Need answers so I can decide if we should sell ,, please help

[HarmOkne]

I have some questions I need answering

1. Are prices likely to return to 2006 prices by 2013?

1. Are rental prices likely to rise dramatically in the next 5 years or so

1. How much would the total cost of moving be roughly on a £170,000 house

1. Are the banks likely to start offering fixed rate deals to those with low equity in the near future

Would appreciate any advice on these questions

prices here have oddly gone up since end of last year. Probably won't last but means we sold [and bought] at lower price than would be right now. we are doing this house up and would like to stay put for a bit but worried about houses dropping dramatically.

the thing about renting is we rented a nice house for six months but the washing machine and dishwasher were always breaking down, the agency were not bothered about fixing them, the rent was extortionate, and we just felt very uncomfortable about every scratch on the wall coming off our deposit. For us it was miserable.

Sorrento you are really pissing people off.Owning your own home is expensive at times but many people do not over stretch themselves and enjoy having it.You are bitter it seems because you can't afford the type of house you want but you can afford a house with your deposit and salary but are waiting for your ideal so don't berate those who don't want to do that.

I would imagine that house prices are not going to return to 2006 prices for decades

Rental prices are likely to drop

If I was struggling now and only had 10% of the value of the house then I would sell as soon as I could rather than risk house prices falling another 50% and then losing everything

Ruty makes a good point about renting. It is not a happy or stable experience. When you buy you buy more than bricks and mortar. You buy peace of mind and stability for your family. You also but freedom to live in a house decorated as you please.

Sorrento - you know what? Most people have made ownership work for them. In the majority of cases people have made money from housing and most importantly have had stable, happy homes as a result of buying them. It takes some thought and careful balancing of risks but amazingly some of us "fluffy" headed things managed it. At times of downturn those that are really damaged are those that bought unwisely by overextending themselves or going for variable rate mortgages.

I am sorry that you are not one of that vast majority of "fluffy" things who made ownership work for you. With your extraordinary financial acumen it is really quite odd that you are in the position that you are.

(What's wrong with Sorrento's posts?)

i thought they were falling to 2002 prices. The 50% drop is worrying me, what is the evidence that this is likely [genuine question]

no 'evidence' just the theory that the average price of a house is generally / historically 3 x male salary, and has gone up to 6/7 times male salary, so probably needs to reduce to return house prices to their 'true' value

Some of her points are valid but she is so rude and has a tone of superiority far outweighing her actual knowledge and advice.No one is interested in her presentation of 'facts' no matter what she says the hosing market will continue maybe at lower levels and prices but an englishmans home is his castle is still the order of teh day for most people

it is a bti rude to say that she is rude and then say no one is interested in her posts in the same breath!

it is just that if that is true, our house would drop to a price well below the price it was sold for when first built 9 years ago. If that happened, so many people would lose so much money, and houses would get snapped up by landlords again and the whole cycle would begin again. I'm not saying it won't happen but if it did everything would pretty much turn to shit!

I've noticed people trying to hammer home prophecies of doom on various websites that I read and have come to the conclusion it is actually a deliberate tactic to try to hasten the speed at which properties go down.

Not that I disagree for one minute about prices going lower and people overextending themselves etc, but I'm fairly certain that a lot of the more provocative posts on forums are made to be deliberately so and cause even greater widespread anxiety about the state of the market and make deposits in the bank stretch that bit further based.

I don't see why it would be in anyone's interest to crash the market - or why 'the market' would be remotely interested in the ramblings of inane bloggers

I DO think that those of us who have been involved in the housing market for the last 20 or 30 years think that the current situation is going to go tits up and that once average house value goes over around 3x earnings then it is a really silly and meaningless concept

Maybe a taste of her own.Most people are asking for more down to earth shall I shan't I advice i think!I do think most people want to own their own homes and are undeterred by current conditions.If the money hadn't dried up people would have just kept going.I am not saying I agree or its right but it seems to be a fact in the UK

people believed the likes of kirsty effing poutyface and the estate agent porn in Sunday papers, that is the problem. A whole industry was built up around it and the banks enabled the whole thing to go sky high.

My advice to the OP stands.
Noddy I also think you're bitter the party is over for you now isn't ?
What's wrong in trying to help people who've had ten years of this paint your walls magnolia and add £10k to the asking price, but of course that mean your next house up the ladder will do the same and nobody wins except gordon brown in stamp duty and the banks in interest, see through this rubbish and start looking at houses for what they are ?

do you have an inklings noddy? Do you think a 50% drop is likely?

No the party was over years ago.I was working before the boom and making a good living in interiors the house boom took me in a different direction for a few years.A good eveloper can always re do a house and make a good living the last 10 yrs have been exceptional

Artichokes we are in the position we are in because my DH was too nice to the ex wife, had I known him then he would not have given her a house despite having no children with her, but then I guess something like being rid of the witch you can't put a price on.

Ruty I do think it depends where you are there are so many factors.I had assumed that all areas would fall equally eventually but that doesn't seem to be the case.i was convinced last year that this year would be dreadful but I was looking at houses with my parents and tehy were all selling!I would say a return to 3x salary is very unlikely although it would be great.40% off peak for new builds ex local authority etc and perhaps more like down 30% otherwise.Schools transport and general desirabilty affect everything.In my area it was schools and so I stuck with that but as soon as the lottery system was implemeted sales here slowed and prices stagnated and fell.However within 2 weeks of Ed Balls saying he wanted to scrap it 9 houses sold in teh immediate vicinty of ds school and so that shocked me and made me think of selling up.

Sorrento i have never used magnolia in my life and wouldn't get out of bed for 10k

fours views from the Telegraph

here in my part of Oxford things are so expensive and have traditionally been so I just don't know if prices will drop enough to make it worth our while for all the upheaval of moving and selling again. In a very good catchment area too. Difficult.

Prices could well just stick for years and years with less desirable properties and flats being more flexi on price and those at the top just stagnating.That seems to be the case in Brighton

Noddy always seems to be spot on IMO, for what its worth.

And i agree that although Sorrento is not necessarily wrong, she does always seem to be the voice of doom and gloom on these threads. AlthoughI would add everybodys input is needed to have a balanced debate.

Our house is on the market and I agree with Noddy, sell before summer (June at the very latest) or stay put and wait.