Houseprices...grrrr...
- Thread starter accyroy
- Start date
house prices are gettin out of control
So Wingy you are 25 and a half.Interesting.I also saw thw report on Sky news.When i think back to when i was 10 years old and my parents wanted to buy an house off Willows Lane. 5000 pound they wanted for it back then
No good can come of the increasing house prices. When I bought my house in 1990, prices were quite high. Then came the slump in the mid to late 90's and thousands of people ended up in negative equity, unable to sell or move anywhere else because they couldn't afford the financial loss. Many people stretch their finances to the limit in order to buy a house and it only takes the interest rate to increase and they find themselves in trouble.
I've seen this happen, typically to young couples who want a nice new housing estate home and two cars on the driveway. They both work to pay for the house, cars and holiday in the sun, then the woman becomes pregnant!! She can't take extended maternity leave, because they can't afford it. She goes back to work full time when the baby is 3-4months old and ends up with postnatal depression. It's a classic scenario that most midwives see week in week out. People are way too materialistic sometimes. My advice would be to rent until the prices start to fall or level out, then go for a well built older terraced or semi..
I've seen this happen, typically to young couples who want a nice new housing estate home and two cars on the driveway. They both work to pay for the house, cars and holiday in the sun, then the woman becomes pregnant!! She can't take extended maternity leave, because they can't afford it. She goes back to work full time when the baby is 3-4months old and ends up with postnatal depression. It's a classic scenario that most midwives see week in week out. People are way too materialistic sometimes. My advice would be to rent until the prices start to fall or level out, then go for a well built older terraced or semi..
It's all going to end in tears. Many people have been forced onto the housing ladder through fear that if they didn't they would not be able to afford a house full stop. They are stretching themselves to the hilt.
Accrington prices have shot up mainly because we are close to Manchester and have good motorway links. I travel the M66 to Manchester everyday and have done for 17years. It used to be a quiet motorway but in the last couple of years there has been a very marked increase in traffic. Prices are cheaper here than Sth Manchester so its an obvious place to set up home.
Accrington prices have shot up mainly because we are close to Manchester and have good motorway links. I travel the M66 to Manchester everyday and have done for 17years. It used to be a quiet motorway but in the last couple of years there has been a very marked increase in traffic. Prices are cheaper here than Sth Manchester so its an obvious place to set up home.
I was told by a local estate agent not long ago that out of town buyers were snapping up all the cheaper properties almost before they had chance to advertise them and either doing them up and reselling at a vast profit or letting them. Either way it meant they very rarely had any cheaper property available for local first time buyers.
We can't help being friendly up here Busman. It just comes natural.
We can't help being friendly up here Busman. It just comes natural.
House prices are currently at a stupid level. I feel sorry for the newly weds and young couples who can't even get on the housemarket ladder.
The real trouble is that everybody speculates to get up the ladder. You can't really blame them, but the houses are not worth the money that's being asked for them. Talking to an estate agent friend of mine, he says that the agents encourage price increases, so that they can make more money. There are also a lot of property speculators, who buy cheap (as Willow just said), and either do them up and re-sell at inflated prices or rent them. I can imagine in a couple of years time that rented property will be at a premium too.
The sell-off of council houses took a dangerous step in making the market rife for inflation. Before that at least young people had a chance to live somewhere at a sensible cost.
The real trouble is that everybody speculates to get up the ladder. You can't really blame them, but the houses are not worth the money that's being asked for them. Talking to an estate agent friend of mine, he says that the agents encourage price increases, so that they can make more money. There are also a lot of property speculators, who buy cheap (as Willow just said), and either do them up and re-sell at inflated prices or rent them. I can imagine in a couple of years time that rented property will be at a premium too.
The sell-off of council houses took a dangerous step in making the market rife for inflation. Before that at least young people had a chance to live somewhere at a sensible cost.
The bubble will burst I'm afraid. Lot's of people are taking the equity out of their houses because the market has been so inflated. However, at the end of the day, it is wage levels which drive house prices and wage levels will not support this over-inflation. House prices will drop again eventually and many people will be left in negative equity for many years to come. What happens then is that no-one can afford to move and the housing market becomes even more flat. It's a vicious circle.
Moral: Leave the equity in your house unless you are absolutely desperate and then, only borrow the minimum amount you need.
Moral: Leave the equity in your house unless you are absolutely desperate and then, only borrow the minimum amount you need.
I've seen plenty of property in Accrington at less than £67,000. I was only there this last weekend. Or are you telling me those have already been bought by property tycoons from elsewhere?
Sorry had to have a say in this discussion as its my area of work,
However, at the end of the day, it is wage levels which drive house prices and wage levels will not support this over-inflation.
