Reply to: Is now the right time to buy a house?

[moggy]

House prices collapsed in 1992, yet the tories were re-elected.

they were up against neil kinnock and he seemed to snatch defeat from a certain victory - much the same as DC.

[KentPhilip]

As the government would be thrown out if house prices collapsed, you can bet your last pound they'll not be allowed to drop in value, if not in real terms.

House prices collapsed in 1992, yet the tories were re-elected.

[Sysman]

But that said, id put up with it another year if I thought it would save me £50k. Like someone said I have made the decision I wanna get out, the question is when the best timing is.

You could easilay find that in 2 years time there's nothing on the market that takes your fancy.

Or that your current area deteriorates so you get less for your current place.

[Mich the Tester]

As the government would be thrown out if house prices collapsed, you can bet your last pound they'll not be allowed to drop in value, if not in real terms. Economy would be shafted if house prices dropped 30% as a lot of plebs would be in negative equity and I believe lots would walk. Imagine the storm if house prices went down 30% and interest base rate up to 5%. Big issues for the economy and for bank.

However, it is a curiously english thing to look at making money on houses. If it is going to be a detached game changer, e.g. family home that you'll stay in for years, just buy it, put your head down for 10 years and pay it off.

That or as someone else said. Get a lovely house/flat in a lovely area, get it paid off and disappear to somewhere cheap, like Laos, Cambodia and enjoy life.

Tonga Real Estate

[OwlHoot]

.. I have no knowledge of such matters, but it might surprise you to learn that I do have an opinion.

won't

Come on, this is CUK after all

[Sysman]

Im not thinking of it as an investment, more as a financial commitment that might take a lot less money to pay off had I waited a bit longer. You know?

If you took that approach to computers you'd never buy one.

[Old Hack]

As the government would be thrown out if house prices collapsed, you can bet your last pound they'll not be allowed to drop in value, if not in real terms. Economy would be shafted if house prices dropped 30% as a lot of plebs would be in negative equity and I believe lots would walk. Imagine the storm if house prices went down 30% and interest base rate up to 5%. Big issues for the economy and for bank.

However, it is a curiously english thing to look at making money on houses. If it is going to be a detached game changer, e.g. family home that you'll stay in for years, just buy it, put your head down for 10 years and pay it off.

That or as someone else said. Get a lovely house/flat in a lovely area, get it paid off and disappear to somewhere cheap, like Laos, Cambodia and enjoy life.

[NorthWestPerm2Contr]

Its a great idea, and I was thinking Spain for my ultimate escape.

I already live in a flat, and Im totally sick of it. Students, unemployed tossers, immigrants with kids are my neighbours. I want somewhere detached, where I can have my surround sound system on full without disturbing anyone and equally not be disturbed by anyone else.

But that said, id put up with it another year if I thought it would save me £50k. Like someone said I have made the decision I wanna get out, the question is when the best timing is.

If you found the right house and have the money then do it.

[escapeUK]

Not a bad idea.

Its a great idea, and I was thinking Spain for my ultimate escape.

I already live in a flat, and Im totally sick of it. Students, unemployed tossers, immigrants with kids are my neighbours. I want somewhere detached, where I can have my surround sound system on full without disturbing anyone and equally not be disturbed by anyone else.

But that said, id put up with it another year if I thought it would save me £50k. Like someone said I have made the decision I wanna get out, the question is when the best timing is.

[NorthWestPerm2Contr]

If you've got a massive deposit, why not just settle for some modest house/flat and spend a few years paying off the rest? Once you've paid it off you won't need to work full time; you can go into semi-retirement or even buy some little house in a village in Portugal or somewhere in Latin America and take it easy. Or you find that in 10 years time house prices are next to nothing as the baby boomers die off and there's less demand for houses, you owe next to nothing and you can buy whatever house you choose.

Not a bad idea.

[moggy]

Ive been doing the same, which Is why I have a massive deposit and if I carried on contracting and saving could pay the rest off in 4 years. I could still do it on permie wages, but it would be akin to a 25 year mortgage.

This house needs nothing at all doing, they must have spent a fortune on it tbh.

sounds like you have already decided. Just buy it and enjoy it.

[Mich the Tester]

Ive been doing the same, which Is why I have a massive deposit and if I carried on contracting and saving could pay the rest off in 4 years. I could still do it on permie wages, but it would be akin to a 25 year mortgage.

This house needs nothing at all doing, they must have spent a fortune on it tbh.

If you've got a massive deposit, why not just settle for some modest house/flat and spend a few years paying off the rest? Once you've paid it off you won't need to work full time; you can go into semi-retirement or even buy some little house in a village in Portugal or somewhere in Latin America and take it easy. Or you find that in 10 years time house prices are next to nothing as the baby boomers die off and there's less demand for houses, you owe next to nothing and you can buy whatever house you choose.

[alreadypacked]

I know what you are saying, but think if I had thought that two years ago. Id now be paying back £100k more than I had to if I had waited till today.

Do you honestly think this is the bottom?

It depends on the area, go back 15 years and do the 6% compounded and see what price that gives you. Is a house a bargin if it was over priced to start with. What if it was over priced by 130k you would still be paying 30K too much.

[escapeUK]

I have been contracting for a few years not spending much, (ok been really tight) bought for cash, house need some work, but I can do that when I have the money.

If you can't repay the loan with permie wages, I would not do it. Save until then.

HTH

Ive been doing the same, which Is why I have a massive deposit and if I carried on contracting and saving could pay the rest off in 4 years. I could still do it on permie wages, but it would be akin to a 25 year mortgage.

This house needs nothing at all doing, they must have spent a fortune on it tbh.

[NorthWestPerm2Contr]

I know what you are saying, but think if I had thought that two years ago. Id now be paying back £100k more than I had to if I had waited till today.

Do you honestly think this is the bottom?

Well it is definitely nowhere near the top especially when you take inflation into account. Mortgages are tough to get these days and I missed out on an awesome deal (northern rock) cos I waited a few months longer.