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[omegalord]

Whats your opinion?

My house will be sold in a month or 2 , and ill have 30k profit. Should i rebuy or wait a year or so( i can live somewhere pretty much rent free for a year or 2) and wait for the inevitable crash?

Do you think there will be a crash?


Matt :-/

[Danny]

too early to tell

however, £30k is VXR8 money  

[omegalord]

lol , and i can just imagine the response of the other half as i pull on the drive in a new car and a cashpoint receipt showing £0000.00 balance.

She would discover her ninja skills im sure of it!  

[M-Tek Performance]

i dont think it will happen.

besides, if you buy a house and want to live in it, then dont worry, an negative equity will soon pick it back up.

[amigov6]

 :)The "boom" ca'nt last forever but i don't see a huge price crash, whidh is a shame for 1st time buyers. We've had 5 interest rate rises in the last year but rates are still relatively low given what they were in the 70's & 80's so i'd crack on if i were you.
   I'm far from being a financial wizard but renewing my fixed rate repayment period this month, managed to secure a deal for 5yrs @ only £5 a month more so i'm happy with that.
     A few years ago lending rates dropped, people borrowed on mortgages, c/cards, loans etc but borrowing's slowed down because rising interest rates are upping repayments and although they did'nt go up this month i reckon they hav'nt finished yet.
      Please bear in mind i'm a truck driver not a financial advisor. I think i've got the basics covered but this is only my opinion based on my own circumstances.

[RonaldMcBurger]

The house prices are definitely on the brink of collapse. I for one look forward to it!

[Entwood]

Mmmm ...  we paid £13,900 for the house in 1978, £4200 for the first extension 1981, £8200 for the 2nd extension (included a "proper" tiled roof) 1988, £4000 for pointing, soffits/bargeboards/guttering 1995, £8500 for a complete gut/rebuild of kitchen 1998 and £11000 for complete replacement of all double glazing (11 windows 2 doors) 2006 ... I make that just under £50,000 in major works.....  

Mr McB ... will the "crash" be bad enough for me to worry about "negative equity" .... or should I ignore that as we haven't had a mortgage since 2003

 

[justme]

Who remembers Lamont.  Dont think that you will have any opportunity to protect yourself, because you will not  21% interest, in the time it took for him to utter those words, whole fortunes were lost. Who was one of his finacial advisors at the time, a certain Mr Cameron.
   This has been coming for a very long time Goverment borrowings are down so they will tell you, yet the IMF have been warning Brown for years about his accounting methods. Where do you think PFI money is accounted for. It is not 60Bn and rising. for Enron read Brown
    Where is the debt level of the country far in excess of the earnings of the whole country, can such a
    situation continue  :question

    Very big companys geting rid of thier land banks :question.
    Short and long term predictions for the stock market 5500 presently @ 6180
    Why do you think these multi national company offices have been flocking to the UK, relaxation of
    accounting rules huge tax loop holes. Many members of OOF will pay more in income tax this year
    than the likes of Branson / Sugar  and the new breed of football club owners. Non domicile residents.
    Who do you think are going to pay and/or suffer for it, certainly not the politicians. Who no dought will  
    ring thier hands as they do and disclaim any responsibility.
    Buy to let 35% of all new housing stock into this sector alone, tax loop hole allows them to offset
    interest against tax i.e. it cost's them nothing.
    In reality there really is no shortage of housing in this country.

    Think long and hard it is not coming it is already here.

    If it is not urgent to get another property, then it may very well be the time to sit back and watch
    awhile, property is certainly not going any higher.

[Jay w]

we have a £90,000 mortgage and a house recently valued at much more than that.......

I would imagine that there will be a bit of dropback on house prices, especially with the like of norther rock, how much of an effect it will have is something only time will tell.....

Listening to the money men in work they say the most we would lose on property is 10%-20% for some this could be too much

[CaptainZok]

I think a crash has got to come. Next door just sold for £93000, for a two up two down terraced house for gods sake. How the hell can a prospective first time buyer get onto the property ladder without selling a vital organ?
I think the time is close when the market drys up as the first time buyer who fuels the market is priced out of the game resulting in a price crash to restart the market.
The question is when will it happen, do I jump or not? Only you can decide as you are the one who has to live with the consequences.

[Baron Von Spongebob]

I think a crash has got to come. Next door just sold for £93000, for a two up two down terraced house for gods sake. How the hell can a prospective first time buyer get onto the property ladder without selling a vital organ?
I think the time is close when the market drys up as the first time buyer who fuels the market is priced out of the game resulting in a price crash to restart the market.
The question is when will it happen, do I jump or not? Only you can decide as you are the one who has to live with the consequences.

If i sold a vital organ i would be lucky to get a tent peg..

[Marks DTM Calib]

I can see the prices dipping but, not a crash.

There are still to few houses......and whilst demand out strips supply, they wont crash.

Now if there was to be (or when there is) a recession, that would be a different matter.....fortunatley 75% would have to come off the house prices for me to be in negative equity thank god!

[Nickbat]

The word "crash" is always being banded round by the media. It's insane. We are not talking about a true market as such, as people will always need somewhere to live and won’t sell just because they think the value of their property will go down. Moving house is a big deal and takes a huge amount of time and expense and involves many other considerations such as proximity to schools, place of employment etc. etc. In short, it’s not a very liquid market. Of course, there will be some who will want or need to sell, especially if they are having difficulty paying their mortgages, but the likely scenario is a drying up of sales, with the majority wanting to ride out the storm, so to speak. So, with fewer properties coming on to the market, the market will not nosedive as there simply won't be a huge volume of house trading going on. The basic demand will still be there, though as UK average earnings will likely stay at their current level. There might be a few estate agents going to the wall though. Shame!  

So, yes, I think there will be a market correction but, long term, "bricks and mortar" will always be a good investment. If I was in the market to buy a new house, I would hold off, not only for slightly lower prices, but also because mortgage interest rates will go up and, for the time being, getting a mortgage will be harder, as the earnings multiples will be reduced.

Warning: I am not a financial adviser. These are just my own thoughts!

[Martin_1962]

My mortgage = 40% of value of house