House prices set to drop further

Maverick · House prices set to drop further

The Halifax warns that house prices will fall 9pc this year. Peoples biggest single purchase is set to lose even more money if you believe what the Halifax are predicting.

On a personal note, because I like where I live it doesn't really matter to me and also I bought my house at the right time before property prices started to rise, but there are many people out there who are likely to fall into negative equity.

Your views?

Penny

The same thing is happening over here, and personally I am welcoming this part of economic decline, as it means that now I might have some chance of purchasing a house before I reach sixty. lol! House prices have been astronomical here until recently meaning that people (me!) are just wasting money on rent since we can't get approved for such high mortgages.

Flakey Sugar Butt

^^ I totally agree about the 'dead money' on rent. I don't own a house and am a private renter because I don't earn enough to get a mortgage. I'd only get one for about £30,000. What would I buy with that? A posh shed? I reckon what I pay out in rent is almost as much as I'd have to repay on a mortgage each month so where's the logic? I'm almost 32 years old, and as things stand at the moment I can't see me ever being a homeowner.

Penny

^ Yeah, I'm in exactly the same position as you really. Throwing away all this money on rent really gets me down. I've been renting for ten years! I don't even want to think of the money I've spent on it! My rent is the same as I'd spend on a mortgage too. Depressing.

THD

Good. I might get a chance to spend my student income on food instead of renting when I go to Uni.

funkymonkey

It's crap that people are paying the equivalent of a mortgage payment in rent yet wont be offered a mortgage! That is fundamentally wrong and the market will have to collapse under that situation, it's inevitable.

Generally the oncoming recession is a bit depressing and it means a lot of bad things will happen to businesses and the price of every day stuff. But the house price collapse can only lead to a good thing as you can't maintain the ridiculous market as it is when there are no new buyers because they cant afford it, absolutely ridiculous.

On a side note I've been thinking of taking advantage of the plummetting US house prices and snagging myself a villa in Florida. Five bedroom, 4 bathroom villa with pool in gated community for £80k anyone??? They are giving them away, whole estates full of For Sale signs!!!!

Penny

^ Nice! I wouldn't mind that at all. Good luck with getting US residency, though!

clevelandspur

I have been saying I will stop renting for awhile and I was actually in a rent to buy situation with my last house. Sadly though I suck at saving money. Houses here are extremely low prices though I am confident by 30 I will have a house of my own (fingers crossed)