now perceived by most that houses in most areas have lost some of their value from last year. I personally believe that they will fall further. However I would like to look at this as a good thing for my families future, and I am going to work as hard as I can, hoping that I can keep my job in any economic downturn, and save tons of cash. Then hopefully in three or four years I can move up to a bigger place with less of a gap between the prices. I would like to know how others are looking forwards and what are their plans for the future, property slump or no slump. Yes I know I am very nosey. Cheers Druzil
Congratulations on the birth of your daughter, Druzil!
Yes, it does seem to be doom and gloom at the moment, doesn't it?
I agree that prices will fall further because, at the moment, the credit crunch shows no signs of slowing.
Until lenders start to lend again, no-one (except cash buyers) will be able to buy. So no-one will be able to sell. Those who do sell right now are the 'distressed' sellers - those folks who are forced to sell due to a change in circumstances - job losses and divorce to name but two.
Enter the cash buyer after a bargain. Desperate for a quick sale, some distressed sellers will accept low offers from these people (or the "we'll-buy-your-house-no-questions-asked" companies).
Result? To cut a long story short, the whole street is de-valued. Why? The reduced-price data goes to the Land Registry. The next surveyor coming along will see that next door only sold for X, therefore that's the price for the street. And that's the maximum the lender will lend on. And so it goes...
Falling house prices mean negative equity for some, especially for the highly-geared (FTB?) who have done their utmost to 'get on the ladder'. And what happens if they have to move, or can't afford their mortgage?
Unless someone has a particularly unique property which has bucked the trend, anyone selling now will have to take a lower, more 'realistic' price to get a sale. Of course that means their deposit will be reduced on their next property - but that one may just be a little cheaper anyway... and so it goes...
Less of peoples future earnings go to the banks - brilliant! Perhaps the 1.4Trillion personal debt will stop and maybe even decline! That is a good thing.
Me? I'm renting for peanuts, and will continue to save > £1000 per month. I'll buy when it is sensible for me to buy, which is not now.
Congratulations from me to Druzil, let the fun begin!
I'm slightly further on than you, my kids are now teenagers and we've hopefully done a final move with a family - very happy where we are, and after all the grief of moving don't think i'll ever move again!
At the moment, we have got a mortgage with a LTV 75% deal, we currently owe about 70% on our mortgage, if when our deal runs out in 4 years time, the market has completely crashed and we struggle to get a deal, what we've decided to do, is to try and get the best 2 year fixed deal we can or stay on variable rate for 2 years, whatever the better option will be then - then we have an endowement due to pay out, admittedly its not going to pay out what it original was planned to, but we changed our mortgage to repayment when we moved anyway, so whatever it pays off (still will be a good chunk), we'll hopefully then be in a better position to get a better LTV mortgage on our house!
Luckily where we bought, its quite a sought after area (well it was until we moved in ) - and at the moment prices are not dropping as dramatically as they are in other local areas! Who knows whats round the corner - but please dont let this thread get into a debate of what is or is not going to happen!
Congratulations on the birth of your daughter, Druzil!
Yes, it does seem to be doom and gloom at the moment, doesn't it?
Yeah, but they start to sleep through after a bit.
Congratulations. Have no idea what my house/mortgage situation will turn out like. We were going to sell but I think we should hang on, seems a lot of bother/cost when I can move without selling.
Plus with the Midland hotel up and running, and all the planned changes to Morecambe, it's probably wiser to hang on. In fact, I'd like to hang onto our present house as a holiday home!! Mr. can just live in it for a bit for me!
I'd just like to say that I know this thread could descend into the crash versus boom arguements, but I'd prefer it if it was looked at in a moving forwards kind of way. Holy Cheeses is a good example, we know she is going through one of those tough times in life, yet she seems so happy go lucky (liberated?). We all have our views on what may or may not happen, but that it is good to set goals and look to the future. Having kids brings this home even more.
Originally posted by reverand: Less of peoples future earnings go to the banks - brilliant! Perhaps the 1.4Trillion personal debt will stop and maybe even decline! That is a good thing.
