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House Prices

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    House Prices



    If that trend continues then properties will end the year around 13% more expensive than they started.

    Where's the crash?

    #2
    Originally posted by DimPrawn


    If that trend continues then properties will end the year around 13% more expensive than they started.

    Where's the crash?
    there is a high probability that sterling interest rates will have to rise in the medium term.

    Higher rates could a 'tipping point' and precipitate a major downturn in the property market.

    Comment


      #3
      Originally posted by eternalnomad
      there is a high probability that sterling interest rates will have to rise in the medium term.

      Higher rates could a 'tipping point' and precipitate a major downturn in the property market.
      so I shouldn't be looking to buy any time soon then?!

      hasn't a proces crash been predicted for years now and prices just keep going up? The only thing that has happened is a slight leveling out in some areas
      "Well behaved women rarely make history"

      Comment


        #4
        Originally posted by janey
        so I shouldn't be looking to buy any time soon then?!

        hasn't a proces crash been predicted for years now and prices just keep going up? The only thing that has happened is a slight leveling out in some areas

        Janey,

        you have to do what you feel is right in your own personal circumstances.

        For some people, buying even at these stupid prices could make some sense.

        Just make sure you gather as many facts about the market and the economy as you can before signing that contract to buy.

        Our own house is up for sale, if it ever sells (not a single "sniff" in 4 months) then we will move into rented property rather than buy on the grounds I know I can rent a property cheaper than the cost of the equivalent interest only mortgage.....and an interest only mortgage is just like paying rent to a bank.

        Comment


          #5
          Originally posted by eternalnomad
          Janey,

          you have to do what you feel is right in your own personal circumstances.

          For some people, buying even at these stupid prices could make some sense.

          Just make sure you gather as many facts about the market and the economy as you can before signing that contract to buy.

          Our own house is up for sale, if it ever sells (not a single "sniff" in 4 months) then we will move into rented property rather than buy on the grounds I know I can rent a property cheaper than the cost of the equivalent interest only mortgage.....and an interest only mortgage is just like paying rent to a bank.
          thanks for the advice, it's only a background thought at the moment. I'm thinking that in 6 montsh time MAYBE I'll consider it but my concern with cardiff is that there is SO much building work going on that I'm worried that the market is (or may become) somewhat saturated
          "Well behaved women rarely make history"

          Comment


            #6
            Originally posted by eternalnomad
            .....and an interest only mortgage is just like paying rent to a bank.
            With the difference that after 25 years you net the gain from the house minus the expenses, while with renting you are off on the street with nothing in your pockets. Unless the price in 25 years will be lower than now, but I kind of doubt that. Nevertheless, I think waiting 1-2 years could be a good option now perhaps, as in the short term and if interest rates rise then there might be a reduction in the prices.
            I've seen much of the rest of the world. It is brutal and cruel and dark, Rome is the light.

            Comment


              #7
              Originally posted by janey
              thanks for the advice, it's only a background thought at the moment. I'm thinking that in 6 montsh time MAYBE I'll consider it but my concern with cardiff is that there is SO much building work going on that I'm worried that the market is (or may become) somewhat saturated
              That is always a difficult one. In general there is little or no resale market until the development is completed. Buying off plan at initial development can reap great rewards, certainly in a rising market. It can also penalise you heavily in a stagnant or otherwsie flat market.

              However if you keep deferring whos knows where you will be. One reason to buy - even if you beleive prices are over inflated and due for a fall - is because rent is dead money. In order to gain out of falling prices they would have to fall at a faster rate than the rent you are paying.

              Market timing is notoriously difficult. For most people who need to buy a first property just do it when you can afford it is probably the best strategy. A second simultaneous property is a different matter. That is an investment. Your prime resident isn't.

              Comment


                #8
                residence
                We must strike at the lies that have spread like disease through our minds

                Comment


                  #9
                  In my opinion only buy if it really is something you want to live in.

                  If you want to make money buy an investment rag read it and stick your money in shares or bonds, then rent. GAZPROM, for example will probably give you stacks more than some overpriced home. GAZPROM has the same resources as BP but its current market value is an eighth. Now that's what I call an opportunity.

                  ...and as someone said above rent is dead money, but so are interest payments, only that tiny little bit that pays off the mortgage is invested. The other several hundred pounds go straight to the bank.

                  eg

                  Mortgage £600
                  approx £500 on interest and £100 in the house

                  or rent £500 and £100 in Gazprom

                  Now I know what I would choose.
                  Last edited by BlasterBates; 5 May 2006, 11:23.
                  I'm alright Jack

                  Comment


                    #10
                    Originally posted by Fleetwood
                    residence
                    cudnt by rsed too udit eet.

                    Comment

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