Not really as its not a case of wage levels as they only dictate where a person will live, its jobs and demand that set house prices also the UK is different from the USA because of size and economy,ie you can commute from Doncaster to London by train but cant work in Tampa and live in Melborne, same distance.
Moral: Leave the equity in your house unless you are absolutely desperate and then, only borrow the minimum amount you need.
Most people are not in a position to do that with job transfers and the ever changing life styles, have you noticed how most people have newer cars go out to eat a couple of times a week we have breed a want more society.
Talking to an estate agent friend of mine, he says that the agents encourage price increases, so that they can make more money.
Sounds like hes in the wrong job, I would rather sell 10 houses for say 50,000
then 1 house for 60,000 which is what would happen, he needs to remember that the general public are not stupid and will always go for the best deal.
Property investment is definatly the way to go if you want to make a nice amount of money and is way ahead of the stock market. House prices have increased by over 14% in Florida on an annual basis for the last 4 years and the report I read for the UK was 12% a year for the last 10 years with 25-60% for the last 2 years. If you bought a house for 45,000 5yrs ago you would be selling it for 72,000 today a profit of 27,000 the stock market and bond market was averaging 13% over the same period which would give you about 8,000 in profit.
Dont forget you dont need the whole amount to buy a house so if you look at a 67,000 house and you put down say 5% 3350, pay a mortage for a couple of years by renting it out then sell for a profit, these arn't property tycoons they are your average joe.
However, at the end of the day, it is wage levels which drive house prices and wage levels will not support this over-inflation.
Not really as its not a case of wage levels as they only dictate where a person will live, its jobs and demand that set house prices also the UK is different from the USA because of size and economy,ie you can commute from Doncaster to London by train but cant work in Tampa and live in Melborne, same distance.
Moral: Leave the equity in your house unless you are absolutely desperate and then, only borrow the minimum amount you need.
Most people are not in a position to do that with job transfers and the ever changing life styles, have you noticed how most people have newer cars go out to eat a couple of times a week we have breed a want more society.
Talking to an estate agent friend of mine, he says that the agents encourage price increases, so that they can make more money.
Sounds like hes in the wrong job, I would rather sell 10 houses for say 50,000
then 1 house for 60,000 which is what would happen, he needs to remember that the general public are not stupid and will always go for the best deal.
Property investment is definatly the way to go if you want to make a nice amount of money and is way ahead of the stock market. House prices have increased by over 14% in Florida on an annual basis for the last 4 years and the report I read for the UK was 12% a year for the last 10 years with 25-60% for the last 2 years. If you bought a house for 45,000 5yrs ago you would be selling it for 72,000 today a profit of 27,000 the stock market and bond market was averaging 13% over the same period which would give you about 8,000 in profit.
Dont forget you dont need the whole amount to buy a house so if you look at a 67,000 house and you put down say 5% 3350, pay a mortage for a couple of years by renting it out then sell for a profit, these arn't property tycoons they are your average joe.
Well Bazf, we are going to have to agree to disagree on this one. I don't doubt your knowledge, as you say it is your area of work, but, raging inflation on house prices which are not accompanied by substantial increases in wages spells trouble. If I'm earning $50K per annum and purchase a $150K house which in four years appreciates to $250K, then the number of people who can afford to buy my house goes down if wages do not increase. This causes the market to become slow and that causes house prices to drop. I am aware that this is not the only factor involved and that there are regional influences, but it contributes very highly to the problem.
You say people are not in a position to borrow minimal amounts on their houses because we have bred a "want more" society. My answer is, that they should curb their "want more" until they can afford it. So, in fact, they ARE in a position to do it providing they do not live beyond their means. It's all a matter of self-disciplin. As Mr. Macawber said, "Annual income one pound, annual expenditure one pound and six pence, result misery. Annual income one pound, annual expenditure nineteen shillings and six pence, result happiness." I'm sure you know your Mr. Dickens just as well as, if not better than, I do.
You say people are not in a position to borrow minimal amounts on their houses because we have bred a "want more" society. My answer is, that they should curb their "want more" until they can afford it. So, in fact, they ARE in a position to do it providing they do not live beyond their means. It's all a matter of self-disciplin. As Mr. Macawber said, "Annual income one pound, annual expenditure one pound and six pence, result misery. Annual income one pound, annual expenditure nineteen shillings and six pence, result happiness." I'm sure you know your Mr. Dickens just as well as, if not better than, I do.
People are often not able to borrow minimal amounts on their property because building societies/banks will not lend minimal amounts.
I wanted to transfer my mortgage to another company because the one I'm with at present has a higher interest rate than most. This repayment mortgage has been decreasing over the years and now there isn't enough of it for any other company to even consider.
If people are encouraged to borrow more than they would originally have asked for doesn't this also contribute to silly asking prices for houses?
