corb
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Registered: 24th Apr 02
Location: Calgary, Alberta, Canada
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should be house day maybe? tv discussion, bleurgh to you all! 
So, now's not the time to buy a 2nd property, but if mine loses value over next 10years, so what, I'll stay here for 20 and watch it boom again! Plus, in 4years when no ones buying and lenders are depserate for customers, i'll get a nice new low rate fixed mortgage. Your opinions? Discuss......
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Matt H
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Registered: 11th Sep 01
Location: South Yorkshire
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That propertysnake website has proper crashed, probably due to everyone who saw the programme checking it out right now 
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Cosmo
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Registered: 29th Mar 01
Location: Im the real one!
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Not all areas are dropping.
There will never be a case of 'no one buying' as families will always expand, people will always have to relocate and kids will always get older and move out.
Mortgage rate is mainly down to the state of the economy (and the US economy isnt helping) not really the state of house prices. So prices could fall a lot of you could still be stuck with a high rate mortgage.
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corb
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Registered: 24th Apr 02
Location: Calgary, Alberta, Canada
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also, surely showing this programme and going on about it etc., people are gonna panic and sell up?! market flooded and prices drop faster and further?....
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corb
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Registered: 24th Apr 02
Location: Calgary, Alberta, Canada
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if no ones spending, i.e not buying houses, wont rates come down? property market is a huge part of uk economy isnt it? i'm probably wrong, sorry!
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MikeD
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Registered: 18th Aug 02
Location: Whittlesey, Cambridgeshire
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potentially the rates will come down, but its the people with high fixed rate mortgages that will be out of pocket
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I'm 90% sure that programmes like that or the media coverage and various articles flying around the internet will actually cause the downturn in the market. Supposed "Experts" scaremongering will always get people worried.
However the more desperate sellers, the more cheap houses which will come onto the market; better for first time buyers etc which in the long term means more people on the market/ladder. I predict 4/5 years of slowing and any losses will be on the higher priced (£350k +) properties and greater demand for houses £125k-£250k.
I' not worried though, I bought £75,000 under the current ceiling price on my road. Essentially it was the worst property in the best area, so with a bit of investment I really can't see us having any negative equity.
The problem will be with these 5/6 x annual wage mortgages
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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The other thing that made me laugh was the suppsoed experts saying not to buy houses to rent out; but then saying that people who are renting are in the best position.
Surely the people who are renting, need soemone to rent off! 
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Hoddo
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Registered: 7th Nov 06
Location: Wallisdown, Bournemouth
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renting is dead money, you spend all that money with nothing to show.
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Daimo B
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Registered: 20th Mar 00
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Totally agree dude. And i never watched the program.
As i've always said, if house prices crash, the worst that will happen is that I can't move anywhere. Prices WILL rise again, just a case of how long.
Hoping that i'll be ok though, as the whole area has raised about £40k since we moved in  Not that im going anywhere for a looooong time though. Got the perfect place.
Same as you Corb, your in a good location, and your on the market, I wouldn't worry about any impending crashes.
Not as though I can afford a 2nd place to rent out anyway
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Edit because I think my figures are wrong :look:
[Edited on 10-01-2008 by Ian]
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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quote:
Originally posted by LiVe LeE
Surely the people who are renting, need soemone to rent off!
Of course they do - but that doesn't mean being a landlord on borrowed money is a wise idea.
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Robbo
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Registered: 6th Aug 02
Location: London
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Right now renting is a safer option that buying IMO
House prices where I live are still going up as new houses are stiull being built everywhere
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I didn't mean to necessarily become a landlord now, but the general feeling from the program was that all Amateur/Non-Proffessional Landlords should consider selling their properties now. Surely that would flood the market, just as demand is increasingly slowing down.
Higher supply, lower demand = slump in prices which brings me back to my first point regarding scaremongering by so called "experts" will actually lead to a worsening of the problem!
and Ian, point well made in the post above
[Edited on 10-01-2008 by LiVe LeE]
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Daimo B
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Registered: 20th Mar 00
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Yeah, but its YOUR house, and no money can outwiegh that.
