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Property/DIY

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Original poster

anyone heard that minor crash in house prices is on the cards...

40 replies

mum2sam · 26/04/2007 10:44

just about to exchange contracts on a house and having second thoughts. O/h is in the forces and we are living in m/q's at the moment and im really settled here. But o/h wants us to buy our own place as hes due to come out next year but now ive heard a rumour about a minor crash on the cards anyone else hear this? And does anyone know the site where you can look at the trends in your area.

OP posts:

mynoduesp · 26/04/2007 10:46

I don't know. I haven't heard this and i am thinking of buying soon

MissGolightly · 26/04/2007 10:49

Well some experts have been saying that if the bank of England raises rates again then growth will slow down because mortgage deals will be less attractive. But they've said that before and it hasn't happened so I'm sceptical.

the bbc has a house price index

littlelapin · 26/04/2007 10:50

This reply has been deleted

Message withdrawn at poster's request.

PrincessPeaHead · 26/04/2007 10:50

well there is a bit of a correction going on in the us.
I thinmk if you find a house you like at a price you can afford even if rates go up to say 6%, then buy it. always a good investment in the long term even if there is a wobble for a couple of years

Original poster

mum2sam · 26/04/2007 10:51

it would just be my sodding look-ive looking on rightmove and i know there are very few properties coming on the market in my area suitable for first time buyers.

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2cheekymonkeys · 26/04/2007 10:54

There's been constant talk of a crash for years and prices are still rocketing. But I'd be a bit wary now interest rates are going up and are likely to rise further. Is the house you're about to buy your dream house? If not I'd be tempted to wait till next year and see what happens (but then you could find yourself having to pay more for a similar house if prices continue to rise).

MissGolightly · 26/04/2007 10:54

here is an article on the BBC about whether a crash is on the cards

I agree with PPH, I think housing is always a good long term investment.

2cheekymonkeys · 26/04/2007 10:56

A lot depends on whether you might have to sell up and move within a few years of buying. If not then it doesn't matter if there's a crash because you won't have to move.

Original poster

mum2sam · 26/04/2007 10:57

hiya littlepin i can sympathise with the magnolia lol. We are pretty much at the signing contract stage but o/h has just found out he has a 7mth deployment 3 wks after we would move in -whcih makes me not want to move. I like the house we are living in now as i know all my neighbours etc if i could buy it i would. But hubby wants to come out next year-so we need to start planning ahead.And now ive heard this rumour-id hate to pass up on this house and struggle to find something in our price range later but i dont want to buy it and move away from all i know only for the market to crash. God i need a crystal ball

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NotQuiteCockney · 26/04/2007 10:59

The US market is very different, though. They have a lot more land, and can always build more houses (they are always building more houses).

Some Americans have a bias against 'used' houses.

Original poster

mum2sam · 26/04/2007 10:59

its def not my dream house in my my dream area but its all we can afford and dh is on a bloody good wage in this town-its because we live devon.

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LIZS · 26/04/2007 11:01

Not that I've heard . Interest rates might rise again though causing it to slow but trend still upwards. Also where demand , such as you suggest with little locally for first time buyers may outstrip supply prices will always be higher and achieve close to asking price. Could you buy anyway and rent it out short term ?

Original poster

mum2sam · 26/04/2007 11:02

i dont undersatnd why the government dont just build more cheap houses like they did post war and rent them out instead of this bloody crappy shared ownership scheme.I dont even want to buy its only because renting privately is so expensive you just as well buy. We should be given a choice.

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foxinsocks · 26/04/2007 11:03

there's still not enough supply to meet the demand at the moment - with these sorts of decision, I'm afraid you have to do what is right for your family rather than trying to second guess the future market. That way madness lies!

vimfuego · 26/04/2007 11:03

This crash has been "just around the corner" for about ten years now has it not?

vimfuego · 26/04/2007 11:03

Not saying it won't happen, just that the experts seem a bit pants at predicting when.

expatinscotland · 26/04/2007 11:03

It's a load of bolleaux.

It isn't going to crash.

Original poster

mum2sam · 26/04/2007 11:04

we need to take a differnet morgage out. Our monthly repayments on house of £107k is £580 pcm its not even a brick house its a post war steel framed house-it will prob fall down in a few years knowing my luck.

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vimfuego · 26/04/2007 11:05

In fact I saw on the telly about a couple who sold out and have been renting since 2000 because they predicted an imminent crash. Still waiting.

NKF · 26/04/2007 11:05

Guessing what might happen to house prices is a British pastime. You can protect yourself (a bit) by not overborrowing and fixing the mortgage rate. Good luck.

Original poster

mum2sam · 26/04/2007 11:09

we have fixed it for 5 years until the kids are at school etc and i can then go out to work.

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LIZS · 26/04/2007 11:28

Bear in mind that if you don't go ahead now that fixed rate offer will disapppear and it will cost you relatively more if you decide to later on. However if you are n't committed to that house or the idea of buying then don't go ahead for the sake of it.

MissGolightly · 26/04/2007 18:51

Sounds to me like your second thoughts are really more about the house than the state of the market...? Do you think if you were moving into your dream house you would still be worrying?

Original poster

mum2sam · 26/04/2007 20:46

prob not but then again we cant afford our dream house-5 years ago maybe.

OP posts:

BecauseImWorthIt · 26/04/2007 23:08

Whether or not a crash is round the corner, interest rates are almost certain to go up very soon. Many (most?) of the mortgage lenders are withdrawing fixed rate mortgages, so be prepared for this. Make sure that you can afford the mortgage and that you can cope with rises in the next few years.

But definitely agree that property is a good investment - in the long term.

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