I wanted to transfer my mortgage to another company because the one I'm with at present has a higher interest rate than most. This repayment mortgage has been decreasing over the years and now there isn't enough of it for any other company to even consider.
If people are encouraged to borrow more than they would originally have asked for doesn't this also contribute to silly asking prices for houses?
WTW,
We were really talking about people taking the equity out of their property because they feel "rich" due to the appreciation that has been happening over the past 3 years or so. You were obviously just trying to transfer the amount you owed to a different lender in order to secure a lower interest rate. It is also pretty obvious that you are a good credit risk as the company to which you applied wanted to lend you more than you asked for. Of course, there often are minimum limits to people taking out a first mortgage, which re-financing really is, you're just swapping one first mortgage for another. We were really discussing 2nd. mortgages or home equity lines of credit.
What people need to remember when digging into their equity is that, generally, the whole housing market is appreciating and that when the time comes for them to upsize; the equity they have in the house they are selling will be needed to put down a bigger deposit on a far more expensive house. All I am really trying to say is that the equity in your house should be left where it is except in cases of emergency. I do, of course, realise that not everyone is blessed enough to be able to do this, like people being made redundant and things like that. However, irresponsible frittering, like taking out a few grand to go on a world cruise, should be avoided. IMHO.
We were really talking about people taking the equity out of their property because they feel "rich" due to the appreciation that has been happening over the past 3 years or so. You were obviously just trying to transfer the amount you owed to a different lender in order to secure a lower interest rate. It is also pretty obvious that you are a good credit risk as the company to which you applied wanted to lend you more than you asked for. Of course, there often are minimum limits to people taking out a first mortgage, which re-financing really is, you're just swapping one first mortgage for another. We were really discussing 2nd. mortgages or home equity lines of credit.
What people need to remember when digging into their equity is that, generally, the whole housing market is appreciating and that when the time comes for them to upsize; the equity they have in the house they are selling will be needed to put down a bigger deposit on a far more expensive house. All I am really trying to say is that the equity in your house should be left where it is except in cases of emergency. I do, of course, realise that not everyone is blessed enough to be able to do this, like people being made redundant and things like that. However, irresponsible frittering, like taking out a few grand to go on a world cruise, should be avoided. IMHO.
The prices of houses in Accrington are nearly doubled!!! I live in Baxenden my family bought a new house 5 and a half yrs ago and we have decorated it and put a conservatory on it. Now the price of the house has tripled!!!!
If you are fortunate enough to own a house and think you are rich because you have seen a 50% rise in its value, think again! Mathewm MAY have bought his house for say £60.000 and it MAY be worth £120.000 now, but if he sells, what can he buy? Another house in the same street which has also gone up in value?
In the south, we have lived with this problem for a number of years. I have 4 adult daughters and only one has been able to purchase! (A 2 bed terraced cottage and their mortgage is massive) The other three are renting at an average cost of £550-00 per month! If you search around, you may find a bedsit for around £80.000 or an ex council 3 bed house on an estate for £150.000
Unless the market crashes, Accie people will be facing a similar fate in a few years time along with the rest of the country! My message to all you teenagers out there is to do your research and find out what is happening to the rest of the country especially the south.
Wages WILL go up, but nowhere near fast enough to compensate for increased house prices!
I believe it was Willow that said they had gone into estate agents to be told that the cheaper houses were being bought up by investors, I found the same thing. I was looking for a cheap house to buy when I came up north and was advised to camp outside the estate agents office (tongue in cheek) as everything under £35.000 was being snapped up by the proffesionals sometimes before the house went in their window!
I decided to rent and friends down south find it unbelievable that I can rent a lovely house for well under £300-00 per month!!
I have been told that in most european countries, it is rare to purchase a house and renting is the norm....... can any one confirm that?
In the south, we have lived with this problem for a number of years. I have 4 adult daughters and only one has been able to purchase! (A 2 bed terraced cottage and their mortgage is massive) The other three are renting at an average cost of £550-00 per month! If you search around, you may find a bedsit for around £80.000 or an ex council 3 bed house on an estate for £150.000
Unless the market crashes, Accie people will be facing a similar fate in a few years time along with the rest of the country! My message to all you teenagers out there is to do your research and find out what is happening to the rest of the country especially the south.
Wages WILL go up, but nowhere near fast enough to compensate for increased house prices!
I believe it was Willow that said they had gone into estate agents to be told that the cheaper houses were being bought up by investors, I found the same thing. I was looking for a cheap house to buy when I came up north and was advised to camp outside the estate agents office (tongue in cheek) as everything under £35.000 was being snapped up by the proffesionals sometimes before the house went in their window!
I decided to rent and friends down south find it unbelievable that I can rent a lovely house for well under £300-00 per month!!
I have been told that in most european countries, it is rare to purchase a house and renting is the norm....... can any one confirm that?