Property crash. - Page 2

garinda · 25-06-2008, 11:25

Quote:

Originally Posted by jaysay

You really dohave to feel sorry for anyone in that possition

...or happy that greedy investors, out to make a fast buck, are being stung, and that falling prices might mean people will be able to buy or rent homes at more realistic prices.

BERNADETTE · 25-06-2008, 11:26

Quote:

Originally Posted by wadey

http://www.dailymail.co.uk/news/arti...f-paid-it.html
may be of interest

It must be heartbreaking to find yourself in that situation but really think to many people are over stretching their finances these days. Credit is far to easy to get but very hard to manage.

garinda · 25-06-2008, 11:35

I feel very sorry for anyone who has mortgaged themselves to the hilt, and then lose their home because of the rise in interest rates.

I feel less sympathy for property speculators who are hit. They took a risk, in order to make profit, and I personally believe you should never gamble with more than you can afford to lose.

WillowTheWhisp · 25-06-2008, 11:40

Maybe now is the time to buy?

entwisi · 25-06-2008, 12:05

Now I'm on the house owning side of the fence,

We have been lucky in that we bought at the 'right' time but I would counter that with the fact that we wouldn't have moved if the house we live in now cost what it did now. Managed correctly houses can be another form of investment ( buy when low, sell when high) and can provide an alternative means of pension when you inevitably hit that period when all the kids have gone etc. You also get the pleasure of living in a nice house in maybe a better area, how much is it worth for that peace of mind?

People who mortgage themselve up to the hilt (often without realising that it also costs money to live and enjoy life) are the ones who will suffer along with as Rindy etc mentioned those who 'have' to sell for one reason or another. All you can do against that is ensure that you go in with eyes wide open having done all your research properly ( can I afford it if interest rates go up 3%, what happens if I'm off work for 6 months, would I be happy paying X when teh house is only worth 3/4 of what I paid etc)

cashman · 25-06-2008, 12:39

some good posts on this, as entwisi says, do yer homework, the simple anology i used when i started way back was borrow no more than £4000 over 15 yrs, that equated to payments of £48 per month, which if the worst happened n i was cast on the dole, i reasoned we could still afford £12 per week. ok i started with a 2 up 2 down terrace, but always payed mortgage off before 15 yrs, n sold then bought a better house, using same criteria. had some lovely property inc semis, bungalow, etc, trouble today is most want the best NOW, n many come unstuck, when things like this happen.

other circs can balls things up, but that was my general rule.

wadey · 25-06-2008, 14:45

When interest rates were 4% my son was buying his house and I pointed out they may go to 5% and he said that was a 1% increase! In fact it's a 25% increase but he never really got the message.

cashman · 25-06-2008, 14:59

Quote:

Originally Posted by wadey

When interest rates were 4% my son was buying his house and I pointed out they may go to 5% and he said that was a 1% increase! In fact it's a 25% increase but he never really got the message.

if they did wadey, it would probably be a first!

cmonstanley · 25-06-2008, 18:27

Quote:

Originally Posted by WillowTheWhisp

Maybe now is the time to buy?

nope we havent seen anything yet that is going to happen the experts predict another 10% percent decrease in house prices in the next 12 months...

entwisi · 25-06-2008, 19:28

absolutely, now is probably not the time unless you go in with a silly low offer and accept even then it may drop further. You should be in for teh long run if you buy now

MargaretR · 09-07-2008, 09:49

The price of housing escalated because there is a housing shortage - too many people chasing too few houses.

Ironic isn't it - that house builders are now shutting down building and laying off workers because no-one can afford to buy what they have built.

SPUGGIE J · 09-07-2008, 10:16

Quote:

Originally Posted by [email protected]

The price of housing escalated because there is a housing shortage - too many people chasing too few houses.

Ironic isn't it - that house builders are now shutting down building and laying off workers because no-one can afford to buy what they have built.

I spent some time on a new development site and to be honest for what they were charging for these buildings and considering how they were built its no surprise. The cost comes (from what they told me) more from the price of the land than the actual build but wether that was bull or not I dont know. Up my way housing with a garden and garage go at a premium compared to those of similar/same age area build quality etc. That though raises the question of the cost of housing on former brown field sites. Ok location, amienities, motorway access etc play a part but the question I have is do those that move to the area benifit it?

Eric · 09-07-2008, 20:08

From what I read, the English real estate market is going to take a bigger beating than the American .... things are still OK here in Ontario, and the housing market is positively booming in Saskatchewan, Alberta, and Newfoundland ... but I still like the idea that there should be more to owning a home than merely looking to make a buck out of it.