House price drops

[miffy]

I'm really glad that i've never had to have a mortgage.

I live in an ex council property and as we have lived here for more years than i care to remember so we got full discount on it. We bought it outright about 5 years ago. When the prices hit rock bottom i hope to buy a bigger property and rent this one out. Just gotta wait nad see how things go with the house prices

[al4x]

Interesting one this, from my perspective I've a 10x mortgage but mine is a renovation property in a good location in the South East. I knew the house was a steal and did everything to get it and thats without going self cert and crucially without tying into a fixed rate that would have come back to bite me. For mine to go back below what I paid it would have to roughly drop 50% in its finished state. At the moment I'm just starting the building work and in a way its a good time not to be moving. I'm fine at the moment and have enough in reserves to handle a doubling of interest rate if I had to. Also having my own business at least I know I won't be made redundant. In my area the government has stated we need another 250,000 homes which aren't going to be built at the moment due to all the major house builders being in trouble. So if we enter a supposed time with demand far outstripping supply then prices can't drop too far.

 

The UK banking industry hasn't suffered much at home its all been losses abroad they have had a shock but some have undoubtably managed to up their rates to try and claw back some money from the domestic market. That said rates are falling and it does look like they are starting to look for new business. Funnily enough round us the houses that seem to be selling are the larger ones so I guess to people that don't need mortgages.

[Highlander]

House price falls basically affect only one type of person; those with a great big mortage! If you're not on the ladder then a fall can only be a good thing and if you are on the ladder with a good bit of equity then what's the problem, if you wish to sell there may be a shortage of buyers but whatever you want/need to buy will also be cheaper. What goes around comes around.

 

We talk too much about the price of houses etc and also about recession...a recession is what happened in the 1930's we're just going through a little slow down which is all part of the ups and downs of lifes rich tapestry. Enjoy! and remember the only people who've no problems at all are all in the graveyards!

Edited August 19, 2008 by Highlander