House prices

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WILL*REMAIN*STRONG
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House prices

Post by WILL*REMAIN*STRONG »

How do people feel about the falling house prices in this country?

Does it affect you in a positive, negative or in no way at all?

I’m thinking it is best that house prices fall as so many people can not get on the property ladder because of such high prices.

Also for people wanting to go up the property ladder, they can now take advantage of the larger price reduction on a bigger house, well in many cases that is so.

So is it good or bad in your humble/expert opinion? :lol:

Will
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thin and crispy
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Post by thin and crispy »

Hello Will. In my humble opinion it's a good thing - mostly for the reasons you stated.

I think it was inevitable anyway. The rises we have seen over the last few years just couldn't be sustained. The demand side of the property market has been fuelled by excessive (and apparently reckless) availability of mortgages - and now that the banks have realised their mistakes I can't see prices rising so fast for quite some time to come.

The downside, of course, is that greedy property developers and overpaid bankers are now feeling the pinch. You have to feel sorry for them! :lol:

It's also a good thing as far as inheritance tax is concerned. Property price rises have far outstripped the IHT threshold over the last few years and there are now many people caught in the IHT trap that shouldn't be. When it was introduced, only the "super rich" (forgive the media-speak) paid out. Now it's anyone who owns a moderately sized house!
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WILL*REMAIN*STRONG
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Post by WILL*REMAIN*STRONG »

thin and crispy wrote:The downside, of course, is that greedy property developers and overpaid bankers are now feeling the pich. You have to feel sorry for them! :lol:
Hi T&C! :)

Oh I hear that!!!! :lol: :lol: :lol: Pay back time for the greedy...aldous :wink:

I have to say it doesn't affect us, even if we wanted to move it could only be good for us as we would go up in house size so we would take advantage of the situation.

I really feel for young people who have been priced out of the market or can't afford their mortgages, it is about time house prices fell, it was getting silly in my humble opinion.
Slated
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Post by Slated »

Personally, I think it's a good thing, but am worried for several people I know who've bought in the last year or so. Negative equity is no fun.

However, there are far too many folk who have assumed that house prices will always rise, without checking historical data; so you can't lump all the fault on the banks or the government (although they played a major part, and deserve a large proportion of blame). People should take some personal responsibility for their own actions and realise that asset bubbles like the housing market of recent years always ends up with a market correction.
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Post by appledore »

In my very humble opinion I think it is a good thing that house prices are falling. However, as we are trying to sell a property at the moment I wish they hadn't fallen until we'd sold it. :lol:
The situation with mortgages couldn't continue, they were given to people with no thought as to whether they could keep up the payments. Although I do think that buyers should take responsibility for their own actions.
TV programmes such as Location and Property Ladder have given the impression that property prices would always keep on rising.
I feel sorry for young people who can't afford to get on the property ladder.
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WILL*REMAIN*STRONG
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Post by WILL*REMAIN*STRONG »

appledore wrote:In my very humble opinion I think it is a good thing that house prices are falling. However, as we are trying to sell a property at the moment I wish they hadn't fallen until we'd sold it. :lol:
Aw I can see it is not so good in your situation, sorry. :(

I think it is good for most people but yes in some situations it isn't so good, I suppose we will view things differently when we come to be in your situation, not in the near future we hope. :cry:

I guess it will affect every one differently, and yes those TV programs have a lot to answer for, people have become deluded due to some bad and irresponsible advice.
appledore
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Post by appledore »

Hi Will. It's just one of those things. Whatever we get for the house I hope it goes to someone who'll make it into a nice family home, and not someone who just looks on it as an investment. It's always been a happy house and I hope it will be again.
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Post by WILL*REMAIN*STRONG »

appledore wrote:Hi Will. It's just one of those things. Whatever we get for the house I hope it goes to someone who'll make it into a nice family home, and not someone who just looks on it as an investment. It's always been a happy house and I hope it will be again.
I'm sure your mum’s house will be someone’s happy home very soon. We see our home as a happy home first and foremost, a "future" investment/pension second and we are only young. I think most people want a home and with the market falling perhaps people will view bricks and mortar differently? I see plenty of good properties selling even with the market the way it is, a lot of the over priced ten a penny houses just sit there because they are being sold by folk who have viewed their property as an investment and the price reflects their overspend.

