Paul_J
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Registered: 6th Jun 02
Location: London
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Just curious to what people think of the current house market?
Is it a good time to sell or buy? (I suppose its all relative)
I know in recent years, the house prices have been rising and rising... however after credit crunch house prices seem to have taken a slump.
Since me and my sister no longer live in my parents home any more, they are considering down sizing to somewhere smaller and more rural, giving them a nice chunk of cash to enjoy too.
My only concern is, will they lose out selling their current property now and potentially regret it when house prices rise again?
The reason for the concern is a few years back, they bought a 2nd home near the coast for £110k, ended up selling it for £170k and then a few years later that places was worth nigh on £340k  So if they had held onto it - they'd of made a lot! That said, at the time it wasn't being used that much and costing them money in council tax etc.
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Prices are fluctuating up and down at the minute from one month to the next, not huge amounts though, and some areas are obviously better/worse.
They will of almost certainly miss out on what the house would of sold for a few years back, and its probably right to assume prices will rise again - but you could be saying this every year and they'll never sell.
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IvIarkgraham
Premium Member
Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
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if they sell for 100k and buy somewhere else
that house might be worth 10% more next year, but the new house will be worth more also
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drunkenfool
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Registered: 7th Feb 03
Location: Hereford Drives: Audi R8 V8
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It depends a lot on where you are - my mum bought a house for me when I was at uni and rented out the other rooms, and that hasn't gone down in value at all since she bought it, yet her own house has gone down about £50k in the same time period. She's now considering selling the place I used to live in at uni and buying a place here in Hereford while the market is lower, so in the grand scheme of things will be better off.
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Colin
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Registered: 4th Apr 02
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Its all relative whatever they buy will also be cheaper than it would have been. Obviously they will loose out a bit because of this as its the top of the market thats moved most in terms of pounds and pence.
My old flat I sold last year for 55k, a mate sold his a year earlier for 62500. So you could say I lost out on 7500. However the house I bought was 150k, before the 'slump' they were selling it off plans for 190k. So really im not down 7k, im up 33k.
Percentage wise I sold at roughly 12% under top price & bought 20% under top price.
Ive now lost track of the point im trying to make because its late & I really shoukldnt be on here right now. 
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Colin
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Registered: 4th Apr 02
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Oh and a mate of mine bought a house in summer 2007 for 240k & he's had to move because of his job & its been valued at 190k.......what a bummer
At least downsizing there going to see some capital release.
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ed
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Registered: 10th Sep 03
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I wouldn't get over concerned with it all. I think people should come to terms with the fact that a house is somewhere to live in and an investment portfolio is exactly that.
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Paul_J
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Registered: 6th Jun 02
Location: London
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some good points made by all...
In a similar grand scheme... with some of the money they're going to release by downsizing, they're thinking of giving me and my sister some money to get deposits on houses.
Is it best to just jump on the ladder with any property you can as soon as possible?
£50k will still be worth in monetary terms £50k (obv plus any interest gained) in a few years.
Where as, in theory the house prices will always be relative to the current market.
I'm not sure where I want to settle yet and still forsee moving about and changing jobs a bit over the next few years, but if my parents do give me some money, then I see 3 options:
1. Continue renting like now, keep the money in a high interest saving account until ready to move.
2. Find an area / job I like and buy a house in that area, so that I'm living in it and paying the mortgage rather than rent. If more than 1 room then take rent from other people living there with me.
3. Continue renting somewhere close to work, but buy somewhere else anyway and just rent it out. This keeps me 'on the ladder', and pays the mortgage from their rent - but also allows me freedom to live / move about.
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Faye_2003
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Registered: 5th May 03
Location: the gutter :(
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I would of thought the downsized place they end up buying will also be cheaper than say three years ago so I wouldn't really be too bothered as they are buying a house with a discount and selling theirs for less than they planned in essance.
My mum n dad have a fairly big place, they bought it in 1994 for 104k and it is worth near 475k now as they was going to sell up but my dad said "what's the point cos the place we will buy will have risen too" and out of the 7 kids they have 4 of them still live with them so they need 5 bedroom atleast.
[Edited on 09-03-2010 by Faye_2003]
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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No one knows what will happen with it, Could go any way. Election and World Cup will bugger it up for a few months this year.
Corsa 2.0 16v Vegas - Sold
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J da Silva
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Registered: 10th Apr 03
Location: The FACTory
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I personally think the housing market will get busier, the banks are lending a bit more, and the confidence in the market is obviously growing, but with busy custom comes price rises, so they will gradually climb and so will everything else and then in 10-15 years time we'll do it all again. 
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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It's gone totally dead again here. Loads coming on but the buyers have gone. Will be like this for months now.
Jan and Feb was manic. Thought it would still be busy this month but it's like someone has turned off the taps! Strange old market 
Corsa 2.0 16v Vegas - Sold
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