House prices dropped again in July

[OlympicRelay]

I was just watching day break, its not looking good. There was a couple interviewed in the Midlands, with a lively home, they can't sell, its been on the market for two years despite a £50k drop in sale price.

The expert said the problem is vendors have a block on what they will accept in this falling market and they aren't realistic about the true value of their homes.

I am looking at the moment and I have found the same issue very low offers on my home and over priced houses to view. You just have to suck it up like I did.

Nieve question here, how does renting work? Six month contract, Months rent in advance, months rent deposit? Do you pay advertised price? Do they do references?

Yes I usually do 6 months but have stayed longer. They do references unless you pay the whole lot up front.

We struggled to buy our first house 2004, the sold in 2007 for £5k
More than we bought for, we had done work had all fitted blinds, nice flooring/carpets, left all
Black out curtains (all
Next) had extension to patio, left shed etc... So basically it didn't cover what we had spent it was new build so we also had to turf and fence! Lighting fitted etc...

It would have been nice to have made a profit but I look
At it as in it
Would have been dead money if I was renting!!! I think there are loads of greedy people out there partly it is if you have got say a
Mortgage for £250k and go to sell say through no fault of your own say you split up, and you only get offered £220k say your going to be frustrated....and annoyed as you then with half of you cant buy again a lot of people are trapped!

Back to the banks again for lending to get out of control! And greedy people.........

The govt essentially created this bubble to disguise the failure to establish a broad base economy,we masked all the failings in growth in infrastructure etc with debt and asset bubbles. It should have corrected in 2005 but labour wouldn't let it and kept the show on the road. People are always surprised I hope for falls considering what I do but if you have design skills you can always make a living and don't rely on a rising market.It needs to have some sort of relation to salaries and it just doesn't. Young people/graduates are paying extortionate rents to landlords and can't afford a bloody deposit. I hope this time they let it go.

Good news for me if values are down

We are currently renting & waiting for prices to drop before we buy. And I feel pretty confident they will.

I live in an area where property costs about 15-20 times the national average wage & is unaffordable unless you have a six-figure-salary.

Only if prices come down can we realistically buy

I wonder if in the Autumn and governments are back, if the Euro issue will be dealt with, its dragged and dragged so long, I dont know how.

Crumbs this thread makes for depressing reading, but I will heap on some more potential gloom. I had thought that most of the euro problems had come to the fore already, but apparently the sleight of hand financial products that were used to massage individual countries' accounts had a 15 year life. So that suggests that more nasties will be due early in 2014.

I don't know about anyone else's reaction to all this gloom but we going all out on reducing our mortgage - there's no point having money in savings and if we own your own house outright we can't get booted out if something happens to our income! Well that is our theory anyway! Anyone else got any disaster plans they would care to share??

Noddy - I always think you talk an awful lot of sense on these threads and also in S&B my two favourite subjects

Mrs C what else is there?

True Noddy, true

Same plan here tricot. I looked into upping the mortgage on my rental house which has about 80% equity in it and reducing this mortgage, but taking it to 50% equity was going to up the monthly payments by hundreds of pounds - far higher than the rent .

So now we plan to overpay like mad on this mortgage. First priority with any spare income is going into bringing this mortgage down.

Which part of the country are you in olympic?

I agree that no-one is shifting on price here (Midlands)- it's just stupid, houses are on the market 1, 2 years now, not budging on price

It is all so very frustrating. Our house has been on the market for a year. We would love to sell. It was on at same price as we bought it for in 2006 (we had to gut it) but we have dropped the price. We would be happy to take less than we bought it for as we still have equity in it and this would release it but there are no buyers around here and so many people in our position that those who do come on the market can pick and choose.

Interest rates are low , with the BOE, but mortgage companies are hiking them up regardless. Our mortgage has increased £80 per month since April and will go up again in September. The only good deals available on mortgages are for those people who have at least 25% equity.

We are now saving like mad and are hoping that we will be able to buy somewhere in Jan and rent our current property out.

Jenbird, the house you buy will be cheaper too, house prices will not likely go up, I would sell now if i were you. With a tripple dip recession, unemployment isn't going to improve, there are euro issues with Spain and Italy immenent, Ireland, Greece, Portugal etc may have future problems, I can't see the euro crisis getting better soon.

Us are doing nothing to help economy. Bank of England doing nothing.

So later today, we find out what Europe will do.

What can the bank of england do? We have record low IRs and they keep on printing but the reality is the economy is in reverse and it will find its bottom. They have done everything but nothing has worked as the last years have been financed on cheap credit but with no real growth just fantasy growth in terms of an asset bubble. People bought 'stuff' with the equity they had 'on paper' in their houses

The only thing the ECB will do is try and buy bonds from European Govts that are already bust.

Seems the ECB haven't delivered? no new plans unveiled plus UK doesn't act so markets fall. A mess for sure.

My ds does twitter and knows I am interested in economics and he just showed me a tweet from some economist saying that the Euro is already dead and they are merely arguing over who is going to pay for the funeral.

No the ECB did not deliver anything today but Draghi made it clear he intended to act and he did have a plan. It is all about saving the Euro and buying Eurozone country debt though. Nothing to do with helping hard pressed home owners or getting economies growing again.

There is the time involved too. At least one parent and the DC have to be able to afford live without working for years to get to the very top. Again correlated with wealth.

This is more to do with wealth than private schools.

Wrong thread

I don't think they have a plan at all just kicking the can further down the road

Just had our property 'valued' at £120k. Paid £165k for it in 2005, putting 50k cash deposit down. Two agents have now said that realistically it would probably go for more like £100k. We still owe £96k on the mortgage. I'm not unrealistic or wanting to be greedy etc wanting to make sure that we actually do try to get £120k for it - it's to do with not wanting to physically lose £50k!!! That's a hell of a lot of money over 7 years in addition to all our mortgage payments! (it's a hell of a lot of money whichever way you look at it, but I mean it's not just a figure on paper) If we manage to sell and pay off our mortgage, we will then be in no position to re-buy another house because we won't have a deposit. We feel in total limbo.

Do you have to move blue moon? In your case I'd keep the house, rent it, and rent where you need to be. It doesn't make sense to throw away that much money.