Your also on the market, so making an investment. In 25-30 years, i hopefully won't have a mortgage, I will own my house outright (or upgraded to a larger proprety). So hopefully will own a £200k-£300k house.
If I sold that property and moved abroad where things were cheaper, i could sell my house, and have enough money to last for years.
You own nothing when you rent. You pay out for decoration etc, for nothing but looks. The owner makes the profit for the improvement.
You've based the calculations over 3 years, but really, on a mortgage, the first 3 years is mainly spent paying interest. We've only paid like £3k on the house, the rest is on interest atm.. This will change as you get into the term though.
So yeah, if your buying only over a short period, and doing it yourself, its cheaper and easier to rent.
If your moving in properly and plan to stay for 5 years+, then its better to buy.
I never wanted to rent. I couldn't justify spending £500 odd per month and not actually having anything to show for it.
Bit like why i like commuting on a bike. Yes it cost me about the same as the train, but at the end of the year, i still have a bike, and not just a card with a photo.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by corb
i'll get a nice new low rate fixed mortgage. Your opinions? Discuss......
The base rates will be lower, but the lenders will be more cautious. There is likely to be a larger margin between what they borrow at and what they lend at.
Currently the most they use for lending is either other peoples' savings or borrowed from other banks. Perhaps costs them 5%.
They lend at 6%. The difference is profit. However, if people save less, lenders need to borrow from other banks. If other banks have the same problem, they are less inclined to lend to other lenders, which drives the intermarket rate up.
In order not to lose on fixed deals they set up years ago, they need to ensure that inside of that intermarket rate going up, they can still afford to have you as a customer. So they'll be setting deals up projectiong forward their position.
The only people who will do well is those who are on deals now and stay on them. I can't see new packages being anything near as competitive. Trackers are looking favorable at the moment although it's a wee bit late to get on that bandwagon as there is already enough indication that rates will drop.
Problem there is that if rates do go up, you may need to sell. This is what causes crashes.
Conversely, if you get a fixed, you'll know where you stand for that many years. Even if the market does crash, your payments will stay the same. You might be in negative equity but you won't NEED to sell. This is safer.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by LiVe LeE
Higher supply, lower demand = slump in prices which brings me back to my first point regarding scaremongering by so called "experts" will actually lead to a worsening of the problem!
Completely - but it's going to happen, so there's no other options really!
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Steve
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Registered: 30th Mar 02
Location: Worcestershire Drives: Defender
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there will definatly be at least a 30% drop imo, this country is heading for a recession
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Robbo
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Registered: 6th Aug 02
Location: London
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Mayhap
US is very almost in official recession
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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quote:
Originally posted by Steve
there will definatly be at least a 30% drop imo, this country is heading for a recession
at the higher end of the market IMO
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Online
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quote:
Originally posted by LiVe LeE
at the higher end of the market IMO
Wherever there has been BTL or high borrowing IMO, which is all over the place.
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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mainly cities and city centres; I think thats where the effect will be felt; moving out into the country/suburbs and smaller towns may be different. Infact as people decide to rent, smaller towns may become a renting hot spot.
My local towns, Ashbourne in Derbyshire and Leek in Staffordshire have probably 1% rentals at the moment. If the market moves in a way that scares people out of purchasing and into renting - then these are the places to BTL.
City centres are flooded with Lettings both privately and corperately owned; smaller towns are not!
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Daimo B
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Registered: 20th Mar 00
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quote:
Originally posted by Steve
there will definatly be at least a 30% drop imo, this country is heading for a recession
At least 30%.....
I doubt that quite somehow.
Prices won't really drop I think, I reckon they will just even out for a while.
And they WILL rise again in the future. Everything always rises.
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Steve
Premium Member
Registered: 30th Mar 02
Location: Worcestershire Drives: Defender
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we'll see daimo
if im wrong im wrong
[Edited on 10-01-2008 by Steve]
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Daimo B
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Registered: 20th Mar 00
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Ditto
But somehow, I doubt im going to loose over £60,000 on my house
[Edited on 10-01-2008 by VXR]
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