Property crash?

The main people I feel sorry for is those who have just bought a house. If the market crashes these people will have negative equality in their house and will be trapped.

However there needs to be a crash otherwise this country will no longer be economicaly viable. It will go back to the old days when only the rich owned property and the poor rented of the rich. This really cannot happen and the government should get though on property developers and buy to rent people.

 

Data... you've still not answered my question about why legislation should exist to prevent me from buying a house?

 

for the good of the majority , we all have to sacrifice

it was a proposal, PERHAPS being the operative word, apart from property investors, profiteers, young types wanting to move out, desperate for freedom and all that, is partly responsible for pushing prices up, the shortage of housing deems it necessary if we care about this sort of thing that you have to address the problem, and one way is limit age of ownership.

Its a principle thing, it doesn't seem right that a young 18 year old has their own plot just to boast and feel good about it, when a decent 40 yr old type doesn't.

 

Why?
This sounds like reactionary arse...
What I do for a living is buy really knacked houses, usually terraces in reasonably affordable areas, do them up to a standard that's probably as good as the best house in the area then sell at whatever the norm for the area is. That means better quality property available for a similar price to what's already there, which encourages folks to make their houses a bit nicer, which then benefits everyone in the area.
Seems like a win-win situation to me.. And more useful to yer average Joe than someone who does corporate IT!!!
But I do think that property prices in desirable places will drop off as they had teh biggest rises in the first place.. Folks will just buy a place in the area next door that's been done up by someone like me for considerably less money.

 

That just sounds like justification for profiteering, its not reactionary, its carefully considered solution to parts of the problem.
Developers new homes go for a bomb, just cos they are new.

 

Guys, its a market. One of the things you shouldnt do is fcuk with the market by creating loads of rules to in an effort to help people, as usually the rules have the opposite effect of what you were intending.

the best thing to do to bring house prices down is to increase the supply side. simplifying planning rules and making it easier to build new houses would be a good start. Increasing interest rates would also do it by reducing demand, but that risks sending the economy into recession.

 

There does seem to be a premium for new houses.. Which I find very strange knowing that most large developments are seriously built down to a price, then charged at whatever stupid people will pay for them.. There seems to be a perception that newly built houses are better! The way I see it is the house I live in now is more than 300 years old - and it'll still be here long after your average modern estate has crumbled into dust..
I only do up old houses that are derelict and uninhabitable - then sell them at whatever the going rate for the area is - no premium for excess bling etc. I don't think that's profiteering - it's making a living for me and my Mrs, and helping to regenerate dodgy areas.
However, it would be a whole lot easier and more profitable for me to go down the new-build route.. At least I'd be able to claim my VAT back, which I can't at the moment (doing old but un-listed houses up is VAT exempt, as opposed to zero rated)

 

Data... that's hardly a problem now is it? Average earnings in the 19-24 year old group are less than £16k before tax for men. Not exactly able to afford a house I'd say. I earn significantly above that average, and I still can't afford it, even with some parental help on a deposit.

 

Get saving then boy!
I didn't buy my first house till I was 34, after saving for fecking years!!!
Though if I'd bought the house I was looking at in Maida Vale that was going for £40k I'd now have equity of £400k!!! Doh..

 

Get saving...

The government takes a very big chunk of my pay check before it sees the light of day.

Then the student loan company takes their bite (and let me point out that they take over 5% of my after-tax income, and will continue to do so for the next 8-10 years).

Then another big chunk goes on my pension (yes, I feel old, but with current climate on pensions, if I don't start now I'll be working until I'm 90).

Then by the time I've paid council tax, rent, bills, food, petrol, etc I end up with round about....

nothing.

 

Issac where did you get that stat?

 

http://www.statistics.gov.uk/downloads/theme_labour/NES2003_UK/NES2003_UK.pdf

My memory failed me. The stat was for the 21-24 age group.

Page 36, table UK4

edit: apologies also, it wasn't exclusive to men for that stat.

 

Whilst in the long run the house price trend is to go up, there will often be times where the curve flattens out or drops.
How long did it take for property to regain any lost value after the last crash? I'd guess it was 3-4 years for most places, at most.
I'm not holding off from buying somewhere because I begrudge paying so much money. Admittedly I would be bloody annoyed if I bought a place which then dropped in value by 20% in a year, because that would effectively cost me thousands over the next few years because of a bit of bad timing.
The thing that stops me buying is the fact that I just cannot afford to. Over the last two years house prices near me have risen faster than I actually earn money.
The government have fuelled this by killing pensions and because of the poor performance of the FTSE over the last 5 years. Property has been a very attractive investment for people who can raise a bit of money and poxy shows like Property Ladder just encourage them.
Wannabe property developers and landlords are likely to be targetting the same cheap houses as paupers like myself, but they usually have the benefit of lots more equity behind them. Raising an extra £10k is nothing to them, but is to me.
It's encouraging to see that more people are opting to stay with their parents than pay someone elses mortgage.
The rental market will always be in the minority in this country because of the englishmans home is his castle mentality. And I'm the same, I want a place I can knock about and get just how I want.
I don't think building lots more houses will really help, new ones are never cheaper than the old ones.
I'm resigned to saving hard for the next two to three years, hoping for a bit of promotion and for price rises to stop.
Of course an almighty crash will help no end!

 

I don't think house prices can be used as an excuse as to why you live with your parents at say 30 years old or what ever.

Sorry.

 

i agree with you,there is too much demand for a crash,full employment and a growing economy

i think they will slow to allow incomes to catch up,howver,some houses have valued far to high due to the stamp duty limit,so some areas will be affected more,imo

 

Why?

Why should you need an excuse?

Can you enlighten me as to whats so bad about it?

And if you are going to say its sad then I guess I am as well, right?

 

No Paul I never said or even implied that (Although you clearly have a chip about it)

What I meant was you can rent, you can joint rent etc etc, home living is a great temptation, but hardly real world, I almost bet your parents don't charge you 600+ to stay there.

 

I wouldnt say I have a chip about it, but I am a bit sick of defending myself to people about it. But yes, your right, they dont charge 600+ to live there, actually only 100, but if I had to pay 600+ then I really would have no life, and thats the point.

I would love my own place, but it aint gonna happen.

 

The trouble is Leonard, the market is skewed to the advantage of the developer. This is one main reason why you can't find a builder/plumber/etc in good areas - because they are all doing up property.

In theory, I could buy house A [needs work] for £50000 OR house B [perfect] for £100000. In practice, if I could buy house A [except some sodding developer bought it for cash before the for-sale sign went up] then I would spend, say, £30000 on it - except my £30000 includes 17.5% VAT, and your time/ costs are spent on your own [VAT registered] business asset, with tax offset costs at trade discounts. So I am at a massive disadvantage doing it up myself [if I could find something anyway], and you can pick and choose and charge a fortune for a sellers market. It shouldn't be like that.

As for house prices, they used to be included in the retail price index [and therefore caused rises in interest rates] - until Gordon Brown removed them???

 

well that' s clearly not right then Isaac, you have studied hard, and are earning a better than average wage and still can't afford anything half decent.
Not right, so outlaw multiple house ownings is one way to begin with.