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The great house price crash 2005. Is on BBC 2 NOW!
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sparkyspost said:How can they make money on property if everyone is driving the prices up?
(Just a bit of conspiracy theory there - sorry)
As long as you can afford your mortgage and don't want to move in the next few (5-10) years, then I would say you are better off with property than cash in the bank (or under your bed - mark t. )
Now that we've bought and am basically in negative equity, we are definately not looking to sell up in the near future. It will take drastic changes in personal life, or interest rates to force this! Interest rates of 15% anyone?
Sparky.
glojo said:After 12 months of standing empty two properties in the next Avenue have finally sold within months of each other, both sold for £1.25million each!
http://www.johncouch.co.uk/main.php?do=propdetail&pid=514&cat=5
(Ridiculously overpriced, on the side of a very steep hill) If houses like these are selling then hopefully there is movement all the way through the market. For houses at the top of the market to sell, you need houses at the lower end of the market to move.
I just wonder if the people spreading the rumours actually want prices to drop?
At the beginning of last week building societies were saying how property was starting to sell again! We have just got over the annual Christmas slack period, so I would have thought sales would have been fairly static and now they are starting to move.
It is understandable to be concerned if you have a large mortgage and very tight budget. We do however quite frequently get bombarded with this type of rumour spreading.
Regards,
John
Sp!ke said:I'd like a crash right now - Currently I own one house outright that I rent out. Meanwhile, I live in a rented property myself. (of a more suitable type)
So I'm definately in the market to buy if and when things bottom out
peterchurch said:A fair point but do you think you would have any tenants if people could afford to buy?
Sp!ke said:Well my tennant isnt going anywhere.... in fact one could say she sits
If she left I would be chuffed to bits as I could double the rent
peterchurch said:If you get a crash all the tenants will be off to buy before the prices go up and landlords will be left fighting over the few tenants left in the market ...
sparkyspost said:Got to disagree with you there Peter.
If there is a crash, there won't suddenly be a stream of all the tennants looking to buy a house as like most people they will be scared that there is further to drop!
With a big demand to buy houses the market will rise.
Also not all tenants are interested or able to buy no matter the cost of houses. All would be interested in the effects of a house price crash as this would likely have the effect on their rent.
Sparky
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