Monk Posted 10 April 2008 Posted 10 April 2008 Is the market 'crisis' affecting you? I don't own a house, and I always said at Uni that I hoped I'd have enough money for a deposit when the market bottoms out in 2009-2010. So for me it's looking pretty good right now. It amazes me that I have some first time buyer friends who are still stretching themselves trying to buy in a falling market. I guess it doesn't matter over the long run, but why take the risk of negative equity when you could buy at the bottom of the market in a year or 2? Never mind the fact that getting a mortgage is currently harder than a vinegar soaked airing cupboard dried conker.
SOCCERROO FOX Posted 10 April 2008 Posted 10 April 2008 The house prices here at n n all time high Australia wide at present and the highgest intrest rates for many many years. There is also a massive house shortge crisis here.
Monk Posted 10 April 2008 Author Posted 10 April 2008 The house prices here at n n all time high Australia wide at present and the highgest intrest rates for many many years. There is also a massive house shortge crisis here. Ah sound's like you guys will hit crisis this year sometime though. Your mortgages will be funded by global money markets which are frankly fcked. The money will dry up somewhere down the line.
SOCCERROO FOX Posted 10 April 2008 Posted 10 April 2008 Ah sound's like you guys will hit crisis this year sometime though. Your mortgages will be funded by global money markets which are frankly fcked. The money will dry up somewhere down the line. A ridiculous amount of rate rises in 24 months, Personally im just waiting like your self for the market to bottom out as i already have a deposit ready .
James. Posted 10 April 2008 Posted 10 April 2008 Rates cut to 5%. Expected to reach 4.25% by the end of the year...
Dr The Singh Posted 10 April 2008 Posted 10 April 2008 Rates cut to 5%. Expected to reach 4.25% by the end of the year... Only good if those rates are passed on to my mortgage!!!!
Foxhateram Posted 10 April 2008 Posted 10 April 2008 Is the market 'crisis' affecting you?I don't own a house, and I always said at Uni that I hoped I'd have enough money for a deposit when the market bottoms out in 2009-2010. So for me it's looking pretty good right now. It amazes me that I have some first time buyer friends who are still stretching themselves trying to buy in a falling market. I guess it doesn't matter over the long run, but why take the risk of negative equity when you could buy at the bottom of the market in a year or 2? Never mind the fact that getting a mortgage is currently harder than a vinegar soaked airing cupboard dried conker. We are currently renting, we sold our house beggining of last year and got top whack for it, we sold at just the right time, as they started to fall in price just after we sold up. Me and my dad predicted this was going to happen we are so good!
Monk Posted 10 April 2008 Author Posted 10 April 2008 Rates cut to 5%. Expected to reach 4.25% by the end of the year... Yeah but what about LIBOR?
Tabou Posted 10 April 2008 Posted 10 April 2008 As a Financial Advisor, I wouldn't be at all concerned about buying a house at the moment. The problem is that certain media sources claim that "House prices fell by 2.6% in March". That is complete bolloxs. The RATE of GROWTH fell by 2.6% last month. But the forecasted growth for 2008 is 6. something %. Therefore, houses WILL still grow in value this year. There is alot of scaremongering at the moment. It is becoming MASSIVELY difficult for people to get a mortgage. This time last year, you could get the best deal around even if you had a CCJ. (almost ) At the moment, you have to be the squeakiest of squeaky clean people to get a rate that is reasonable, and even then I mean 5.7-6%. The Bank of England's base rate may have been reduced, but it doesn't mean for certain that all Lenders will pass that cut onto their clients. The London Interbank Base Offered Rate (LIBOR) is the rate on which many tracker mortgages are based. If you are on a tracker product that doesnt expire for a while, then the rate cut will be beneficial to you. But anyone coming off of a fixed/tracker rate at the moment is in for a shock. What is needed is some proffessional advice from an Independent Broker.... (PM me if you like...we dont charge a fee!!!) Over time, property has by far and away been a safer investment than any stock/share, and if people can ride the storm, there will be light at the end of the tunnnel. Don't forget that the average fixed rate is around 6%, so mortgages are still cheap borrowing. The problem isn't mortgage companies being greedy and hiking rates, it's the consumers that are borrowing more than they can realistically afford (Champagne lifestyle, Coca-cola income) and now they are being pushed to the max. 15/20 years ago, interest rates were circa 20%!!! So , to summarise, give me a shout when you want some advice!
Monk Posted 10 April 2008 Author Posted 10 April 2008 Nice post tabou and I know what you're talking about but surely the basic rules of supply and demand will force down house prices. The market is based on perception, and the current feeling is approaching one of panic. I wouldn't agree with the 20% drop some have been speaking of but given that the major banks are predicting at best flat prices and the IMF forecast to a similar tone. House prices have already fallen by around 10% in the US by some measures, and the IMF says that they may be over-valued by more than 20% in the UK, Ireland and Spain. Surely you'd advise people that now is a foolish time to move house?
Monk Posted 10 April 2008 Author Posted 10 April 2008 Well it's not exactly falling through the floor is it? I don't think the rate decision today will have much effect on the housing market. I'm not suggesting thats what you were implying.
Master Fox Posted 10 April 2008 Posted 10 April 2008 No not for me anyway. Only the really low rate mortgages apply if you've got a huge deposit to put down. It's bullshit, house prices in my area haven't changed. They're not going down or really going up. It will be a steady increase over the next few years. It's still not exactly 'cheap' to buy house. And never will be in this country. House prices are only falling in sh*t, waste areas, where nobody wants to live.