Me? I'm renting for peanuts, and will continue to save > £1000 per month. I'll buy when it is sensible for me to buy, which is not now.
Rev, will you look to any particular events before you make the move? Family? or maybe mortgage approvals going up above average?
Originally posted by Druzil: I would like to look at this as a good thing for my families future, and I am going to work as hard as I can, hoping that I can keep my job in any economic downturn, and save tons of cash. Then hopefully in three or four years I can move up to a bigger place with less of a gap between the prices. I would like to know how others are looking forwards and what are their plans for the future, property slump or no slump.
Sounds like a good plan.
Yup it can be no bad thing not having to saddle oneself with a huge amount of debt to buy somewhere to live.
It's all very well saying "interest rates are low" but what's the point if you have to take on double the volume of debt?
Falling prices will benefit those looking to buy, those looking to upgrade or those with offspring looking to do so.
My plan's are a bit up in the air at the moment as I am currently jobless. Providing I find work soon, I'll carry on in my place and save up what I can. My fixed rate mortgage deal ends next October so I might sell it anyway.
May either buy or even rent a house after that, depending on my finances and the housing market.
But of course the best bit about it all, one of the most positive things to look forward to is that we might see an end to those twittering buffoons realing out series after series of that inane programme Location Location Location.
Originally posted by Druzil: Rev, will you look to any particular events before you make the move? Family? or maybe mortgage approvals going up above average?
Not really, I'll make my move when I find a house I love, and that I could live in for the rest of my life happily, and somewhere that will be affordable should I have to take a 25% pay cut.
Originally posted by MattW: My plan's are a bit up in the air at the moment as I am currently jobless.
Ah, sorry to hear that, MattW. You are one of the good guys and so I hope and expect that something new will come your way soon .
To the OP, the idea of "saving as much as you can" is always good. However - not meaning you specifically - it strikes me that adopting this approach *after* the slow down (even recession arrives) this is rather "stable door after horse has bolted".
It seems to me that the time to "save as much as we can" is actually when the economic going is good - by which I mean there are more jobs on offer and "easier" money to be made, asset prices are rising and so on.
Unfortunately, a lot of people do the opposite in such times. They assume that the good times will last forever, spend everything, borrow against unearned / unrealised "paper" capital gains and so on.
That's not knocking anyone btw, just my view of things.
Originally posted by vbland: Ah, sorry to hear that, MattW. You are one of the good guys and so I hope and expect that something new will come your way soon .
Thanks, VB. There is one I should get shortly but they have to wait for the reference.
To the OP, the idea of "saving as much as you can" is always good. However - not meaning you specifically - it strikes me that adopting this approach *after* the slow down (even recession arrives) this is rather "stable door after horse has bolted".
It seems to me that the time to "save as much as we can" is actually when the economic going is good - by which I mean there are more jobs on offer and "easier" money to be made, asset prices are rising and so on.
Unfortunately, a lot of people do the opposite in such times. They assume that the good times will last forever, spend everything, borrow against unearned / unrealised "paper" capital gains and so on.
That's not knocking anyone btw, just my view of things.
Hi, good point. I have always been a saver. We saved over 20 grand to help buy our house and have some money to do it up. Unfortunately the mortgage and lack of wifes earnings have put a bit of a dent in our saving abilities at the mo. However it is this that I have set out to amend, by working harder and maybe taking on extra jobs. My view is that in a recession economy, if I can keep my job and add to the income, I may just be ahead of the race when the fog lifts. I see an oppertunity in this slowdown and that is my positive way forwards. Cheers Druzil
I have just been looking at another forum that had a link to a book predicting the end of the world is nigh And it all starts with the credit crunch Think about it the great depression triggered the second world war. Who is responsible for the credit crunch? Banks! who exacebates the problem, journalists!My business is in ruins as far as I can see, lucky I'm in Australia but it's coming here now too! The world is a small place. Greed, for want of a better word, Greed is bad! we 're all doomed.