Don’t be too worried or disheartened by the falling market, I think property priced right still sells. I hope you get a buyer soon apples, I would say a prayer if I believed! :lol:
Lilac Frost
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Post by Lilac Frost »

Falling house prices in my area helps the buy to let people not the first time buyers. My 'area' is made up of 3 towns and 3 people own practically all of it!
despair
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Post by despair »

I am sick of hearing the gripes from the young that they cant afford to buy a flat /house etc

The entire problem now is

1) they wont save up a deposit
2) they want to buy a place on their own

Years back it was just as much of a struggle for a couple getting married to buy a home but they saved like hell , went without a hell of a lot and made do with furniture and furnishings donated by family and friends

Ask any young person today to make do and mend and they think you are mad because they ONLY WANT NEW and then they wonder why their credit cards are maxed out

All those whose family have left home and now want to downsize and release capital to supplement meagre pensions are the ones hard hit by house prices falling

The sooner greedy builders and developers are kicked into touch the better

but if we restricted immigration correctly we would not need all the new homes and rape of the countryside anyway
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Post by Lilac Frost »

The 'young' cannot afford a deposit! In your era despair people earned a decent wage and were able to save enough for a deposit. The cheapest house price is £200,000 and 10% deposit is needed. A person earns £12,000 per annum. Even if they saved enough for a deposit and associated fees they would not qualify for a mortgage. As regards buying on their own that was the way it always was. Husband went to work, wife stayed at home.
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Post by appledore »

I agree with Lilac Frost that it's difficult for young people to save enough for a deposit these days, and also difficult for them to get a mortgage.
I also agree with Despair that it was just as difficult forty years ago. We struggled to save enough for a deposit, and mortgages were difficult to get.
A lot of the youngsters these days just want to walk into a house and unpack their belongings, they're not prepared to do any work at all. Our son and daughter-in-law have worked hard to get on the property ladder, and they save up to buy furniture etc as they don't want to get into debt. Even so they'd have a fit if they saw the conditions we lived in when we were starting off. I can remember the net curtains frozen to the windows in the morning, hand me down furniture and going down the yard to the toilet. 'Times was hard', but we were happy and thankful to have our own home.
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Post by Mandy »

despair wrote:I am sick of hearing the gripes from the young that they cant afford to buy a flat /house etc
Whilst a lot of very young people are exceedingly stupid with money, those genuinely saving for their own home are really struggling. I'm not saying it was easy years ago, it wasn't. But the recent house price rises have far outstripped pay rises meaning that saving for a deposit and qualifying for a big enough mortgage to buy a home in a reasonable location has become massively difficult. (And remember you need a reasonable location nowadays with all the problems of violence the worse areas have). Added to that a lot wanting to buy are currently renting - the cost of which has risen with house prices causing a double whammy effect for those trying to fund a place of their own.

Those wishing to downsize are in nowhere near as desperate a situation. Your finances rely on the difference of prices of larger and smaller properties which is nowhere near as dire a situation as a first time buyer as the fluctuation is far less.

I agree entirely with the greedy builders and developers comment. The house stock we are short of is at the lower end of the market. Developers are generally "adding value" (the tv phrase I believe) by making our smaller housing stock larger with extensions and massively increasing the price for those who buy it to live in it. In our area certainly the new builds have a very high proportion of "luxury apartments" - translated it means highly over-priced empty investment flats of empty-headed Londoners' pension plans. They often aren't bothered about renting these out as they are investing in long term capital growth.

The concept that if we built an enormous amount of housing the price would go down was ridiculous. Builders and developers have become used to enormous profits and won't bother building for anything less. The need for extra housing has also been massively over-calculated - why are we building homes for immigrants that aren't even in the country? And these people will want work - anyone seen a massive surplus in that going spare?
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Post by WILL*REMAIN*STRONG »

appledore wrote:Even so they'd have a fit if they saw the conditions we lived in when we were starting off. I can remember the net curtains frozen to the windows in the morning, hand me down furniture and going down the yard to the toilet. 'Times was hard', but we were happy and thankful to have our own home.
Aw appledore! :cry: I feel all sorry for how hard things were for you, we moved straight in to a new build and fully furnished it, how spoilt are we? :lol:

Seriously now I completely agree with all you have said, my parents and in laws told us how bad things were when they first started out and I know we have never had it so good. Youngsters don't realise how much they do have these days, too much in my opinion, the spoilt little beasts! OMG they need a wake up call don’t they? A spell on the streets or prison I think. :wink:

OK perhaps just a smaller plasma screen in their bedrooms and a cut off time from the play station. :)
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Post by appledore »

Don't worry Will we survived the hardship. :lol: Seriously though, they were happy times. We enjoyed doing a place up bit by bit, and making it into a home. It was lovely to have our own space.
A lot of kids today have to have everything yesterday, but it's just the way they've been brought up. I think a smaller plasma screen in their bedrooms is taking things a bit far though. The parents would probably be charged with cruelty. :lol:
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