Dr The Singh Posted 10 April 2008 Posted 10 April 2008 No not for me anyway. Only the really low rate mortgages apply if you've got a huge deposit to put down. It's bullshit, house prices in my area haven't changed. They're not going down or really going up. It will be a steady increase over the next few years.It's still not exactly 'cheap' to buy house. And never will be in this country. House prices are only falling in sh*t, waste areas, where nobody wants to live. WHat's wrong with the caravan or the park bench in summer..........................you've changed MF!!!
Master Fox Posted 10 April 2008 Posted 10 April 2008 WHat's wrong with the caravan or the park bench in summer..........................you've changed MF!!! Sorry Singh.
James. Posted 10 April 2008 Posted 10 April 2008 Well it's not exactly falling through the floor is it? I don't think the rate decision today will have much effect on the housing market. I'm not suggesting thats what you were implying. Yeah I was just giving people some idea of the likely falls in interest rates still to come over the coming months. You're right though, and to be honest one rate cut is rarely likely to have much of an effect on the housing market and in any case will take a while to feed through... The big problem is liquidity. Banks just aren't prepared to stump up the same amount of cash as they used to which will price more buyers out of the market - causing further falls in house prices. The bottom will come when lenders start to accept more risk which isn't likely any time soon given the continuing problems in the US. The market will look for some more creative ways of encouraging liquidty as opposed to the one trick interest rate cuts...
andyh1884 Posted 10 April 2008 Posted 10 April 2008 We've accepted an offer on our house for £15k more than we paid for it 3 1/2 years ago. It's a 2 bed terrace so ideal for 1st time buyers, which all of the people who looked round were. It was on the market for 10 days in which time we had 4 viewings & accepted an offer. The price we got for it was £5k below the asking price but it was what we realisitcally thought we could get for it. I would've said our house wouldn't really be that sensitive to the decrease in prices due to the number of people wanting to get on the market at that level, but with recent events where banks are discouraging new customers I'm relieved we managed to get a buyer so quickly & for the price we did. Especially as we live in dirty Coventry. Unfortunately the area we're moving to - Solihull - doesn't seem to have suffered any drop in house prices of late & according to the reports we read they're only likely to go up round there due to the demand to live there.
Tabou Posted 10 April 2008 Posted 10 April 2008 We've accepted an offer on our house for £15k more than we paid for it 3 1/2 years ago. It's a 2 bed terrace so ideal for 1st time buyers, which all of the people who looked round were. It was on the market for 10 days in which time we had 4 viewings & accepted an offer.The price we got for it was £5k below the asking price but it was what we realisitcally thought we could get for it. I would've said our house wouldn't really be that sensitive to the decrease in prices due to the number of people wanting to get on the market at that level, but with recent events where banks are discouraging new customers I'm relieved we managed to get a buyer so quickly & for the price we did. Especially as we live in dirty Coventry. Unfortunately the area we're moving to - Solihull - doesn't seem to have suffered any drop in house prices of late & according to the reports we read they're only likely to go up round there due to the demand to live there. Great news Andyh1884, you are one of the lucky ones. Need a mortgage? Life cover? Critical Illness? Footrub?
Bellend Sebastian Posted 10 April 2008 Posted 10 April 2008 I bought a house. They're not all they're cracked up to be. The housing boom of recent years has been fuelled by the availability of cheap credit, and now that's being reigned in, demand is inevitably going to fall. The supply will also increase as all the people that stretched themselves to buy property as an investment will shit themselves and try and sell it when they see prices drop. Property is a great investment long term, but it's like any other asset in that it moves in cycles. People get carried away and when they see something going up in value, they think it will carry on like that forever, and it's the same the other way round - when things start going tits up they panic because they think prices will drop and drop until their investment is worth nothing, which of course rarely happens. This is why people are so great at buying and selling things at EXACTLY the wrong time. Personally I think prices will fall quite noticeably, and then stabilise and do not much for a couple of years. When I bought my house in 1999 house prices had done sod all for ages. At the time quite a few people thought I was a bit weird buying one
andyh1884 Posted 10 April 2008 Posted 10 April 2008 Great news Andyh1884, you are one of the lucky ones. Need a mortgage? Life cover? Critical Illness? Footrub? Haha! Mortgage is all sorted. Life cover and critical illness, however, are up for tender...... Footrub would be grand, ta!
The People's Hero Posted 10 April 2008 Posted 10 April 2008 I can't afford a subway for my lunch, let alone a house. Anyone got a spare.
Bellend Sebastian Posted 10 April 2008 Posted 10 April 2008 Great news Andyh1884, you are one of the lucky ones. Need a mortgage? Life cover? Critical Illness? Footrub? Inheritance tax planning? Self Invested Personal Pension? Offshore trust? You've competition on here, you know. I'm supposed to be revising for a tax exam. Hah!
Bellend Sebastian Posted 10 April 2008 Posted 10 April 2008 I can't afford a subway for my lunch, let alone a house.Anyone got a spare. I might be buying one with my girlfriend. You can have mine. If you buy me a Subway. It's Italian BMT day, lucky me
andyh1884 Posted 10 April 2008 Posted 10 April 2008 I can't afford a subway for my lunch, let alone a house.Anyone got a spare. I've got a foot-long steak and cheese, you can have half if you want?
Tabou Posted 10 April 2008 Posted 10 April 2008 You've competition on here, you know. We should team up with "Foxestalk Financial Solutions" We'd make a killing. I'm thinking.... "Tired of all this relegation talk? Looking to remortgage your home to raise equity to put into the buy-better-players-fund? Then Foxestalk Financial is here to help" Woop, go me...
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