"The greatest trick the Devil played, was convincing us all that he did not exist"
My plan's are a bit up in the air at the moment as I am currently jobless
good luck Matt - get out there and sell yourself - maybe not literally though
It popped into my head out of nowhere last night - I was worried that my previous post might be taken as I want to keep my house as a holiday home and technically have the state fund it I SO did not mean that. Just to clear that up. I meant keep it for Mr. > to see the kids in, kind of as a holiday home for them, and sometimes me.
I'm kind of looking forward to being poor - in the sense that it makes you *have* to cope without things and makes you work harder. Hopefully the credit crunch might bring back a bit of a sense of hardship for some (I know some people already have it which is a shame for them to have to stretch even further). I wish there was a credit crunch only for the deserving but that's just me being a cow!
Druzil - how refreshing and sensible an attitude! If it shifts the country away from "greedy grabby grabby wanting everything now" then there is a positive to come out of the credit crunch definitely.
Blimey! Are you still running your London Estate Agency then? I thought you had sold up and started again in Aus. If not how do you see things going forwards for yourself and property? Cheers Druzil
Druzil - how refreshing and sensible an attitude! If it shifts the country away from "greedy grabby grabby wanting everything now" then there is a positive to come out of the credit crunch definitely.[/QUOTE]
Thx HC. Normally I have been a bit negative / pessimistic in the past, but I just feel so positive at the moment. Probably just delirious with fatigue.
Originally posted by immy21: lucky I'm in Australia but it's coming here now too! The world is a small place.
Wow, you made it there . I rather had you down as one of those people that complained about the UK but never did anything (pls don't take that the wrong way ).
I've been in Europe for two years now and - of course - things are similar in most pars of the "developed world". Food and oil prices are escalating, threatd to jobs etc are incrasing.
I can't speak for Oz of course but most of Europe hasn't had the "boom" that the UK did. The economies are more stable and so lower to fall, but also more bad things (unemployment etc) for the last decade.
It's that UK "boom" that has provided the financial wherewithall for a lot of us to try our luck abroad of course. House sale proceeds to live off (or at least support us short term). Continuous employment records in modern professions to trade off etc (by no means a given in Europe). Until recently, a strong pound. And so on.
What now? well, it looks as if Labour are going to have to preside over their second medium sized bank failure today, possibly next week.
Agree with all the comments above by the way. Its not going to be pleasant unfortunately, although I am happy that people are starting to see sense once again and see past the wool that has been pulled over eyes for the past 10 years...
Congrats Druzil! Having children does make us look to the future. Can anyone remember the time we bought a house as a home and not an investment. When we didn't think the kids were deprived if they had to share a bedroom. I am all for progress and yes our living standards should improve with each generation but maybe it is time to ask when does it stop becoming raising living standards and start becoming indulgence. I fell into the same trap so speak from experience. When my kids ask my advice about buying ( further up the ladder) I say only if you can still afford to enjoy life spend time with your family and friends and have enough money left at the end of the month to save a little. Will they take my advice? would I have taken my own advice? probably not! I suppose we all have to learn in our own way. All I am saying is you can look too much at the future and forget to enjoy the here and now. You can probably tell I am an old hippy at heart!!!
, after a short break (if you could call it that) filled with sleepless nights spent looking after our new daughter, I remembered that I actually enjoy reading this forum. So now I am back, but frustrated with the lack of topics. So I have decided to start another more general discussion leaving behind the Pflusk - Malkie style arguements. This based on my new found enthusiasm for the future, I hope, will have a positive view going forward. My thoughts are that generally it is now perceived by most that houses in most areas have lost some of their value from last year. I personally believe that they will fall further. However I would like to look at this as a good thing for my families future, and I am going to work as hard as I can, hoping that I can keep my job in any economic downturn, and save tons of cash. Then hopefully in three or four years I can move up to a bigger place with less of a gap between the prices. I would like to know how others are looking forwards and what are their plans for the future, property slump or no slump.
) - and at the moment prices are not dropping as dramatically as they are in other local areas! Who knows whats round the corner - but please dont let this thread get into a debate of what is or is not going to happen! 
Providing I find work soon, I'll carry on in my place and save up what I can. My fixed rate mortgage deal ends next October so I might sell it anyway.
we 're all doomed.
